From Matrix Factorization Techniques for Recommendor Systems:
"Modern consumers are inundated with choices. Electronic retailers and content providers offer a huge selection of products, with unprecedented opportunities to meet a variety of special needs and tastes. Matching consumers with the most appropriate products is key to enhancing user satisfaction and loyalty. Therefore, more retailers have become interested in recommender systems, which analyze patterns of user interest in products to provide personalized recommendations that suit a user’s taste. Because good personalized recommendations can add another dimension to the user experience, e-commerce leaders like Amazon.com and Netflix have made recommender systems a salient part of their websites."
"matrix factorization models are superior to classic nearest-neighbor techniques for producing product recommendations, allowing the incorporation of additional information such as implicit feedback, temporal effects, and confidence levels"