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me, how do they know what i want to buy, number one, and what if i decide in the end i don t want to buy that? so it s called predictive. one part of the algorithm is predictive analysis. they know what you re going to be buying. they already know your buying behavior. for instance, you were telling me before that you order spaghetti. not for me. for my kids. you have it three times a day. so if they already know you ve ordered it six times over the past nine weeks already, they re going to get the product staged. they re going to get it geographically near you. the moment you re about to purchase it, they re going to estimate it and ship it to you. what difference does that make, really? i m an amazon prime member. pretty much i get my stuff in one or two days anyway. what about the cost? so what if i decide suddenly i like spaghetti-os with franks now? everyone wants things instantly. if you want them within 24 hours, you need to have them
gap. reporter: with one new technology they can even anticipate what you might want. that s cakeo, a cupcake store in san francisco trying out tech built by a company called index. it helps retailers target products to you based on your taste. if you like red velvet, you probably like cream cheese as well as cocoa cake and we would recommend the pumpkin cheesecake. we looked to amazon as the backbone for a lot of things we ve done. a lot of it has to do with their ability to recognize who you are. reporter: they want to bring that experience offline. offline retailers need to be able to recognize you really on any channel you engage with them, whether it be online, social or in-store. reporter: the technology which you opt into is baked into their payment system to collect your buying behavior. it s also integrated into a store s app so you ll get push notification when you enter the store. it will say, welcome back, mark. it might suggest a new product. maybe provide you
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