Sometimes the customer is right and sometimes she isn’t.
In designing search algorithms, it is important to determine when a stated preference is real or just aspirational. Take Netflix’s experience, revealed in an interview with their algorithm gurus:
Why do I see so many three- or even two-star movies in my recommendations?
Gomez-Uribe: People rate movies like Schindler’s List high, as opposed to one of the silly comedies I watch, like Hot Tub Time Machine. If you give users recommendations that are all four- or five-star videos, that doesn’t mean they’ll actually want to watch that video on a Wednesday night after a long day at work. Viewing behavior is the most important data we have.
Amatriain: We know that many of the ratings are aspirational rather than reflecting your daily activity.
Gomez-Uribe: A lot of people tell us they often watch foreign movies or documentaries. But in practice, that doesn’t happen very much.
It’s important in getting a stated preference to know whether someone is telling you what they want or what they think they are expected to want.
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