Final answer:
Amazon uses a recommendation algorithm based on collaborative filtering to suggest products on its 'People who bought this, also bought...' section, which analyzes purchasing patterns of customers to generate personalized recommendations.
Step-by-step explanation:
The "People who bought this, also bought..." recommendations you see on Amazon are generated by a complex recommendation algorithm. These algorithms use a method known as collaborative filtering, which analyzes past purchasing behavior from a vast user base to predict which products new customers might be interested in based on items they've already chosen. This system considers the preferences and buying patterns of similar users and subsequently suggests additional items that those users have purchased or shown an interest in.
An example of how this works could be: if customers A and B both bought books X and Y, and customer A also bought book Z, the algorithm may suggest book Z to customer B. Thus, the system identifies patterns and provides personalized recommendations.