What is a similarity score?
Definition: A similarity score compares two products across multiple dimensions: feature similarity, price similarity, sales performance similarity (based on sales units) over the last 13 weeks or 3 months, product age and the extent to which products are available in the same shops (weighted distribution overlap).
Context: This score provides an overall assessment of how similar two products are in the marketplace, taking into account not only their features but also their pricing strategies and sales outcomes over a recent period.
Example: A similarity score of 79% indicates that the products are highly comparable across features, price, and performance, suggesting they target similar customer segments and market needs.