A simulated online shopping environment with a recommender system based on collaborative filtering data has been developed to empirically test the impact of recommendation agents in an online retail environment. The report provides some background for the most widely used types of recommender system based on collaborative filtering. The Movie Magic system developed for this study is described, as well as the experiment assessing the impact of such an agent on product promotion effectiveness, customer satisfaction with the website, and customer loyalty to the website. Finally, the report discusses the implications of the results for system developers and managers interested in using Intelligent Agent technology for enhancing e-commerce. By corroborating the proposed relationships between the use   the recommender agent and improved product promotion, customer satisfaction and loyalty, the results should aid online businesses in further understanding the benefits and limitations of using a recommender agent to support e-commerce