Excluded products become useful in scenarios where if a particular answer is selected, then certain products or specific variants should absolutely not be included in the final results.
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A useful example to think about are nutritional supplements and allergies. A supplement could be perfect for a customer's needs, however if it includes an ingredient that person is allergic to, then you absolutely do not want it to show up in your final results.

If you exclude a product (or a specific variant) from an answer, and that answer is selected when taking the quiz, the excluded product (or variant) will not be included in the results regardless of the match score it accrued throughout the quiz.
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Similarly, you can exclude entire collections from specific answers by linking them under the Excluded Products section of each answer.
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To make it easier to exclude large numbers of products all at once without having to manually link hem we've introduced an Exclude all other option.
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This will Exclude All Other Products, Variants & Collections (except the ones which are a positive match for this question).
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An example where this option might be useful is if you have specific products for various age ranges. Instead of manually linking all the other products in your store that are not a match for the age range, you can use Exclude all other to automate the process and do it in one click.
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Being excluded from a specific answers doesn't exclude a product from the quiz entirely. It can be set as a matched result to any other answers in your quiz.
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For anyone taking the quiz and not selected the specific answer its excluded from, the product will still be included in the results based on its match score.