Market Basket Analysis

Market Basket Analysis

A data mining tool used to identify patterns of items frequently purchased together by analyzing transaction data from a retail setting.

Also known as association analysis or frequent itemset mining, this technique discovers the strength of relationships between various products within a customer’s shopping basket. By understanding these patterns, retailers gain insights into consumer purchasing behavior, allowing for strategic product placement, promotional strategies, and inventory management. Market basket analysis helps retailers enhance cross-selling opportunities by keeping frequently co-purchased items readily available or positioned to encourage additional sales.

Related Terms

Promotion Effectiveness

Refers to the degree to which a promotional marketing campaign successfully achieves its intended objectives, such

Product Variants

A specific version of a ‘master’ product that is differentiated by one or more attributes, such

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same