Glossary /
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.

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