MARKET BASKET ANALYSIS

In the business intelligence world, “market basket analysis” helps retailers better understand – and ultimately serve – their users by predicting their purchasing behaviors. In the retail and restaurant businesses, market basket analysis (MBA) is a set of statistical affinity calculations that help managers better understand – and ultimately serve – their customers by highlighting purchasing patterns. In simplest terms, MBA shows what combinations of products most frequently occur together in orders. These relationships can be used to increase profitability through cross-selling, recommendations, promotions, or even the placement of items on a menu or in a store. Market basket analysis uses association rule mining under the hood to identify products frequently bought together. Before we get into the nitty gritty of market basket analysis, let us get a basic understanding of association rule mining. It finds association between different objects in a set. In the case of m...