What is a market basket analysis?

The market basket analysis is based on the use of data mining techniques to analyze customer shopping data to find patterns and relationships between purchased products. This information can help a retail proposal on the spot or shopping premises of electronic trading. It can also be used to develop marketing campaigns. The rating can be expensive so it can only be used for popular items. To find activities such as purchases that occur simultaneously. A cluster analysis is a type of statistical technique that organizes raw data into categories and is often used for more complicated analysis. When evaluating market baskets, the sale of an item or group of items in relation to the sale of one or more other items or groups will be examined. The frequency applies to the number of customers to take a product A and B at the same time. Support is how many times products A and B have been purchased together in comparison with the total number of sales. The term of trust concerns the number of times the product A and B have been purchased together, compared to the number afterUze the product and was purchased.

For example, a swimsuit dealer can use a marketplace analysis to compare the sale of swimsuits with milk. The retailer finds that many of its customers are buying swimsuits and that these buyers often buy sunscreen. The results of this analysis can be used to organize their storage on site or in the field of electronic trading in a way that increases the chances that customers buy these related products. In the place on the site, next to the swimsuit can place the tanning creams. Suning cream can be listed as a related item in an electronic store store.

Although the market basket analysis is often used for items purchased at the same time and can also be used for purchases made for a number of time. The retailer may target advertising to take advantage of customer products in a particular order. For example, furniture tradeThe shadow that customers who buy cots and then buy a twin bed about two years later. Furniture store can get customer contact information and e -mail promotion for twin about 18 months after buying a crib.

Market basket analysis can be costly and difficult to implement when retailers have a large number of goods to analyze. To be the most effective retailers, they often focus their efforts on those items that have high support and high confidence. These items are likely to generate sufficient profit to enjoy the cost of analyzing.