Question: Explain market basket analysis and uses of it.
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What is Market basket analysis? Explain its use.

Marks: 10 M

Year: May 2014, May 2013

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modified 3.3 years ago  • written 3.3 years ago by gravatar for Sayali Bagwe Sayali Bagwe2.1k
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  • Market basket analysis is an analysis conducted to determine which products the customer purchases together.
  • Market basket analysis is a mathematical modeling technique based upon the theory that if u buy a certain group of items you are likely to buy another group of items.
  • Frequent item set mining leads to the discovery of associations and correlations among items in large transactional or relational data sets.
  • With massive amounts of data continuously being collected and stored, many industries are becoming interested in mining such patterns from their databases.
  • The discovery of interesting correlation relationships among huge amounts of business transaction records can help in many business decision-making processes.
  • A typical example of frequent item set mining is market basket analysis.
  • This process analyzes customer buying habits by finding associations between the different items that customers place in their “shopping baskets”
  • The discovery of such associations can help retailers develop marketing strategies by gaining insight into which items are frequently purchased together by customers.
  • market basket analysis may help you design different store layouts.
  • In one strategy, items that are frequently purchased together can be placed in proximity in order to further encourage the sale of such items together.
  • In an alternative strategy, placing hardware and software at opposite ends of the store may entice customers who purchase such items to pick up other items along the way
  • Market basket analysis can also help retailers plan which items to put on sale at reduced prices.

Eg:

Tid Items
01 a c d f g i m p
02 a b c f l m o
03 b f h j o
04 b c k p s
05 a c e f l m n p

FREQUENT ITEMSET

Given a support threshold of 3 frequent itemsets are :

A 3
B 3
C 4
F 4
M 3
P 3
Ac 3
Af 3
Am 3
Cf 3
Cm 3
Cp 3
Fm 3
Acf 3
Acm 3
Afm 3
Cfm 3
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modified 3.3 years ago  • written 3.3 years ago by gravatar for Sayali Bagwe Sayali Bagwe2.1k
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