Market Basket Analysis

Abstract

Market basket analysis scrutinizes the products customers tend to buy together, and uses the information to decide which products should be cross-sold or promoted together. The term arises from the shopping carts supermarket shoppers fill up during a shopping trip. The rise of the Internet has provided an entirely new venue for compiling and analyzing such data. This chapter discusses the key concepts of ``confidence,'' ``support,'' and ``lift'' as applied to market basket analysis, and how these concepts can be translated into actionable metrics and extended.