Association Rules for Market Basket Analysis

Abstract

Many firms compile records of customer transactions. These data sets take diverse forms including products that are purchased together, services that are tracked over time in a customer relationship management (CRM) system, sequences of visits and actions on a Web site, and records of customer support calls. These records are very valuable to marketers and inform us about customers’ purchasing patterns, ways in which we might optimize pricing or inventory given the purchase patterns, and relationships between the purchases and other customer information.