Karl Ho
School of Economic, Political and Policy Sciences
University of Texas at Dallas
Source: HKP Figure 6.1
Market basket analysis is a process that looks for relationships of objects that “go together” within the business context. In reality, market basket analysis goes beyond the supermarket scenario from which its name is derived. Market basket analysis is the analysis of any collection of items to identify affinities that can be exploited in some manner.
- Doshin 2013
Examples:
Examples:
Customer retention. When customers contact a business to sever a relationship, a company representative may use market basket analysis to determine the right incentives to offer in order to retain the customer’s business.