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09 November 2006

What is Basket Analysis ?

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Basket Analysis is a modelling technique based upon the theory that if you buy a certain group of items, you are more (or less) likely to buy another group of items. For example, if a couple aged between 25 and 35 buys some apparel for their own need, they will surely buy something for age group between 0 and 5.

The set of items a customer buys is referred to as an itemset, and market basket analysis seeks to find relationships between purchases.

Traditionally, the relationship will be in the form of a rule

The Customer here is a parent and will surely buy some articles for their kids. This is referred to as the support for the rule. The conditional probability that a customer will purchase kids articles is referred to as the confidence.

Nilesh Shah

A trained marketing and technology professional. Retail and Restaurant automation expert, his result oriented approach has enabled a considerable number of retail and restaurant businesses trim their costs, achieve higher profits and deliver superior customer service.

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