Product analytics with market basket analysis
The classic example of market basket analysis is that researchers have found that customers who buy diapers tend to buy beer as well. Although beer and diapers seem too distant items to go together, this finding shows that there are hidden associations between different products that we can find from data. The goal of market basket analysis is to find these hidden relationships between products and efficiently arrange for or recommend the products to customers. Market basket analysis helps answer questions like the following:
- Which products should be recommended to customers who are buying product X?
- What products should be close together in the store so that customers can easily find the products that they want to buy?
To answer these questions, association rules of the market basket analysis should be found. An association rule, simply put, shows how confidently or significantly an itemset occurs in a transaction...
