What does market basket analysis aim to achieve?

Market basket analysis primarily aims to understand how items are bought in combination. This analytical technique is used in retail to find patterns and correlations within customer purchase data. By identifying which items are frequently purchased together, businesses can make informed decisions regarding product placements, promotions, and cross-selling strategies.

For example, if analysis shows that customers who buy bread often also buy butter, a store might place these items closer together or create special promotions that encourage this combination. The insights gleaned from market basket analysis help enhance customer experiences by anticipating needs and increasing sales through strategic merchandising.

Identifying trends in customer transaction histories, pricing strategies, or future market trends are important aspects of data analysis but do not capture the specific focus of market basket analysis, which is centered on the relationships between purchased items.