1. Can we use the Market Basket Analysis model to identify the key associations of customer purchases?
2. This study aims to prepare data and use the Market Basket Analysis model to analyze customers' purchases and identify the key associations, providing recommendations.
1. The Market Basket Analysis is a modeling technique used by retailers to increase sales by better understanding customer purchasing patterns. The Market Basket Analysis analyzes the data set such as purchase transactions history to reveal product groupings and products likely to be purchased together.(TechTarget 2021) In Market Basket Analysis, association rules are used to predict the likelihood of products being purchased together. Associations rules count the frequency of items that occur together, finding association that occurs far more often than expected.(TechTarget 2021)
2. Transaction in the Dataset like list of purchase items in one transaction as follows:
i. Apple Lightning to Digital AV Adapter
ii. TP-Link AC1750 Smart WiFi Router
iii. Apple Pencil
The underlying assumption in Market Basket Analysis is that joint occurrence of two or more products in most baskets implies that these products are complements in the purchase. Therefore, the purchase of one goes lead to the purchase of others; in this study. (WordPress 2021)
Towards Data Science. (2021, November 17) Market Basket Analysis. [Web Site]. Retrieved from https://towardsdatascience.com/market-basket-analysis-on-online-retail-data-24ee7214a762
TechTarget. (2021, November 17) Market Basket Analysis. [Web Site]. Retrieved from https://searchcustomerexperience.techtarget.com/definition/market-basket-analysis
WordPress. (2021, November 17) Market Basket Analysis. [Web Site]. Retrieved from https://sarahtianhua.wordpress.com/portfolio/market-basket-analysis/