What is Market Basket Analysis in Retail? Explained

Market Basket Analysis is a data analysis technique that examines customer purchase patterns to identify relationships between products frequently bought together. By analyzing transaction data, retailers can uncover associations between items and understand the likelihood of certain products being purchased in combination. This information is valuable for optimizing product placement, cross-selling, and creating targeted promotions. Market Basket Analysis is often employed in conjunction with data mining and machine learning techniques to extract meaningful insights, enhance the customer shopping experience, and inform strategic merchandising decisions.