Basket Analysis
A data mining technique that identifies products frequently purchased together in the same transaction.
Full Definition
Basket analysis, also known as market basket analysis, examines transaction-level data to uncover associations between products that customers tend to buy simultaneously. Retailers use these insights to inform shelf placement, cross-selling strategies, and promotional bundling. The technique relies on association rule mining algorithms such as Apriori. Results are typically expressed through metrics such as support, confidence, and lift. Editors should note the term is always 'basket analysis,' not 'cart analysis,' in formal retail analytics reporting.
Usage
Usage note: Do not hyphenate as 'basket-analysis' when used as a noun; hyphenation is acceptable only when used as a compound modifier before a noun (e.g., 'basket-analysis results').
In Context
- "The basket analysis revealed that customers who purchased nappies on Friday evenings were highly likely to also buy beer." — Retail analytics report
- "Running a basket analysis on Q4 transaction logs helped the team redesign the seasonal gift aisle layout." — Business intelligence presentation