Implementation of Market Basket Analysis based on Overall Variability of Association Rule (OCVR) on Product Marketing Strategy

Abstract

Marketing strategy is an important thing that must be developed by retail. A method that can be used to develop a marketing strategy based on customer buying pattern is Association Rule (AR). AR is the process of finding association relationships between products that occur in one transaction. The application of AR to analyze custumer buying patterns is referred to as Market Basket Analysis (MBA). Rule obtained from ARMBA is sometimes not enough to provide an analysis when the variability of costumer buying pattern is high. Overall Variability of Association Rule (OCVR) is an indicator that focuses on analyzing market basket which assumes high variability in custumer behavior in buying products. This study used custumer transaction data of a retail in Yogyakarta. The data consisted of 57784 transactions in a month involving 41248 items. This study produced rules for each period (weeks), then the rules were used for further analysis using OCVR. 59 rules produced on the 1st period, 48 rules on the 2nd period, 54 rules on the 3rd period, and 58 rule on the 4th period. From the rules obtained there were 17 rules have OCVR value smaller than 30%, thus these rules can be used to make marketing strategies. Product bundling and shelves product arrangement based on obtained rules were proposed as marketing strategies to promote product sales.