Market basket analysis – a data mining application in Indian retailing

Abstract

Data mining has become a widely accepted process for organisations to enhance their organisational performance and gain a competitive advantage. Because the data mining process is a relatively new concept, it has been defined in various ways by various authors in the recent past. Data mining allows managers to make more knowledgeable decisions by predicting future trends and behaviours. One of the most widely used areas of data mining for the retail industry is in marketing. Market basket analysis is a marketing method used by many retailers to determine the optimal locations to promote products. The market basket is defined as an item set bought together by a customer on a single visit to a store. The market basketanalysis is a powerful tool for the implementation of cross-selling strategies. This article has defined market basket analysis as a data mining tool used to extract important information from existing data and enable better decision making throughout an organisation. This article specifically focuses on the application of market basket analysis a data mining tool in Indian retail industries.