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Finding Patterns – Market Basket Analysis Using Association Rules

Think back to your last impulse purchase. Maybe in the grocery store checkout lane, you bought a pack of chewing gum or a candy bar. Perhaps on a late-night trip for diapers and formula, you picked up a caffeinated beverage or a six-pack of beer. You might have even bought this book on a bookseller’s recommendation. These impulse buys are no coincidence, as retailers use sophisticated data analysis techniques to identify useful patterns for marketing promotions and driving upselling via product placement.

In years past, such recommendations were based on the subjective intuition of marketing professionals and inventory managers. Now, barcode scanners, inventory databases, and ...

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