2 Questions
The correlation coefficient between the purchase of milk and apples is positive.
True
The market basket analysis suggests that buying bananas is a strong predictor of buying apples.
False
Study Notes
Market Basket Analysis
- Market basket analysis helps shops adjust their store layout and catalog by identifying which groups of customers are inclined towards certain products.
- It plays a crucial role in various areas, including:
- Customer analytics
- Product clustering
- Catalog design
- Store layout
Understanding Consumer Behavior
- Market basket analysis helps determine the likelihood of consumers buying certain products together.
- For example, a customer who buys milk is more likely to buy cheese and apples in the same transaction than someone who does not buy milk.
- This analysis helps shops understand consumer behavior and optimize their product placement accordingly.
Test your understanding of market basket analysis, a technique used to identify customer behavior and optimize store layout and catalog design.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
