By Kardi Teknomo, PhD .

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You may often see these kinds of words in many web sites: Customers who bought this item also bought ..., Browse related titles..., or Explore similar items. The suggested items are derived association of the item that you currently see. For example, people who buy bread and cheese may also buy butter, jam, milk and honey. People who buy cold medicine frequently will also buy tissue and orange juice. Knowing the associations of purchase between various items is very important in business for product promotion, cross-selling and product placement.

How such association above is computed? This tutorial will introduce you to Market Basket Analysis through step by step demonstration on a spreadsheet (MS Excel) where you can learn to discover association rules from transaction data of a store. The spreadsheet companion of this tutorial can be downloaded here .

What is Market Basket Analysis ?

Spreadsheet Computation of Market Basket Analysis

Generating All Possible Association Rules

Computing Support and Confidence

Filtering Association Rules

Characteristics of Market Basket Analysis

Cautions with Market Basket Analysis

Applications of Market Basket Analysis


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