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What is Market Basket research?
An analysis of a household's retail purchases based on the items
bought during each shopping trip. This research is usually conducted utilizing
frequent shopper (loyalty) card data to track purchase trends per
household over time.
Market Basket research provides value to the Manufacturer by creating an understanding of:
- The purchase behavior of a buyer of a specific product or product line (category)
- How often a buyer shops
- How much a buyer spends
- How often a specific product is bought
- How many of a specific product are bought during a shopping trip?
- What other products are bought when a specific item is purchased?
- How does a frequent buyer compare to an occasional buyer?
- What competitive/complimentary items are purchased?
- What departments of the store are shopped?
- The purchase behavior of the non-buyer of a specific product or product line (category)
- How the shopping behavior of the non-buyer of a specific product compares to that of the buyer
- How much does the non-buyer spend versus the buyer?
- How often does the non-buyer shop versus the buyer?
- Does the non-buyer purchase competitive products?
- What departments of the store does the non-buyer frequent?
- The demographic profiles of the buyer and non-buyer of a specific product
- Age
- Income
- Education
- Family Size
- The actionability of the Market Basket data
- Increases response to point-of-sale promotion offers by better capitalizing on buyer behavior
- Identifies opportunities among non-buyers for conversion offers
- Locates other product placement opportunities based on buyer behavior
- Develops cross-promotion programs with related products/categories
- Improves in-store product mix based on purchase patterns
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