ASSOCIATION ANALYSIS

ASSOCIATION ANALYSIS

1. OBJECTIVE

   • to determine which items co-occur frequently within a database

2. WHAT?

   • is a data mining technique that looks for co-occurrences among a set of items.

3. = Market basket analysis

   • a technique that generates probabilistic statements
     • Such statements are intuitive and easy to understand
       • EG.
         • if customers purchase coffee, there is a 0.35 probability that they also purchase bread
       • Why is these prob. statements helpful?
         • EG. to a supermarket manager
           • Prob. State. Eg. : diapers and beer are often purchased together
             • Eg. : Placing the two products within close proximity may further encourage purchases of these two products together in single visits to the supermarket.
               • In Product arrangement, Shelf space planning
             • Eg. Good idea to give a discount on diapers and pull in sales of beer
               • In planning of discounts, In effective implementation of product promotion strategies

4. AA shows the items that co-occur frequently from a customer transactions database

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