Example – identifying frequently purchased groceries with association rules
As noted in this chapter's introduction, market basket analysis is used behind the scenes for the recommendation systems used in many brick-and-mortar and online retailers. The learned association rules indicate the combinations of items that are often purchased together. Knowledge of these patterns provides insight into new ways a grocery chain might optimize the inventory, advertise promotions, or organize the physical layout of the store. For instance, if shoppers frequently purchase coffee or orange juice with a breakfast pastry, it may be possible to increase profit by relocating pastries closer to coffee and juice.
In this tutorial, we will perform a market basket analysis of transactional data from a grocery store. However, the techniques could be applied to many different types of problems, from movie recommendations, to dating sites, to finding dangerous interactions among medications. In doing so, we will...
