Association Rules and the Apriori Algorithm

Algobeans

The Problem

When we go grocery shopping, we often have a standard list of things to buy. Each shopper has a distinctive list, depending on one’s needs and preferences. A housewife might buy healthy ingredients for a family dinner, while a bachelor might buy beer and chips. Understanding these buying patterns can help to increase sales in several ways. If there is a pair of items, X and Y, that are frequently bought together:

Tesco Pic (edit).png Product placement in Tesco, UK.

  • Both X and Y can be placed on the same shelf, so that buyers of one item would be prompted to buy the other.
  • Promotional discounts could be applied to just one out of the two items.
  • Advertisements on X could be targeted at buyers who purchase Y.
  • X and Y could be combined into a new product, such as having Y in flavors of X.

While we may know that…

View original post 1,423 more words

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One thought on “Association Rules and the Apriori Algorithm

  1. Annalyn Ng says:

    Thanks Naveen, glad you found it useful 🙂

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