Motivation applications(2) Originally for marketing to understand purchasing trends What products or services customers tend to purchase at the same time or later on? Use market basket analysis to plan Coupon and discounting Do not offer simultaneous discounts on beer and diapers if they tend to be bought together Discount one to pull in sales of the other Product placement a Place products that have a strong purchasing relationship close together Place such products far apart to increase traffic past other Items4 ◼ Originally for marketing to understand purchasing trends. ◼ What products or services customers tend to purchase at the same time, or later on? ◼ Use market basket analysis to plan: ◼ Coupon and discounting: ◼ Do not offer simultaneous discounts on beer and diapers if they tend to be bought together. ◼ Discount one to pull in sales of the other. ◼ Product placement. ◼ Place products that have a strong purchasing relationship close together. ◼ Place such products far apart to increase traffic past other items. Motivation & Applications (2)