In market basket analysis, what type of products are identified?

In market basket analysis, the primary focus is on identifying products that customers frequently purchase together. This technique is utilized in various retail and e-commerce contexts to understand consumer behavior and to enhance marketing strategies. By analyzing transaction data, businesses can discover associations between different items; for example, if customers who buy bread often also buy butter, these two products are identified as being frequently purchased together.

This information is valuable for several reasons. It allows retailers to optimize product placement within stores, create effective cross-promotions, and tailor marketing strategies that target specific consumer preferences. The insights derived from market basket analysis help in inventory management and can lead to increased sales through bundled offerings or targeted advertising.

In contrast, the other options do not accurately describe the focus of market basket analysis. Products that are rarely purchased or new products launched are less relevant in understanding purchasing patterns among existing customers. Similarly, while high-profit margin products can be important for overall profitability, market basket analysis specifically looks at the co-occurrence of purchases rather than the profitability of individual products.