What is the focus of market basket analysis?

Market basket analysis is primarily concerned with understanding the patterns of product purchases. This analytical technique aims to identify which items are frequently purchased together by customers during a shopping transaction. By analyzing transaction data, businesses can uncover associations between different products, leading to valuable insights such as cross-selling opportunities, product placement strategies, and promotional planning.

For example, if market basket analysis reveals that customers who buy bread often also purchase butter, the retailer might decide to place these items closer together in the store or offer combined discounts to encourage higher sales. This focus on purchasing patterns is critical for improving customer experience and optimizing inventory management, which ultimately drives sales and enhances profitability.

The other options focus on aspects that do not directly pertain to purchasing patterns, like demographic data or employee assessments, which are more relevant to market segmentation or human resources rather than market basket analysis itself.