The term market basket or commodity bundle refers to a fixed list of items used specifically to track the progress of inflation in an economy or specific market. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time Economics is the social science that studies the production distribution, and consumption of goods and services.

The most common type of market basket is the basket of consumer goods, used to define the Consumer Price Index (CPI). The basket of consumer goods or consumer basket is the Market basket intended for tracking the prices of Consumer goods and services i CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer Other types of baskets are used to define

• Producer Price Index (PPI), previously known as Wholesale Price Index (WPI)
• various commodity price indices

The term market basket analysis in the retail business refers to research that provides the retailer with information to understand the purchase behaviour of a buyer. A Producer Price Index ( PPI) measures average changes in prices received by domestic producers for their output A Wholesale Price Index (WPI is the price of a representative basket of Wholesale goods A commodity price index is a fixed Mandan weight index or (weighted average of selected Commodity prices which may be spot or futures prices Affinity analysis is a data analysis and Data mining technique that discovers co-occurrence relationships among activities performed by (or recorded about specific individuals A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to This information will enable the retailer to understand the buyer's needs and rewrite the store's layout accordingly, develop cross-promotional programs, or even capture new buyers (much like the cross-selling concept). Cross-selling is defined by the Oxford English Dictionary as "the action or practice of selling among or between established clients markets traders etc An early illustrative example for this was when one super market chain discovered in its analysis that customers that bought diapers often bought beer as well, have put the diapers close to beer coolers, and their sales increased drastically. Although this is only an example that professors use to illustrate the concept to students, the explanation of this imaginary phenomenon might be that fathers that are sent out to buy diapers often buy a beer as well, as a reward. This kind of analysis is an example of the use of data mining. Data mining is the process of Sorting through large amounts of data and picking out relevant information A widely used example of cross selling on the web with market basket analysis is Amazon. Affinity analysis is a data analysis and Data mining technique that discovers co-occurrence relationships among activities performed by (or recorded about specific individuals com's use of "customers who bought book A also bought book B", e. g. "People who read History of Portugal were also interested in Naval History". Portugal is a European Nation whose origins go back to the Early Middle Ages. Naval history is the area of Military history concerning War at Sea and the subject is also a sub-discipline of the broad field of Maritime history

See also

• Market basket analysis

References

• DM Review article on Market basket analysis [1]