Layout Optimization and Promotional Strategies Design in a Retail Store based on a Market Basket Analysis


Layout Optimization and Promotional Strategies Design in a Retail Store based on a Market Basket Analysis
Published in:	Engineering Innovations for Global Sustainability: Proceedings of the 14th Latin American and Caribbean Conference for Engineering and Technology
Date of Conference:	July 20-22, 2016
Location of Conference:	San Jose, Costa Rica
Authors:	Jonathan Bermúdez Kevin Apolinario Rodríguez Andrés G. Abad
Refereed Paper:	#307

Abstract: Retail transactional data is a rich source of information offering new dimensions for company’s competition. The challenge is to turn data into useful insights with business value. One widely used technique for analyzing transactional data is Market Basket Analysis (MBA), which is a data mining technique that studies what customers’ are buying together. Thus, MBA is a contingency study and not a correlation analysis. In this paper we present a case study for analyzing retail transactional data using MBA and use the results as a prescriptive model for sell floor optimal design and for guiding the design of related in-store promotional strategies.