A product network analysis for extending the market basket analysis

In this study, we propose a product network analysis, a network-based analysis to analyze a network-leveled relation among all products. Compared to market basket analysis, which focuses on the transaction-leveled relation between products, the suggested product network analysis focuses on extended network-leveled point of view of the relation between all products. For such a purpose, we suggest two kinds of product networks, market basket networks and co-purchased product networks. Two networks are comparatively evaluated to analyze the topological characteristics and the structure of those networks. The extended use of market basket analysis, network-leveled analysis are expected to be more effectively and efficiently used in personalized services, such as cross selling, up selling, and personalized product display utilizing the deep relation between products.

► Co-purchased product networks and market basket networks are suggested to expand the concept of market basket analysis.
► Two networks are evaluated to analyze the topological characteristics of networks.
► We found that bestsellers do not necessarily occupy centrality in network.
► Products purchased with other ones all the time are not necessarily bestsellers.
► And products with higher centrality are found to be effective in sales promotion and increase sale volumes.