Market basket
From Wikipedia, the free encyclopedia
- For the Texas and Louisiana grocery store chain, see Market Basket.
- For the New England grocery store chain, see DeMoulas' Market Basket.
The term market basket refers to a specific type of basket, or a fixed list of items used specifically to track the progress of inflation in an economy or specific market.
The most common type of the market basket is the basket of consumer goods, used to define the Consumer price index (CPI). 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 in the retail business refers to a research that provides the retailer with information to understand the purchase behaviour of a buyer. 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). For example, a certain store found out that when men went to buy beer, they often take diapers as well.
