Tuesday, April 25, 2017

Regression Analysis to Determine Placement of Products in a Store

With regression analysis you can determine the relationship between two variables. SAS enterprise miner is a great tool to use for this. You can look at different variables and determine the expected confidence that someone buying one item would buy another item. This can be useful in establishing a store layout.

You could go about a store layout in two different ways:
1.     Put items that are likely bought together in the same aisle.
2.     Put items that are likely bought with another item spread throughout the store so that customers will actually walk throughout the entire store.


Ever wonder why fruit and vegetables are on the opposite end of a supermarket as dairy? This is because fruit, vegetables, and dairy are all common items that consumers buy when they make their weekly trip to the supermarket. Having these items on opposite end will drive someone to walk through the entire store, hopefully picking up other items along the way. It wasn’t just a coincidence. There was a strategy behind these grocery store layouts. It’s amazing what you can do with data. I bet you didn’t even realize that data could be used to shape a store layout!

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