Suppose you work at Costco or another major, national, big-box store, and you do

Question

Suppose you work at Costco or another major, national, big-box store, and you do a market-basket analysis. Identify the 25 pairs of items in the store that have the highest lift and the 25 pairs of items that have the lowest lift. What would you do with this knowledge? Costco (or your big-box store) doesn’t have salespeople, so up-selling is not an option. What else might you do with information about these items’ lift? Consider advertising, pricing, item location in stores, and any other factor that you might adjust. Do you think the lift calculations are valid for all stores in the United States (or other country)? Why or why not? Are the 50 pairs of products with the highest lift and lowest lift the best place to focus your attention? What other 50 pairs of products might you want to consider? Explain.

Explanation / Answer

First of all, the foremost things which must be done are the determination of various factors which can result in the classification of high lift and low life for example location, pricing, profit margin, quality, brand and popularity and so on. Along with this, we should also try to find out whether or not the efforts made by the store can help in changing the situation of low life material to high lift taking the volume, brand image of the product into account.

The greater emphasis should be given to the high margin products for uplifting as it will help the store to earn greater profits. The utility of information is a subjective matter. It will rely on the material type and various other elements. Usually, worldwide the information related to the lift is quite useful for the stores as by doing so the stores can concentrate more on high margin and high volume products.

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