Suppose you work at Costco or another major, national, big-box store, and you do a market- basket analysis and 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.

1. 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.


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