Market basket analysis is a data mining technique used to understand the purchasing behavior of customers. It examines the items that are frequently bought together in a single transaction, helping retailers identify patterns and relationships between products. This analysis can reveal insights into customer preferences and inform marketing strategies. By analyzing transaction data, businesses can optimize product placement, create targeted promotions, and improve inventory management. For example, if bread and butter are often purchased together, a store might place them near each other or offer discounts on one when the other is bought.