term rule association product what is
Meaning of product association rule. What is it: linked together for the purposes of cross-selling.

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Definition product association rule

PRODUCT ASSOCIATION RULE title: product association rule (CRM-MKT) (SAP Library - Glossary)
PRODUCT ASSOCIATION RULE category: Marketing (CRM-MKT)
PRODUCT ASSOCIATION RULE explained:

Rule describing the dependencies between products which are linked together for the purposes of cross-selling or up-selling/down-selling.

Cross-selling rules are defined in terms of the relationship between leading products and dependent products. A typical association rule could for example state that if a customer selects products A and B (leading products) then products C, D, and E (dependent products) are also to be proposed.

In the case of up-selling or down-selling, product association rules are created by ranking two or more products according to criteria such as price or profit margin.

Association rules can also include key figures like support and confidence which describe the significance or usefulness of the rule.

Association rules can be generated through data mining techniques by evaluating the sales relationships between products.

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