market basket
American Heritage Dictionary:
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market basket
n.
- A grocery cart.
- A group of products or services in a specific market, especially when considered in terms of its fluctuating cost in determining a consumer price index: "The CPI measures the average price change over time of a fixed market basket containing more than 200 goods and services" (Teresa Tritch).
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market basket
Barron's Business Dictionary:
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market basket
Combination of goods, in statistically derived proportions, used to track price changes. It is used in such indicators as the consumer price index (cpi) , and the PRODUCER PRICE INDEX (PPI).
| Market Analysis, Market, Markdown | |
| Market Capitalization, Market Comparison Approach, Market Demand |
Investopedia Financial Dictionary:
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Market Basket
A subset of products or securities that is designed to mimic the performance of an overall market. Market baskets contain a fixed selection of items, which are used to track such things as inflation, prices or performance levels.
Investopedia Says:
For investors, the market basket is the principal idea behind index funds. A sample of stocks, bonds or other securities are placed in a portfolio that is expected to represent all aspects of the market. This provides investors with a benchmark against which to compare their investment returns.
Another popular market basket relates to the Consumer Price Index (CPI), which tracks a variety of consumer goods. The CPI looks at the price levels of consumer products and provides an estimate for inflation.
Related Links:
Get to know the most important market indices and the pros and cons of investing in them. Index Investing
Indexes can track market trends, but they're not always reliable. Can you trust them? The ABCs Of Stock Indexes
As a measure of inflation, this index can help you make key financial decisions. The Consumer Price Index: A Friend To Investors
Find out why economists are torn about how to calculate inflation. Why The Consumer Price Index Is Controversial
These tools put the market (and any evaluations) in your hands. Economic Indicators For The Do-It-Yourself Investor
If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you. Fundamentally Weighted Index Investing
Wikipedia on Answers.com:
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Market basket
For the Texas and Louisiana grocery store chain, see Market Basket. For the New England grocery store chain, see DeMoulas' Market Basket.
The term market basket or commodity bundle refers to a fixed list of items used specifically to track the progress of inflation in an economy or specific market.
The most common type of market basket is the basket of consumer goods, used to define the Consumer Price Index (CPI). Other types of baskets are used to define
- Producer Price Index (PPI), previously known as Wholesale Price Index (WPI)
- various commodity price indices
The term market basket analysis in the retail business refers to research that provides the retailer with information to understand the purchase behaviour of a buyer. This information will enable the retailer to understand the buyer's needs and rewrite the store's layout accordingly, develop cross-promotional programs, or even capture new buyers (much like the cross-selling concept). An apocryphal early illustrative example for this was when one super market chain discovered in its analysis that customers that bought diapers often bought beer as well, have put the diapers close to beer coolers, and their sales increased dramatically. Although this urban legend is only an example that professors use to illustrate the concept to students, the explanation of this imaginary phenomenon might be that fathers that are sent out to buy diapers often buy a beer as well, as a reward. This kind of analysis is supposedly an example of the use of data mining. A widely used example of cross selling on the web with market basket analysis is Amazon.com's use of "customers who bought book A also bought book B", e.g. "People who read History of Portugal were also interested in Naval History".
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Copyrights:
American Heritage Dictionary
The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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Investopedia Financial Dictionary
Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved.
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Mentioned in
Price Index
(business term)
Real Income
(business term)
Consumer Price Index (CPI)
(insurance term)
Demoulas Super Markets Inc.
(Private Company)
Consumer Goods
(finance term)
» More