Shopping expenditure basket study helps to understand expenditure in value terms and usage of that product category by volume by households. A shopping expenditure basket study is characterized as what a household unit requires so as to meet their basic needs, on a standard or regular basis, and its normal cost.
Benefits of shopping expenditure basket study:
o It helps Large format retail chains to plan their offerings to their catchment.
o Businesses use the data as an indicator of the performance of the economy.
o It allows businesses serving consumers to compare price changes for products and services they sell with those in the broader economy.
The following pie chart helps to understand the distribution of the monthly expenditure by household. This gives you an idea on which product category the company needs to focus.
The following chart helps to understand expenditure in terms of usage of that product category by the household. This provides information about which product category is important for the consumer and how much is he spending on that product category.