What does sequence analysis include that market basket analysis does not?

Sequence analysis is characterized by its focus on the order in which events or transactions occur over time. This aspect allows for the examination of patterns and changes in behavior throughout a series of events, incorporating the time dimension into the analysis. By considering the time between actions, such as purchases, sequence analysis can reveal trends, predict future behaviors, and understand how past events influence subsequent actions.

In contrast, market basket analysis primarily concentrates on analyzing a set of transactions to identify associations between items purchased together, without regard to the order of those transactions. It examines the frequency and co-occurrence of products within transaction data rather than the sequence or timing of these purchases.

The inclusion of a time dimension in sequence analysis is crucial for understanding customer behavior, such as identifying which products are purchased first before others, how frequently certain actions occur over time, and how behaviors evolve. This aspect is what distinctly sets sequence analysis apart from market basket analysis.