Analysis of Market Research Data

Quantitative and qualitative data

Quantitative and qualitative data

• Once market research data has been gathered, it need to be converted into a form which is easy to understand and capable of being used to support business decision-making

• Quantitative data is statistical numeric data that can be used to support decision making

  • Quantitative data needs to be accurate and interpreted correctly if it is to be useful

  • It may be collected from primary or secondary sources

  • Sources of quantitative data include

    • Financial reports

    • Survey findings

    • Marketing or sales data

    • Statistical research from the government or research organisations

• Qualitative research data often requires considerable skill and insight to be interpreted appropriately

  • It involves comparing and drawing conclusions from opinions, insights, feelings and preferences

  • It is mainly collected from primary sources such as focus groups, detailed surveys/interviews and test marketing

• Both forms of data can help business managers forecast sales, identify trends and make decisions about product development, promotional planning, pricing tactics and other important marketing mix elements

Analysis of graphs and charts

Analysis of graphs and charts

• Information presented in graphs and charts is often easy to understand because it is presented visually

• Common methods of presenting data include:

  • Tally charts

  • Bar charts

  • Pie graphs

  • Scatter graphs

Tally charts

• A table or tally chart, is a simple method used to record data in its original form

  • It is particularly useful for recording frequency of an event as it is happening

    • E.g., It may be used to record the number of customers entering a retail store

  • Each time a particular event happens, a small vertical line is drawn

    • Groups of five occurrences are recorded with a diagonal line through four vertical lines 

    • These groups of five can be easily totalled to identify frequency

• In many cases, tally chart data is converted into a chart or graph to make it more visually appealing

Bar charts

• This bar graph provides a clear picture of umbrella sales between January and April and allows a manager to compare sales month by month

Pie charts

• This pie chart breaks down all umbrella sales into those achieved by different models

• It shows that more than half of sales were 'Ultra' umbrellas

Scatter graphs

• Scatter graphs allow relationships between two variables to be identified

• The scatter graph below shows that there is a positive correlation between temperature and sales of barbecues

  • As the temperature increases, sales of barbecues increase

• A line of best fit allows known data to be extrapolated to identify likely sales of barbecues at other temperatures