Types of data
Choosing the right data
Choosing the right data means picking the type of market research data that suits the aim of the research and the decision the business needs to make. Market research data is usually quantitative (numbers) or qualitative (opinions, reasons and descriptions). Matching the type to the question means the results actually help the owner decide something.
Match the data to the question
If the business needs to know how many customers there are, how often they buy or how much they spend, quantitative data suits it, because the answer comes as a number the owner can count and compare. If the business needs to understand why customers think or behave in a certain way, qualitative data suits it, because the answer comes as reasons and opinions in the customers' own words.
| Decision the business needs to make | Data that suits it | Why |
|---|---|---|
| How many customers would use a new service? | Quantitative | The answer is a number the owner can weigh against cost |
| Why have some customers stopped coming back? | Qualitative | The answer is the reasons behind the behaviour |
| Should we change our prices and our opening hours? | Both | Needs the size of the demand and the reasons for it |
Worked example
A small bike repair shop is deciding whether to open on Sundays. Asking 300 past customers whether they would book a Sunday repair gives quantitative data: 78 say yes, so the owner can estimate the extra income Sundays might bring and compare it with the staff cost. That type suits this decision because a number is needed to weigh against a cost. Asking a few customers why they prefer certain days would give qualitative data, which suits a different aim.
Choosing a data type is not the same as choosing a research method, or as deciding whether data is primary or secondary; the type should follow from the aim. Time and budget still matter, so for a simple decision one type may be enough.