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How to use trend analysis in research?

Trend analysis in research

A relationship between two quantitative entities is established using trend analysis. The future of this relationship is set on the basis of the trend in the past and thus known as trend analysis. Businessmen get a fair idea about the future market trends with such an analytical research strategy.

Leading with data from the past is a concrete way of going ahead with the business and that’s exactly what trend analysis does. An accumulated statistical data is to be followed to a level of saturation, which indicates it’s high time to analyze newly recorded data. Trend analysis in research can get you the insights you need for better decision-making and business planning.

Applications of trend analysis in research:

The market direction will drive the trend which can either rise or fall. If the market is headed towards a particular direction, logically, the trend analysis in research will suggest that the longer the market moves in that direction, the better it is to set a trend.

Comparing the statistical historical data and predicting what the future market response is going to be like will set the ball rolling for the market. Loads and loads of research go into establishing the factor which determines that if there’s profit in the market, it will sustain for X amount of time. The application of trend analysis in research can also be used to understand whether a trend will set another trend in momentum.

The drawback of this is that even if you put tremendous time and effort into calculating humongous historical statistics and data, it can’t be assured that this data will give you accurate results but is definitely helpful in strategizing and better/informed decision making.

Thorough trend analysis in research can lead to trustworthy and reliable conclusions rather than mere assumptions. Such insights help us connect the dots and thereby help conclude the factor that will affect consumer behavior in the near future. It isn’t a future prediction tool, it’s an effective tool for analysis and for creating a plan of what the future holds for the organization by analyzing the consumer behavior over a defined period to understand their future behavior over a timeline.

Effective trend analysis in research will give you an idea about new entries in the market and can be a guide to strategizing a plan to maintain market position or improve it. Expansion of business can happen on the basis of this trend analysis as well. Understanding the factors affecting your market position becomes easy by adopting trend analysis for a business’s market research.

Looking for making informed decisions, planning optimistically, strategizing better than your competitors? Look no further! Leverage a powerful market research survey software to implement trend analysis in your research and get the best results.  

Learn More: Market Research Survey Software

Learn about the various market research techniques:

  • Quantitative Market Research
  • Qualitative Market Research
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About the author
Adi Bhat
Aditya Bhat, a.k.a. ‘Adi’, is a thought leader in market strategy and business development. He leads QuestionPro's sales teams to partner with companies, government organizations, and nonprofit institution.
View all posts by Adi Bhat

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