Research Topics:

Data Analysis

Content Type:

Glossary

Average Definition

A vague term which usually refers to the (arithmetic) mean but can also signify the median, the mode, the geometric mean and weighted means, among other things.

Average represents the central, or middle, value of a set of numbers. It is calculated by adding the numbers in a data set, then dividing by the number of data points. In marketing research, determining the average makes interpreting trends easier because it signifies the midpoint between extreme values. That said, it’s valuable to keep the outliers of the data sets in mind when making decisions. Companies use averages to determine where they stand in their industries and what they need to do to get about the midpoint.

Who relies on an average?

Among the entities that use averages in their industries are analysts, marketers, product managers and decision makers. They all rely on the calculation to determine overall trends and tendencies in their markets and to figure out tendencies in customer behavior.

Why should I care about an average?

Because averages offer a glimpse of what is typical or expected within markets or consumer groups, possessing an understanding of averages is vital in marketing research.. Averages provide a snapshot of the central behavior, as well as information for goal-setting, planning and assessment.