Research Topics:

Data Analysis | Decision Research Consultation | Pricing Research

Content Type:

Glossary

Central Tendency Definition

The tendency of scores in a frequency distribution to cluster around a central value.

Central tendency is the measure indicating the average value of a set of data points. It helps identify the typical or representative value within a data set. Scores in a frequency distribution tend to cluster around a central value. Common measures of central tendency include the mean, median and mode. These metrics provide insights into the trend and distribution of data. In marketing research, central tendency ensures that strategies are based on representative data points, not outliers or exceptional cases. This means that strategies align with the preferences of the broader customer base. Additionally, central tendency supports effective resource allocation and budgeting by providing a picture of the average market response.

Who relies on the central tendency?

Central tendency is used by marketing professionals, analysts and market researchers to understand customer preferences, market trends and consumer behavior. What’s more, businesses, marketing agencies and product developers value the central tendency to make decisions about product strategies and target audience preferences.

Why should I care about the central tendency?

Central tendency is key for making data-driven decisions. It uncovers insights about the average customer behavior, which can be utilized to tailor marketing campaigns, product development and pricing strategies.