Research Topics:

Marketing Research-General | The Business of Research

Content Type:

Glossary

Contingency Definition

The difference between an actual frequency and an expected frequency in a table.

Contingency refers to the recognition and analysis of potential future events or circumstances that might impact a marketing effort or business decision. Various scenarios are considered as part of the process, so plans are developed to address them in case something occurs. Simply put, it is preparing for uncertainties and planning to overcome them. By anticipating potential disruptions by creating a safety net, business and marketing professionals can reduce the negative impact of sudden changes by making quick adjustments. 

Who deals with contingency?

Marketing managers, strategists, and researchers plan for contingencies to help mitigate the risks of a negative situation, thus allowing them to make decisions that can withstand unexpected changes in the market or business environment.

Why should I care about contingency?

Because markets are dynamic and can change rapidly because of various factors, planning for contingencies is vital for success. Businesses must consider situations like economic shifts, technological advancements or unforeseen events like pandemics. Understanding contingencies can keep businesses agile and proactive in uncertain times.