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Ratio Definition

A measure that expresses the relative size of two numbers.

Ratio refers to a quantitative relationship between two numbers, showing how many times one value contains or is contained within the other. In market research, ratio data includes values that have a true zero point, such as income, age, number of purchases or time spent.

Who relies on ratios in market research?

Data analysts, statisticians, financial modelers, pricing strategists and business decision makers rely on ratio data for precise measurement, comparison and forecasting.

What are key aspects of ratios in market research?

• Has a true zero point.
• Allows for comparison using multiplication and division.
• Supports a wide range of statistical analyses.
• Examples include revenue, units sold and customer lifetime value.
• More informative than ordinal or interval data.

Why are ratios important in market research?

Ratio data allows for the most detailed and flexible analysis, enabling researchers to assess proportional differences and perform meaningful mathematical operations. It supports advanced modeling and helps quantify business impact.

How do market researchers use ratios?

Researchers use ratio measures to evaluate ROI, segment markets by spending levels, assess price elasticity, model customer value and track quantitative shifts over time with high precision.