What is trend analysis and example?

Trend analysis is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data . Trend analysis uses historical data, such as price movements and trade volume, to forecast the long-term direction of market sentiment.

What is the best example for trend?

An example of trend is a northern moving coastline . An example of trend is the style of bell bottom jeans. > A trend is a general direction into which something is changing, developing, or veering toward.

What is an example of a trend study?

Example of Trend Study The United States census that happens every ten years (decennially) collects information on the shifting demographics of the country.

What is the three example of trend?

What are some examples of trends and fads? As of 2019, some recent trends include food as a hobby or foodie-ism, ethical living, responsible consumerism, authenticity on social media, blurring of gender roles, and wearable technology .

What is trend analysis in your own words?

Trend analysis is a technique used to examine and predict movements of an item based on current and historical data . You can use trend analysis to improve your business using trend data to inform your decision-making.

What are the three types of trend analysis?

There are three types of trend analysis methods – geographic, temporal and intuitive . To analyze the trend within or across user groups defined by their geographic location. Easy and reliable.

How to identify a trend?

What Is a Trend? A trend is the overall direction of a market or an asset's price. In technical analysis, trends are identified by trendlines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend .

How do you solve trend analysis?

Calculate the amount of the increase/(decrease) for the period by subtracting the earlier year from the later year . If the difference is negative, the change is a decrease and if the difference is positive, it is an increase. Divide the change by the earlier year's balance. The result is the percentage change.

How to explain trends in data?

You need to rely on the data instruments at your disposal to calculate a trend. When describing a graph of this type you should state what the overall trend is (upwards, downward or unchanging), and mention the initial and final figures. You should also mention the lowest and highest points reached .

Which tool is used for trend analysis?

Tools used to collect data for trend analysis include traditional market research methods such as surveys and focus groups as well as convenient digital tools—web analytics, social listening, and social analytics tools.

What is an example of a trend analysis in marketing?

Market trend analysis looks at how your industry started in the market, how it has grown, and where it is expected to go. For example, how cell phones first come about, how their popularity changed, and how manufacturers and retailers expect the market to change .

What is an example of a trend analysis in HR?

For example, if a company knows it employed four production operators to make 100 units per week in the past, it can forecast the number of production operators it requires based on the average number of units it needs to make each week in the future.

What is an example of a trend percentage analysis?

For example, if the base period value is 100 and the current period value is 120, the trend percentage would be 20% . This equation could be expressed as ((120-100)/100)*100=20%. The resulting figure from the equation means that the current period value is 20% higher than the base period value.

Trend analysis: What it is, examples and how to use it

In other words, trend analysis is the process that studies statistical data and recorded market behavior over a specific period to generate valuable insights employing this data for strategizing future business plans. It helps determine the main characteristics of the market and the consumers associated with it.

Trend analysis is the practice that gives us the ability to look at data over time for a long-running survey. It can be helpful in comparing quiz or test scores (see an increase in knowledge over the course if you manage the same survey multiple times over the matter of a few weeks or months) or identifying a trend in data sets for a regularly distributed satisfaction survey.

But, what does trend analysis mean? No need to worry! We have composed this article with everything you need to know about this type of analysis so that you can start using it in all your research projects.

Trend analysis in market research

With the trend analysis report, you can compare historical data and get answers to questions like:

Has your NPS score improved over time?
Has the customer experience changed as compared to the last quarter?
Do employees engage more now? Is there an increase in employee retention?
Are sales expected to grow this year?

Trend analysis helps to display a summary of long term data. Use it to investigate variability at different time points and capture how the customers and markets respond over time. Use trend analysis to identify the best time for demand in the market and also identify low-demand phases to take actions accordingly.

Uses of Trend Analysis in surveys

Researchers and businesses run a trend analysis report after data collection for the following:

To understand consumer behavior: Based on historical data, it helps companies understand what the consumers need and what gets outrightly rejected. It helps them make timely changes in the products and then push it out in the market. For instance, it helps identify and target customers and make informed decisions in a bear market situation.
To identify a shift in consumer realization: Consumer perception concerning the product or service can be quite volatile. Short term planning won't lead you too far. Customer satisfaction levels can change due to even minor changes in the business style or product. Trend analysis involves the technical analysis of consumer needs and how they perceive a product or a service.
To understand the cost drivers: Businesses need to study the financial aspects of their business like the stock price and cost drivers affecting their products or services over time periods. They need to innovate and come up with the best possible products at a lower price than their competitors. Analyzing the trend over a period of time helps identify these drivers. Trend analysis is a handy tool to gauge the profit for an investor.

Advantages of analyzing trends in survey data

Here are the business benefits of running a trend analysis:

Strategy building: Trend analysis helps in predicting new business entrants, and allows the company to develop strategies to uphold their industrial position. Analyzing trends can help zero in new products to be launched. For instance, if the trend reports show that the Millenials prefer watching content over the OTT platform than reading a newspaper, you can launch your ads on these platforms. You can optimize your marketing spend by switching from traditional mediums like TV and newspapers to OTT sites.
Business expansion: It facilitates businesses and organizations to make strategic decisions to expand their business. Identifying patterns in consumer trends will help you discover new market areas to expand your business. For instance, if you notice that the demand in rural areas has been increasing steadily, you can plan to target specific locations more aggressively.
Change-analysis indicator: It is instrumental as an indicator to identify the underperforming areas of the business. Most organizations conduct customer satisfaction surveys to identify promoters, passives, and detractors. If there is a sharp rise in the number of passives and detractors, they might have concerns with product quality, service, delivery, or customer support. Once you identify the improvement areas after data analysis, and work on them, conduct a survey, and measure the change in results over time.
Business feedback: It helps in identifying the areas in which the business is performing well and duplicate the strategies for business expansion.

Types of Trend Analysis

The most common way to classify the various types of Trend Analysis is usually based on the method used. These methods are divided into: Temporal, Geographic and Intuitive. Let's talk about it.

Temporal Method

This type of methodology is used to analyze patterns and trends of a given group of data or objects of study in a specific cohort of time, as well as its change in that period.

Geographic Method

The geographic method is generally easy and reliable; it can be the means to identify commonalities and differences between user groups belonging to the same or different geographies.

The main purpose of the geographic method is the analysis of trends that develop in groups of users identified by their geographic location.

The downside of the geographic method is consequently the geographic limitation for data analysis, which can be influenced by factors such as culture and traditions that are specific to the geographic location user groups.

Intuitive Method

The intuitive method is a type of trend analysis implemented to analyze trends within groups of users based on logical explanations, behavioral patterns, or other elements perceived by a futurist.

It is helpful for prediction-making without the need for large amounts of statistical data. However, some issues with the methodology are the overreliance on knowledge and logic provided by futurists and researchers, which makes it prone to become biased to its researcher.

The intuitive method is the most difficult type of trend analysis and might not be as precise.

Example of Trend Analysis

The graph below explains trend analysis over a period for channel sales per country. Channels are based on four categories:

Coupon
Display ads
SEM
SEO

This graph is an example of a sales pattern that is analyzed on a month on month basis. The table shows the calculation of the mean to show the prediction of the trend for the coming months. The table is based on the sales figure for the last four months.

Trend Analysis example:

How to use Trend Analysis in QuestionPro?

This module allows you to plot aggregated response data over time. It is especially valuable if you are conducting a long-running survey and would like to measure differences in perception and responses over time or prepare for trend reversals in the market.

Such analysis can be precious as an early warning indicator of potential problems and issues with product line and service level changes that impact customers.

Explore our help file on trend analysis of survey data to learn how to use this survey feature.

If you want to know more about this feature, start a 10-day free trial (no credit card required) and schedule a free demo and find out everything you can achieve using the best tool to create online surveys.

Trend analysis: What it is, examples and how to use it | QuestionPro (2024)