Question

Explain the difference between quantitative and qualitative analysis from the manager's point of view.

BUSINESS DECISION ANALYSIS COURSE

Answer 1

Explain the difference between quantitative and qualitative analysis from the manager's point of view.

When you make business decisions as a manager, you take into account qualitative factors like reputations, brand strength and employee morale, as well as quantifiable data such as sales figures, profitability and return on investment. Both qualitative analysis and quantitative methods can be used to make decisions. The decisions that most often result in the desired outcomes use one method to check whether the predictions of the other method are reasonable. Essentially, it's a system of checks and balances.

While qualitative and quantitative analysis may use information about the same characteristics. Qualitative methods rely on information that is not easily measurable while quantitative methods deal with data. For example , if you want to analyze how positively customers view on of your products you might interview a cross -section of your customers and ask for feedback. This qualitative information is hard to express as a numbers. Instead, you might analyze object data such as how many customer buy the product again. How many make complaints, how many have warranty claims and how many return the product. You can express this quantitative information mathematically. Once you have your input information, you analyze qualitative and quantitative material differently. For qualitative information such as interview transcripts, texts and pictures, you have to study the material to get insights about what it means. If you want to judge how positively your customers feel about a product, you have to analyze what they say carefully, paying attention to the positive words they use. Your analysis results in a qualitative judgement, such as your conclusion that most customers like your product very much.

Once you have input information, you analyze qualitative and quantitative material differently for qualitative information such as interview transcripts, text and picture, you have to study material to get insight about what it means. If you want to judge how positively your customers feel about a product. You have to analyze what they say carefully, paying attention to the positive words they use. Your analysis result in qualitative judgement, such as your conclusion that most customers like your product very much.

A quantitative analysis relies on statistical method and mathematical evaluation. For example you can calculate what percentage of customer experienced problems with a. Product, what percentage plan to buy another product and how many will recommend the product. You can use that information to conclude how many products you are likely to sell.