Bayesian Analysis

Also known as: Bayesian Statistics, Bayesian Inference, Bayes Analysis

Statistical approach that updates probabilities based on new evidence, combining prior knowledge (prior) with observed data.

Bayesian Analysis is an inferential statistical approach based on Bayes' Theorem that combines prior knowledge (prior) with new evidence (likelihood) to produce an updated posterior distribution of probabilities.

Unlike classical frequentist statistics (which answers 'How likely is it to observe this data if the null hypothesis is true?'), the Bayesian approach directly answers the business question: 'What probability is there that Brand A is preferred over Brand B?'

Applications in research: Bayesian A/B testing (can declare a winner faster with smaller samples), brand equity models incorporating historical knowledge, and forecasts combining research data with prior market information.

In 2026, Bayesian analysis is gaining ground in market research as a more flexible and interpretable alternative to frequentist hypothesis tests.