What is Incidence Rate in Market Research

The incidence of an individual in market research will have an impact on the development of the Market Research Study by helping to determine the ability to conduct a survey and to budget the amount needed for each survey. Understanding who meets the inclusion criteria for the study is critical for companies developing a new product or variations on a product line or developing a marketing strategy targeted toward a certain demographic.

To help readers better understand, Nexus Expert Research breaks down the definition of “incidence rate,” its significance, and how to properly calculate an incidence rate, thereby supporting the research team in making informed decisions.

What Is the Incidence Rate?

In market research, the incidence rate is defined as the percentage of people in a target market who meet all the eligibility requirements for participation in the study. The most basic function of an incidence rate is to answer a fundamental question: Of those screened, how many will be eligible for participation in the study? An incidence rate can also serve as an indication of how prevalent or rare a particular type of eligible respondent is within the general population. A high incidence rate suggests that the target market can be easily found, while a low incidence rate indicates that the target market is a niche audience, which may be more challenging to recruit and therefore more costly to reach.

Why Incidence Rate Matters

Incidence in the context of market research provides organizations with insight to design their studies more effectively. Incidence impacts:

Sampling Feasibility

The majority of studies that require highly specialized participants (such as surgeons, EV engineers, and patients with rare diseases) will experience a significantly reduced incidence of participants compared to studies that do not require such specialized individuals, thus providing researchers with critical early information regarding potential recruitment challenges.

Budgeting and Costs

Studies with lower incidences require more screening, which results in increased expenses associated with recruitment. For this reason, field suppliers typically charge higher prices when the incidence for a specific project falls below the 30-40% range.

Timelines and Logistics

On the other hand, studies with higher incidences generally allow for more rapid fieldwork completion.

In addition, studies with lower incidences have extended recruitment timeframes and often require multiple outreach methods to generate the desired participant pool.

Data Quality and Completeness

The incidence rate indicates how likely it is to occur and plays a critical role in determining whether the timeline for conducting studies is long enough to allow the collection of adequate amounts of complete, accurate, and reliable data before the invalidation of the results due to sample integrity concerns.

Incidence Rate Formula

The standard incidence rate formula is:

Incidence Rate = (Number of Qualified Respondents ÷ Total Number of People Screened) × 100

For example:
If 200 people are screened and 40 qualify for the study:
Incidence Rate = (40 ÷ 200) × 100 = 20%

This means only 1 in 5 people meet the study criteria.

How Companies Use Incidence Rate

Knowing what the incidence rate is is a vital component of research planning in all industries. A company will utilise an incidence rate when: Estimate how large a screening pool needs to be

• Deciding the size of the screening pool required
• Selecting the appropriate recruitment avenues
• Estimating the costs and duration of the project
• Assessing the feasibility of the study before permitting it to proceed
• Setting expectations with stakeholders

Incidence rate can also be viewed as a means of managing risk; If the incidence rate is under-estimated, then the teams could potentially run out of time, or exceed their budget, or may not reach their sample requirements.

Common Examples of Incidence Rate

Different industries experience varied incidence rates depending on their target populations:

• General consumers (e.g., soft drink users): High incidence, often 60–80%
• Frequent travellers: Moderate incidence, around 20–40%
• Profession-specific audiences: Lower incidence, around 5–15%
• Rare medical conditions: Very low incidence, below 1%

Understanding this variation helps companies plan smarter and partner with the right fieldwork teams.

Conclusion

The incidence rathe Blog: Whatte is an important indicator of market research and forms the basis of assessing feasibility, budgeting, and determining the success of a study. An understanding of the definition of incidence rate, how to calculate it, and how it can impact fieldwork will enable researchers to create realistic and successful studies that maintain their timelines.

Nexus Expert Research assists organizations in accurately determining their incidence rates for use in market research, enabling them to effectively recruit, strategically plan, and ultimately provide the highest possible quality insights.