Correlation analysis SPSS is a significant concept that is used in examining data gathered to assist leaders in gaining useful insight regarding the relationship among various business outcomes. The relationship between outcomes in business is to be understood in making functional decisions that can boost the growth of the business. In finding correlation coefficients or performing correlation analysis in business, SPSS software is always used. For instance, a business may be involved in analysing trends of sales of their products to determine whether the lower pricing strategy is effective over the higher pricing strategy to improve sales in the given period. In case the pattern is determined, the leaders can make effective decisions regarding the optimal price to be set for the products to get the desired level of sales in the market. Correlation in other words can be referred to as the identification of repeated patterns as more than one instance is required for creating a correlation. During the execution of a correlation analysis, the increased availability of data points assures increased results of the analysis. This is essential in gathering sufficient knowledge before relying on correlation in making decisions for business purposes.

Value of Correlation Analysis in Business

In linear correlation data analysis SPSS which occurs between two variables, the strength is identified by the extent to which they can move together within a data set. The use of Pearson’s correlation coefficient analysis indicates that the correlation values are between -1 and +1. The weaker correlations indicate values near 0 whereas the stronger correlation is present near the values of +1 or -1. The weaker correlation is indicated to have less power of prediction but is useful in making valuable insights regarding business outcomes. The poor strength of the correlation coefficient does not indicate that the values gathered are useless. It indicates that there may be an option for the organisation to make cost savings by analysing the data. For instance, an organisation notices that the relation between radio Ads, the amount of money spent on marketing, and sales boosts are not found to be strongly correlated. It indicates that the organisation is to decide on lowering advertisement to be done through radio regarding the products to save the unnecessary cost of advertising and invest the money in other forms of online promotion of products.
The correlation analysis can be divided into two main types which are positive and negative correlation data analysis. The positive correlation analysis which is often gathered through SPSS data analysis results indicates that one of the variables considered for analysis increases while the other also shows an increase. This nature of the relationship is often seen in healthy marketing performance and customer buying patterns. For example, a business can see a positive correlation analysis between their advertisement and sales indicating that their advertisement effort to promote the product has increased and sales also grew at the same time. The negative correlation analysis is one when one of the selected variables shows an increase while the other variable shows a decrease in analysis. For instance, higher quality customer services are effective in lowering complaints by customers. The relationship helps allow the business to examine the success of newly hired employees in offering customer services.