What is a Pie Chart?

A pie chart is a circular chart that is divided into slices, where each slice represents a category or portion of a whole. The size of each slice represents the proportion of the data that falls into that category.

Examples of Pie Charts

For example, take a pie chart above representing consumer preferences where price is more important than brand names. The slices represent the percentage of respondents who Agree Strongly, Agree Slightly, Disagree Slightly, Disagree Strongly and Neither Agree or Disagree. The pie chart shows that 17% of respondents Strongly Agree with this statement, 44% Slightly Agree, followed by 22% Neither Agree or Disagree.

Pie charts are a popular way of presenting data, especially in the field of market research. They are widely used because of their simplicity and ease of interpretation. However, many market researchers make the mistake of relying solely on pie charts to convey complex data, which can lead to inaccurate or incomplete conclusions. In this blog post, we will explore the strengths and weaknesses of pie charts and offer insights into how to use them effectively in market research.

Types of Pie Charts

There are several different types of pie charts that are used to present different types of data. Some of the most common types of pie charts include:

1. Basic Pie Chart: This is the most common type of pie chart and is used to show the relative sizes of each category in a data set. Each slice of the pie represents a different category, and the size of the slice corresponds to the proportion of the data that falls into that category.
2. Exploded Pie Chart: An exploded pie chart is similar to a basic pie chart, but each slice is separated from the others to emphasize the differences between the categories.
3. 3D Pie Chart: A 3D pie chart is a variation of the basic pie chart that adds depth to the chart, making it appear three-dimensional. This type of chart is often used to make the chart more visually appealing.
4. Doughnut Chart: A doughnut chart is similar to a basic pie chart, but with a hole in the center. This type of chart is often used to display multiple data sets in the same chart, with each ring representing a different data set.
5. Nested Pie Chart: A nested pie chart is also known as a hierarchical pie chart or a multi-level pie chart. This type of chart uses concentric circles to show different levels of data, with each circle representing a different category. The outer ring represents the overall data, while the inner rings show sub-categories within each category.
6. Polar Area Chart: A polar area chart is a variation of the pie chart that uses a polar coordinate system to display the data. This type of chart is often used to show how different categories contribute to a total value, such as the proportion of a budget that is allocated to different departments.

How to Use Pie Charts

So, how can market researchers use pie charts effectively? Here are a few tips:

1. Use pie charts to display simple data. If your data can be broken down into a few categories, a pie chart can be an effective way to display it.
2. Avoid using too many categories. As mentioned earlier, pie charts become difficult to read when there are too many categories. If you have a large amount of data, consider using a different type of chart, such as a bar chart or a line graph.
3. Label your pie chart clearly. Make sure that each category is clearly labeled and that the overall message of the chart is easy to understand.
4. Use a legend to provide additional information. If you need to display more information about each category, consider using a legend to provide additional details.
5. Consider using a different chart type. If you find that a pie chart is not effective for displaying your data, consider using a different chart type. Bar charts, line graphs, and scatterplots are all effective ways to display data in different situations.

Pie charts can be a valuable tool for market researchers when used correctly. However, it is essential to consider the limitations of pie charts and to use them in conjunction with other data visualization tools to ensure that your data is accurately represented. By following the tips outlined above, you can use pie charts effectively in your market research and gain valuable insights into consumer behavior and preferences.

Try creating a pie chart for free using mTab survey analysis software.