Recoding can be used to group similar brands under broader categories, making data analysis more manageable. For example, if a survey asks participants about their preferred car brand, responses like "Toyota," "Honda," and "BMW" can be grouped into a broader category of "Japanese Brands" and "European Brands." This reduces the complexity of analysis and helps identify trends within larger brand categories.
Original Question: What brand of car do you own?
Possible Answers:
Toyota
Honda
Ford
BMW
Mercedes
Audi
Tesla
Recoded Groups:
Group A (Japanese Brands): Toyota, Honda
Group B (American Brands): Ford, Tesla
Group C (European Brands): BMW, Mercedes, Audi
Here, you have grouped the car brands into three broader categories based on their region of origin.