Final answer:
In qualitative data analysis, the first step is formulating categories by analyzing the collected data to identify patterns and thematic structures, which serves as a foundation for further analysis and interpretation.
Step-by-step explanation:
The first step necessary in the classification and labeling of concepts in qualitative data analysis is formulating categories. This step involves closely examining the collected qualitative data to discern patterns, themes, or thematic structures that emerge from the information. This process is crucial because, unlike quantitative data analysis, qualitative data analysis does not rely on statistically valid procedures and requires the analytical and critical thinking skills of the researcher. Developing categories is part of the larger process of conceptual analysis, which helps in breaking down complex ideas into simpler parts for better understanding and analysis. The interpretation and selective coding of data then follows this initial categorization process, where researchers can begin to link specific pieces of data (like quotes from participants) with the broader categories and themes they've identified.