From the course: Marketing: Customer Segmentation

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Segmenting customers by demographic factors

Segmenting customers by demographic factors

From the course: Marketing: Customer Segmentation

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Segmenting customers by demographic factors

- [Instructor] Segmenting by demographics is the practice of dividing a market by factors, such as age, sex, household size, income, education level, race, nationality, and other differentiating factors. By looking at these variables, you can get a more detailed image of the market because people that belong to groups tend to have similar consumption behaviors to others in the same group. Let's dive into some of these groupings a little more deeply. Age is very commonly used as a segmentation variable because it is typically easy to gather information on the average age of consumers in a market. And it's a meaningful indicator of how consumers are going to behave. For example, teenage girls are shopping for different things than 65 year old women in terms of products and services. Income is an important segmentation variable because it can be an indicator of not only what kinds of products and services a person or…

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