Chapter 8: Consumer Demographic

Definition

They are a fixed, quantifiable characteristics of a certain group of population

that determine their purchase choices

it is used to create demographic profiles

Demographic profile - who

Age/Gender

Income

Culture/Geographical Background

Household/Marital Status

Age/Gender

Segments market demand into distinct generational

or

life-stage groups

(e.g., children, young adults, retirees)

who have drastically different product needs and purchasing power.

Income Status and Expenditures

total purchasing power and disposable income

dictates whether consumers look for budget-friendly goods, mid-market options, or luxury items.

Culture/Geographical Location

group of people sharing a distinctive heritage, beliefs, and socially proper behaviors

helps marketers tailor items accordingly using similar laguage/imagery

Marital Status

Tracks household compositions—such as single-person households, married couples with children, or multi-generational homes—to predict shared household buying habits.

Consumer lifestyle

While demographics explain who buys, a consumer's lifestyle represents —

how a person lives, spends time, and allocates money.

what is the reason for purchase decisions?

reason for purchase decision is consumer lifestyle

three core pillars of consumer lifestyle

• Demographics (Age, income, education, location, etc.)

• Social Characteristics (External influences like culture, social class, reference groups, opinion leaders, and the family life cycle)

• Psychological Characteristics (Internal drivers like personality traits, attitudes/opinions, motivation, and perceived risk)

what are external factors?

social profile

what are internal factors?

psychological profile

what is social profile?

Includes how an individual interacts with society, such as their social class standing, peer groups, and time expenditures (how they divide discretionary time between work, hobbies, and leisure).

Variables of social profile

1. Culture

2. Social class

3. Social performance

4. Reference groups

5. Opinion leaders

6. family lifestyle

7. Time expenditures

Culture

.

Social class

.

social Performance

.

Reference groups

.

Opinion leaders

.

Family lifestyle

.

Time expenditures

,

Variables of psychological profile

1. Personality

2. Attitudes and Opinions

3. Motivation

4. Interests

5. Innovativeness

6. Risk perception

7. Class conciousness