Editing Market segmentation (section)

=== Demographic segmentation ===
{{further|Demographic targeting}}

Segmentation according to demography is based on consumer demographic variables such as age, income, family size, socio-economic status, etc.<ref>{{cite book|last1=Reid |first1=Robert D. |last2=Bojanic |first2=David C. |title=Hospitality Marketing Management |url= https://books.google.com/books?id=wZUFreNHOWsC |access-date=2013-06-08 |edition=Fifth |year=2009 |publisher=John Wiley and Sons |isbn=978-0-470-08858-6 |page=139}}</ref> Demographic segmentation assumes that consumers with similar demographic profiles will exhibit similar purchasing patterns, motivations, interests, and lifestyles and that these characteristics will translate into similar product/brand preferences.<ref>Baker, M., ''The Marketing Book,'' 5th ed, Oxford, Butterworth-Heinemann, 2003, p.709</ref> In practice, demographic segmentation can potentially employ any variable that is used by the nation's census collectors. Examples of demographic variables and their descriptors include:

* '''Age''': Under 5, 5–8 years, 9–12 years, 13–17 years, 18–24, 25–29, 30–39, 40–49, 50–59, 60+<ref>Sarin, S., ''Market Segmentation and Targeting,'' Wiley International Encyclopedia of Marketing, Vol. 1</ref>
* '''Gender''': Male, Female<ref>Sara C. Parks & Frederick J. Demicco, "Age- and Gender-Based Market Segmentation: A Structural Understanding,"''International Journal of Hospitality & Tourism Administration,'' Vol. 3, No. 1, 2002, DOI: https://dx.doi.org/10.1300/J149v03n01_01</ref>
* '''Occupation''': Professional, self-employed, semi-professional, clerical/ admin, sales, trades, mining, primary producer, student, home duties, unemployed, retired<ref>Tynan, A.N and Drayton, J., "Market segmentation," ''Journal of Marketing Management,'' Vol. 2, No. 3, 1987, DOI:https://dx.doi.org/10.1080/0267257X.1987.9964020</ref>
* '''Socio-economic''': A, B, C, D, E, or I, II, III, IV, or V (normally divided into quintiles)<ref>Coleman, R., “The Continuing Significance of Social Class to Marketing.” ''Journal of Consumer Research,'' Vol. 10, 1983, pp 265-280</ref>
* '''Marital Status''': Single, married, divorced, widowed
* '''Family Life-stage''': Young single; Young married with no children; Young family with children under 5 years; Older married with children; Older married with no children living at home, Older living alone<ref>Gilly, M.C. and Enis, B.M., "Recycling the Family Life Cycle: a Proposal For Redefinition", in ''Advances in Consumer Research,'' Vol. 09, Andrew Mitchell (ed.), Ann Arbor, MI: Association for Consumer Research, pp 271-276, Direct URL:http://acrwebsite.org/volumes/6007/volumes/v09/NA-09</ref>
* '''Family size/ number of dependants''': 0, 1–2, 3–4, 5+
* '''Income''': Under $10,000; 10,000–20,000; 20,001–30,000; 30,001–40,000, 40,001–50,000 etc.
* '''Educational attainment''': Primary school; Some secondary, Completed secondary, Some university, Degree; Postgraduate or higher degree
* '''Home ownership''': Renting, Own home with a mortgage, Home owned outright
* '''Ethnicity''': Asian, African, Aboriginal, Polynesian, Melanesian, Latin-American, African-American, American Indian, etc.
* '''Religion''': Catholic, Protestant, Muslim, Jewish, Buddhist, Hindu, Other

In practice, most demographic segmentation utilizes a combination of demographic variables.

[[File:Demographic segmentation.jpg|thumb|300px|Visualisation of two approaches to demographic segmentation using one and two variables. On the left, a single variable (age) is used. On the right, two variables (income and occupation) are used to form the segments.]]

The use of multiple segmentation variables normally requires the analysis of databases using sophisticated statistical techniques such as cluster analysis or principal components analysis. These types of analysis require very large sample sizes. However, data collection is expensive for individual firms. For this reason, many companies purchase data from commercial market research firms, many of whom develop proprietary software to interrogate the data.

The labels applied to some of the more popular demographic segments began to enter the popular lexicon in the 1980s.<ref>Boushey, H., ''Finding Time,'' Boushey, 2016</ref><ref>Courtwright, D.T., ''No Right Turn,'' Harvard University Press, 2010, p. 147</ref><ref>Dension, D. and Hogg, R., (eds), ''A History of the English Language,'' Cambridge, Cambridge University Press, 2008, p. 270</ref> These include the following:<ref>Thorne, T., ''Dictionary of Contemporary Slang,'' 4th ed, London, Bloomsbury, 2014,</ref><ref>Burridge, K., ''Blooming English: Observations on the Roots, Cultivation and Hybrids of the English Language,'' Cambridge, Cambridge University Press, 2004, pp. 54–55</ref>

:: '''[[DINK (acronym)|DINK]]''': Double (or dual) Income, No Kids, describes one member of a couple with above-average household income and no dependent children, tend to exhibit discretionary expenditure on luxury goods and entertainment and dining out.
:: '''GLAM''': Greying, Leisured and Moneyed. Retired older persons, asset rich, and high income. Tend to exhibit higher spending on recreation, travel, and entertainment.
:: '''GUPPY''': (aka GUPPIE) Gay, Upwardly Mobile, Prosperous, Professional; a blend of gay and YUPPY (can also refer to the London-based equivalent of YUPPY).
:: '''MUPPY''': (aka MUPPIE) Mid-aged, Upwardly Mobile, Prosperous, Professional.
:: '''[[Preppy]]''': (American) Well-educated, well-off, upper-class young persons; a graduate of an expensive school. Often distinguished by a style of dress.
:: '''SITKOM''': Single Income, Two Kids, Oppressive Mortgage. Tend to have very little discretionary income, and struggle to make ends meet.
:: '''[[Tween]]''': Young person who is approaching puberty, aged approximately 9–12 years; too old to be considered a child, but too young to be a teenager; they are 'in-between'.
:: '''[[White Anglo-Saxon Protestant|WASP]]''': (American) White, Anglo-Saxon Protestant. Tend to be high-status and influential white Americans of English Protestant ancestry.
:: '''YUPPY''': (aka [[yuppie]]) Young, Urban/ Upwardly-mobile, Prosperous, Professional. Tend to be well-educated, career-minded, ambitious, affluent, and free spenders.