Skip to main content

Business 115 : Introduction to Business: Demographics & Psychographics

Demographics and Psychographics - Uses in Business Plans

Tsai and Lee, "Demographics, Psychographics, Price Searching and Recall in Retail ShoppingDemographics and Psychographics

According to Tsai and Lee, the internet revolution has placed a premium on identifying the ways in which demographics and psychographics affect consumer behaviors, and the acts of "price searching," and "price recall." Their thesis is that "there is a dynamic relationship in the ways that psychographics affects price-searching tendencies directly while demographics affect price-searching only "indirectly."

This relationship between price-searching tendencies tends to have a positive effect on "price recall,"  and is stronger when consumers buy discounted items.

Definitions

Demographics: study of changes that occur in large groups of people over a period of time. Source: Merriam-Webster Dictionary

Barry and Weinstein, "Business Psychographics Revisited"Psychographics: the use of psychological, sociological, or anthropological factors, including self-concept and lifestyle to market products and to affect buying decisions made by consumers about the products they buy. Source: (Barry, J. and A. Weinstein, in "Business Psychographics Revisited")

Geodemographics: The study and grouping of the people in a geographical area according to socioeconomic criteria, especially for market research. Source: The Free Dictionary

Firmographics: the characteristics of an organization especially when used to segment markets in market research. What demographics are to people, firmographics are to organizations. Source: Wikipedia

Distribution Channels: "What Channels of Distribution Affect Marketing?"

Sources:

Barry, James, and Art Weinstein. "Business Psychographics Revisited: From Segmentation Theory To Successful Marketing Practice."Journal Of Marketing Management 25.3/4 (2009): 315-340. Business Source Premier. Web. 10 July 2013.

Bonoma and Shapiro Model is Adapted from: Bonoma, T. V. and Shapiro, V.P. (1983), Segmenting the Industrial Market, Lexington Bks.

Tsai, Dungchun, and Hsiao-Ching Lee. "Demographics, Psychographics, Price Searching And Recall In Retail Shopping."Service Industries Journal 29.9 (2009): 1243-1259. Business Source Premier. Web. 10 July 2013.

Demographic and Psychographic Resources