Consumer Behavior: Demographics

Breaking Things Down

Consumer behavior can be used to divide populations into groups that are based on a specific behavior or characteristic. These groups are known as demographic variables, or demographics. Marketers use demographics to identify what consumers want from their products and services. This information helps them to design more popular products and services, and it also helps them to create a more effective marketing plan.

Demographic Variables

Demographic variables use specific characteristics and behaviors to create a category of people. Some common demographic variables include: union membership, race/ethnicity, employment status, industrial sector, education, marital status, age, geographic location, sex and income. Marketers can use one or more demographic variables when they create a demographic profile for their target audience for their products and services.

Creating a Demographic Profile

Before a marketing campaign can be created a target demographic profile has to be created. To create a demographic profile the marketer needs to identify who is most likely going to use the product or service. Generally a demographic profile includes the following demographic variables: marital status, sex, age and economic status. For example, the demographic profile for CPA services during tax season could be: single and married, middle class men and women, 30 to 60 years of age.

Generational Cohorts

Another concept that is related to demographics is generational cohorts. Generational cohorts group people based on their birth dates and their shared experiences. Some of the most recent generational cohorts that marketers can target include: Baby Boomers born between 1946 and 1954, Generation Xers born between 1965 and 1974 and Generation Yers born between 1980 and 2001.

Criticism of Demographic Profiles

While demographic profiles, and demographics in general, are widely used by marketers, they have been criticized because of their generalization errors. These errors are created when people within the demographic category deviate from the assigned characteristics and behaviors for the group. The best way to avoid generalization errors is to narrowly define your demographic by adding multiple demographic variables.

How to use Demographics

When you are creating your marketing plan you will need to use demographics to focus your campaign. To start with you will need to determine who most likely will use your products and services. After you have established the demographic profile for your products and services you will then want to create a marketing campaign that utilizes elements that people in your demographic profile value or that utilize elements that are considered attractive to people in your demographic profile.