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Geodemographic Segmentation

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Geodemographic segmentation is a multivariate statistical classification technique for discovering whether the individuals of a population fall into different groups by making quantitative comparisons of multiple characteristics with the assumption that the differences within any group should be less than the differences between groups.

Technologies Employed in Geodemographic Segmentation

The information technologies employed in geodemographic segmentation include geographic information system and database management software.

The Principles Behind Geodemographic Segmentation

Goedemographic segmentation is based on 2 simple principles.

The Most Famous Geodemographic Segmentation Systems

The two most famous geodemographic segmentation systems are ACORN system and MOSAIC system.

ACORN system

A Classification Of Residential Neighborhoods (ACORN) system is conducted by Consolidated Analysis Centers Incorporated (CACI). It is the first and leading geodemographic tool to identify and understand the UK population and the demand for products and services. ACORN categorizes all 1.9 million UK postcodes using over 125 demographic statistics within England, Scotland, Wales and Northern Ireland and employing 287 lifestyle variables. The classification system of ACORN contains 56 types of household under the 14 groups in 5 categories:

MOSAIC system

MOSAIC system is conducted by Experian. It is a consistent segmentation system that covers over 400 million of the world’s households using local data from 25 countries. It has identified 10 types of residential neighbourhood that can be found in each of the countries. The 10 types include:

References

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