Individual Determinants of Consumer Behaviour
Q1. Differentiate clearly demographics and psychographics.
The main difference in demographics and psychographics is the focus on purchasing. Demographics is focused on who buys the products whereas psychographics is focused on why they buy the products. To predict the market or the consumer's behaviour, it is best to use both rather than 1 of them. Psychographics go deeper into where the demographics is unable to do.
Study on population, economy and social issues
Study on activities, interests, opinions, lifestyle, attitudes
Usually more mass based
Usually target specific
Listed below are more details and elaboration of the points mentioned above.
Demographic is the study of population with the changes in economy and social issues. It includes economic, social and cultural characteristics, political orientations, consumers' demand for products or the impact of social trends on macroeconomic variables
The study for demographics is used to analyse and predict consumer behaviour.
Industrial demand is ultimately derived from consumer demand. Using the study, predicts the changes in demand and consumption and the effects on certain products and services. With the study, it also provides information on social policies.
The aspects of demographics are population structure, geographic factors, economic resources and global markets. Below listed are the indictors for the study.
It measures on the population change. They include birth rates, death rates, net migration, fertility rates and the changing age distribution. Further measurements might be used depending on the product and services. For example for birth rates, they include other factors, which includes family structure, social attitudes towards family or children, technology, ethnicity and changing age distribution. Any of the factors might affect the demands for specific products and demands.
Birth Rate. An increase might lead to an increase...