Socio Economic Classification

Socio Economic ClassificationIntroduction and Concept 
Dividing the population into segments according to their incomes, personalities, life-style and social class
To identify the consumption pattern and the household purchase behavior. Based on education levels, occupation, type of household, etc. the population is divided into separate bands, called the Socio-economic Classes.
Types Urban and Rural
Socio economic classification of an urban household is defined by the education and occupation of the chief wage earner (CWE) of a household.
It is based on 2 parameters – Education of the Chief Wage Earner of the Household and the Type of House.
SEC in urban area is divided into 8 categories A1, A2, B1, B2, C, D, E1, and E2 while in rural area it is divided in four categories R1, R2, R3, R4 (In decreasing order of affluence).
Generally while promoting an area or state or country for business opportunity  data on Socio-Economic Classification helps.
Used mostly for market segmentation.
Other factors affecting SEC
  • Internet is so vast & influential that it surpasses the differences of age, SEC, gender and town class
  • SEC is only an indicator and its not perfect.
  • Generally countries and states publish such information to the business world to attract investment.
  • e.g.

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