The primary purpose of market research is to learn how people behave in the hopes to attract enough of a target market to break even. With this in mind, demographics and psychographics are two types of market research information, and thus knowing what they mean is crucial to business success.
Demographic Definition
Demographic information is the kind of stuff that can be categorized and labeled from a statistical perspective. Things like age, race, gender, income, religion, schooling and kind of work are all demographic information, as are memberships the target market belongs to, how many and which credit cards they hold, what car they drive, where they live and how big their houses are, whether they rent or own, and how many people are in the household. Demographic information consists of the facts and nothing else.
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