Demographic segmentation

Demographic segmentation occurs when the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, religion, race, social class, nationality, generation, education, and occupation. Demographic variables are the most popular way to distinguish customer segments. One of the reasons that demographic segmentation is so popular is that consumer desires, preferences, and usage rates are often associated with demographic variables that are relatively easy to quantify.