What is geodemographic clustering?

Table of Contents

In marketing, 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 …

What is Geodemographic technique?

Geodemographics is the study of the population and its characteristics, divided according to regions on a geographical basis and involves application of clustering techniques to group statistically similar neighborhood and areas.

What is geodemographic classification?

A geodemographic classification is essentially a grouping of geographical neighbourhoods, or other small areas, in terms of their social and economic characteristics.

What is geodemographic data?

Geodemographic data refers to location-based data that segments individuals based on where they live and their demographic profile. Geodemographic data takes comparisons and characteristics of individuals in locations and begins to classify them into different segments based on these observations.

What is geodemographic segmentation quizlet?

Geodemographic Segmentation. Segmenting potential customers into neighborhood lifestyles categories. Benefit Segmentation. The process of grouping customers into market segments according to the benefits they seek from the product.

What is geodemographic segmentation What is the result of geodemographic segmentation give one specific example that illustrates this type of segmentation?

The result of geodemographic segmentation is micromarketing, which is the targeting of small geographic regions with specially designed marketing programs. The text example is H-E-B Grocery Company tailoring merchandise in each store to patron preferences.

What is geodemographic marketing?

Demographics are statistics that companies keep on business clients and consumers to help target sales. These marketing statistics may include the sizes of businesses so companies can better differentiate between small, mid-sized or large companies.

Why geodemographic segmentation is important?

Geographic segmentation allows small businesses with limited budgets to be more cost effective. The findings that result from geographic segmentation allow small businesses to focus their marketing efforts specifically on their defined area of interest, therefore avoiding inefficient spending.

What is geodemographics?

What is clustering in geography?

Clustering is a fundamental method of geographical analysis that draws insights from large, complex multivariate processes. It works by finding similarities among the many dimensions in a multivariate process, condensing them down into a simpler representation.

Which clustering algorithms for geodemographic data?

We then consider geodemographic approaches to clustering—the application of multivariate clustering to spatially referenced demographic data. Two popular clustering algorithms are employed: k-means and Ward’s hierarchical method.

What is geodemographic segmentation?

Geodemographic segmentation. In marketing, 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…