- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
Demographic variables involves items such as age, sex, family size, income, occupation, education, religion, race and nationality of your customers. Age, sex, and income variables are discussed below.
Demographic Variable - AGE
What age group(s) will buy your product or service? Many products and services are designed for people of specific age groups. As people become older their needs and wants change accordingly. For example, you may remember when you wanted your first toy. As you became older, you probably wanted or demanded larger and more expensive toys; a $40,000 car or a $150,000 house, for example. Will age be a factor in determining who buys your product? If you are selling furniture, then age generally becomes a major consideration. You would not try to sell your furniture to a five (5) year old.
What age group(s) will buy your Product? What age group(s) will use your product (if different)?
Age - Under 5, 5-10, 11-15, 16-19, 20-35, 36-49, 50-64, 65+ , or some other grouping
Demographic Variable - SEX
Is your product sensitive to gender? Is your product strong enough for a man but made for a women? Many products are targeted towards one sex. For example, a Lady Remington is for women only. Clothes, cosmetics, magazines, cars, hairdressing are all examples of products that have been targeted to specific genders. Will you sell to both genders or is your product made specifically for a man or a woman?
What sex will buy your product? What sex will use your product (if different)?
Female, Male, or Both.
Demographic Variable - INCOME
Will the income of a individual or organization be a factor in determining whether or not they buy your product? Many products and services are placed into the market for high income families, for example. Think of the automobile, boating, clothing, and travel industries. Some automobiles are priced low, many are priced medium and others are priced high in an attempt to attractive specific customers.
Is Income an important factor in determining whether or not someone buys your product or service? If so, what income range will your end consumers fall under? Income Levels --- $10,000-$14,999, 15,000-24,999, 25,000-34,999, 35,000-49,999, $50,000 +
Other Demographic Variables:
Family Structure - Does the family structure have an effect on whether your product is purchased? Examples of various family structures include: Young & single with no kids, young & married with no kids; young & married with youngest child under 5; young & married with youngest child 5 or over; older & married with children; older & married with no children; divorced, single; etc...
Occupation - What occupation will most of your customers hold? Is their occupation a major issue? Professional managers and officials, business owners; clerical workers, craftspeople, farmers, homemakers, unemployed, retired, and students are examples of occupations.
Education - What education level will most of your customers have? Is education an important factor? Pre-school, grade-school; high school not completed; graduated high school; some university; graduated university, Masters degree, PHD, other...
Religion - Does the religion of a consumer determine whether or not they purchase your product? Catholic, Protestant, Jewish, other...
Race - Does the race of an end consumer determine whether or not they purchase your product? Oriental, black, white, other...
Nationality - Does the nationality of a consumer determine whether or not they purchase your product? American, Canadian, Germany, Italian, European, British, Scandinavian, Latin American, Japanese, Chinese, other...