SOCIAL STRATIFICATION

SOCIOECONOMIC
CLASSIFICATION
SEC
(Urban)
 SOCIOECONOMIC
CLASSIFICATION
SEC
(Rural)
 NEW CONSUMER CLASSIFICATION
SYSTEM

Classification of households in NCCS (‘New SEC’) is based on:

▪ Number of ‘consumer durables’ (from a pre-defined list of 11) owned by the

household

▪ Education of the Chief (Wage) Earner

NCCS: CD Ownership

Source: MRUC (www.mruc.net)

NCCS

Source: MRUC (www.mruc.net)

NCCS…

How does NCCS compare to SEC?

▪ One system for both rural and urban markets

▪ Simple and easy-to-administer
▪ Predicts future consumption based on current consumption rather than on education
(EDU) and occupation (OCC) as SEC does!
▪ Better discrimination* (homogeneity within grades – and heterogeneity across
grades)
▪ CD penetration is more dynamic than EDU and OCC, which calls for periodic
revisions to the system

*After all, a segment is one that’s MASDA:

Measurable – Accessible – Substantial – Differentiable – Actionable.

Source: MRUC (www.mruc.net)

 GENERATIONAL
COHORTS

A generational cohort refers to individuals born during a defined time period.

*Formative
Lifecycle Stage
Experiences

*World events;
Technological, economic, social shifts
Worldviews
 GENERATIONAL
COHORTS…

▪Generational cut-off points are not an exact science, but they aren’t arbitrary either!
▪Cohorts are not a label to oversimplify differences between them: differences within a cohort may be
just as significant.