Demographics

AAA

DEFINITION of 'Demographics'

Studies of a population based on factors such as age, race, sex, economic status, level of education, income level and employment, among others. Demographics are used by governments, corporations and non-government organizations to learn more about a population's characteristics for many purposes, including policy development and economic market research.

Demographic trends are also important, as the size of different demographic groups will change over time as a result of economic, cultural and political circumstances.

INVESTOPEDIA EXPLAINS 'Demographics'

Segmenting a population into demographics allows companies to assess the size of a potential market and also to see whether its products and services are reaching that company's most important consumers.

For example, a company that sells high-end RVs would want to know roughly how many people are at or nearing retirement age, and also what percentage of them will be able to afford the product. This information will help the company to decide how much capital to allocate to production and advertising.

RELATED TERMS
  1. One-Child Policy

    A policy implemented by the Chinese government as a method of ...
  2. Market Segment

    A group of people that share one or more characteristics. Each ...
  3. Alliance Of American Insurers - ...

    A coalition consisting primarily of property-casualty insurance ...
  4. Industry Bet

    A strategy whereby investors or portfolio managers increase or ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Market Share

    The percentage of an industry or market's total sales that is ...
Related Articles
  1. Demographic Trends And The Implications ...
    Personal Finance

    Demographic Trends And The Implications ...

  2. Where Top Down Meets Bottoms Up
    Retirement

    Where Top Down Meets Bottoms Up

  3. The Importance Of Segment Data
    Active Trading

    The Importance Of Segment Data

  4. Generational Marketing: Harvest The ...
    Retirement

    Generational Marketing: Harvest The ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center