In a universe of individuals, it is very rare to find that they all share the same characteristics. Generally, it is possible to classify them based on different attributes. To cite a few examples, there are the categories of gender and age. Assigning a person to a specific range goes beyond simply creating more homogeneous groups. Market Research, based on this principle, aims to reduce uncertainty in decision-making, and this is achieved by identifying patterns. Often, this includes identifying groups that share attitudes and habits.
Socioeconomic levels are one of the most common tools used to analyze consumers. Using this criterion, market research agencies can determine with a high degree of accuracy which class a household belongs to, based on a series of conditions. These rules arise from a collaborative exercise among experts in the field and, as in the case of Mexico, are based on the periodic review of results from official sources regarding income and expenditure.
However, this tool has some aspects worth understanding to maximize its benefits. As mentioned above, the unit of analysis is the household, defined as the group of people living together in a single, shared household. Furthermore, it is currently impossible to conduct comparative studies between different countries because each has a distinct classification system. However, there are some common variables, at least in the cases of Brazil and Mexico, which we list below.
Education level of the head of household. While each country has a different educational system, it is almost a logical conclusion that there is a strong correlation between the number of years of schooling of the individual who contributes the most to the household income. Higher education levels generally correlate with higher earnings. This directly impacts the spending power and attitudes of household members. It should also be mentioned that, like the rest of the listed points, it often fails the visual assessment test.
Number of cars. Another variable that transcends borders and best describes a shift in both social and economic status is car ownership for the exclusive use of a household’s regular residents. Even now, this criterion remains a status symbol and a sign of advancement within a given society in Latin America. However, it can be interpreted in various ways regarding its specific use. In some regions, owning a car goes beyond mere possession, signifying control over individual mobility, circumventing local environmental policies, and possessing an asset for generating additional income.
Number of bathrooms. A clear sign of belonging to a very low social class since the beginning of the Industrial Revolution is overcrowding. With the wave of migrants from rural areas to cities, the most common scene of spaces occupied by the newcomers was houses without sufficient bathrooms. It is also well known that having a private bathroom with running water inside the house was one of the first luxuries that the wealthy classes guaranteed themselves from ancient times. Even today, ownership of these spaces continues to reflect a household’s place in the social hierarchy.
Each location has unique characteristics that lead to different attributes best explaining which group a household belongs to. However, within the borders of countries that have established criteria for this matter, it allows for a much better understanding of their own consumers. Therefore, we invite you to learn the details of each rule from expert analysts who will guide you in your research.
At Acertiva, we have expertise in this field and a team of researchers and strategic suppliers who can advise you and collaborate with your staff to meet your needs in this area. We have offices in Brazil and Mexico, allowing us to cover the LATAM market. Thanks to our two decades of experience in this segment, we can offer solutions tailored to your expectations. Contact us today. This first step could be the beginning of your next success story.
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