The SEC Classification is the classification of consumers on the basis of parameters. Traditionally the two parameters used to categorize consumers were: Occupation and Education of the chief wage earner (Head) of the households. The SEC classification, created in 1988, was ratified by Market Research Society of India (MRSI), is used by most media researchers and brand managers to understand the Indian consuming class. Originally developed by

IMRB International Kantar IMRB (formerly IMRB International) is a market research, survey and business consultancy firm. It is headquartered in Mumbai, India and has operations in over 15 countries. IMRB is a part of the Kantar Group, WPP’s research, insights ...

as a way of understanding

market segment In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some type of shared charact ...

s, and consumer behavior it was standardized and adopted by the Market Research Society of India in the mid-1980s as a measure of socio-economic class and is now commonly used as a

market segmentation In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some type of shared charact ...

tool in India. In the older version, the SEC Classification consists of two grids- * The

Urban Urban means "related to a city". In that sense, the term may refer to: * Urban area, geographical area distinct from rural areas * Urban culture, the culture of towns and cities Urban may also refer to: General * Urban (name), a list of people ...

SEC Grid, which uses

Education Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty ...

levels and

Occupational Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a co ...

criteria of the Chief Wage Earner (CWE) of a household as measures to determine socio-economic classification, and segments urban India into 7 groups (A1 to E2) and * The

Rural In general, a rural area or a countryside is a geographic area that is located outside towns and cities. Typical rural areas have a low population density and small settlements. Agricultural areas and areas with forestry typically are descri ...

SEC Grid, which uses

and Type of House (pucca, semi-pucca, and kaccha) as measures of socio-economic class, and segments rural India into 4 groups (R1, R2, R3, R4) This is based on the assumption that higher education leads to higher income thus higher consuming potential. But, we know that this may not always be true. A trader or a retailer with no qualification can earn more income than a Post graduate executive, but SEC will categorize the traders/retailers not as SEC A1or A2. So, in order to combat this problem, the Government came up with the new SEC system on 3 May 2011. The new SEC system is based on two variables: 1. Education of the Chief Earner. The options are Illiterate, Literate but no formal schooling or Schooling unto 4 years, Schooling between 5–9 years, High School pass, Some college (including a diploma but not a graduate), Graduate / Post Graduate (General), Graduate / Post Graduate (Professional) 2. The number of Consumer durables (pre-decided from a list of 11 items) owned by the family. The list of 11 items are: Electricity Connection, Ceiling Fan, LPG Stove, Two Wheeler, Color TV, Refrigerator, Washing Machine, Personal Computer/Laptop, Car/Jeep/Van, Air Conditioner, Agricultural Land There are 12 grades in the new system starting from A1 to E3. These grids are used to determine the consumption preferences, and purchasing power of households, and are common tools used by social and business researchers working in India. The SEC grid does not use family income levels as a measure as this data is hard to collect and it has been demonstrated that education levels and occupation criteria in India are better determinants of consumer preference. The methodology used in these tools differs from the Household Potential Index, which measures consumption intensity.

Urban SEC Grid

{, class="wikitable" , -gkk but not graduate!! Graduate/Postgraduate general!! Graduate/Post Graduate professional , - , Skilled Workers, , E2, , E1, , D, , C, , C, , B2, , B2 , - , Petty traders, , E2, , D, , D, , C, , C, , B1, , B2 , - , Shop Owners, , D, , D, , C, , B2, , B1, , A2, , A2 , - , Businessmen with No employees, , D, , C, , B2, , B1, , A2, , A2, , A1 , - , Businessmen with 1-9 employees, , C, , B2, , B2, , B1, , A2, , A1, , A1 , - , Businessmen with 10+ employees, , B1, , B1, , A2, , A, , A1, , A1, , A1 , - , Self Employed professional, , D, , D, , D, , B, , B, , A, , A , - , Clerical/Salesman, , D, , D, , D, , C, , B2, , B, , B , - , Supervisory Level, , D, , D, , C, , C, , B2, , B1, , A2 , - , Officers/Executives-Junior, , C, , C, , C, , B2, , B1, , A2, , A2 , - , Officers/Executives-Mid/Senior, , B1, , B1, , B1, , B1, , A2, , A1, , A1 It divides the population into 3 classes: * Upper most segment of the consuming class-A1, A2 and B1 * Middle segment- B2 and C * The lower most segment—D, E1, and E2..

References

*http://readbetweentheps.blogspot.com/2005/09/socio-economic-classification-are-we.html Demographics of India