How Accurate Are Geodemographic Techniques?

PRIZM segmentation

American Classics SegmentationIn a consumer behavior class exercise, I was asked to enter the 5-digit zip code of my hometown into the PRIZM (Potential Ratings Index by ZIP Market) database and describe the results that I found. To my surprise, 85365 (Yuma, AZ) is comprised mostly of “American Classics,” or people who live the American Dream by being homeowners and raising families. This fact was the most surprising to me because Southern Arizona actually hosts the largest number of “American Classics” living in a single area throughout the United States. While I always knew that I grew up in a small community, I never realized just how many people’s lives centered around their homes and their families. As Yuma is home to many retirees and snow birds (or winter visitors that have second homes in the hot southwest), I agree with the PRIZM results. We also have a huge military base in Yuma, and many people get married and start families immediately after high school.

Multi Culti Mosaics SegmentationLikewise, I ran a similar test in my current neighborhood in Tempe, AZ. Since I live right by Arizona State University, I assumed the demographic would mostly describe my age and income level. However, I learned that Tempe has a lot of young, single parents with diverse backgrounds or Multi Culti Mosaics. I suppose this stems from Tempe being a hot-spot for first-time Americans and immigrants living in the United States. The university houses many foreign exchange students, and I have known a lot to stay until after they have received a masters education.

Are you interested to find which segmentation classification best describes you? If so, please follow this link! And remember to visit the blog next week for more insights on consumer behavior analysis.


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