What appeals to a year-old Asian-American art history major may be completely different from what appeals to a year-old black attorney.
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As you prepare to do market research for your small business or startup, it’s important to understand two key terms: demographics and psychographics. Demographics are the average or typical characteristics of your target market — the people who buy your products or services.
Demographic variables such as age, gender, income and occupation hold important clues to consumer behavior. People who share the same demographic profile usually have the same purchasing behavior.
Restricted-use demographic microdata include the Decennial Census and other surveys of individuals and households. These data are only available to qualified researchers on approved projects and can only be accessed at secure Census Research Data Centers. When crafting your business plan or giving it an overhaul, it's critical to thoroughly understand your target customers.
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