The New Consumer Classification System (NCCS) is a modern framework used in India to classify consumers based on their economic status. It replaces the older SEC (Socio-Economic Classification) system and is widely used in market research, advertising, and consumer studies.
Key Aspects of NCCS
- Developed by: Market Research Society of India (MRSI) and Media Research Users Council (MRUC).
- Basis of Classification: Uses education of the chief wage earner (CWE) and ownership of consumer durables in the household.
- Categories: Consumers are divided into A1, A2, A3, B1, B2, C1, C2, D, and E, with A1 being the highest and E the lowest.
NCCS Classification System
The classification is determined using a scoring system:
- Education Level of CWE (higher education gets higher points).
- Number of Consumer Durables Owned (TV, refrigerator, washing machine, car, AC, etc.).
The total score places the household into a specific NCCS category.
Why NCCS Replaced SEC?
- The SEC classification relied on the occupation and education of the CWE.
- NCCS is more accurate and relevant as it includes actual household assets rather than just the occupation.
- It provides a more granular understanding of consumer behavior and purchasing power.
Applications of NCCS
- Market Research: Helps brands and companies target the right audience.
- Advertising & Media Planning: Determines which media (TV, digital, print) is best suited for different consumer groups.
- Product Pricing & Strategy: Guides companies in setting product prices based on target consumers’ purchasing capacity.
FAQs
How is NCCS different from SEC?
NCCS is based on education level and asset ownership, whereas the SEC system classified consumers based on occupation and education. NCCS provides a more accurate measure of consumer lifestyle and purchasing power.
How does NCCS impact advertising?
Advertising agencies use NCCS to select the right audience for campaigns, ensuring that advertisements reach the most relevant consumers based on their purchasing power and lifestyle.
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