Question

PRIZM is based on the premise that people with similar backgrounds and means tend to live close to one another and emulate each other's behaviors and lifestyles. This is an example of the _____.

Answer 1

geodemographic technique

Step-by-step explanation:

PRIZM stands for Potential Rating Index for Zip Markets, and it basically groups American zip codes (over 41k) into 68 demographic and behavioral segments. It is a combination of demographic and geographic. The company that developed PRIZM (Claritas) also created 11 lifestage groups (segmentation based on age, socioeconomic rank, and children) and 14 social groups (segmentation based on urbanization and socioeconomic rank).

It states that consumption patterns are common in various regions (zip codes) along the US that possess similar demographic variables. For example, people living in South Beach, Florida should have similar consumer spending habits as people living in Malibu, California, because they share similar groups, e.g. income level, education, home value, race, etc.

Answer 2

Geodemographic technique

Step-by-step explanation:

Geodemographic technique is a multivariate classification technique that aims to group individuals in a population on the basis of multiple characteristics. There is assumption that difference between individuals in a group will be less than difference between individuals on different groups.

It assumes neighbourhoods are joined by similar characteristics, and that individuals that live in the same neighbourhood will have similar traits and can be grouped together compared to individuals picked randomly.