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MRUC elaborates the usefulness of consumer segmentation model HPI

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MRUC elaborates the usefulness of consumer segmentation model HPI

This paper by MRUC presents a case for Household Potential Index (HPI), which takes a leap from the current system of consumer classification - the SEC. The paper argues that Socio Economic Classification (SEC) is often said to be lacking in discriminating the truly potential households and audience. Also, the draw back of using Monthly Household Income (MHI) lies in the difficulty of capturing the correct data, as the respondents are hesitant to disclose the correct MHI. The various assumed variables as a topping to SEC (like durable ownership, frequency of travel by air, intensity of consuming various products and services, recency of purchase etc.) comes with the negative aspect of “judgment” of the individuals concerned. HPI, says MRUC and Hansa Research Group, is a better 'scientific method' to segregate and target the “consuming” class.


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