New Consumer Classification System (NCCS) is the new tool for classifying consumers in India. The methodology is used by the Broadcast Audience Research Council in TV audience measurement system.
Previously
(about three decades ago) Socio-Economic Classification (SEC) was introduced in
the country to classify consumers into different groups. Over time, flaws were
noticed in the system and so the industry decided to revise the consumer
classification system and introduce the New Consumer Classification System
(NCCS), which, in many ways, is better than the SEC.
What
is NCCS?
NCCS
is used to classify households in India. It was co-developed by Market Research
Society of India (MRSI) and Media Research Users Council (MRUC) and classifies
households on two variables:
i.
Education of the chief wage earner
ii.
The 11 consumer durables owned by the household from a
predefined list.
What
are the 11 consumer durables listed in NCCS? Why only these 11?
The
11 durables (as on date) are Electricity Connection, Ceiling Fan, Gas Stove,
Refrigerator, Two Wheeler, Washing Machine, Color TV, Computer, Four-wheeler,
Air Conditioner and Agricultural land (in rural areas). Research showed that this
was an adequate classification. This list will be relooked into after a certain
period of time.
The 11 shortlisted durables were identified as the best
discriminators of the ‘purchasing power’ of a household after evaluating the
series of variable. The list of durables will become less discriminating over a
period of time as more people acquire more durables. The list has to be changed
from time to time - in another few years probably all of them will have gone.
For instance, mobile is not one of the discriminating goods because today
almost everyone has it.
Ref: https://www.afaqs.com/news/media/42980_a-dummys-guide-to-nccs
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