Socioeconomic Classification (SEC) – Bangladesh Perspective

Socioeconomic classification (SEC) is a method of classifying individuals into distinct social classes according to their socioeconomic situation. Socioeconomic status is a composite measure that encompasses various elements, such as occupation, income/wealth, level of education, and social standing.

These socioeconomic classifications (SECs) often categorize people into different classes of society, spanning from the highest social class to the lowest social class. The precise criteria utilized to delineate these classes may differ based on the Securities and Exchange Commission (SEC). Nevertheless, most SECs will consider factors such as occupation, educational attainment, and income.

SECs provide multiple functions, encompassing a wide range of purposes, such as:

- Market research: Businesses can utilize SECs (Social and Economic Classifications) to gain insights into their target market and develop marketing initiatives that have a higher probability of success.

- Social policy: Governments can utilize socioeconomic indicators (SECs) to identify the most vulnerable groups and formulate policies that specifically target and mitigate social disparities.

Around the world, many different SECs are used. Here are some of the most popular ones:

1.    The National Statistics Socio-economic Classification (NS-SEC) (UK)
2.    The Standard Occupational Classification (SOC) (US)
3.    The Socioeconomic Classification (SEC) (Australia)

However, accurately identifying a precise class may pose a challenge. Imagine an individual who was raised in a public housing development, went to a nearby government-funded school, and is employed as a laborer in the construction industry. Does possessing a refined accent, a fondness for classical music, and socializing with the upper echelons of society classify someone as middle class? Class is now a multifaceted interplay of different aspects, extending beyond only economic factors.

The ABCDE socio-economic classification:

The ABCDE socio-economic classification system is solely utilized by Nielsen Atmosphere. It categorizes households in particular regions (like the Czech Republic) based on their socioeconomic status.

The foundation of this method is a persistent "socio-economic score" that signifies the expected income level of a household in proportion to its size and composition. There are a total of eight categories: A, B, C1, C2, C3, D1, D2, and E. The population is categorized into octiles according to their socio-economic score.
Research and media firms generally utilize this technology for conducting surveys and analyzing data. Contrary to certain SECs that prioritize occupation, the ABCDE categorization places greater importance on the degree of income.

Based on Nielsen Atmosphere, a socioeconomic classification of Bangladeshi people has been developed, which divides them into eight categories: A, B, C1, C2, C3, D1, D2, and E.

Socioeconomic Classification (SEC) – Bangladesh Perspective

Reference:
nielsen-admosphere.eu/abcde-classification