Giving a more detailed segmentation for the consumer economic condition. Beyond the economic characteristic these classifications include social factors (life style etc.) to improve the quality of this approach.
Consumer spending in goods and services has been changing over the years. Ernest Engel , a German statistician observed as family income rises , percentage spent on food declines, spending on housing and household operations remains constant and spending on other categories and saving increase categories.
Consumer tend to hold their savings in banks, or money market funds . These savings are an important factor for financing purchases of, big or smaller value. As it was mention as a contributor to the rapid growth of local economics enabling people to buy more than they earn.
Changes in such major economics variables have a large impact in the market place and it is more than essential to analyse them in the best possible way.