Socio-Economic Classification (SEC) refers to a term that is used by Indian marketers which uses a combination of the education and occupation of the chief wage earner of the household to classify buyers in urban areas. This classifies all the urban households into eight broad categories, namely, A1, A2, B1, B2, C, D, E1, and E2; with A1 signifying the highest purchase potential and E2 signifying the lowest. For rural areas, the system uses the occupation of the chief wage earner of the household and the type of house to classify households into four broad categories from R1 to R4 in descending order of purchase potential.
Definition