DECA Retail Merchandising Practice Exam

The term that describes the classification of neighborhoods by shared consumer behaviors is geodemographic. This concept combines both geographic and demographic information to create a profile of a community based on the lifestyles, preferences, and purchasing behavior of the people who live there. Geodemographic segmentation allows marketers to identify and target specific consumer groups effectively by analyzing where people live and how those living environments influence their buying habits.

In contrast, the demographic classification focuses purely on statistical data about the population, such as age, gender, income, and education level, without necessarily connecting those factors to consumer behavior. Geographic segmentation looks at the physical location of consumers but does not consider the consumer behaviors associated with those areas. Lifestyle categorizes consumers based on their interests, opinions, and activities, but it does not inherently connect these behaviors to shared geographic locations in the same way that geodemographic does. Thus, geodemographic is the most comprehensive term for this classification, as it encapsulates both where people live and how their living situations affect their consumer choices.