The three most frequently studied demographic variables in the U.S. consumer market are age, gender and income level. Other variables that are frequently considered include education level, consumer occupation, family life cycle, social class, race and ethnicity. Demographic variables are associated with consumer needs and buying patterns.
Marketers use these variables to determine a demographic profile for segmenting consumer markets for further analysis. The most important and commonly used demographic variable is income; consumers are grouped according to their level of individual income or their household income. By combining all the demographic variables, marketers develop marketing strategies through market segmentation.