What is the difference between demographics and psychographics?

Demographics provide quantitative data based on geography, age, gender and calendar events. This data is recorded and managed in sets referred to as a database.

Psychographics provide qualitative data that reflect attitudes, lifestyles, and preferences.

Here's an example, using an electronics store.

* The database could reveal that the store's primary customers are male, in their 30s to 40s;have an average income of $50,000; and spend $1,000 a year on electronics. * Psychographics could reveal a subset (i.e., niche) of buyers with a preference to buy online exclusively who spend $1,500 to $2,000 a year.

Creating an exclusive campaign targeted directly to dedicated online buyers could build loyalty and increase revenue for the store.