What is social grading & how is it best used?

How to use social grading

Social grading has long been a very useful tool for advertisers and marketers who wish to segment markets. In the case of TGI, social grade of the respondent is assessed by the interviewer at placement of the questionnaire based on information given in person by the respondent.

Occupation details are collected for the related member of the household who has the highest income (the Chief Income Earner). This means that if, for example, the father of a household was the Chief Income Earner (CIE) and his occupation placed him in social grade B, then his family members who live in the same household will also be regarded as social grade B. If the CIE is retired, social grade is based on former occupation. If the chief income earner has no formal occupation, social grade is assessed based on his/her main source of income. In the few cases where insufficient information about the Chief Income Earner’s occupation is obtainable, assessment is based on environmental factors such as type of dwelling and amenities in the home. The social grade of boarders, lodgers, resident domestic servants, and members of institutions is based on their own occupation.

It is important to bear in mind that social grade definitions may differ between research organisations.