Geodemographics reflects the fact that people living in particular types of neighbourhood tend to exhibit broadly similar patterns of behaviour. Each neighbourhood has its own special characteristics, which become self-perpetuating. People who identify with neighbourhood types are more likely to move in and those who do not are likely to move out. The result is the world we see around us, consisting of 'good', 'bad', 'young', 'trendy', 'dormitory' and 'retired' areas, and so on. These areas can be described by using a mix of variables measured by the census of population. Geodemographic systems relate the characteristics described in the census to postcodes, and these characteristics are then used to describe average households. The postcode groupings can then be linked to behaviour-specific data held on other databases, thus further refining the ability to describe and target specific groups.

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