As in most Latin American countries, the socioeconomic level (NSE) in Argentina was determined by a set of questions aimed at identifying the socioeconomic characteristics of individuals. Unlike in other countries, it was not feasible to inquire directly about income due to a strong cultural bias that made accurate reporting difficult, both at the individual and household levels.
For this reason, the NSE was calculated based on variables such as ownership of goods, educational level, and access to services, which were easier to survey. However, starting in the 1990s, this index, primarily based on the possession of material goods, began to lose relevance due to the dynamics of the consumer market and technological advancements.
To address this issue, in 2005, the main users of the NSE in Argentina — the Chamber of Market Research and Opinion Companies (CEIM), the Argentine Society of Market and Opinion Researchers (SAIMO), and the Argentine Association of Marketing (AAM)— formed a commission to work on a solution (the Institutional Liaison Commission).
As a result, a new set of questions was developed alongside an updated algorithm based on data from the Permanent Household Survey of the National Institute of Statistics and Censuses (INDEC). The Institutional Liaison Commission approved this new methodology which received broad support from agencies, companies, and the market and public opinion research community in general.
The revision has meant:
A more stable and robust NSE over time.
Implementation of a dynamic decision tree that allows for direct calculation of the NSE in the field, avoiding the use of indices with quickly outdated or difficult-to-interpret weights.
A simplified version for CATI, online studies, among others.
Maintenance of the usual socioeconomic levels in the market: ABC1, C2, C3, D1, and D2/E.
Measurement based on the primary contributor of the household, considering educational level, occupation, number of household members, and medical coverage.
Small improvements and updates which have been implemented from 2005 to today.
The Situation Today
After nearly two decades of applying this methodology, rapid social changes, transformations in household composition, and the impact of technology on access to goods, services, and consumption called for a new review. This should determine necessary adjustments and/or incorporate new tools to enable a more precise reading of the population and adapt to current data collection methods., urgently needed for decision-making in the public and private sectors.
CEIM therefore took the initiative to coordinate a multidisciplinary team composed of professionals from our member companies, who will work together with SAIMO and AAM. We are working to an agenda set by the three associations and are pleased to share our experiences and expert insights on such a relevant topic for our industry, because, ultimately, all marketing activities have an orientation that takes the NSE into account for their plans.
For our Chamber, it is vital to promote analysis and discussions that contribute to maintaining a solid, current, and representative methodology of the social and economic reality of the country. This year we will be able to bring more updates.
