Prasad's Scale and A new Socioeconomic Classification

Prasad’s Classification BG Prasad scale was first introduced in 1961 and was revised by the author himself in 1968 and 1970.
After Kuppuswamy SES scale this scale is the most widely used SES scale for classifying the people according to the Socioeconomic Status. It is applicable to both urban and rural population.
It is based on per capita monthly income It is computed as: 푃푒푟 푐푎푝푖푡푎 푚표푛푡ℎ푙푦 푖푛푐표푚푒=(푡표푡푎푙 푚표푛푡ℎ푙푦 푖푛푐표푚푒 표푓 푡ℎ푒 푓푎푚푖푙푦)/(푡표푡푎푙 푚푒푚푏푒푟푠 표푓 푓푎푚푖푙푦" " ) Socioeconomic Classification The new system The new SEC system is used to classify households in India. It’s based on two variables:
Education of chief earner Number of “consumer durables” ( from a predefined list)-owned by the family. The list has 11 items, ranging from ‘electricity connection’ and ‘agricultural land’-to cars and air conditioners
We have 12 grades in the new SEC system, ranging from A1 to E3 Earlier classifications were based on the assumption that higher education leads to higher income thus higher consuming potential.
But we know that this may not be true always. A trader or a retailer with no qualification can earn more income than a Post graduate executive, but SEC will categorize the traders/retailers not as SEC A1or A2.
So, in order to combat this problem, the Government came up with the new SEC system on 3 May 2011. The list of durables will become less discriminating over a period of time as more people acquire more durables.
The list has to be changed from time to time - in another few years probably all of them will have gone.
For instance, mobile is not one of the discriminating goods because today almost everyone has it.

1. BG Prasad scale was first introduced in 1961 and was revised by the author himself in 1968 and 1970. After Kuppuswamy SES scale this scale is the most widely used SES scale for classifying the people according to the Socioeconomic Status.

2. It is applicable to both urban and rural population. It is based on per capita monthly income It is computed as:  

3. Income (in Rs./month) Social Class 6261 and above I (Upper Class) 3099-6260 II (Upper Middle Class) 1835-3098 III (Middle Class) 949-1834 IV (Lower Middle Class) 948 and below V (Lower Class)

4. The NCCS (or ‘new SEC’ system as it is referred to in the MRSI documents) was co-developed by MRSI (market research society of I ndia ) and MRUC (media research users council) as the new classification system.

5. ROADMAP What is the new SEC system ? What was need for the new SEC system ? How do we classify a household in the new SEC system ? Conclusion

6. The new SEC system is used to classify households in India. It’s based on two variables: Education of chief earner Number of “consumer durables” ( from a predefined list)-owned by the family. The list has 11 items, ranging from ‘electricity connection’ and ‘agricultural land’-to cars and air conditioners We have 12 grades in the new SEC system, ranging from A1 to E3 What is the new SEC system?

7. Earlier classifications were based on the assumption that higher education leads to higher income thus higher consuming potential. But we know that this may not be true always. A trader or a retailer with no qualification can earn more income than a Post graduate executive, but SEC will categorize the traders/retailers not as SEC A1or A2 . So, in order to combat this problem, the Government came up with the new SEC system on 3 May 2011.

8. How do we classify household in the new classification?

9. Q1a Please take a look at this list and tell me which of these items do you have at home? (It could be owned by you, your family, or provided by the employer or it could be available in the house you live in; but it should be for the use of just you or your family) Q1b Does your family own any agricultural land, by agricultural land I mean land that is currently under cultivation or plantation? Q2 Could you tell me something about the person who makes the biggest contribution to the running of the household. To what level has he studied? Electricity connection Ceiling fan LPG Stove Two Wheeler Color TV Refrigerator Washing Machine Personal Computer/ Laptop Car/Jeep/Van Air Conditioner

10. Items Owned Circle Electricity Connection 01 Ceiling Fan 02 LPG Stove 03 Two Wheeler 04 Color TV 05 Refrigerator 06 Washing Machine 07 Personal Computer 08 Car/Jeep /Van 09 Air Conditioner 10 Agricultural Land 11 Number of Items Owned = 8

11. Education No. of Durables Owned Illiterate Literate but no formal school/ school upto 4 years School: 5 to 9 years SSC/HSC College Diploma (Not Grad) Grad/ PG(General) Grad/ PG (Professional) 1 2 3 4 5 6 7 None E3 E2 E2 E2 E2 E1 D2 1 E2 E1 E1 E1 D2 D2 D2 2 E1 E1 D2 D2 D1 D1 D1 3 D2 D2 D1 D1 C2 C2 C2 4 D1 C2 C2 C1 C1 B2 B2 5 C2 C1 C1 B2 B1 B1 B1 6 C1 B2 B2 B1 A3 A3 A3 7 C1 B1 B1 A3 A3 A2 A2 8 B1 A3 A3 A3 A2 A2 A2 9+ B1 A3 A3 A2 A2 A1 A1

12. The list of durables will become less discriminating over a period of time as more people acquire more durables. The list has to be changed from time to time - in another few years probably all of them will have gone. For instance, mobile is not one of the discriminating goods because today almost everyone has it . Conclusion