What is Standard Industrial Classifaction (SIC)?
- Content Type:
- Glossary
SIC (standard industrial classification) Definition
Classification (in a four-digit code) of business as defined by the U.S. Department of Commerce. Pseudo SICs are SIC modifications which add a fifth or sixth character to allow for greater specificity.
Standard Industrial Classification (SIC) is a system used in market research to categorize and classify businesses and industries based on their primary economic activities and functions. It assigns unique codes to various sectors and subsectors, allowing for standardized industry identification and classification. Researchers use SIC codes to group similar businesses and analyze industry-specific data.
Who relies on standard industrial classification (SIC) in market research?
Market researchers, analysts, government agencies, financial institutions and businesses heavily rely on SIC codes in market research. Researchers use them to segment and analyze industry-specific data, while government agencies and financial institutions use SIC codes for regulatory and reporting purposes. Businesses use SIC codes for market analysis, competitive research and strategic planning.
Why should I care about standard industrial classification (SIC) in market research?
You should care about SIC codes in market research because they provide a standardized way to classify and categorize industries and businesses. SIC codes enable precise industry segmentation, making it easier to access relevant data, compare industry performance and identify market trends. They are crucial for conducting accurate market analysis and understanding the competitive landscape.
Why are standard industrial classifications important in market research?
- Standard industrial classification (SIC) is important in market research because it facilitates consistent industry categorization, making data collection and analysis more efficient and meaningful.
- It supports researchers in identifying industry-specific trends, opportunities and challenges.
- SIC codes also play a role in regulatory compliance, business planning and financial reporting, making them a valuable tool for various stakeholders in the business and research communities.