Categorical labeling is a method used to classify items, people, or concepts into distinct groups based on shared characteristics. This process helps in organizing information, making it easier to analyze and understand. For example, in psychology, researchers might use categorical labeling to group individuals based on traits like introversion or extroversion. In everyday life, categorical labeling can be seen in various contexts, such as food categories like fruits, vegetables, and grains. This classification aids consumers in making informed choices and helps businesses in marketing their products effectively. Overall, categorical labeling simplifies complex information into manageable categories.