Consumer Behaviour Demographic Trends

Question: Describe about the Consumer Behaviour for Demographic Trends. Answer: Introduction: Nowadays, numerous large companies and organizations identify demographic trends, to forecast their future demands of their products and services. Mostly a marketing department of such organizations makes use of demography, with the aim of revising their promotional activities considering trends. Demographic trends are also utilized by the firms to revise their product design according to the variation in market trends. As demographics are easy to measure and easily available in printed form, diverse companies use it to find out the new market opportunities (Gentry, 2008). P-1 Describe how the major industries of 1) Gym/fitness 2) Pay TV like Netflix, Presto, Foxtel and Stane.t.c. and 3) eating out in restaurants are affected by the effects of the demographic trends listed below (positive and/or negative effects): There are diverse industries, which are affected by the demographic trends. Let us check out the effect of diverse demographic trends on major industries such as health and fitness industry, entertaining companies like Netflix, Prestro etc., and hotel or restaurant industry. A present longer life span of senior citizen: Nowadays life expectancy of senior citizen has risen as people spend more on gym and health centres compared to previous years(Booth and Crouter, 2005). Health centres are also able to attract senior citizens by providing different facilities. Talking about the hotel industry, then it is unable to attract senior citizens as they are more health conscious. In addition to it, they rarely prefer to eat in restaurants. Entertainment companies like Netflix, Presto, Foxtel and Stane are able to attract senior citizens as diverse social programs are telecasted by such companies. The Baby boomers generation who are approaching retirement, but with money to spend. The baby boom generation includes the people born between 1946 to 1964. It is found in many research studies that baby boomers are the wealthiest person with high incomes and their future is secured with retirement plans. Generally the age of baby boomers in 2016 is between fifty two to seventy years (Ruggles, 2015). As the income of baby boomers is high, they will spend more on health centres and entertainment industry (Kim, 2013). These people might spend on eating food in restaurants as they have extra income to spend on luxuries. Hence we can say that baby boomers should be the target customers of health and fitness, entertaining and restaurant industry (Clarke, 2005). Generation X with a growing family household and a huge mortgage (need to be tight with money). Generation X includes the people born after 1960 to late 1970s. Generation X people are required to fulfil their household needs. They need to spend wisely as they are short of money due to huge mortgage. These types of people rarely prefer to eat in restaurants and might not be attracted by the entertainment companies like Netflix, Foxel, Stane etc. Even they spend less on health centres and gyms due to shortfall of money. Diverse companies and industries can attract X generation to buy their product and services, by either reducing the prices or by offering discounts (Fraj and Martinez, 2006). Present smaller family unit and more "single adult" households (Generation Y and where spending money is part of every- day life Generation Y includes the people born between 1980 - 2000. These people include youngsters, who dont believe in saving concept (Overhue, 2006). They are born and brought up in individual families. They are young and enthusiastic and so they love to enjoy the diverse leisure (Falkingham, 2011). Entertainment companies can target generation X by telecasting new programs related to young generation. They do spend on health care centres and gym for maintaining their body and so many people of this generation enroll themselves for a gym or health centre memberships. These types of people like to spend on having dinner and lunch at restaurants. Thus we can say that all the three major industries can influence generation Y easily. P-2 Name some other important demographic trends. How might these trends affect the three industries in the report? There are several other demographic trends such as death rates, in migration and out migration. Let us check out the effect of these trends on the three industries such as health centres, entertainment and restaurants Death rates: Since the last few decades, death rates have been decreased due to increase in medical facilities. New technologies are being used in hospitals to cure the hazardous diseases. Diverse vaccine like polio and others is given to the children to eradicate the disease. People are more health conscious and they prefer to do exercise on the regular basis. It has also decreased the death rates to a great extent. Decrease in death rates is possible due to increase use of health facilities by people. Apart from it, due to decrease in death rates entertainment and restaurants are also able to serve more consumers. Hence we can say that it has a positive effect on all the three industries(Plaud and Urien, 2016). In migration: People do migrate to diverse countries for different purposes like for studying, for building a career, family issues, etc. When the people from different country migrate to our country is known as in migration (Balk and Montgomery, 2015). This type of migration increases the overall population of the country. There are positive as well as negative effects of in migration on entertainment, restaurant and health industry (Flynn and Goldsmith, 2015). From the positive point of view, in migration increases the overall growth of the population and thereby increases the overall demand for three large industries. From the negative point of view, due to in migration, diversity in the population increases and so it becomes difficult for the entertainment, health and restaurant industry to identify the tastes and preferences of the overall population. Apart from it, migrated people are less attracted to the products and services available in the country and so all the three indu stries might fail to attract migrated people. Out migration: When the people from our country migrate to other country is known as out migration. Basically out migration decreases the overall population of the country and it has positive as well as a negative effect on the three large industries of the country. As out migration decreases the overall population, then it is possible for the industries to implement targeted marketing strategy to up surge the overall revenues of the firm. Out migration effects less of the entertainment industry as this industry telecast its programs worldwide. But health and restaurant industry will be affected negatively because they lose their consumers due to out- migration. And there by the overall demand of their products and services decreases (Schiffman, 2008). Conclusion: Thus we can say that demographic trends have a large impact on the demand of goods and services of three major industries such as restaurant, entertainment and health. All the above trends like life expectancy, decrease in death rates, etc. will aid the companies to understand the consumer behavior and to forecast the future demand of the company. Nowadays, with the use of internet media, information about population trends can be assessed easily and so it has now become easy for the industries to measure the effect of population trends on the demand of their products and service. This unit will be beneficial for the readers as it shows the positive as well as negative effects of population trends on the demand of health industries, entertainment industry and the restaurants. It is advisable for such industries to consider population trends and revise their marketing strategies to up surge the overall revenues of the firm. References Balk, D. and Montgomery, M. (2015). Guest Editorial: Spatializing Demography for the Urban Future. Spat Demogr, 3(2), pp.59-62. Booth, A. and Crouter, A. (2005). The new population problem. Mahwah, N.J.: Lawrence Erlbaum Asociates. Clarke, G. (2005). 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