Demographic Characteristics of Customers

Question: Discuss about theDemographic Characteristics of Customers. Answer: Introduction Demographic changes which also includes rapid growth in population along with unprecedented graying around the world, is going to have a major impact on the business in the coming years. It is expected that by 2050 two to three billion more people will be added to the planet (WSJ, 2013), so demographic characteristics of the customers for example education, race, income, geographic location , family size , age, sex, marital status, and occupation will certainly impact the business in future. This report thus analyses four demographic features and their impact on Gym/ fitness, Pay TV and eating out in restaurants. Gym Fitness Longer Life Span of Senior Citizens Older Victorians have started living longer; there is seen dramatic evolutionary shift in the ageing population in Australia as life expectancy is 87 years and to make the added life years in the life of Victorians to be made free from disability. So they will tend to participate more in physical activities as it will improve their mental health, reduce the risks of various effects of falls, helps in maintaining muscle strength as well as flexibility . So this will help the gym or fitness industry to grow as they will try to be physically active through fitness, sports and recreation (COTA, 2015). Baby Boomers Generation Approaching Retirement But with Money to Spend The revenue opportunity for the gym as well as fitness industry will grow because the baby boomers generation will be moving into retirement and since they will now have both money as well as time to spend on fitness so they will be keener on attending gyms. Spending on gyms or fitness centres will bring about positive improvements in their general health awareness so they will be investing more in them (Whytcross, 2014). Generation X with Family Household and Huge Mortgage Generation X is in worst position because of having family household to be taken care of as well as the load of huge mortgage on them, so they will not be investing in gyms or fitness as that will be a regular monthly expense for them, rather to stay fit they will be opting for walking or running or exercising on their own as they will be free of cost and will not add on to their expenses (IBIS World, 2014). Smaller Family Units and More Single Adult Households Generation Y and where spending money is part of everyday life, feels lot less well-cushioned so they suffer from the signs of anxiety and insecurity. They have several other discretionary expenses on which they spend money like holidays, internet etc. More or less they are busy with keeping up with monthly expenses so spending on fitness and gyms is not their priority (Chunn, 2016). Pay TV Longer Life Span of Senior Citizens Longer life span of senior citizens means they will be watching more of Pay TV as it will offer them the content they want to play while the time of choosing to watch television. They will be more inclined towards watching pay TV as compared to liner TV as the senior citizens can choose instead of watching programs at the time of choosing. So longer life span of senior citizens mean more viewing of Pay TV like Netflix, Foxtel etc. by the senior citizens as per their choice (Budde, 2016). Baby Boomers Generation Approaching Retirement But with Money to Spend Baby Boomers who are approaching retirement and have money to spend will be having time and will want to stay well informed so they tend to use more of internet after retirement. This will enhance the consumption of Pay TV like Netflix etc. in such households as they would like to stay connected and gain maximum information now at the comfort of their home and they will be having more time to watch TV as per their choice which will be offered by Pay TV (A T Kearney, 2013). Generation X with Family Household and Huge Mortgage Since Gen X is already under the pressures of family household and huge mortgages then too for entertainment and recreation they would like to spend money on Pay TV as that would be a part of their household expenses. Since they are the ones holding power and they are currently in the family and teenager stage of life and they are at the peak spending years so they will definitely opt for Pay TV (Salt, 2015). Smaller Family Units and More Single Adult Households The Generation Y or the Millennial are acting as the main force that will transform the economy and being very much technology driven, they are the first ones who came of age with the cable TV, cell phones and Internet, so considering their likelihood for technology they will definitely opt for Pay TV (Salt, 2015). Eating Out in Restaurants Longer Life Span of Senior Citizens Longer life span of senior citizens means they will need a fixed eating schedule, will have specific food choices, need special nutrition as per their health status. Considering these aspects the eating out at restaurants will be minimal because it will be very tough for the restaurants to cater to their specific dietary or nutritional requirements (Nicklett Kadell, 2013). Baby Boomers Generation Approaching Retirement But with Money to Spend As per the drivers of well established trends, the Baby Boomer generation that is about to retire and although have money to spend is trying to redefine the entire ageing process as they are shifting towards healthy eating habits. Since the baby boomer generation is more concerned about nutrition and try eating well planned meals, so they would not prefer to eat out at restaurants very frequently. Even if they would occasionally plan to eat out at restaurants for a change they will prefer to eat out at restaurants that serve healthy and nutritious foods (NPD, 2012). Generation X with Family Household and Huge Mortgage The Generation X has not been that much passionate about food and they were more focussed on pizzas and burgers. They enjoy eating out at restaurants but are not much conscious about the healthy and nutritional aspects of food. For them the more expensive the restaurant is the healthier food they will serve and they focussed more on taste of the food that they eat out (Bratskeir, 2015). Smaller Family Units and More Single Adult Households The choice of food of Millennial or Generation Y is totally different from their parents. The Generation Y is found to be much passionate about food than any other generations in history and almost fifty percent of Gen Y-ers are identified as foodies by themselves. Most of them like to dine out mostly on weekends or once in a week and they also scrutinise the list of ingredients. Since they are making much conscious choices regarding eating (Bratskeir, 2015). Other Important Demographic Trends that Impact Fitness Industry, Pay TV and Eating out Restaurants The other demographic changes that will impact the fitness sector along with Pay TV and eating out at restaurants are the entry of women in the workforce along with highly increased longevity , which directly states that there will be 20-30 more productive years before conventional age of being retired. Both these demographic factors women workforce on the rise and aging need to be accommodated by businesses. Thus the businesses will have to improve their work flexibility reduce the schedules along with making changes in several human resource policies. Baby Boomers are all set for retirement, so there will be change of guards because the baby boomers will be stepping down from the management roles while generation X and Gen Y will be all prepared to fill in their shoes. Conclusion The above analysis of demographic trends indicates that senior citizens having longer life span, Baby Boomers who are nearing retirement , but have enough disposable income, Generation X that have family household as well as huge mortgage and Single Adult Households or Millenials will have different kinds of impact on the fitness / gym industry, Pay TV and eating out at restaurants. On positive side the changing demographics of gaining population will help in creating market opportunities for all the three sectors mainly that caters to the elderly people. It also indicates that both the millennial generation (Gen Y and the aging population will be brining a major change in the business landscape. The main beneficiaries of these changing demographics will be mainly the health care or fitness services, digital or technology based services as well as restaurants. Bibliography A T Kearney, 2013. Understanding the Needs and Consequences of the Ageing Consumers. 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