Discuss about the Consumer Behavior Activities and Decision.
Consumer behavior refers to activities or the decision of buyers in purchasing any goods or services (Rani 2014). There are various factors affecting the buyers behavior of the, wherein demographic trends has a huge contribution in shaping the behavior. In this regard, demographics make a description of a population in terms of size, structure and distribution in which demographic trends defined as the change in consumers preferences based on others purchasing behavior. Consumer behavior is largely affected by the demographic trends directly and by other related attributes such as personal values or styles of decision among others (Hawkins 2010). Therefore, it is stated that demographics feature plays a pivotal role in improving buying decision process of consumers. Parallel to the change in products availability and adoption of strategic priorities by companies, it is also evident that the development of demographic factors has influenced the buying pattern of consumers and the performance of the society in business process. In this regard, certain factors such as age, gender, income have came into sight as good forecaster of consumer behavior and other market issues (VilÄÂeková & Sabo 2013).
Therefore, the paper intends to conduct an in-depth analysis to describe the affects that might face by major industries such as entertainment, fitness and food chain due to the demographic trends. In accordance with the paper objective, certain demographic trends has been selected and elaborated through the following subsections.
Present Longer Life Span of Senior Citizen
In the recent decades, the growing interests on fitness among senior citizens can be seen for which the senior citizens are spending a quite amount in keeping themselves fit with the growing age. Hence, the gym operators and fitness clubs are generating good profits due to such behavior of consumers. In addition, the fitness market has also now understood that higher profitability can be generated in the business by encouraging senior citizens towards healthy life style and maintain a better living standards (Campbell 2003).
Since the senior citizen have comparatively lesser responsibilities for which they mostly prefer to watch TV, as it is found that 46% of this group watches TV (Nielsen 2015). Therefore, it can be stated that the entertainment companies have huge opportunity in enhancing profitability and revenue to attract this group by offering various types of programs and on demand movies. Netflix, a renowned entertainment company, has understood the stated fact and provided online DVD rental services that have attracted huge numbers of customers (Pearson 2006).
On the other hand, concerning the restaurant business, it is apparent that spending on quality food has been a priority for senior citizen, as 54% of the group is willing to pay more for higher quality products and services (Nielsen 2015).
The gym and fitness centers have attained healthy growth over the past few years. Increasing health conscious among people has played a major role in attracting consumers towards gym memberships. The baby boomers generation has moved to retirement along with more time and money to spend in gym and fitness centers. This demographic trend has improved the performance of the fitness sector, as their target market has focused towards the baby boomers as well. Therefore, membership of baby boomers has made a positive impact on the growth of gym and fitness centers (Kratzman, & Stamford 2002).
On the other hand, Netflix, Stan and Presto have also gained popularity among the baby boomers, as watching television programs on device is one of the popular methods of getting entertainment for this generation. With the money in hand to spend, the generation has contributed immensely in developing the business of Pay TV (Mason 2015).
Spending power of this generation also have huge impact on the restaurant as well, wherein flavor is considered to be the most important factor to enjoy in restaurant along with better quality (FONA International 2014). Therefore, restaurants have currently concentrated to implement differentiate strategies to include wide ranges of tastes in their menu to attract the target customers (White 2013).
Generation X has helped to enhance the performance of the fitness industry along with high profitability and market preferences. This particular group has influenced the gym and fitness centers through number of permutations. The fitness pros of the generation have always attempted to share information, due to which personal training has become the driving force of the industry (Vogel 2011).
However, concentrating on the entertainment industry, it is evident that the household net worth of generation X has declined between the year 2005 and 2010 due to which they were stuck in huge mortgage. Therefore, the generation X contributed comparatively lesser attention towards the pay TV player such as Netflix (Briody 2012). While on the other hand, the food chain businesses have enjoyed huge benefits by the generation, as around 75% of the generation is eager to pay for the healthier food (Nielsen 2015). Majority of disposable income is spent by this generation in restaurants, which has increased the popularity of the restaurant business as well (Gordon Food Service 2016).
Generation Y is considered to be the most heath conscious population. The fitness sector has gain high revenue within the past few years with the development of aspiration shoppers such as generation Y, who believes in displaying high-end taste. To maintain social status, this group spend huge amount in enhancing fitness and healthy life style. According to the report presented by the IBIS World (2012), the revenue of personal trainer sector has risen up to 1.4% in 2012, which clearly indicates the contribution of this generation in improving financial capability.
It is evident that this generation has grown up with internet and mobile communications for which they prefer digital stations such as Netflix to get the entertainment (Ouye 2011). Thus, it can be stated that the business of pay TV such as Netflix has grown with the inclusion of the generation Y, as its customers. The generation Y visit restaurants double the rate of generation X, which has become a major part of their life style (Thompson 2012).
Age and Life Style
People nowadays try to get involved in variety of physical activities to keep them fit and aligned with the current trends. Children engage in exercise for fun and foster. Fitness and gym centers have become popular in different types of age group and life style. These centers facilitate variety of physical activities for people to meet the fitness need. With the changing the life style, people are also attracted towards gym and fitness clubs. Thus, fitness centers have included latest technology for providing better physical exercise experience to consumers. This industry has improved its business by creating enjoyable and convenient environment for all age groups people (John Wiley & Sons 2007). Digitalization has made the life comfortable for people, which also changed the living standards of people. Hence, the major players of Pay TV have able to grab the attention of customers through the digital media. With better network services, the consumption of such players has risen across the globe. People has brought changes in the lifestyle with the advancement in technology and heading towards more convenient way of experiencing movies and shows through digital media (Ernst & Young 2011). In the similar context, visiting restaurants has become a major part in the lifestyle of people’ to enjoy quality services and food along with standard environment. Hence, the business of restaurants develops for engaging more people to expand their target arena (Holroyd & Elliott 2010).
Better income level can influence the health of a person, as people with low household income unable to gain the opportunity to improve their heath through physical activities or high quality living standards. The gyms and fitness centers are widened by people with healthy household income (Woolf, et al 2015). The revenue of fitness and gym centers has increased with the involvement of more people (Woolf, et al 2015).
On the other hand, concerning the entertainment industry, increased in household income has simultaneously increased the demand of Netflix and other services. People have understood the impact of on demand TV as compared to the traditional TV (LRG 2014). In the similar context, majority of the restaurant industry profit generates from the people with higher household income level. People having good household income tend to spend time and money in visiting restaurants. Thus, increase in household income plays an important role in growth of the business specifically entertainment, food-chain and fitness (National Restaurant Association 2014).
Conclusion
Demographic trends play an important role in consumer behavior. Changes in demographic factors affect the buying decision of consumers. There are three major industries including fitness, restaurant and pay TV, which can have significant impact from different types of demographic trends. It is evident that the senior citizens and baby boomers huge contribution in boosting the fitness industry, restaurant business and Pay TV as well. In addition to this, the Generation X also assists in flourishing the business of fitness, but due to recession interest, the pay TV has comparatively less developed. The most energetic along with enough time and money, Generation Y has added benefits to all three industries. Age and lifestyle, increases in household income are some important demographic trends, which make a serious impact on the fitness, pay TV and restaurant business.
References
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Campbell, D 2003, Fitness Is the New Bingo as Oaps Hit the Gym, Home, viewed 02 September 2016 <https://www.theguardian.com/uk/2003/aug/10/deniscampbell.theobserver>
FONA International 2014, ‘Baby boomers: A boom to your business’, Trend Insight Report, pp. 1-8.
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Mason, M 2015, Documents, Deloitte Study Shows Aussies Watching More TV, But In Different Ways, pp. 1-2.
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Thompson, C 2012, Young people eat and drink out more, Companies, viewed 02 September 2016 <https://www.ft.com/cms/s/0/3b452592-c911-11e1-bcb4-00144feabdc0.html#axzz4J5iZbYGw>
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