Effects of Demographic Trends on Industries

This paper explores the effects of demographic trends on industries such as gym or fitness, Pay TV, and restaurants. It discusses how senior citizens, baby boomers, and Generation X and Y influence these industries. The paper highlights the positive impact of demographic trends on the profitability and development of these industries.

Running head: B01CBEH209
Consumer Behaviour
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Introduction
Customer behavior is determined to be the decisions or activities of purchasers in buying any
services and products. These consist of different factors that affect consumer behavior such as
demographic trends. The demographic trends play a vital role in improving the decision as well
as the purchasing behavior of the consumers. Thus, the paper will demonstrate an exploration of
the effects of the demographic trends due to which the industries such as, gym or fitness, Pay TV
and restaurants gets affected. As a result, few demographic trends have been choosen to discuss
the impacts on the industries.
The causes of Demographic trends on various industries
Present longer life span of senior citizen
In today’s context, it can be seen that there is an increased interest of senior citizens on fitness.
Hence, in order to keep themselves fit with the rising age, the senior citizens spends a
considerable sum of money on gym or fitness centers. As a result, this creates a positive
influence on the fitness clubs and gym operators as they are gaining good profits because of such
purchasing behavior of the consumers (Butler et al., 2016). Moreover, the fitness market has
acknowledged that huge profitability could be gained by enhancing senior citizens towards
maintaining better living standards and a healthy lifestyle.
As the senior citizens possess lesser responsibilities, hence they mostly prefer to watch TV to
spend their time. It has been observed that 46% of the group of senior citizens watches TV. Thus,
it can be said that entertainment firms such as Stan, Foxtel, Presto, Netflix and many more gain
enormous opportunity in enhancing revenue and profitability. These companies offer multiple
types of demand movies and programs to attract this group of consumers. For example, Netflix a
well-known entertainment firm has offered online DVD rental services that has grabbed the
attention of huge-consumer base (Carey, 2016).
Furthermore, spending money on standard food has become an importance for senior citizens. It
has been noticed that 54% of these particular group are highly interested in paying more amount
for higher quality food services and products. Therefore, it creates a positive impact on the
restaurant industries by gaining huge productivity and profitability.

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Baby Boomers generation is upcoming retirement along with money
Over the past few years, the fitness sector has achieved huge development. Growing health
consciousness among individuals has played a significant role in enhancing customers upon gym
affiliations. The baby boomers generation has approached retirement with extra money as well as
time to expend in fitness and gym centers. This particular demographic trend has enhanced the
performance of the gym and fitness industry, as their target marketplace has also emphasized the
baby boomers generation (Koskinen, Ylilahti and Wilska, 2017). Thus, the affiliation of the baby
boomers has created a progressive influence upon the development of the gym and fitness sector.
Meanwhile, Presto, Stan, and Netflix have received acceptance among the baby boomers. It can
be seen that watching programs on television has become the best way of getting entertainment
for baby boomers generation (Seale et al., 2019). This generation has contributed significantly to
enhancing the business of Pay TV as they possess a considerable amount of money in their hand.
The baby boomers generation also puts a positive impact on the restaurant industry as they
possess strong spending power. However, the flavor is determined to be the most significant
aspect to spend quality time along with better quality in the restaurant (Canhoto and Arp, 2017).
As a result, to attract the target consumers, currently, the restaurants have focused towards
adopting various strategies to add huge choices of tastes within their menu.
Generation X with an increasing family household and a huge mortgage
Generation X has supported to improve the performance of the fitness sector with market
preferences as well as great effectiveness. Through several permutations, this group has inclined
the gym and fitness industry (Butler et al., 2016). The fitness experts of generation X has always
tried to share material because of which individual training has become a significant aspect of
the gym and fitness sector.
Moreover, focusing upon the entertaining sector, it has been observed that household net value of
generation X has reduced in the middle of 2015 to 2018, because of which they faced an
enormous mortgage. As a result, generation X has given less attention towards the Pay TV
players like Stan, Foxtel, Presto, and Netflix (Heard-Garris et al., 2018).

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Meanwhile, due to generation X, the restaurant industry has gained huge profitability. It can be
seen that 75% of this particular generation is highly interested in spending money on healthier
food. Most of the disposable income of this generation is spent in restaurants that have enhanced
the popularity of the restaurant industry (Canhoto et al., 2017).
The present smaller family unit and more single adult households
Generation Y is determined to be a group of people which is highly health conscious. Over the
past few years, the fitness industry has gained higher revenue with the growth of objective
shoppers like generation Y. This particular generation rely on presenting high-end taste in order
to uphold social position. To enhance health and fitness lifestyle, generation Y spends huge
money on gym and fitness centers. As per the report of the IBIS World that was presented in
2018, the revenue of gym and fitness industry increased by 1.4% in 2018 (Chen and Pham,
2019). This clearly states the fact that generation Y has hugely contributed to enhancing the
financial capability of the gym and fitness industry.
It has been noticed that generation Y has developed with mobile and internet communications,
due to which they favor digital platforms like, Netflix to receive the entertainment (Koskinen et
al., 2017). Therefore, the commercial operations of Pay TV like, Netflix has significantly
developed with the presence of generation Y, as its consumers.
Moreover, it can be seen that generation Y visits restaurants more as compared to generation X.
However, visiting restaurants is considered to be a significant aspect of their routine.
Approximately, 85% of generation Y likes to visit restaurants that helps the restaurant industry to
gain higher profitability (Liu et al., 2018). Furthermore, generation Y prefers a huge variety of
tasty food products with better quality, and the restaurant industry succeeds in satisfying the
needs of this generation. Hence, this demographic trend made a positive impact on the restaurant
industry.

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Conclusion
The paper demonstrated an understanding of the demographic trends that plays a vital part in the
purchasing behavior of customers. There possess three main industries that involve Gym and
Fitness, Pay TV and restaurants that may have a substantial influence from various kinds of
demographic trends. It has been observed that the huge contribution of baby boomers and senior
citizens helps in developing Pay TV, restaurant business and gym and fitness industry.
Moreover, the paper revealed the fact that due to recession interest, generation X is less
interested in paying for Pay TV, while they are highly interested in spending money on fitness
centers and restaurants. On the other hand, generation Y is determined to be the most energetic
generation along with money and time. As a result, they have added huge benefits to all three
industries.

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References
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