Consumer Behavior Analysis: Demographic Trends and Purchasing Power

This essay provides a theoretical understanding of consumer behavior in purchasing terms, focusing on how various demographic trends affect consumer purchasing power across different industries. The essay explores the impact of trends such as longer lifespans of senior citizens, the baby boomer generation approaching retirement, and Generation X families with mortgages, as well as Generation Y. The analysis examines how these trends influence consumer behavior in the gym, Pay TV, and restaurant industries. The study identifies that Generation Y contributes more to the targeted market. The essay provides an in-depth analysis of each demographic trend's effect on consumer spending and preferences, concluding that an understanding of consumer behavior must consider the various factors that influence customer mindset.

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Consumer Behavior

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This essay will be going to give a theoretical knowledge about consumer behavior in
purchasing terms. Various demographic trends affect the purchasing power of the consumer.
This essay will reflect about the purchasing power of the consumer in Gym, Pay TV, Eating
in restaurants which are affected by the demographic trends such as Present longer life span
of senior citizen, the baby boomers generation approaching retirement but with money to
spend, generation X with a growing family household and a huge mortgage.
In today’s competitive world, various problems are arising for the customers in deciding their
purchase and comparing the substitutes. Due to the increase in the competition, there is a
difficulty arising for the consumer to decide what to purchase, which will give them
satisfaction in terms of money and energy (Solomon, 2012). This paper will emphasis on the
details of consumer buying behaviour.
To identify the purchasing behavior of the customers, various target markets has been set in
which various trends are affecting the purchasing needs of consumer. These target market
include fitness, restaurant, and the Pay TV industry (Young, 2010). In the below paragraphs
there is the explanation in reference to various trends.
First Demographic Trend such as a life of senior citizen provides less revenue benefit to the
gym, restaurant, and PayTV industry. In the case of the fitness Industry, fitness and exercise
are much good for the longevity of life. Approx. 75 minutes of vigorous exercise per week
yielded approximately 3.4 extra years to one’s life (WHO, 2019). The life span of the senior
citizen has been increased by the fitness industry. However, those citizens who are not able to
focus on their fitness have a less longitivity life span as compared to fitness conscious people.
In the case of Pay TV, this generation has less interest if it is compared with other ones.
When they were at a young age they were not having the facility of Pay TV. Because of this,
this group of people does not have much interest in watching the series on NETFLIX,

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PRESTO, and STAN. In the case of the restaurants, it has been observed that this group of
people are very much conscious about their health and does not prefer to visit a restaurant.
Second Demographic Trend is baby boomers who are providing less than average revenue
benefit to the fitness, restaurant, and PayTV industry. These are those people who are older
than 65 and become more racially and ethnically diverse (Wuthnow, 2010). In the case of
fitness, they are not having much income and they had responsibilities of the family. So due
to this, they could not able to invest their money in the fitness industry. So most people of
this group have no. of diseases, as they do not focus much on fitness. In the case of Pay TV,
this generation partially divides. Some are interested in watching the series on paid site as
they are capable of affording it whereas, some are not. Hence, the Pay TV industry was
having average growth. Similarly, these peoples were least interested in visiting the restaurant
as they have to consider their health and wealth factor. Only those people who have the desire
to visit the restaurant and can afford it and prefer restaurant (Fry, 2016).
Third Demographic Trend is of generation X, their growing families and a huge mortgage
provides average revenue benefit to the fitness, restaurant, and PayTV industry. These are the
people whose birth years ranging from the early-to-mid 1960s to the early 1980s (McNichols,
2010). In the fitness industry, the people were having more money but because of the family
responsibilities and huge mortgage, they are not able to focus on the fitness industry. They
were not very health conscious as they have limited money and family responsibility which
does not allow them to maintain health. Although they want to live a healthy life they do not
want to spend much amount on fitness. Therefore, they invest less in the fitness industry. In
the Pay TV industry, it had been observed that this generation is interested in watching series,
as most of them are fond of it. However, those people who are more concentrated in spending
their money on their family necessities are least interested in such type of series. Hence, they
are not a much beneficial group for Pay TV. This age group prefer restaurant meals and like

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to go with their families in the restaurant at the same time they are money conscious too. So
they spend average income on this industry. Hence, this group is beneficial for the restaurant
industry at an average pace (Anyadike-Danes, 2010).
Fourth Demographic Trend is of generation Y that are born in the 1980s and 1990s provides
higher revenue benefit to the fitness, restaurant, and Pay TV industry (Bolton, 2013). In the
case of the fitness industry they are considered as the fitness freak generation as most of them
lived in a necular family they do not face the monetary crisis. Hence, the fitness industry has
a boom period because of this generation. In the case of Pay TV, this generation contributed
allot and prefer to watch Netflix, Presto, Foxtel, and Stan, etc. frequently and as they do not
have money problem so they easily pay for this. This generation also prefers to watch such
things because it is a type of trendy and modern way which make them show off. In the
restaurant industry also this group contributes more as compare to others as they like to visit a
various restaurant with their friend and family and they are found to hang out with their
mates. Although they mostly prefer to go to that type of restaurant which provides healthy
dishes. It had been observed that generation Y contributes more to the restaurant industry as
compared to the other generations (Giovannini, 2015).
From the above analysis, it can be concluded the different generation has a different effect on
the different industries. To understand consumer behavior one must always consider various
factors that influence the customer's mindset. Generation Y is the group who are contributing
more to the various targeted market.
Bibliography

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