Demographics

Question 1

what is demographics

Answer 1

study of population in terms of:
age
gender
race
size of household

Question 2

how demographics impact costs and demand?

Answer 2

impact on costs
- increase in costs because
1. ageing population people will be working longer. this increases cost as business have to adjust the workplace for older customers and employees

2. training costs for migrant workers that are employed and language costs.
3. impact of migrant workers on wages = is arguable that an increase in size of labour pool can reduce average wages although there is not much evidence of that actually happening

impact on demand :

• goods and services demanded by older consumers ageing population increases there in increase in demand so business target the elderly market for e.g banks are starting to offer special rates on retirement accounts .
• also older consumers tend to be wealthier so maybe luxury products will be demanded.

demand for products for consumers for ethnic minority populations . uk is becoming more ethnically diverse as immigration level rise. this has increased demand for certain products e.g food not traditionally available in the uk. supermarkets have stocked more exotic ingredients

demand based on climate
- different business may stock different types products depending on climate.