Demographic Forces Influence Consumer Demand

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Demographic Forces Influence Consumer Demand
Social Forces
Personnel
Demographics
Political Legal
Product
Needs Consumer Wants
Finance
Technology
Distr.
Price
Natural Resources
Acctg
Promotion
Production
Monopoly . . . . . . Pure Competition
Economics
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DEMOGRAPHY

• The study of the size, composition, and
  distribution of population in relation to social
  factors such as geographic boundaries.

Population Trends Age trends Family
Household Trends Education Trends
Negative (-)
Positive ()
See census.usatoday.com or www.census.gov
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Population TrendsWorld Population Growth
Billions of people
1930 2 billion
1820 1 billion
4
Population Time Bomb
4.4 of world pop. 3.8
299 mil (2005)
5
Demographics
Thought Leadership and the Future of the MBA
Globalization MBA Competition
World
Population Age 25-29
Source U.S. Bureau of the Census, International
Database
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Demographics
Thought Leadership and the Future of the MBA
Population Age 25-29
Northern America
Western Europe
Source U.S. Bureau of the Census, International
Database
7
Demographics
Thought Leadership and the Future of the MBA
Population Age 25-29
Asia
Source U.S. Bureau of the Census, International
Database
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Thought Leadership and the Future of the MBA
Impact of the Economy
Source Doti, J.L. Tuggle, F. D. (July/August,
2005)
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State Rank by Population Size

• [phone]_2005
• 1 California 36,132 6.7
• 2 Texas 22,860 9.6
• 3 New York 19,254 1.5
• 4 Florida 17,750 11.5
• 6 Pennsylvania 12,429 1.2
• 50 Wyoming 509 3.1

www.census.gov/compendia/ (19July06)
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State Rank by Population Growth Rate

• Growth
• [phone]-2005
• 1 Nevada 2,415 20.8
• 2 Arizona 5,939 15.8
• 3 Florida 17,790 11.3
• 4 Georgia 9,073 10.8
• 5 Utah 2,470 10.6
• USA Avg 296,410 5.3

Pop. Density Congestion
(www.census.gov/compendia/statab/files/statepop.ht
ml 19july06
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State Rank by Population Growth Rate

• (000) Growth
• 2005 2000-2005
• 46 Pennsylvania 12,281 1.2
• 47 Ohio 11,464 1.0
• 48 Massachusetts 6,399 .8
• 49 W.Virginia 1,817 .5
• 50 N. Dakota 630 - .9
• U.S. Total 296,410 5.3

(www.census.gov/compendia/statab/files/statepop.ht
ml 19july06
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Population County Growth

• (000) Growth
• 2005
  2000-2005
• Pennsylvania 12,429 1.2
• Columbia 64.9 1.2
• Luzerne 312.8 - 2.0
• Lackawanna 209.5 - 1.8
• Monroe 163.2 17.7
• Schuylkill 147.4 - 1.9
• Lancaster 490.5 4.2

(www.census.gov/compendia/statab/files/statepop.ht
ml 19july06
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URBANIZATION, (an Ecological Threat)

• Mega cities 2000
• 1 Tokyo 28 mil.
• 2 Sao Paulo 22.6
• 3 Bombay 18.1
• 5 Shanghai 17.4
• 6 New York 16.6
• 76 of Americans live in 284 Metro areas (1995)
  

s

• Nov. 2000 G. Bush won 78 of USA counties equal
  to 81 of USA acreage

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Revolving Doors Metro AreasMigration Gains
Losses

• [phone]-2000
• 1 Las Vegas, NV 1,563 83
• 2 Naples, Fl 251 65
  
• 3 Yuma, AZ 160 49
• 3 Utica-Rome,NY 299 - 5.3
• 2 Grand Forks,ND 97 - 5.5
• 1 Steubenville,Oh 132 - 7.4

Mobility 1 in 5 persons move each year (NE to
S/SW)
Monstermoving.com
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Far From Home
Zaslow, Jeffrey. Moving On. WSJ, D1, July 3,
2002.
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AgeTrends
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Life Expectancy (at birth) 1900 -2050
Source Social Security 1998
Getting Older
Median age 30 31 36
42
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Living Longer
Women are less susceptible to disease. Health
care 15GDP
Oster, Christopher. Congrats! Insurers Extend
Your Lifespan. WSJ, June 24, 2003
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LIFE EXPECTANCY Brazil Japan U.S
Germany MALES 62 76 72 45
73 FEMALES 67 82 79 48
80 (1994 estimates)
Mozam-- bique
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Population Distribution by Age Segments for 2004
19yrs
19yrs
6 yrs

• Age Group Under 5 5-17 18-24 25-44
  45-64 65

size
Highest income
6.8 18.1 9.0 29.6 24.1 12.4
Population estimate (000). Percent of population
in this age group
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U.S. Age Groups
77M born 1980 - 1999
76M born 1945 - 1964 Baby Boomers
Millions
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Demographics Age Segments in the U.S.
Age cohorts people of similar age, experience
similar..
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Boomers, Xers and Yers
Baby Baby Echo Boomers
Busters Boomers
Gen X Gen Y
Musicians Beatles, Elvis, Nirvana,
REM, NSYNC, Britney Spears, Beach Boys
Prince, U2 Matchbox 20, Kid Rock TV
Channels 3 60 Hundreds TV
Idols Frakie Avalon Farah
Fawcett Jennifer Love Hewitt Annette Funichello
Shaun Cassidy Leonardo DiCaprio Childhood
TV Leave it to Beaver Dukes of
Hazzard Saved by the Bell Popular TV Shows Taxi,
MASH 90210, Friends Felicity,
Dawsons Creek Concerns Nuclear War
Environment Human Rights
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Generation Gap in the Information Age
Those who say...
Age 50 or over
Under 30
Change brings exciting opportunities
78
58
They want to be their own boss
58
46
They own a computer
72
40
Theyve used E-mail
85
28
They have Internet access
52
21
Social Security will not be available to them
54
14
Medicare will not pay any of their health expenses
23
6
Technology brings more confusion and
complications than it does exciting opportunities
18
38
It is difficult to use computers
15
53
(circa 2002/-)
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Population by Ethnic Segments

• 1990 1999 2010
• Population (mil) 249.9 273.1 298.0
• Median Age 32.8 yrs 35.5 yrs 38.0 yrs
• White 75.6 71.9 67.7
• 34.8 38.1
• Black 11.8 12.1 12.6
  28.1 30.3
• Hispanic 9.0 11.5 13.5
• 25.4 26.5
• Asian 2.8 3.8
  other 6.2
  
• 29.7 yrs
  32.0 yrs

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Projected U.S. Population for 2010 by Age and Race

• Total 67.7 12.6 13.5 6.2
• White Black Hispanic Other Ages
• 0 -17 21 31 33 29
• 18-34 21 25 27 26
• 35-54 29 26 25 28
• 55 29 18 15 17
• 100 100 100 100
• PROJECTED POPULATION 300,431,000
• Source U.S. Bureau of the Census, Statistical
  Abstract of U.S. 94

• Multicultural population

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Family(Two or more people living together
related by blood or marriage) Household Trends
JUST MARRIED
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The Changing U.S. Household

• 105.5 million U.S. households in 2000 ....
• - Families (69) Non Families (31)
• - Average family size 3.18 (hshld 2.6)
• - Father, mother 2 children -10.5
• - Single-parent -13
• - One person hshlds (10, 1950) (25,
  2000)
• - Female Householder, No spouse 12.2
• - Female Householder, Children under 18
  7.2 -

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The Changing U.S. Household

• Penna. USA
• Households (2000) 4.7 mil 105.5
  mil
• Persons per hshld(00) 2.5 2.6
• Median hshld inc (03) 42,952 43,318
• Foreign Born persons 4.1 11.1
• Bachelors Deg(25) 22.4 24.4
• Hispanic origin (2004) 3.8 14.1
• Black persons (2004) 10.5 12.8
• Asian persons (2004) 2.2 4.2
  

www.fedstats.gfov/gf/states (19july06)
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Projected Households

• 2000 2020 Change
• ALL Households 105 mil 129 mil 22
• Families 70.6 68.1 3.2
• Married couples 55.4 52.1
• Single fathers 1.4 1.4
• Single mothers 6.8 6.6
• Non-Families 29.4 31.9 8

singles, 2 person hshld
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New Homeowners, One Sweet Pad
Leung, Shirley. New Kids on the Block. WSJ, B1,
July 18, 2003.
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The Family Budget, Where does it go?
www.bls.gov/cex/csxann03.pdf , data as of
Dec2003, accessed 17July05
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Family Food Budgets

• Hispanics 3,370
• Whites 2,803
• Blacks 2,307
• Food consumed at home
• WSJ 6 Nov. 99, B1
• 1995 Bus. Labor Stat.

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Social Trends Family Values Marriage -- Divorce

• Median Age
• Marriage Divorce
• Males 27 38
• Females 25 35

Average Wedding Cost 16,195 (Midwest)

29,454 New York City
USA Today,5Jan045,A1
See www.theknot.com
Smart Money Mag. 1998
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Social Trend Two Parent Couples With Children As
a Percentage of All Households
Source Census Bureau
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Social Trends

• Marital Status (HW Households)
• Thenandnow
• 1950 1990 2000 2010
• 79 56 55 52

Working Women ( of women 16 in labor Force)
1950 1990 2000 2010 34 57
63 ?
Income-independence
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Bringing Home the Bacon
Social Trends
House husbands
Shellenbarger, Sue. As Moms Earn More, More Dads
Stay Home How to Make the Switch Work. WSJ, D1,
Feb. 20, 2003.
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DIFFERING REACTIONS TO FEMALE ROLE PORTRAYALS IN
ADVERTISING
Social Trends
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Products Usage by Women
Social Trends
Female consumers Adult (aged 18 and over)
52 Civilian labor force 46 Tire
buyers 51 Principal buyer of automobiles
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• Where are women under represented as consumers?
• Adult golfers 22
• Video game players 21
• Computer game players 15
• Internet surfers 10

American Demographics, 4/1996)
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Social Trends
Children Having Children Birth rates per 1,000
15-19 yr. old girls
54.4
Vermont figure is an estimate Source U.S.
Department of Health and Human Services Vermont
Department of Health
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Social Trends
Decrease21
Increase 300
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GIVE KIDS A CHANCE!
Percentage of Out-Of-Wedlock Births To Total
Social Trends
1940 1950 1960 1970 1980 1990 2012
5 10 15 20 25 30 35 40
45 50
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EducationTrends
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THE COLLEGE PREMIUMThe additional wages, in
percentages, that a college graduate one to five
years out of school received over a high-school
diploma holder one to five years out of school
70
76
82
88
94
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Women with a Bachelors Degree
Average Income

• White .. 37,800
• Asian .. 43,700
• Black .. 41,100
• Women held 50 of all management professional
  occupations in 2004.
• Women (72) are more likely to enroll in college
  than men (61) (Bur of Labor Statistics, News
  Bulletin, Women in the Labor Force A Databook,
  13 May 2005)

• Regardless of race or gender, the average college
  graduate earned over 51,000 compared to 28,000
  for someone with a High School degree.
  (WSJ, 28March2005, A9)

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Private Prep Schools use aggressive tactics to
attract students

• Enrollment of 500,000 students nationwide
  - up 20 in last 10 years with Median
  Tuition at 13,345 for day school 24,350 for
  boarding school

Prep Graduates also receive numerous
rejections...to prestigious colleges
Harvard Applicants (1991-6,244) (2000-8,061)
Foreign born students rise
WSJ,23Jan01
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Hispanic Nation
Applied Marketing
Hispanics by Origin 2002
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Fun Facts

• 2002 more than one in eight people in the US
  are of Hispanic origin
• 50 of Hispanics lived in California and Texas
  (2000)
• 42 of New Mexicos total population was
  Hispanic, the highest portion of any state
• Kroger Co., the nations 1 grocery chain, spent
  1.8 million last year to convert the store in
  Houston to Supermercado because the population is
  58 Latino

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Fun Facts

• 97 of Los Angeles residents were Latino(2000)
• 2.2 million Hispanics lived in NYC in 2000
• The largest amount of any city in the nation
• Puerto Ricans compromise 37 of the citys
  Hispanic population
• Mexicans working in the U.S. sent home about 13
  billion last year, more than total foreign direct
  investment.
• One out of ten small businesses will be Hispanic
  owned by 2007 (estimate 2 million businesses).

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How much will Hispanics change America, and how
much will America change them?

• With 400,000 new Latino immigrants a year( the
  highest flow in the U.S. history) experts see
  three broad possibilities for Hispanics role in
  American life.
• 1-Melting in- following traditional role of
  other immigrant groups by gradually molding into
  American lifestyle.
• 2- Acculturation- Most Latinos speak both
  languages, retain most of own culture and ties to
  home even as they adjust to U.S. lifestyles.
• 3- Mexifornia- Many remain in Spanish speaking
  enclaves and set the cultural and political
  agenda in soon-to-be majority-Hispanic states
  like California and Texas.

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Latinos the Job Market

• Many Hispanics are in low wage service jobs that
  offer minimal opportunity for advancement.
• -This is because many immigrants stay confined
  in areas inhabited by people with common
  ethnicity, which prevents them from fully
  assimilating to U.S. society.

Websites for further information

• The Pew Hispanic Center www.pewhispanic.org
• The Census Bureau www.census.gov
• New Democrats Online - www.ndol.org

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• And This explains Americas fascination with