There are various different demographics that end up affecting a business organization. Demographics are a number of traits to be utilized for the determination of buying behaviours or product preferences of the consumer. Majority of the organizations such as Wal-Mart can consider identifying key customers by a number of traits (Knight and Cavusgil, 2004). Then, they consider targeting customers with similar attributes in their promotions and advertisements. The target over consumer with similar demographic attributes assists in maximizing the profits and sales of the company. Some of the major demographic factors include income, age, and geographic area.
Income can be determined as one demographic variable that further ends up affecting business organizations. The product of a company mostly appear appealing to certain groups of income earners (Malhotra, 2008). In the converse sense, individuals having considerably low incomes are considered to have sensitivity towards price, and hence it may show preference to purchase products at discounted price. People having lower level of incomes are known for having low level of disposable income. Value can be considered as a major factor determining the purchases being made.
Age can be considered as an additional demographic element that ends up affecting business organizations (Samuel Craig and Douglas, 2001). The services and products of a company are within the scope of appeal to certain groups of age. Based on the factor of age, certain groups of buyers are known for having more power of buying in comparison with the others. In a market of increased competition that is similar to the business of retail store, each and every player should be tracking the trends of preferences of the consumer and there must be a close consideration of the approaches of competition.
Considering the factor of geographic region, the buying preferences of people also involve variations in terms of geographic area (Sekaran, 2006). The ones meeting the requirements and needs of the buyer in specific geographic areas can end up earning higher profits and sale. For each and every player, the sole chance is only the proactive implementation of firm positioning before done by anyone else. Therefore, there is an increased level of demand in order to understand the market prior to the others.
In order to obtain the demographic information, the best way that can be used is by surveys for market research. There can be conducting of these surveys by the internet, mail, phone or personally. The fundamental key is collection of demographic information as much as possible. Other such factors, apart from geography, income and age are inclusive of employment status, race, gender, occupation, education and household size (Steenkamp and Ter Hofstede, 2002). Majority of the professionals of marketing research are inclusive of demographic doubts by reaching the end of the survey. Warranty cards can be considered as another way for the collection of information from the key customers.