Demographics are key personal factors that drive a customer’s purchasing decision. Age, sex, marital status, income, family background, and education are some of the common demographic factors (Pratap, 2021). People from different demographic groups behave differently. For instance, men shop differently than women. Men see something, decide they want it, and buy it, where women may try many things before purchasing (Principles of marketing, 2015, p.61). They have a role in segmenting the market and have a strong influence on consumer behavior (Factors Influencing Consumer Decisions, n.d.). Demographics play an important role in leading a person’s interests as well as their purchasing abilities. Demographics predispose people to purchasing certain products or services.
Age is a demographic factor that correlates with what products or services may be needed by a consumer. For instance, certain health items may be necessities for someone of an older generation, but not important at all to a younger generation. Similarly, many products are purchased by younger generations which are not purchased by older people. For instance, the latest Xbox may not appeal to an 80-year-old as much as it does to a 15-year-old. Toddler toys and baby care items are usually less important to both the 15-year-old and the 80-year-old than the 25-year-old with children. Age also influences how consumers make purchasing decisions (Pratap, 2021). For instance, older people may make more careful decisions than younger people when it comes to making a purchase decision. Age may be related to disposable income, also. At 18, a person may not have much disposable income. At 45, that person is usually established enough to have disposable income. At 70, that person is usually retired on a fixed income, so their disposable income is lower. This age-related access to disposable income affects their purchasing decisions.
Sex is another demographic factor that changes purchasing decisions. Men and women look for different types of products in fashion and beauty products, for instance (Pratap, 2021). Although men and women may have similar tastes in some things, such as entertainment and use of digital technology, shop differently and make decisions differently. Women are also key influencers for the purchase of two-thirds of household products, and they shop for them differently as well: inspecting them online, zooming, rotating, and changing colors in an online shop before buying (Principles of marketing, 2015, p.61).
Income is a demographic factor changes the types of items a person will consider buying. Luxury items, for instance, are for people in a high-income bracket. Middle-income people usually purchase based on usefulness. Lower-income people are more prone to focus on staples and lower-priced goods. Expensive homes, vehicles, clothes, vacation packages, and cleaning/servant services are more likely to be purchased by a higher-income person than a lower-income person. Income changes what choices are available for an individual as well as what spending habits may be acceptable (Pratap, 2021).
by Arthur Ocain
Factors Influencing Consumer Decisions. (n.d.). Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmarketing/chapter/reading-situational-factors/
Pratap, A. (2021, November 20). Effect of Demographic Factors on Consumer Behavior: Age, sex, Income and Education. https://notesmatic.com/effect-of-demographic-factors-on-consumer-behavior-age-sex-income-and-education/
Principles of marketing. (2015). University of Minnesota Libraries Publishing. https://doi.org/10.24926/8668.1901 (Original work published 2010)