Change is constant more so it’s inevitable, we need to adapt. Every day poses a new wave either through modification, a new invention, innovation and diversification in products, human behaviors and laws. These changes affect consumer markets, workforce, and society on our thinking and opinions.
To keep up with changes, regular market research should be done. This helps in interpreting demographic and social changes globally. It gives an insight into how future work could be impacts of tech on mankind’s workforce as well as effects of the robot to human’s lifestyles.
These changes include economic changes, social changes and political changes. Economic changes affect business operations, continuity or production. Social changes affect peoples’ lifestyle, thinking or behaviors, while political change affects governance with the rule of law.
Effects of social changes
- Lower mortality rate – the approximated lifetime of human has greatly reduced now been at 60 years. Speculations are, people are consuming more chemical substances than usual.
- Fertility rate – the number of births per person has decreased to 1-3 kids.
- Decreased literacy level – education level has greatly reduced with few persons being able to write and attain high diplomas or degrees.
Effects of demographic changes on businesses
This affects product preferences and buying behaviors by consumers
- Age – youth are attracted to technological goods such as new phones, video games, and music while the elderly are more to things with value and worth their money like healthy eating and exercises.
- Amount of Income – choice of an item relies on the disposal income one got. People who have high income tend to go for premium goods and services while those with a tight budget go for cheap and second-hand goods.
- Geographic area– people in a specific region often have preferred taste on goods and services. That’s why some goods though similar tend to enjoy dominance in particular areas than others.
- Education – people with high levels of education are usually associated with high pay, hence their spend power is also high compared to their counterparts with low grades.
- Gender factor – women tend to spend more than men. Men wears are more durable and long-lasting than women. Therefore, women regularly go shopping to replace their worn outs.
- Household size – the number of members in a family determines the spending power of the parents.
- Employment position – the hierarchy of persons determines pay. Higher hierarchy, higher pay. Hence excessive spending.
Effects of political change
- Terrorism – increased terrorist attacks, bombings, or suicidal missions especially with young people. It has led to changes within business institutions by beefing up security and conducting background checks on potential employees.
- Poverty and droughts – many people are dying from hunger, floods, and diseases due to negligence by the government.
- Tribalism, racism and gender discrimination – lack of strong legal policies regulating co-existence between different people have led to ethnic clashes and interracial warfare.
We’re living in a diverse world. Changes are bound to take place. Its survival for the fittest for any business. Institutions must hire experts capable of interpreting demographic and social changes so as to remain relevant.