Shifting demographic is always an important component of market research. Yet, the contemporary changes in the consumer base are especially noteworthy. The report by PricewaterhouseCoopers (2015) has explored the substitution of baby boomers with younger generations as primary consumers and has outlined its implications for the retailing industry. Although the information used in the report may seem outdated, the described characteristics of consumers remain relevant even today.
Overall, the outlook on the changing demographics implies that managing the new customer base has become increasingly complex. Specifically, the challenge is created by the rapid advance of technology and sudden abundance of information. Unlike their baby boomer ancestors, contemporary consumers are more capricious. The wide availability of products and services allows customers to quickly shift preferred brands and makes them less prone to the influence of a specific market strategy.
In essence, the shift in generations has also caused the shift of the central force in retailing from companies to consumers. The report notes that in order to stay competitive, a company has to meet so many expectations placed by consumers that this task seems almost not feasible (PricewaterhouseCoopers). This is the most frustrating aspect of the report – it outlines in detail what businesses should achieve but does not explain how to accomplish it.
Naturally, existing companies understand this complexity and look for ways to avoid it altogether. One way of gaining consumer attention without catering to their desires is to use their psychology against them. It is more cost-effective to convince the target population that the business can offer exactly what they search for without increasing the value of products and services (Handbook of consumer psychology, 2018). Paradoxically, even though the generation of consumers has changed, old marketing methods are nonetheless effective.
References
Handbook of consumer psychology. (2018). Taylor & Francis.
PricewaterhouseCoopers. (2015). Retailing 2015: New frontiers. Web.