Essay On Impact Of Different Generations On The Retail And Hospitality Sector Of Australia And New Zealand

1)To demonstrate knowledge of broad business principles with depth of understanding of at least one business discipline

2)To develop effective oral and written communication skills

3)To develop the skills to demonstrate a broad understanding of business principles and demonstrate depth in at least one discipline

4)To develop the skills to allow the acquisition and synthesising of information within a complex professional setting

5)To develop and apply skills in critical thinking, complex problem solving and decision making

6)To develop and apply knowledge of the social, economic, ethical and cultural contexts of business

Understand the concepts in consumer behaviour in relation to products/services

Explain about the consumer behaviour theories

Analyse the consumer behaviour purchasing process

Differentiate the psychological and social factors influencing consumer behaviour;

Apply the factors influencing consumer behaviour on the decision making process

The continuous supervision of market trends and developments is identified as one of the most crucial roles which marketing analysts and practitioners should accomplish. As sectors like tourism and retail are highly impacted by major demographic trends and this accountability becomes highly crucial for destination as well as retail marketers (Buhalis and Amaranggana 2015). In the past few decades, there is a substantial debate on the radical demographic transitions taking place across the world with the aged population, ageing population that is baby boomers along with growing family household and single adult households. These demographic factors are the primary issues emerging mostly in developed and at an important degree in developing nations (Chung, Chen and Lin 2016).  The following paper evaluates the way different generation has been posing impact on the retail and hospitality sector of Australia and New Zealand.

The demand for tourism and retail products and services has been influenced by range of factors including physical age income nationality as well as culture. In majority of the developed nations including Australia the pre war or prior to Second World War generation grew up in an era of extensive economic depression (Lansley and Longley 2016). Consequently this generation tends to exhibit a perspective which varies distinctly from that of their children that is the Baby Boomer generation who grew up in the era of economically affluent period of modernization following to the Second World War (Meng et al. 2014). However certain disparities in perspective between these two generations had been observed between Baby Boomers and their children that is Generation X along with single adults maintaining their own households (Twigg and Majima 2014). In regards to the tourism and retail sector, the social economic as well as cultural divergences which emerged between generations can be uniquely critical and tend to impact on the marketing product design and service delivery of firms as well as targets (Losada et al. 2016). The overture of generations into contemporary sociology and the notion of a generation been determined by time-specific political and collective events had been attributed to Karl Manheim’s suggestion that conceptualization of generations essentially relied on social rather than biological determinants. It has further been observed by Chung, Chen and Lin (2016) that significant to environmental influences, members of specific generation expose related behavioural patterns, values and conduct which further makes it possible to find targeted products services and marketing campaigns especially in the New Zealand and Australian hospitality as well as the retail industry which focus mainly on cosmetic brands and packaged food due to its elevating demand. It has further been assumed that changed cultural and societal contexts articulated through emotions behavioural patterns and preferences typically results to a range of embodied practices which include leisure activities (Buhalis and Amaranggana 2015).

 Furthermore it has been claimed that the ‘umbrella categories’ also identified as Baby Boomers, the senior market Generation X along with Generation Y tends to be appealing and may facilitate to constrict the focus (Losada et al. 2016). However in target marketing sector this generation can easily disregard the range and diversity of the products offered by tourism and retail sectors through long shot. Demographic change in tourism offers an inclusive analysis of the significant demographic trends through 2030 by which the population of the world has been anticipated to reach above 8 billion (Chung, Chen and Lin 2016). It further emphasized on the impact these developments will pose on tourism sector and travel behavioural pattern and further analyses the way destinations and business enterprises can implement or adapt the most effective approaches to become increasingly competitive within the sector. Report by Spasojevic. and Boži? (2016) reveal that visitors’ profile as well as preferences will become immensely fragmented and the competition level of destinations will greatly rely on their competence to attain along with market tourism services to an aging multi-ethnic population further controlled into a multi generational family population development and the augmented life expectancy for example will adversely challenge the current conjectures of aging for tourism (Gardiner Grace and King 2014). However on the other hand Generation X which is younger tourist section still engaged in full time employment and the Baby Boomers approaching towards retirement may seek for holiday destinations which would offer greater degree of relaxation. Whereas on the other hand, senior citizens that is the older tourists with more leisure time would exhibit a tendency to be inclined towards holidays in order to explore new activities.

Major Industries Have Been Affected By Varied Generations

With the world population of baby boomers which has reached over 23 % and by 2020 it is anticipated to increase over 25% the demographic transitions the aging population is identified as the most critical determinant of beauty and personal care products. However for example while the development in global skincare sales have reduced in 2011 anti aging products have been noticeable category which has been sustaining relative growth as the purchasers preferred a youthful appearance in comparison to other factors (Lansley  and Longley 2016). Furthermore as a consequence sales of premium anti aging products have successfully attain new position as consumers have attached greater degree of value in contesting the ageing procedure than other areas of cosmetics or personal care. Thus a strong perception of the association between price and effectiveness for many consumers has been witnessed when it comes to anti aging cosmetic products (Meng et al. 2014). Furthermore packaging services emphasized on the generation Z constituting teens of age 8 to 19 to value the process of digitization, advanced technologies within which they are growing up. As this demographic section show greater inclination towards social networking, several cosmetic brands are increasingly utilising packaging in order to bridge the gap between the product and Consumers online access (Twigg and Majima 2014). For example cosmetic brands are effectively focusing on 2D barcodes such as QR codes which are attaining great prominence and can transfer consumers directly to social networking sites where they can easily share feedbacks and opinions regarding the product services and further establish a strong communication base between them and the brand manufacturer (Lansley  and Longley 2016). Furthermore the packaged or refill packing system a food products is recognised as another economical option for people who are maintaining single households and are thus embracing bulk offers in beauty and food products. For example offering economic impact size products such as Listerine mouthwash has been conducted in Australia with one litre value pack which is seen as a constructive strategy for the brands value and recognition (Spasojevic. and Boži? 2016). At the same time, for baby boomers always dealing with economic challenges, these discounting strategies implemented by retailers have helped to effectively rejuvenate their confidence and expenditure habit (Lansley  and Longley 2016).

Income is recognized as one of the vital demographic trend affecting retail and tourism sectors of Australia. Cosmetic products, packaged food or in other cases tourism destination are highly determined by income factors. It has been observed by Losada et al. (2016) that premium products related to the high end women’s cosmetic and beauty products typically appeal to women positioned in economically beneficial categories. Value or quality of any product or services is identified as fundamental determinant in the products they purchase. Thus the increasing demand of packaged food products and cosmetics brands are essentially been preferred by people of economically beneficial class.

References 

Buhalis, D. and Amaranggana, A., 2015. Smart tourism destinations enhancing tourism experience through personalisation of services. In Information and communication technologies in tourism 2015 (pp. 377-389). Springer, Cham.

Chung, J.Y., Chen, C.C. and Lin, Y.H., 2016. Cross-strait tourism and generational cohorts. Journal of Travel Research, 55(6), pp.813-826.

Gardiner, S., Grace, D. and King, C., 2014. The generation effect: The future of domestic tourism in Australia. Journal of Travel Research, 53(6), pp.705-720.

Lansley, G. and Longley, P., 2016. Deriving age and gender from forenames for consumer analytics. Journal of Retailing and Consumer Services, 30, pp.271-278.

Losada, N., Alén, E., Domínguez, T. and Nicolau, J.L., 2016. Travel frequency of seniors tourists. Tourism Management, 53, pp.88-95.

Meng, Y., Holmes, J., Hill?McManus, D., Brennan, A. and Meier, P.S., 2014. Trend analysis and modelling of gender?specific age, period and birth cohort effects on alcohol abstention and consumption level for drinkers in G reat B ritain using the G eneral L ifestyle S urvey 1984–2009. Addiction, 109(2), pp.206-215.

Spasojevi?, B. and Boži?, S., 2016. Senior tourists’ preferences in the developing countries–measuring perceptions of Serbian potential senior market. European Journal of Tourism, Hospitality and Recreation, 7(2), pp.74-83.

Twigg, J. and Majima, S., 2014. Consumption and the constitution of age: Expenditure patterns on clothing, hair and cosmetics among post-war ‘baby boomers’. Journal of Aging Studies, 30, pp.23-