Demographic change can reshape customer needs and create opportunities for new businesses. This lesson examines how aging baby boomers and younger generations influence franchises, health and eldercare services, and restaurants.
The large baby boomer generation is moving into older age. As a result, businesses are responding to consumers who want to maintain fitness, health, independence, and quality of life. By 2030, the source material estimates that 73 million members of this generation will be over 65.
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What is a demographic trend?
A change in a population's characteristics or distribution—such as age—that can influence customer demand and business choices.
How can an aging population create business opportunities?
It can increase demand for services that support health, fitness, independence, companionship, and assistance with everyday activities.
What are adult day services?
Programs that provide daytime care, activities, and social engagement for older adults, often allowing them to continue living at home.
What restaurant features may appeal to many millennial customers?
Digital interfaces, distinctive experiences, and varied menus, including experiences customers may want to share on social media.
How might franchising help an aspiring entrepreneur?
It can provide an established brand and operating framework, which may help someone enter a business without developing every system from scratch; it does not guarantee success.
Quiz questions
What distinguishes an acquisition from a merger?Answer: An acquisition involves one organization buying or taking control of another.
Which factor can undermine the expected benefits of a merger or acquisition?Answer: Integration problems or an excessive purchase price
What is a potential benefit of outsourcing a business function?Answer: Access to specialized capabilities or lower operating costs
What should a prospective franchise owner review before investing?Answer: Disclosure materials, contract terms, costs, and independent information
Which comparison can help someone choose between a small firm and a large company?Answer: Compare training, work variety, benefits, stability, and career fit.
Based on Introduction to Business 2e by Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.