Demographics Explained

The term “demographics” refers to a particular segment of the population with like characteristics. Government and business often classify people in this way to help them understand and serve a particular group of the population in a certain way. It also helps them to understand changes in the market and economy. Consumer studies are one common form of statistics that use demographics to interpret information.

 

Breaking people into these groups allows businesses to see how well their product or service performs with any given group of consumers. This in turn affects every aspect of their business, including their advertising and marketing strategies, how they make their product or service available to their clients and more. Demographics allows businesses to not only measure, but stay ahead of, their target market.

One demographic that has received a great deal of media attention is the “Baby Boomers”. Those born between 1946 and 1964 are now reaching their 60’s and Canadian business and government alike are studying them hard and fast. Because they are such a large group, numbering almost 10 million in Canada alone, the impact they have on business is surprising. Many businesses and even entire industries have found themselves changing their entire focus to accommodate the wishes of this influential group. For example, the health care industry has seen a dramatic rise in the number of hip and other joint replacements in recent years as the baby Boomers have aged and begun experiencing joint problems. Unwilling to wait complacently or suffer in silence, the baby boomers have forced the health care industry to keep up, demanding reduced wait times and wider availability of this procedure.

The Baby Boomers have affected Canadian business and the economy in innumerable ways and will continue to do so for decades to come. When they entered the workforce, the massive increase in taxes collected from them allowed Canada to implement many social services such as health care and pension funds. As they age and retire, they will pay less in taxes and cost more for health care, but conversely will cost less in education and child care benefits.

The effect of the Baby Boomers on the Canadian economy is just one example of how a certain demographic can influence the entire economy. The study of demographics is essential if we are to stay ahead of the trends influenced by the sex, age, income level, education level, etc., of our population.