Demography is the statistical study regarding the characteristics of a population. Demographic analysis examines and measures the dimensions such as age, gender, race, religion, education level, income level, and more. They are known as identifier variables, i.e. data values that determine the identity of an object. Demographics analysis can cover whole societies or groups.
For instance, by demographic study, you will know the average age of a country. At a micro level, you will know about the sex ratio, age groups and their respective income levels in a district. This supports you in determining the segment and making suitable products for it. Because basically, the preferences of men and women, people in their twenties and forties, people with incomes of 10 million and 100 million VND/month are not the same.
Therefore, in addition to government statistics, demography is also important in market research to support businesses.
Demography in business
In business, demographics data is seen as a factor to measure and identify the target market of most businesses in any industry. Thanks to demography, you will clearly understand the target audience, how to build and promote products, how effective the service is to users, etc. Thereby, you can assess their shopping psychology and behavior as well as predict shopping trends. Then, you will have a basis to plan your next strategic plans.
For example, in terms of age, if your target region or market has a young population, your communication strategy, product, etc. will be a lot different to others with an old population. Or you can hardly sell an overpriced item in a market where most people have low income.
To know the characteristics of a market, businesses need surveys, analysis and market research.
Demography in the Vietnam Travel Market Tracker solution
In Vietnam Travel Market Tracker, the newly launched solution of The Outbox Company, demography is one of the important research aspects. The solution analyzes variables identifying Vietnamese tourists including age, income and family status, as well as understanding their travel motivations and living values.
Besides demography and lifestyle, Outbox’s new solution also focuses on analyzing the psychological and behavioral characteristics of Vietnamese tourists. All aspects will provide insights of Vietnamese traveler profiles. Their profiles will be updated regularly every quarter throughout the year. This helps businesses/tourist destinations capture the changes in Vietnamese people’s travel habits to meet their needs over time.
When you understand your customers and know your own strengths, you will win every single game!