ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Which of the following best describes the effect of urbanisation, as a demographic change, on a retailer?
Urbanisation concentrates population in cities, so a retailer may need to change store locations, formats and delivery arrangements to serve where customers now live. It does not mean falling population everywhere, rural-only life expectancy gains or identical birth rates across regions.
- APopulation concentrates in cities, changing store locations and delivery needsCorrect
- BTotal population falls evenly across all regions
- CAverage life expectancy increases in rural areas only
- DBirth rates become identical across regions
Explanation
Urbanisation is the movement of people from rural to urban areas, concentrating demand in cities. Retailers may therefore alter store locations, formats and delivery models. The other options describe unrelated or incorrect population changes.
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