ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Which of the following is an example of a business responding to changes in the age structure of its market?
A bank launching accessible branches and tailored savings products for retirees is responding to a change in age structure. It adapts its offering to an ageing customer base, whereas changing suppliers or installing automation reflect cost and technology decisions rather than demographic change.
- AA bank launching accessible branches and tailored savings products for retirees as its customer base agesCorrect
- BA retailer switching its supplier to reduce purchasing costs
- CA manufacturer installing new automated machinery to cut waste
Explanation
Adapting products and services to an older customer base directly responds to a demographic change in age structure. Changing suppliers is a cost decision and installing automation is a response to technology or efficiency, not demographics.
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