ChaPter 3 | Analyzing the Marketing Environment 119
Marketing by the Numbers Demographic Trends
Marketers are interested in demographic trends related to vari-
ables such as age, ethnicity, and population. The U.S. Census
Bureau provides considerable demographic information that is
useful for marketers. For example, the following table provides
a sample of such population data (see www.censusscope.
org/2010Census/PDFs/RaceEth-States.pdf):
3-13 What percentage change in the total and Hispanic
populations occurred in each state between 2000 and
2010? What conclusions can be drawn from this anal-
ysis? (AACSB: Communication; Analytical Reasoning;
Reflective Thinking)
insurance year over year, regardless of an increase in price, un–
less they contact the insurer and cancel it. If only cancelling insur–
ance was that simple. If consumers fail to read the small print in
their contracts carefully, they are hit by a cancellation fee. With
higher percentages of consumers checking insurance quotes on
price comparison websites, insurers still take the chance of in–
ertia when the consumers receive their renewal notices. Insurers
seem to rely on the fact that a certain percentage of consumers
do not bother to read the documents, and if they do, they do not
readily notice that the price is far higher than the previous year.
The Financial Conduct Authority, which has responsibility for deal–
ing with disputes arising out of financial services, receives around
500 complaints a year regarding insurance renewal. From April
2017, UK insurers are required to include text on their renewal
communication to encourage consumers to shop around for the
best deal. In cases when consumers have renewed with the same
insurer four times, an additional message is required in the renewal
communication to encourage shopping around. Insurers are also
required to disclose last year’s premium alongside this year’s for
clear comparison.
3-11 Discuss the aspects of the competitive environment of
the insurance industry that might encourage this type of
practice. (AACSB: Communication; Use of IT; Reflective
Thinking)
3-12 Discuss whether or not technology and access
to price comparison websites can banish this type of
fraudulent practice in the insurance industry. (AACSB:
Communication; Use of IT; Reflective Thinking)
