Consumer Behavior
October 12, 2016
Downtown Los Angeles 90015
Karishma Bhakta: [email protected]
Stephanie Cavanillas: [email protected]
Jose Andres Corbala: [email protected]
Windy May : [email protected]
Dalar Melkon: [email protected]
Zayra Ramos: [email protected]
Meghan Savaglio: [email protected]
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Table of Contents
Introduction………………………………………………………………………………………..2 Tourism/Entertainment……………………………………………………………………………2 Demographics……………………………………………………………………………………..3 Organic Food Preferences.………………………………………………………………………...4 Metro-Public Transportation………………………………………………………………………5 Metro Bikes………………………………………………………………………………………..6 Recycling………………………………………………………………………………………….7 Learning Outcomes………………………………………………………………………………..7 Conclusion………………………………………………………………………………………...8 Bibliography……………………………………………………………………………………....9 Appendix………………………………………………………………………………………....11
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Introduction
The City of Los Angeles has become one of the major power houses in the world. According to CityLab, Los Angeles is the “7th most economically powerful city” around the globe. Not only does Los Angles excel economically, it also excels in the entertainment industry. There is an estimated amount of 10,170,292 people currently habituated in the entire Los Angeles county. 1,072,124 of the entire 10,170,292 people are currently living in the 90015 Zip Code, Downtown Los Angeles. This particular area is rich in diversity. The Asian population makes up for 13.12%, the Black population makes up for 11.90%, the Hispanic population makes up for 65.68%, the White population makes up for 35.99%, while other races make up 32.48% of the whole Downtown Los Angeles area.(Exhibit 1)(Quick Facts, Los Angeles, California, 2015).
Sustainability is the most important factor for the Los Angeles Downtown community. Through sustainability, the market of entertainment and tourism in Los Angeles grows more by the minute. Downtown Los Angeles normally thrives through tourism and entertainment, with sustainability being the key factor to keep growing and operating in a more environmental friendly ways. Being a sustainable business gives you many benefits such as an enhanced brand name, an increase in competitive advantage, an increase in productivity, reduces costs, improves financial and investment opportunities, improves energy efficiency, and also increases employee retention and recruitment. Businesses whom are sustainable tend to thrive the most and cause attraction towards their businesses in this particular area. Businesses using a sustainable approach in their sales are responsible for the growth and impact Downtown Los Angeles has on the world. The psychographic variables we will be discussing are in our analysis of 90015 are: transportation, recycling, organic foods, and tourism. Tourism/Entertainment
Tourism has been a key component of Los Angeles’ economy, including Downtown, and the city’s urban redevelopment efforts. The growth has influenced the city’s social structure, architectural and urban design and environmental development. Tourism is also a major source of employment for Downtown Los Angeles because there are hotels, food and beverage, transportation, entertainment, recreation, and retail industries operating in the area. Some of the most notable entertainment in the 90015 area include Staples Center, Microsoft Theatre (formerly known as Nokia Theatre), L.A. Live, Regal Cinemas, The Grammy Museum, Los Angeles Convention Center, The Orpheum Theatre, FIDM Los Angeles campus, and the LA Fashion District.
The geography of tourism in Los Angeles is highly scattered. According to Gladstone (2001), “The ten most popular Los Angeles regions for tourism in total account for 56.1% total overnight visitors and Downtown Los Angeles only accounts for 5.3% of the overall.” However, this statistics shows the percentage of tourists that stay in the area overnight, and doesn’t include tourists who stay elsewhere and visit the area during the day. For example, some visitors might be sports fans who only visit the area to attend a game and don’t stay overnight. Of the tourists visiting Los Angeles, “fewer than 10%” make a special visit to Downtown.” Since it’s an area highly compacted with businesses, 90015 mostly attracts business travelers.
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Compared to its booming businesses and lively entertainment, the 90015 area code is actually quite a poor neighborhood. According to Geron (1997), “It is not coincidental that a widening gap of poverty in Downtown Los Angeles has occurred at the same time as the region became an international business center and a destination for leisure activities.” Only selected areas in Los Angeles are selected to be marketed for tourism, this area being one of them, but it doesn’t necessarily mean that people who live in a ‘tourist attraction’ area are economically well off, in contrast, they might be some of the poorest neighborhoods.
Staples Center is home to four major sports teams including Los Angeles Lakers and Los Angeles Kings, as well as hosting thousands of events and concerts. The multi-purpose arena brings in millions of visitors to the area each year. According to the Environment section on the Staples Center website, “Since 2008, Staples Center has adopted practices in sustainability by installing over a thousand solar panels on its roof.” In another environmentally beneficial act, they installed a new LED lighting system to reduce energy costs. The sports arena also participates in waste reduction and recycling programs by working with its concessions restaurants to collect and recycle waste. Staples Center and Los Angeles Kings also encourage fans to take the Metro by offering discounted tickets to metro riders. They also encourage fans to walk, bike, take public transportation, or carpool to events. Downtown Los Angeles is one of the smoggiest regions of California, so one thing that any ecotourist or visitor can do in order to leave a smaller carbon footprint is to use LA’s public transportation Metro Bus and Rail when traveling in and out of the city. Demographics
Downtown Los Angeles is a very compact area with a thriving area for tourism and entertainment, as well as small to large businesses. The region thrives from the sports industry through the Staples Center, which is the largest attraction that brings in fans of Los Angeles Lakers and Clippers, Los Angeles Kings, Los Angeles Sparks and concerts.
90015 is home to 34,811 people in the 5.84 miles of the zip code(90015 Zip Code (Los Angeles, CA) Detailed Profile,2016). Since the area is built more for businesses and attractions for adults, there are fewer amounts of families compared to regions outside of Downtown Los Angeles. This area has a high number of renters who live on lease in houses or apartments. This area attracts many young career building adults who are attracted to the city life in downtown. There is also a small region of the USC campus as well as the USC Science Center that is in the 90015 zip code. That area attracts young students who are admitted to the university from about the ages of 18-28. Many people are attracted to live in 90015 due to the wide range of jobs and activities available.
The businesses and city life attract age groups from 21 to 34 who earn a median income of $27,393(90015 Zip Code (Los Angeles, CA) Detailed Profile,2016)(Exhibit 2). However, there are more white collar jobs than blue collar jobs. Most white collar jobs come from large businesses as well as business owners in downtown. The blue collar jobs come from janitor work, clerk jobs at retail or service businesses and ticket sellers at theaters and Staples Center. Education plays a big role in the community with six schools in the area there are about 6,662 students(90015 Zip Code (Los Angeles, CA) Detailed Profile,2016).
90015 is home to about 34,811 people with a median income of $27,393(90015 Zip Code (Los Angeles, CA). Detailed Profile,2016). The cost of living in Los Angeles is above the
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national average as shown in Exhibit 3. Housing being the most expensive cost is based on rent rather than buying a house or flat. “As of August 2016, average apartment rent within the city of Los Angeles, CA is $2612.”(90015 Zip Code (Los Angeles, CA) Detailed Profile,2016).Housing can be very expensive in that region because of the high property value in that area as well as the business industry that increases the value of surrounding property and rent. The second most expensive costs are utilities, transportation and Healthcare. Transportation is an important cost to get to and from work everyday with the jam packed traffic in that area of central downtown. Travel time in that region is about thirty minutes in the morning and evening work traffic. However, travel time can increase when the NBA and WNBA season starts since the Staples Center is right in the heart of the area. Metro has recently added new bus lines and rental bikes to decrease traffic and create more routes. The least expensive cost being groceries with the recent ban of plastic bags and more organic food in the region promote wellness and a decreased cost. Transportation and healthy groceries bring a more green sustainability to Los Angeles.
90015 is in the heart of Downtown Los Angeles with the region thriving in wholesale business and the financial district. A nearby zip code 90021 is home to many companies as well as the Los Angeles School District. Parts of Fashion District falls in 90021, where tourists and residents of Los Angeles come to shop for cheap wholesale materials in clothes, fabric and home essentials like shower curtains and blankets. Exhibit four shows how the consumer index in that area is very high compared to the national average of 213, while the average consumer index stand at 222 according to SimplyMap(Simplymap,2016). The area is home to about 3,951 people in an area of industrial growth with many factories like the soda company and Coca-Cola bottling company. This area attracts many low income families to work and sell wholesale items at the fashion district and working in factories at a minimum wage. 90021 is different from 90015 because this area is mostly factory work. There is no large entertainment attractions. However, 90021 is a high user in public transportation like 90015. (90021 Zip Code (Los Angeles, CA) Detailed Profile,2016) Organic Food Preferences
Based on one of our ring studies, we included variables related to health consciousness, related diets and organic food preferences. It appears that for the most part this area does prefer organic varieties in food. They are more so identified as having vegetarian dietary preferences and consider their diets to be healthy. Compared to the US, however, this area does not identify with being healthy holistics, does not care for specifically their fresh produce to be organic, and they are not trying to use natural/organic foods as a means to control their eating habits.
In connection to our demographics, in this area there’s an abundance of renters, which indicates younger population and also high living costs in 90015. Having these food preferences correlates to a younger population. Young business professionals are also heavily populated in 90015, indicating these are health conscious individuals. There numerous students in this area as well, these food preferences could be experimentation with dietary preferences or an overall healthier food preference. This zip code is more so populated with low income households but is also offset by tourism expenditures for better quality/organic food preferences. Grocery stores/markets in/near our zip code:
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● In 90015, Om Nom Organics, is a mini market that offers organic ready made meals and snacks along with its small grocery portion that’s free from pesticides and preservative. http://www.omnomorganics.com
● In 90015, Simply Salad, local neighborhood restaurant with an emphasis on eating greens for health conscious individuals. http://www.simplysalad.com/
● In 90017, Whole Foods Market, is a major grocery chain that offers quality natural and organic foods with an emphasis on sustainable agriculture practices. http://www.wholefoodsmarket.com/stores/downtownlosangeles
● In 90071, heavily focused in wellness and health, it carries many types of vitamins and supplements, juices and cleanses are available along with fruit based bowls. http://www.earthbar.com/
After all the research and analysis of organic eating in 90015 and the surrounding area,
there are some ways the community can encourage more green eating.With increasing costs in downtown Los Angeles, providing higher quality, “green” products is recommended due to the ability to charge premium price in this location for these types of products preferred by people in, surrounding and visiting 90015. As the minimum wage goes up in the next couple of years, it will affect the food and consumer products residence purchases. With more money on the residents hands they can use more money on organic food.
Another alternative that the city can implement is to have occasional farmer’s markets to encourage organic food to be produced and sold. Farmers market encourage people to eat healthy food at a much lower price than what you would get at any grocery. The final recommendation would be to add a restaurant or two at the Staples Center that serve organic food to encourage all tourist and residence to eat healthy when you are being entertained or for a night out in the city. These recommendations will encourage individuals to consume organic food. Metro-Public Transportation
Public transportation refers to any form of transportation that you pay a fee for, travels through a fixed route, and is readily available to the public. Such modes of public transportation include but are not limited to buses, trains, subways, and ferries. For the purpose of this report when referring to public transportation we are talking about trains and buses. More specifically we are focusing on the Los Angeles County Metropolitan Transportation Authority or Metro for short.
Downtown Los Angeles with the area code 90015 has two types of public transportation, the Metro Bus and Rail. Metropolitan Transportation has many bus routes that serve all of Los Angeles with many stopping near the Los Angeles Convention Center. One such bus is the Metro Silver line which has a bus stop one block west of Pico Station at Figueroa Street and Pico Boulevard.
There are two Metro stations Pico and Grand/LATTC within the area code. Pico station is located in the commercial district in southwestern Downtown Los Angeles on Flower Street north of Pico Boulevard. The station is directly across from the Los Angeles Convention Center. The complete name for Pico station is Pico/Chick Hearn after the sportscaster Francis Dayle “Chick” Hearn. It is served by the Metro Blue and Expo Line. ("Pico Station", 2016) Grand Los
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Angeles Trade Technical College station or Grand/LATTC is another light rail station that is served by the Blue Line. It is located at the intersection of Grand Avenue and Washington Boulevard. ("Grand/LATTC station", 2016)
The Metro Blue line is a light rail train that travels north to south from Long Beach to Downtown Los Angeles. The Expo Line is also a light rail train named after Exposition Boulevard because it travels parallel to the road from Downtown Los Angeles to Santa Monica. Below is a map that illustrates the direction that each line travels. Metro Blue line is shown as royal blue and the Expo Line is shown as light blue.(Exhibit 5)
Traveling via public transportation as opposed to a vehicle is a good way to aid in energy conservation. It helps the environment by reducing toxic carbon dioxide emissions. According to the American Public Transportation Association “A single person, commuting alone by car, who switches a 20-mile round trip commute to existing public transportation, can reduce his or her annual CO2 emissions by 4,800 pounds per year, equal to a 10% reduction in all greenhouse gases produced by a typical two-adult, two-car household. By eliminating one car and taking public transportation instead of driving, a savings of up to 30% of carbon dioxide emissions can be realized.” ("Public Transportation Reduces Greenhouse Gases and Conserves Energy", 2008)
Taking public transportation also eases traffic congestion. Choosing to travel by bus over a vehicle could potentially take over thirty cars off of the road, whereby choosing to travel by train has the ability to take hundreds of vehicles off the road. Furthermore, a railway line uses less physical space than a road which removes the need to build anymore roads. Finally, congestion is reduced when choosing public transportation by decreasing fuel emissions emitted by vehicles when stuck in traffic.
The economy is greatly benefited by public transportation. It creates and maintains a variety of jobs including train operators, bus drivers, vehicle mechanics, and ticket agents. (Waight, "Why Travel Via Public Transportation") Metro Bikes
Metro Bike is a new and innovative way to commute through Downtown LA. “The Metro
Bike Share system features hundreds of bikes available 24/7, 365 days a year in Downtown Los Angeles. Station locations were selected based on proximity to community resources, employment centers, bike infrastructure and transit in consultation with partner agencies, institutions, community groups and stakeholders” (How it Works-Metro Bikes). With this new trend being introduced to Downtown Los Angeles This summer of 2016, it already has shown its perks of making 90015 much more sustainable. How it works is very simple, you grab a bike at one of their dozens of locations in downtown you can enjoy a 30-minute ride, or spend the day exploring and return it to any other one of their locations that has an open doc.
Each Metro Bike station has a touchscreen kiosk available and a map of the bike share system.They currently have a 1,000 bikes available to share. Metro Bikes is so up-to-date with their consumer that they offer you to download their app to show current updates, such as which bike station has a bike available or an open dock to making returning the bike easier. Driving and parking can be a nightmare in downtown, at times one daily parking spot can cost you up to fifty dollars. Metro Bikes promotes not only more affordable way to get around downtown but it also promotes a healthier way to get around. Metro Bike is cleaner for the environment and less
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stressful than driving though the one-way streets of Downtown. Metro Bikes are very cost efficient as well, it costs 3.50 for every 30 minutes, or 20 dollars a month.
Since the Metro Bikes are a new mean of transportation in the city its is taking time to encourage people to participate. One suggestion for the bikes would be to offer helmets for the rides, the streets in 90015 are very crowded and there aren't many bike lanes.(Exhibit 6). As stated earlier, tourism is a driving factor of the economy in Los Angeles. However, many of the tourist experience life in Los Angeles through the double decker buses or tour coach buses. Just imagine riding through Los Angeles on your Metro bike taking a long look at the details of the fine architecture and various businesses in the area. Riding in a bike around town allows tourist to actually live the city life and enjoy everything instead of sitting in the bus taking pictures the whole time. Therefore, Metro and Groupon could make an offer on discounted Metro bikes to encourage people to travel and use the bikes. Recycling
The California Against Waste Foundation which was founded in 1977, is a non-profit
environmental research and advocacy organization that identifies and monitors policy solutions to pollution and conservation problems that can be a threat to public health and the environment. It is the largest, most effective non-profit environmental organization advocating for the process of waste reduction and recycling policies and programs. This organization highlights the economic benefits of recycling by claiming that “recycling creates a greater economic value than “throwing it all away.” Yet for years, we have ignored the tremendous economic potential of recycling. Every ton of newspapers recycled and every ton of aluminum saved from the garbage heap creates jobs, expands manufacturing, and reduces operating costs for local businesses and households.”
To reach the sustainable plan, the city of Downtown Los Angeles has set a plan to achieve a path for a stronger, cleaner environment. The plan targets at different categories for an advancement of the environment. Due to the fact that recycling creates economic value, Los Angeles has become very involved and has made a huge impact on the economy. It has one of the most ambitious programs in the state, according to the California Against Waste Foundation, Los Angeles “estimates that annual sales and employment for recycling businesses exceeds $600 million.” Los Angeles has reduced greenhouse emissions by 20% since 1990. We find that this is the best way to encourage people to recycle.
Learning Outcomes
What we have learned from this project is that the goal of sustainable living is to reduce
carbon footprint by altering our methods of transportation, energy consumption, and diet. According to Solomon, the author of Consumer behavior: Buying, having, and being , “People who worry about the environment, want products to be produced in a sustainable way, and spend money to advance what they see as their personal development and potential.” (2011, p. 154) Throughout our research, we found that Downtown Los Angeles is adapting to using more sustainable methods of operating businesses. For example, ever since Staples Center opened for business they have been finding new and innovative ways to save energy by installing solar panels(Sustainability-Staples Center, 2016).Consumers in the region are cautious about buying
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healthy and organic alternatives by shopping at Whole Foods grocery. In addition, Metro buses and bikes provide efficient and cheap ways to travel in and out of Downtown Los Angeles.
Individuals in the region earn a median income of $27,393 where the standard of living exceeds the national average. Despite the fact that it is a poor neighborhood, they still take the time and money to choose a more expensive yet beneficial alternative. In Chapter 8, the text introduces the process of making a decision as consumers decide to choose between two alternatives of non-organic cheap food and organic food. They have to weigh the risks of each alternative before making their decision. Conclusion
Given these points, we have learned that the 90015 neighborhood of Downtown Los Angeles is ready to fully transition to leading a more sustainable way of operating businesses and promoting healthy living lifestyles for its residents. Over the last decade, they have started to reduce their overall use of energy, such as Staples Center installing solar panels, extending its Metro Rail and having affordable ways of transportation to reduce traffic in the area. In the more recent years, the people have become more interested in healthy eating, so places such as Whole Foods has opened in the area, where people consciously choose healthier options for their diets. In order to have a healthy community, the residents have to lead productive and sustainable lifestyles.
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Bibliography
American Public Transportation Association. (2008). Public Transportation ReducesGreenhouse Gases and Conserves Energy [Brochure]. Author. Retrieved October 3, 2016, from http://www.apta.com/resources/reportsandpublications/Documents/greenhouse_brochure.pdf C. (2016). 90015 Zip Code (Los Angeles, CA) Detailed Profile
Http://www.city-data.com/zips/90015.html#ixzz4Mqk4vDUR. Retrieved October 11, 2016, from http://www.city-data.com/zips/90015.html
C. (2016). 90021 Zip Code (Los Angeles, CA) Detailed Profile
http://www.city-data.com/zips/90021.html. Retrieved October 11, 2016, from http://www.city-data.com/zips/90021.html.
California's Recycling Industry. (n.d.). Retrieved October 8, 2016, from http://www.cawrecycles.org/californias-recycling-industry Center, S. (n.d.). Environment | STAPLES Center. Retrieved October 10, 2016, from https://www.staplescenter.com/about/environment Florida, R. (2015, March 03). Sorry, London: New York Is the World's Most Economically Powerful City. Retrieved October 10, 2016, from http://www.citylab.com/work/2015/03/sorry-london-new-york-is-the-worlds-most-economically-powerful-city/386315/ Geron, K. (1997). The Local/Global Context of the Los Angeles Hotel-Tourism Industry. Social Justice, 24 (2 (68)), 84-102. Retrieved from http://www.jstor.org/stable/29767008 Gladstone, D. L., & Fainstein, S. S. (2001). Tourism in US Global Cities: A Comparison of New York and Los Angeles. Journal Of Urban Affairs , 23 (1), 23. Grand/LATTC station. (2016, July 11). Retrieved October 05, 2016, from https://en.wikipedia.org/wiki/Grand/LATTC_station Greene, K. (n.d.). Benefits of Becoming a Sustainable Business. Retrieved October 10, 2016, from http://www.eco-officiency.com/benefits_becoming_sustainable_business.html J. (2014). Fashion District, Los Angeles, California Zip Code Boundary Map (CA). Retrieved
October 12, 2016, from http://www.zipmap.net/California/Los_Angeles_County/Z_Fashion_District.html.
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Pico station. (2016, July 13). Retrieved October 05, 2016, from https://en.wikipedia.org/wiki/Pico_Station SimplyMap.(2016). 90021 Zip code Consumer Price Index Ring Study.
http://simplymap.com.mimas.calstatela.edu/index.html. Retrieved October 11, 2016, from
http://simplymap.com.mimas.calstatela.edu/index.html. Solomon, M. R. (1999). Consumer behavior: Buying, having, and being . Upper Saddle River, NJ: Prentice Hall. UNITED STATES CENSUS, BUREAU. (2015, July 01).Los Angeles County California QuickFacts from the US Census Bureau. Retrieved October 10, 2016, from
http://www.census.gov/quickfacts/table/PST045215/06037 Waight, D. (n.d.). Why Travel Via Public Transportation. Retrieved October 05, 2016, from http://www.pubtrantravel.com/whyuse.html
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Appendix (all images and charts here refer to this in the essay) Exhibit 1
Exhibit 2
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Exhibit 3
Exhibit 4:
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Exhibit 5:
Exhibit 6:
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Downtown Los Angeles with the area code 90015 has two types of public transportation, the Metro Bus and Rail. Metropolitan Transportation has many bus routes that serve all of Los Angeles with many stops near the Los Angeles Convention Center. Traveling via public transportation as opposed to a vehicle is a good way to aid in energy conservation. It helps the environment by reducing toxic carbon dioxide emissions. According to the American Public Transportation Association “A single person, commuting alone by car, who switches a 20-mile round trip commute to existing public transportation, can reduce his or her annual CO2 emissions by 4,800 pounds per year, equal to a 10% reduction in all greenhouse gases produced by a typical two-adult, two-car household. Taking public transportation also eases traffic congestion. Choosing to travel by bus over a vehicle could potentially take over thirty cars off of the road, whereby choosing to travel by train has the ability to take hundreds of vehicles off the road. Metro Bike is a new and innovative way to commute through Downtown LA. “The Metro Bike Share system features hundreds of bikes available 24/7, 365 days a year in Downtown Los Angeles. With this new trend being introduced to Downtown Los Angeles in the summer of 2016, it already has shown its perks of making 90015 much more sustainable. How it works is very simple, you grab a bike at one of their dozens of locations in downtown you can enjoy a 30-minute ride, or spend the day exploring and return it to any other one of their locations Driving and parking can be a nightmare in downtown, at times one daily parking spot can cost you up to fifty dollars. Metro Bikes promotes not only more affordable way to get around downtown but it also promotes a healthier way to get around. Metro Bike is cleaner for the environment and less stressful than driving though the one-way streets of Downtown. Tourism has been a key component of Los Angeles’ economy, including Downtown, and the city’s urban redevelopment efforts. The growth has influenced the city’s social structure, architectural, urban design and environmental development. Tourism is also a major source of employment for Downtown Los Angeles because there are hotels, food and beverage, transportation, entertainment, recreation, and retail industries operating in the area. Some of the most notable entertainment in the 90015 area include Staples Center, Microsoft Theatre (formerly known as Nokia Theatre), L.A. Live, The Grammy Museum, Los Angeles Convention Center, The Orpheum Theatre, FIDM Los Angeles campus, and the LA Fashion District. Based on one of our ring studies, we included variables related to health consciousness, related
diets and organic food preferences. In an area where healthy alternatives were limited, customers now have an option to buy organic food.
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To reach the sustainable plan, the city of Downtown Los Angeles has set a plan to achieve a path for a cleaner environment. The plan targets at different categories for an advancement of the environment. Due to the fact that recycling creates economic value, Los Angeles has become very involved and has made a huge impact on the economy. Since the area is built more for businesses and attractions for adults, there are fewer amounts of
families compared to regions outside of Downtown Los Angeles. This area has a high number of renters who live on lease in houses or apartments. This area attracts many young career building adults who are attracted to the city life in downtown. That area also attracts USC students who are admitted to the university from about the ages of 18-28. Many people are attracted to live in 90015 due to the wide range of jobs and activities available.
The businesses and city life attract age groups from 21 to 34 who earn a median income of $27,393
