External Factors- Social

Question 1

What are external factors?

Answer 1

Different situations that impact on the success of the business that arose from the outside

Question 2

What are social factors?

Answer 2

Things that affect the habits and spending of customers

Question 3

What are social factor examples?

Answer 3

Demographics or changes in cultural behaviour
Lifestyle
Tastes and trends
Ethical

Question 4

Demographics:

Answer 4

Changes in the population such as birth rate, life expectancy or level of immigration e.g. UK aging population or more women in professional careers

Question 5

UK aging population:

Answer 5

This is a growing market segment where people are willing to pay high prices for high quality however extensive market research must be done.

Question 6

More women in professional careers:

Answer 6

Women will wait longer to have a family and couples become better off but there are more people on maternity leave so flexible working must be considered.

Question 7

Lifestyle:

Answer 7

Society is becoming more health conscious so health foods and habits are becoming more important.

Question 8

Tastes and trends:

Answer 8

Loom bands and fidget spinners
e.g. changing fashion trends

Question 9

Changing fashion trends:

Answer 9

Demand may get higher and sales increase however lots of market research must take place and some products have a short shelf life

Question 10

Ethical:

Answer 10

There is increased pressure to operate ethically by reducing waste, paying fair wages and providing goods and services that are produced and marketed ethically
e.g. fair trade

Question 11

Fair trade:

Answer 11

Business is seen in a good light so people think better of the business but costs are high and businesses will gain a bad image if operating unethically.