Social Factors

Question 1

elements

Answer 1

• customs
• habits
• values/ attitudes
• demographics

Question 2

why study social factors

Answer 2

• Affects customer preferences, worker attitudes and behaviours standard
• Corporate social responsibility (CSR)
• Standards of business conduct

Question 3

business implications

how it affects businesses

Answer 3

Affects how we live work, consume and produce

Question 4

significance

Answer 4

• History influences social factors
  Social factors can influence political (e.g. statutory holidays are chosen based on customs and traditions)
  e.g. smoking began to shift in something that is bad and no longer cool, therefore in old movies elegant people smoke whereas now the bad guys smoke
• This is the most important thing to understand a society, especially if going to foreign countries
  e.g. in Serbia to show that you are dedicated and a good employee you drink Red Bull energy drink (makes you appear to be a great employee), this is not the attitude in Canada

Question 5

what is demographics

Answer 5

• Study of human populations
• Cohorts = homogeneous groups within the larger population (Similar characteristics)
• Age- strong predictor of behavior

Question 6

why study demographics

Answer 6

• Powerful predictor of behaviour/trends
• Certainty and simplicity of age data
• Predicts supply and demand and informs environmental analysis and human resource decisions

Question 7

large cohorts

Answer 7

• The larger the cohort the more attention they receive
• However they have more competition for houses
• Higher requirements and less jobs
• Businesses and governments will focus on you and your voice will be heard

Question 8

small cohorts

Answer 8

• The smaller the cohort the less attention they receive
• However they have less competition for different resources
• No voice being heard

Question 9

what to look for in demographics

Answer 9

• Cohort size age group – 10-15 years, compare them to the previous cohort at the same age, can change supply and demand.
• Demographic is bigger than the one before, there will be an increase in demand.
• Predicts demand and supply

Question 10

cohort characteristics

Answer 10

• What you value, how you spend money, how you socialize, how you use technology/what do you use it for
• Differences in mindsets, habits, values and priorities
• Changes demand for certain things

Question 11

cohort participation

Answer 11

• Older generations did not go to the gym a lot
• Our cohort does not go travel as much as older
• Rate of volunteering

Question 12

future and trends

Answer 12

• Increase in demand for health care because of an aging population- baby boomers. - - —Cohort size is bigger compared to the ones previous
• Decrease supply of workers. Increase demand for hospital care, nursing homes

Question 13

predicting cohort size and demand

Answer 13

Size of cohort = # people in each group

Question 14

factors affecting cohort size

Answer 14

• Fertility rate – avg # of children per women
• Birth rate – total # births/size of population
• Activity participation rate
  (Percentage of cohort that engages in that activity)

Question 15

factors that determine characteristics

Answer 15

• economic
• technology
• world events/ news
• parenting

Question 16

economic

• characteristics
• implications

Answer 16

c- values and priorities

I- how to attract, retain and motivate

Question 17

technology

Answer 17

c- lifestyle

I- what makes a product appealing

Question 18

world events/ news

Answer 18

c- habits (digital/other)

I- how to attract as consumers

Question 19

parenting

Answer 19

c- mindset

I- how much they spend and what they spend on

Question 20

baby boomers

Answer 20

1946-1964
uncle John 
- in person transactions
- job security --> one career 
- long hour in office 
- early information technology (IT) adaptors

Question 21

gen x

Answer 21

1965- 1979
Andrea & mark 
- research online but buy in person 
- brand loyal 
- flexible work 
- perfect career 
- online but would prefer face to face time permitting

Question 22

millennials/ gen y

Answer 22

1980-1994
Alexis 
- digitally save 
- quality over brand 
- want authenticity 
- customizable and personalization (experience over assets)
- access over ownership 
- socially minded 
- meaningful, flexible work like balance 
- will change jobs

Question 23

gen z

Answer 23

• digitally savvy
• value uniqueness
• what to know the brand
• customizable and personalization (experience over assets)
• frugal/ avid debt
• socially minded
• meaningful, flexible work like balance
• several careers

Question 24

gen z for work

Answer 24

• meaningful work –> want to make an impact, not just about the money
• digital native – >they way you integrate tech
• work life balance- not willing to work 24/7 –> want to disconnect and have space for a life
• competitive wages and benefits –> want to be fairly compensated
• career advancement –> want to grow and succeed with the company
• CSR
• feedback and recognition–> expect recognition when they are doing well

Question 25

canadain demographic trends

Answer 25

• aging boomers, falling youth population
• canadian population distribution
• canadian households (changing households)
• ethnic composition
• geographic distribution

Question 26

aging boomers and fewer youth

• what is it
• implications

Answer 26

• Aging boomers and fewer youth
• Boomers = currently more influential demographic but are declining
  youth= shrinking in comparison
• Should be a pyramid
• No longer a traditional pyramid (more youth than elderly)
• The bulge is the boomers
• The bulges create challenges as they age
• Smaller youth group= sandwich generation

Implications
Increased elder care needs
Increased number of vulnerable seniors

Question 27

Canadian population distribution

Answer 27

• Labour force- fewer incoming than outcoming
• Baby boomers will be retiring soon- meaning labour shortage
• Companies need to work harder to retain employees
• Economy- fewer supporting pensions
• Higher pensions rate
• Or can be smaller pensions

Market- children of boomers= relatively large group
- Baby boomers are not spending as much money

Move back; more disposable income because parents provide essentials
- Moving in with parents -Baby boomer echo, more disposable income

Implications
Echo has greater market impact
Echo generation = children of the baby boomers
Vulnerable seniors- demand for care
Increasing strain on pensions and healthcare
Potential labour shortages

Question 28

ethnic composition

Answer 28

Immigration –
- Often young people- more future opportunities, no children

• Families- opportunities and facing hardship
• Offers diversity
• Political unrest
• Immigration increasing over past decades
• Immigrants younger and more likely to live in a city than the average Canadian
• More likely to find members of your community
• More likely to find work opportunities
• Find ethnic stores

Implications
Many consumers having difficulty interacting with markets

Question 29

Canadian households

Answer 29

• More one person households
  Divorce, no kids

Implications
- Loss of economies of scale in living, shopping
Costco relies on people buying in bulk don’t have the volume of consumption
- Families face time constraints
Both parents have to work,
Hello fresh value being healthy

Question 30

geographic distribution

Answer 30

• Rural vs urban areas
• Rural life is declining
• Rural living predominates in Atlantic Canada, Saskatchewan, territories
• Increasing urban concentration
• Donut effect

Implications
Affects median age in rural areas and access to goods and services