Social factors

Question 1

Significance

Answer 1

Affect customer preferences and worker attitudes and behaviour, standards of business conduct, and corporate social responsibility.

Question 2

Elements

Answer 2

Customs
Habits
Values/attitudes
Demographic characteristics

Question 3

Case Application

Answer 3

Customers
- How do they define quality?
-How much is spent on the product/activity?
-What messages resonate with them?
-How are markets distinguished?
Demographically
Lifestyle characteristics
-Do products align w/ cultural practices?
Employees
- What motivates the cohort we want?
-Preferred work style & job design?
-Where can we find them?
-What do I say/offer to attract them?
-How do their habits & mindsets affect:
Hiring/Training
Motivation/retention

Question 4

Deliver Needs in an Unanticipated Way

Answer 4

• Provide solutions to problems people don’t even know they have (competitive advantage)
• Produce products no one is asking for; study society to understand markets
• Anticipate/meet needs before anyone else recognizes them

Question 5

Deliver Needs in an Unanticipated Way (Example)

Answer 5

Apple creating iPod → changed how we consumed & share music (part of lifestyle)

Question 6

Demographics

Answer 6

• Observable/Measurable Characteristics of Population
• Study of human populations
  (E.g. gender, ethnicity, age, income levels, geographic location)

Question 7

Cohorts

Answer 7

homogeneous groups within the larger population; typically when they were born

Question 8

What to Look for:

Answer 8

1. Cohort Size
   - Larger generally more desired, harder to reach (more people to address)
2. Cohort Characteristics
3. Cohort Participation
   - E.g. less public transit use in North - America compared to Europe
4. Future & Trends
   - Anticipate what society will likely look like in the future

Question 9

Predicting Cohort Size & Demand

Answer 9

Factors affecting size of cohorts
- Fertility Rate: avg. # children per woman
- Birth Rate: total # births per size of population
Activity participation rate
- % of cohort that engages in a behaviour

Question 10

Labour Force

Answer 10

fewer incoming than outgoing, organizations looking for leaders of tomorrow

Question 11

Economy

Answer 11

fewer supporting pensions, more people needing them

Question 12

Market

Answer 12

• children of boomers = relatively large group
• *More disposable income → parents provide essentials

Question 13

Implications

Answer 13

• Echo has greater market impact
• Vulnerable seniors → demand for care
• Increasing strain on pension & healthcare
• Potential labour shortages

Question 14

What Determines Characteristics?

Answer 14

• Factors
• Characteristics
• Implications

Question 15

Factors

Answer 15

Economics
Technology
World Events/News
Parenting

Question 16

Characteristics

Answer 16

Values & Priorities
Lifestyle
Habits (Digital & Other)
Mindset

Question 17

Implications

Answer 17

How to attract, retain, motivate
What makes a product appealing
How to attract as consumers
How much they spend and what they spend on

Question 18

Cohort Work & Consumer Implications

Answer 18

1. Boomers(1946-1964)
   -Prefer in-person transactions
   -Long hours in office
   -1 career & co.
2. Gen-X (1965-1979)
   -Research online but buy in-person
   -Brand loyal
   -Flexible work, perfect career
3. Gen-Y (Millennials) (1980-1994)
   -Digitally savvy
   -Quality > brand
   -Want authenticity
   -Customizations & personalization
   -Experience vs assets
4. -Digitally savvy
   - < Value uniqueness
   - want “know” brand
   -Customizations & personalization

Question 19

Gen-Z Characteristics – Work

Answer 19

• Meaningful work
• Digital natives
• Work-life balance
• Competitive wages & benefits
• Several careers
• Career advancement
• Civic-minded/CSR
• Feedback & recognition