Social factors
Social factors are the things that affect the habits and spending of customers. These include:
- The study of population statistics. It measures trends and tracks changes in births, deaths and migration.
- lifestyles
- tastes and trends
- ethical
Demographics
The study of population statistics. It measures trends and tracks changes in births, deaths and migration. change is most commonly used to reflect changes in population such as:
- birth rate
- life expectancy
- levels of immigration
For example statistical evidence shows that the UK population is ageing.
This demographic information is useful for firms who provide products and services for older people and is an indicator of the strength of the Money that older people, as a group, have available to spend.
Businesses will need to adjust their focus to ensure they are tailoring their products to the 鈥済rey pound鈥 or the specific demographic changes that are happening at that time.
Lifestyles
Lifestyles are changing too. Society is more health-conscious so healthy foods and habits are becoming more important to customers.
- food packaging lists nutritional information
- more electronic products such as pedometers and fitness trackers are being used
Businesses will need to adjust their The range of different products a business sells. and marketing strategies to ensure they are taking into account the lifestyle trends and fashions or they will start to lose customers.
Tastes and trends
Tastes and trends are changing constantly. For example:
- loom bands became the biggest selling toy of 2014 but fell from popularity the following year
- fidget spinners grew rapidly in popularity over a matter of months in 2017
Ethical
There is increased pressure on businesses to operate ethically:
- reducing waste
- paying fair wages
- providing goods and services that are ethically produced and marketed
It may cost businesses more to operate ethically but it will improve the image of the organisation which may result in greater sales.