BU111 Social Factors

PEST - Social Factor Elements

customs, habits, values/attitudes, demographic characteristics

Significance of social factors

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

what are demographics

study of human populations

cohorts

homogeneous groups within the larger population

why are demographics important

powerful predictor of behaviour/trends, certainty and simplicity of age data, predicts supply and demand and informs environmental analysis and human resource decisions

4 elements of demographics (diamond)

cohort size, cohort characteristics, cohort participation, future and trends

size of cohort

number of people in each age group

factors affecting cohort size

fertility rate, birth rate

activity participation rate

percentage of cohort that engages in a behaviour

cohorts in order

WWI, roaring twenties, depression babies, WWII, baby boom, gen x, millennials, gen z

implications of aging boomers, fewer youth

increased elder care needs, increased number of vulnerable seniors

cohort characteristics - factors

economics, technology, world events/news, parenting

cohort characteristics - characteristics

values and priorities, lifestyle, habits (digital and other), mindset

cohort characteristics - implications

how to attract retrain motivate, what makes a product appealing, how to attract as consumers, how much they spend and what they spend on

boomers characteristics

prefer in-person transactions, long hrs in office, 1 career and company

gen x characteristics

research online but buy in store, brand loyal, flexible work, perfect career

millenials characteristics

digitally savvy, quality over brand, want authenticity, access over ownership, will change jobs

gen z characteristics

digitally savvy, value uniqueness, want to know brand, frugal and avoid debt, several careers