Social Factors

Question 1

Demographic change - overall size of population

Answer 1

The first important factor is the overall size of the population. This is of interest to businesses since, in general terms, if the population increases, the size of their market will increase, and they will be able
to sell more goods.

Question 2

Demographic change - age of population

Answer 2

The age of the population is important. The baby boomers of the 50s and 60s are now entering or moving toward retirement. These people are generally
a well-off section of society, the majority with their own homes and many with highvalue final salary pensions. Baby boomers can have large amounts of savings and disposable income which can be used for holidays, conservatories, new cars, etc.

Question 3

Demographic change - Migration

Answer 3

Migration is also a major part of the change in UK population structure. For example, young immigrants have added to the working population as they fill the
skills gap in the UK and undertake those jobs, such as agricultural labouring, which the UK population has been reluctant to
do.

Question 4

Lifestyle change - women working

Answer 4

One major change over the last 40 years has been the increase in the number of women who are economically active, i.e. in work. Working women do not comply with the old-fashioned housewife role; they are busy, with little or no time during the working week to cook, mend and sew.
* Supermarkets and other retailers focus on convenience, time-saving meals, home delivery and ‘click and collect’.
* The childcare industry has boomed and forms a significant element of many household budgets today.

Question 5

Lifestyle change - healthy

Answer 5

Society is becoming more health-conscious. Fitness is another sustained lifestyle change. This does not just impact on the demand for gyms but also related
goods, such as low-fat, low-sugar and organic foods.

Question 6

Lifestyle change - Younger people consuming media

Answer 6

For businesses, the problem of how younger people consume media and purchase goods is a major problem. Teenagers (and younger) switch between TV, phones, tablets to consume entertainment. Now, marketing and selling to these segments has to be focused on a wide spread of media, not just traditional above-the-line methods.

Question 7

Lifestyle change - Cultural

Answer 7

Cultural changes within a population can also have a major impact on business behaviour and the products they produce. Social change also includes
fashion changes. Consumers are now happy to pay £3.00 for a coffee – as long as it has the right brand on the takeaway cup

Question 8

Lifestyle change - Changes in consumer attitudes

Answer 8

Changes in consumers’ attitudes toward the environment have changed demand patterns across a range of industries. Electrical goods need to be energy-efficient. When consumers are purchasing cars, the focus can be as much on emissions and fuel efficiency, as on performance

Question 9

Lifestyle change - Determining objectives + strategies

Answer 9

Social change can also be seen within businesses in the way they determine objectives and strategies. There is a growing movement in the setting up of social enterprises, where businesses are primarily focused on a social objective as opposed to profit. This is driven by, and a reaction to, big businesses traditionally having given little thought to their social impact. As a result, some large businesses today go as far as producing a
social audit alongside their
traditional accounts in order to improve public relations. The social audit measures the environmental and social impact of the business’s activities and
sets out strategies for reducing any negative impacts.