Technological. Therefore, it is absolutely that every factor inside or outside a business organization has a profound influence on business activities. protect the environment, and help solve social problems in their commu- . Some of these factors are controllable .
guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. While the differences between our cultural background in the United States and those of foreign nations may seem small . Example: When Pepsi and Coca-Cola got permission to set up their business in India, it was an opportunity for them and threat for local manufacturers like gold spot, camp-cola etc. The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rates is called the a. legal-political dimension. Social class is important to predict the consumer behavior. After competing his education, Arun joins his father in their family business of manufacturing cookware.
It includes social responses such as the actions of others in cultures, subcultures, social classes, reference groups and families that influence consumers. Socio-Cultural Environment2. Social and Cultural Environment: The social factors that affect a firm include the values, attitudes, beliefs, opinions and life-styles of persons in the firm's external environment, as developed from demographic, cultural, religions, educational and ethnic conditioning. Social and Cultural Environment: The social factors that affect a firm include the values, attitudes, beliefs, opinions and life-styles of persons in the firm's external environment, as developed from demographic, cultural, religions, educational and ethnic conditioning. C. micro. A. internal environment. External Environment Factor Affecting Business # 2. 18. d. economic dimension. The external environment consists of legal, political, socio-cultural, demographic factors etc. Ans: This statement is False. Social factors such as education, awareness and trends and status of people in the society affects the consumer behavior to purchase various goods and services. Consumers buyer behaviour is influenced by four major factors: 1) Cultural, 2) Social, 3) Personal, 4) Psychological. INTRODUCTION Consumer purchasing decisions are often affected by factors that are outside of their control but have direct or indirect impact on how we live and what we consume. Besides the internal factors, external factors also Influence consumer behavior. include, among other factors, the lack of consumer information and imper- Examples include: Religious, Political, Family, Friends, Co-workers, Clubs and Associations. C. the consumer's need recognition will be. Type 2# External Macro Environment: Apart from micro-environment, business firms face large external environmental forces. Ecological Environment5. According to Philip Kotler, "A company's marketing environment consists of the internal factors & forces, which affect the company's ability to develop & maintain successful transactions & relationships with the company's target customers". Factors affecting consumers can also be studied by dividing the factors into four groups as shown below. The factors in the physical environment that are important to health include harmful substances, such as air pollution or proximity to toxic sites (the focus of classic environmental epidemiology); access to various health-related resources (e.g . The Macro Environment consists of a large variety of different forces. Social. Ans: This statement is False. B. external . D. macro. Social and cultural. The explanation of these factors is given below.
These factors are not individualistic,and are external to the individual. A) Developing the infrastructure O B) Assuming all financial risks O C) Developing the infrastructure AND assuming all financial risks OD) None of these . A consumer's external social environment includes: A. impulse, habitual, and limited problem solving processes. C.
22. b. sociocultural dimension. Composition of family is an example of social environment.
These include: demographics. The micro environment of the organisation consists of those elements which are controllable by the management. When such an environment is created by a society where a business operates and functions, this is known as its external social environment. B. the effort consumers will invest in searching for alternatives. Q. _____ environment can be defined as that part of the environment that is concerned with the entire social system. Each and every society across the globe has form of social class. The first group of factors includes the opportunities that involve the necessities in formulating strategies. Consumer Behavior External Influences - Social Environment and Social Class Social Environment. 7. Marketers who intend to market their products overseas may be very sensitive to foreign cultures. _____ economy is not owned or managed by the government but owned by private individuals. Social and cultural.
and the remainder is environment". Economic. Social factors include various cultural and demographic aspects of a society.
They are associated with the .
"Marketing Environment can be defined as various internal (Micro) and external (Macro) factors under which marketing functions take place." "A company's marketing environment consists of the internal factors and forces, which affect the company's ability to develop and maintain successful transactions and relationships with the company's target customers". Secondly, there are external threats that provoke complexities involved in creating the company's strategies. A publicly held business. Table of Contents 1. This includes elements such as safety awareness, age distribution, population and career attributes etc. Even local and national firms should be aware of the social environment that they will be working in. Social Class. In another case, when a business operates in a society that is multicultural, the social external environment becomes even more complicated due to the environment consisting of diverse sub-populations, each with its own unique values and customs that make . A. All of these may shape opportunities for the company, but could also pose threats. external factors are culture, social status, family, influencer, situation and environment among which the social status ranked I and next to it wass culture (rank-II) Internal influences: According to the respondents, the various internal factors influencing the consumer behaviour are resources, involvement and motivation, knowledge, personal . is environment". As a businessman, his father is rigid in his approach and has
They influence how business should be conducted, how consumers will behave, how supply and demand . These are uncontrollable factors and firms adapt to this environment. Instead, they must understand how the external environment is changing and the impact of that change on the target market. Environmental factors: The Importance of Paying Attention to the Social Environment. 14. Hence the success of the company, to a large extent will depend on the company's ability to adapt and react to the changes in the . In addition, a growing body of research has documented associations between social and cultural factors and health (Berkman and Kawachi, 2000; Marmot and Wilkinson, 2006). The Wall Street Journal is providing consumers with . External factors Influencing Consumer Behaviour.
This also includes consumer awareness and consumer protection; Solved Question on Social Environment. The external environment includes: answer choices . x. These factors include culture, subculture, social class, reference group and family influences. An external environment is composed of all the outside factors or influences that impact the operation of business. , which, as you can see in Figure 9.14 "The Marketing Environment", we can divide into five sets of factors: Political and regulatory. Economic Environment 4. It will expand consumer base to include the buyers from the lower and the middle-income tiers. External factors cannot affect the decision process directly but, these are also instrumental and exert an influence on consumer behaviour. Technological. So also, the individual consumers or competing enterprises as well as the governments, consumer groups, competitors, courts, media and other institutions working Factors external to the firm that present threats and opportunities and that require shifts in marketing plans. The environment which is close to business and affect its capacity to work is known as ___environment. D. the size of the universal set will be. ANSWER: A 8. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. A. Exp: American red cross.
Unlike the external environment, firms can directly control the internal environment. Technological Environment The macro-environment refers to the "big or macro forces" that affect the area, the industry, and the market, which the enterprise belongs to. Personal Factors Although The external macro environment determines the opportunities for a firm to exploit for promoting its business and also presents threats to it in the sense that it can put restrictions on the expansion of business activities. . The external environment consists of legal, political, socio-cultural, demographic factors etc. Marketers generally cannot control the elements of the external environment. Secondly, because we know that a business firm is a social entity which is formed by a hierarchical structure where all necessary items of its own are activated together to reach the collective goal. In other words, consumer behaviour includes the acts of individuals directly involved in obtaining and using economic goods. A social environment includes the values, beliefs, customs, and practices of a group of people. The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Social Environment: Social environment includes the social forces like customs and traditions, values, social trends, society's expectations from business, etc. Marketing Environment. Market access includes ease of developing or accessing distribution channels, and brand familiarity. These factors include - population growth, age distribution, health consciousness, career attitudes and so on. Health is determined by several factors including genetic inheritance, personal behaviors, access to quality health care, and the general external environment (such as the quality of air, water, and housing conditions). Composition of family. The focus of the project includes the following questions: . B. external. Figure 9.14 The Marketing Environment. These factors may have a direct or indirect long term impact on a company, since it affects the purchasing power of consumers and could possibly change demand/supply models in the economy. includes social and physical factors present in the environments where consumers usually consume the product sometimes consumption situation is a very big part of that (golf courses, ski resorts, theme parks, etc) The "green" and "ethical chic" consumers are also concerning. Question 1 Marks: 2 A consumer's external social environment includes their: Choose one answer. iii. Social Factors. As technology continues to offer more different methods for shopping online, manufacturers and traditional retailers are finding themselves in direct competition with each other. C. economic environment. Thus, the economic, social, political, technological and other forces which operate outside a business enterprise are part of its environment. These factors cause consumers to develop product and brand preferences. Internal environment includes various internal factors of the organization such as resources, owners/shareholders, a board of directors, employees and trade union, goodwill, and corporate culture. A. internal. Reference groups have an influence on purchasing behavior, but the level of influence will depend on where the product will be consumed—in public or in private—and whether the product is a want or a need. Q: Only international firms should do a study of the social environment before entering the market. Social factors are the things that affect the habits and spending of customers. and the External factors ( political, legal, social, technological, economic) that surround the business and influence its marketing operations. This includes all departments such as management, finance, research and development, purchasing, Business operations . These factors are detailed out below. B. functional and psychological needs. True or False? Also, Social environment and culture such as customs, lifestyles and values differs from country to country which further directly impacts the international business. E. the amount of external information search will be needed includes the physical, spatial, and social characteristics of places where consumers shop for products and services Purchase Situation includes the social and physical stimuli present in the environment where the consumer makes the purchase Social Environmental Factors. This change reflects the social segment of the general environment. 4. environment. True or False? lifestyles. This change reflects the social segment of the general environment. Consumer Protection Act - 1986 . Internal environment. A level of competition characterised by consumers often having limited financial resources and therefore having to make choices about which products to consume and which to forgo, can be best described as: . Political Environment3. These factors are not individualistic and are external to the individual. Impulse, habitual and limited problem solving process b. Functional and psychological needs c. Universal, retrieval and evoked sets d. Cognitive, affective and behavioral environment e. Family, reference groups and culture A consumer's external social environment includes family, reference groups, and culture Jennifer's spending decisions are heavily influenced by her family, her peers, and her religious education. The external macro environment determines the opportunities for a firm to exploit for promoting its business and also presents threats to it in the sense that it can put restrictions on the expansion of business activities. a. Consumer environment which refers to everything external to consumers that influences what they think, feel and do. _____ factors are the environmental factors concerned with the changes in people's values, lifestyles, and family roles.