WHAT ARE THE SOCIAL FACTORS AFFECTING BUSINESS ENVIRONMENT AND SALES?
What is the impact of socio-cultural environment on business? Our society keeps changing day in day out. Consciously or unconsciously, so many factors affect your business both positively and negatively. Being aware of this doesn’t stop such factors from happening.
Social factor are those factors within the society that interfere with the survival of your business, they might be helping your business grow or they might be the key to the failure of your international business. These factors include the customs or religious beliefs and settings etc.
In this article I will be discussing ways social and cultural factors affect your business and as this will help you plan ahead of time before facing them.
Here are the socio-cultural environment and its impact on business:
1. Religious Restraint on Certain Goods
Some religious beliefs have hindered so many from patronizing some sort of business claiming doing that will make their worship unclean. For example, some religious belief claims that tasting alcoholic substances makes their worship unclean and sometimes people who risk taking it are either sent away from such religion or they receive some fines for doing that.
For business owners in such area, they tend to make little or no profit as many who do not want to suffer the same faith will tend to play by the rule at will or forcibly. Religion in another way has, in fact, helped so many business owners make more money, during religious festivities like Christmas as an example, people tend to buy clothes and other materials at a very increased rate compared to other months of the year.
For each of these two situations, religion as a social factor might spell doom or define success.
2. Cultural Background Putting Limits and Breaking Limits
Yes, cultural background and belief has placed limits and sometimes beyond measurement remove the restriction on things that would have made a business run at a loss. Some cultures believe having some materials or patronizing some business is wrong.
In the fashion world, some sets of clothes or materials are seen as something wrong. In such areas, cloth sellers tend to be selective and as such, they end up not selling popular clothes and materials that would have fetched them a lot of money and instead go for substandard goods.
On the other hand, some cultural background has helped some business prosper beyond a limit, as long as they are being used for cultural activities such goods tend to sell more thereby helping those business owners.
3. Human’s Attitude Toward Business Also Affects
Our attitudes affect the success of our businesses both positively and negatively. Some businesses have closed down due to the attitude of the business owners, their customer interaction, and other factors.
Most customers hate receiving harsh response from business owners when patronising them, most believe the funny philosophy “Customers are always right” and at any point they keep referring to such points as a basis for negotiations, but most business owners believe they should and must have a final say about how they will run their business, an argument that is very valid. The attitude of both the business owner and the customer at this point will influence the success of the business.
4. Educational Background Poses a Threat
Education also influences business. The way educated ones view the market is very different from how less educated ones view it. Some educated ones believe that some goods are a must to have at home and they do all they can to get such goods.
On the other hand, less educated ones will see some of those things purchased by those termed “educated” as a waste of resources. They believe big stores are just there to extort them and that goods at such store are well inflated beyond its normal price. These two facts will hinder or help a business.
In areas with a large number of educated ones, big stores and supermarket tend to earn big while the local market setting, kiosk owners, and other small business settings earn little, the same applies to a situation where less educated ones are many.
5. Age and Sex has its Own Limits Too
For some certain age or gender, some product is seen to be either inappropriate to use or generally not useful for them, if a business then sets up his wings in such area they will make little or no reasonable income.
If a toy store is set up in an area where only adults reside then they can be sure that sales will come once in a blue moon, but when there are a multiplex of young residents in such area, such business will make more money.
Some goods are gender-dependent too if a male uses it, female doesn’t and vice versa. In such situations, business owner’s success is dependent on which gender is much or many there.
In conclusion, one will reasonable agree that social factors are just dependent on the situation of each buyer or each individual in the market. Yet the success of a business depends on it, and this is one reason why before you start the business, you need to make your research and come to a reasonable conclusion on what business you will get involved in.