Social Environment (AQA A Level Business): Flashcards
Exam code: 7132
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Define social environment.
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Cards in this collection (24)
Define social environment.
The social environment is the cultural, demographic and lifestyle factors within society that influence how people live, think and spend.
What are some recent social trends in the UK?
Recent UK social trends include an ageing population, growth in migration, more home working and increased consumer interest in sustainability.
Businesses that respond early to a social trend can gain a _________ advantage over slower competitors.
Businesses that respond early to a social trend can gain a first-mover advantage over slower competitors.
How can aligning with the values customers care about benefit a business?
It can build stronger brand loyalty, as shoppers actively choose brands that reflect their own values.
How can social change threaten a business's existing products?
Existing products can quickly become outdated if they no longer match what consumers expect. HMV struggled as consumers moved from CDs and DVDs to streaming.
What risks do businesses face if they are slow to adapt to social change?
They risk reputational damage or losing market share to more responsive rivals.
True or False?
Meeting changing expectations around sustainability or diversity can be costly for businesses.
True.
Meeting evolving expectations can be costly to put into practice. For example, one major UK supermarket committed £1 billion to reach net zero carbon emissions.
How might social change affect marketing decisions?
Product ranges and advertising increasingly need to reflect a more diverse society, rather than a narrow, traditional target market.
Why do longer lifespans create a finance challenge for pension schemes and insurers?
They face rising long-term costs, because they must pay out for more years than originally planned.
To meet demand for healthier options, operations may need to _________ products to cut their sugar, fat and salt content.
To meet demand for healthier options, operations may need to reformulate products to cut their sugar, fat and salt content.
Define demographic factors.
Demographic factors are the measurable characteristics of a population, such as its age structure, size, life expectancy and household composition.
What two trends are causing the UK's ageing population?
The UK population is ageing because of falling birth rates and rising life expectancy.
True or False?
The ageing of the UK population is a long-term, structural shift.
True.
It is a long-term, structural shift in the UK population, rather than a short-term trend.
What can older workers offer a business?
Older workers can offer experience and reliability, and they often have lower employee turnover.
A shrinking _________ population can make it harder for some businesses to recruit.
A shrinking working-age population can make it harder for some businesses to recruit.
Define consumer values.
Consumer values are the beliefs, attitudes and priorities that influence what people choose to buy and from whom.
Define sustainability.
Sustainability is the capacity of a business to meet its present objectives without compromising the resources needed by future generations.
What is the biggest barrier to sustainable spending by UK consumers?
Cost is the biggest barrier to sustainable spending, alongside a lack of interest or information.
True or False?
Value-conscious consumers cut back their spending on everything equally.
False.
Many consumers cut spending on things that do not feel worthwhile, especially physical items. They still pay for what does, such as wellness or experiences.
Define greenwashing.
Greenwashing is when a business makes exaggerated or false claims about its ethics or sustainability.
Define activism.
Activism is organised action by individuals or groups, such as campaigners, employees or shareholders, to pressure a business into changing its practices or policies.
A consumer _____ is when customers deliberately stop buying from a business to pressure it into changing a policy.
A consumer boycott is when customers deliberately stop buying from a business to pressure it into changing a policy.
Define shareholder resolution.
A shareholder resolution is a formal proposal put forward by shareholders at a company's annual general meeting, asking the business to change its strategy or disclose more information, which all shareholders then vote on.
How might a business respond to sustained campaign pressure?
It may end or change controversial partnerships or sponsorships. It may also set up advisory panels to engage with campaign groups, or publish clearer, evidenced ethics reports.
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