Social Factors (SQA National 5 Business Management): Revision Note

Social trends

• Social factors refer to changes in society that affect what customers want and how businesses must respond

  • These social trends include demographics, tastes and trends and consumer lifestyles

1. Demographics

• Demographics are statistics about the population, such as age, birth rates and levels of immigration

  • The UK, including Scotland, has an ageing population

    • Older people often have more disposable income, creating demand for leisure, travel, healthcare and specialist housing

    • E.g. Care providers in Scotland, such as Bield Housing & Care, have grown their services in response to an ageing population

  • Immigration can create new markets

    • E.g. Scotland’s food retailers and restaurants have expanded international ranges to reflect the country’s increasingly diverse population

2. Tastes and trends

• Tastes and trends can change quickly, often influenced by fashion, celebrities or social media

  • Clothing and fashion businesses must constantly update styles to keep up with customer demand

  • Trends can also affect sectors like music, toys, food and interior design - what is popular one year may be outdated the next

• Social media influencers and TV exposure can boost the popularity of a product almost overnight

  • E.g. When TV show Dragon’s Den featured Scottish company Hungry Squirrel's flavoured nut butters, the brand received a surge of attention and online orders

3. Lifestyles

• People’s lifestyles influence what they buy and how they spend their time

  • Many consumers are now more health-conscious

    • Businesses respond by selling healthier foods, putting nutritional information on packaging, and offering products like plant-based meals

    • Fitness trends have boosted sales of items such as smartwatches, gym memberships, and online workout subscriptions

    • In Scotland, PureGym has expanded into cities and towns to meet growing demand for affordable fitness options

  • Customers are increasingly aware of their environmental impact

    • Many now prefer products with recyclable packaging and locally sourced ingredients

    • E.g. Scottish brewery Innis & Gunn has invested in more sustainable brewing techniques and packaging to appeal to eco-conscious drinkers.

  • There is rising demand for vegetarian and vegan foods, driven by health, environmental and ethical reasons

    • Restaurants, cafés, and supermarkets have expanded their ranges to meet this trend

    • E.g. Hendersons, a well-known vegetarian and vegan restaurant in Edinburgh, has long catered to this lifestyle trend, while supermarkets across Scotland now stock more plant-based alternatives

Changing working practices

• In recent years, the way people work has changed significantly

• Businesses must adapt their policies and practices to meet new expectations and legal requirements

Examples of changing working practices