ACCA Applied Knowledge · Business and Technology · Social and demographic factors
A clothing retailer finds that its target customers increasingly prefer ethically sourced products and are influenced by social media opinion. Which PESTEL consideration is the retailer mainly responding to?
The retailer is responding to changes in social attitudes and values. Customers preferring ethically sourced goods and being influenced by social media reflect shifting beliefs and culture, which are social factors, rather than economic exchange rates or legal employment rules.
- AChanges in social attitudes and valuesCorrect
- BChanges in the economic exchange rate
- CChanges in legal employment regulation
Explanation
Customer preferences for ethical sourcing and the influence of peers are changes in attitudes and values, which are social factors. Exchange rates are economic and employment regulation is legal; neither is described.
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