ACCA Applied Knowledge · Business and Technology · Social and demographic factors
A clothing retailer notices that its customers increasingly prefer ethically sourced goods and are influenced by what their peers and online communities say. Which of the following is the most appropriate response by the retailer to this social trend?
The retailer should review its supply chain and promote its ethical sourcing credentials. Social attitudes can be monitored and responded to, and matching products and messages to customer values protects demand. Ignoring the trend or simply cutting prices does not address what customers now care about.
- AIgnore the trend because social attitudes cannot be predicted
- BReview its supply chain and promote its ethical sourcing credentialsCorrect
- CCut prices on all existing lines to maintain sales volumes
Explanation
Changing social attitudes can be monitored, for example through a PESTLE analysis, and a business can adapt to them. Aligning sourcing and marketing with customer values addresses the trend directly. Ignoring it risks losing customers, and price cuts do not address the values driving demand.
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