ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Over several years, consumers in a country become more concerned about how products are made and increasingly favour firms with ethical sourcing. Which type of external factor in a PESTEL analysis does this change in attitudes primarily represent?
The change is a social factor. Shifts in consumer attitudes, values and preferences, such as concern for ethical sourcing, fall under the social element of PESTEL, rather than political, economic or legal factors, which concern government, markets and legislation.
- ASocialCorrect
- BPolitical
- CEconomic
- DLegal
Explanation
Changes in consumer attitudes, values and lifestyles are social factors in PESTEL. Political factors relate to government action, economic factors to income and growth, and legal factors to legislation. The scenario describes no change in any of those.
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