Skip to content

ACCA Applied Knowledge · Business and Technology · Social and demographic factors

Which of the following is the best example of a social factor in a PESTEL analysis of a retail clothing company?

A growing consumer preference for ethically sourced clothing is the social factor. Social factors reflect society's attitudes, values, tastes and lifestyles. Tax changes are political, payment systems are technological, and exchange rate effects on cotton costs are economic, so none of those fit the social category.

  1. AA change in the corporate tax rate
  2. BA growing consumer preference for ethically sourced clothingCorrect
  3. CThe introduction of a new online payment system
  4. DA rise in the cost of imported cotton due to exchange rate movements

Explanation

Social factors cover attitudes, values, lifestyles and tastes in society. A shift towards ethically sourced clothing is a change in consumer values. A tax change is political, a payment system is technological, and exchange rate effects are economic.

Did you get it right without looking?

One question tells you little. A timed set on Social and demographic factors shows your real accuracy, how long you take and where you lose marks.

Practise Social and demographic factorsFree diagnostic mock

More Social and demographic factors questions