Are you about conducting market research for your business? If YES, here are 10 ways socio-cultural factors affect your business and what to do about it.
Being in business is not only about knowing how to make sales and generate great profits, but it also involves understanding the environment you intend establishing your business. A complete business person ensures that he or she studies the social – cultural attributes of the people that live in the environment they intend starting their business during the feasibility studies.
You might want to ask the meaning of the word socio – cultural factor. As the word implies, socio – cultural is a combination of two words social and culture. In essence social – cultural factors are the lifestyle of a group of people, their customs and their value system.
Predominantly, the socio – cultural factors of a group of people is influenced by their religion. Other factors that can influence the socio – culture of a people are their language, the law of their land, politics and the economic status of the people.
So, if you want to make it big in business, it is very important that you consider the socio – cultural attributes of the people that live in the place you intend planting your business. The truth is that if you don’t carryout your research well, you might likely plant a fantastic business with great potential in a wrong environment and that can resort to struggle.
Let us quickly examine the 10 ways socio – cultural factors can affect business:
Market Research – 10 Ways Socio–Cultural Factors Can Affect your Business
1. Means of Communication
Every community has a means of communication and the ability for you to key into their style of communication will go a long way to positively impact your business. Much more than the language that is being spoken by a group of people, there are other salient and unspoken words that carry great importance. For instance some culture frowns at a younger person that present his hand first for a handshake with an elderly person.
2. Purchasing Power
It is very important that you know the purchasing power of the people that live in the area where you intend establishing your business. There are some kind of businesses that can thrive in places where the people that live there are poor and there are some other businesses that cannot survive such environment.
For example; if you start your ‘Diamond Retail’ business in the ghetto part of town, there is the high possibility that you might struggle with such a business because there would be low patronage. However, if you start a consignment shop in the ghetto, you can be sure that your business would surely flourish.
3. Days Set Aside for Worship (Holy Days)
As a business person looking toward starting your business, you should consider the fact that the days set aside for worship can affect your business. For instance; the Jewish people don’t joke with the Sabbath day. So you must ensure that you are aware of the days of worship of the people that live in the place where you want to establish your business.
4. Advertising Preference
Advertising preference is another socio – cultural factors that affects businesses globally. The truth is that the advertising model that may sell in the united states of America, might likely not sell somewhere in the Middle East. Hence, the wise thing for any business owner to do before putting up advert for his or her business is to understand what appeals to the people that dwell in the community where the business is to be sites and then design their advert to conform to the language of the people.
5. Family Setting
Family setting is another socio – cultural factor that influences businesses. For instance; in most developed countries anybody above 18 years could make decision for himself or herself while in some countries or societies, as long as you still live under the roof of your parents, they may continue to take decisions for you. So, if you intend establish a business that appeals to young adults, then it is important you consider the role of parents in the society you intend starting your business.
6. The Law of the Land
The law of that governs a people is considered to be one of the major socio – cultural factors that can influence businesses. For example; if the law of the land forbids the sale of Alcohol, there is nothing anyone can do other than to steer clear from that line of business. Civilization has rendered many laws obsolete especial laws that place limits on the kind of business a female is supposed to own and the position they are to occupy.
7. The Religion that is practiced in the Society
Religion is perhaps one of the top factors that characterize the socio – culture of a people. For instance; some religion do not permit their people to eat pig meat (pork) so if you start your pig farm in such an area, you wouldn’t make sales. That is why it is important that you do your feasibility studies before planting your business in any location.
8. Myth-: Myth is also another social cultural factor that influences a business. The myth that is generally accepted by a group of people that live in an area goes a long way to impact the kind of businesses that can survive in such communities.
The importance placed on education by a group of people that live in a particular area can also determine the kind of business that can thrive in that area. There are societies where the average person have only high school diploma, and also there are societies where the average person have a second degree. The level of education of the people that live in the area where you intend establishing your business helps you with your choice of business, your advertising and your marketing approach.
10. Social Organization
Most communities are organized in such ways that place some people over other people. For instance; in an ideal local community (villages in Africa), you would have kings, chiefs, subjects and even slaves. So if for instance; you own a business in such communities, you must endeavor to always be in the good book of the king or even the chiefs in the community if you intend to continue to be in business. This is so because the words of the traditional ruler of a society are treated as a law by his or her subjects.
If you have a proper understanding of the socio – cultural factors that exist in the society where you aim to establish your own business, you can be rest assured you would excel in your business.