Factors affecting international business – SOCIO-CULTURAL ENVIRONMENT

  • The sociocultural fabric is an important environmental factor that should be analysed while formulating business strategies. The cost of ignoring the customs, traditions, taboos, tastes and preferences, etc., of people could be very high. The buying and consumption habits of the people, their language, beliefs and values, customs and traditions, tastes and preferences, education are all factors that affect business. For a business to be successful, its strategy should be the one that is appropriate in the sociocultural environment. The marketing mix will have to be so designed as best to suit the environmental characteristics of the market.
  • Even when people of different cultures use the same basic product, the mode of consumption, conditions of use, purpose of use or the perceptions of the product attributes may vary so much so that the product attributes method of presentation, positioning, or method of promoting the product may have to be varied to suit the characteristics of different markets.
  • The differences in languages sometimes pose a serious problem, since the values and beliefs associated with colour vary significantly between different cultures and hence colour values affect the brand image of a particular business to a great extent.
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