Introduction to Socio-

Economic Impact Study

Mary Grace A. Joven

Subject Teacher
Applied Economics
Consumers

Why did I
buy it?
Consumers
Individual consumers and
households are the units
that make spending
decisions and thus,
determine the quantity
demanded of any good or
service (Fisher,
Dornbusch, &
Schmalensee, 1993,
1983, p.101)
SOCIO-ECONOMIC IMPACT STUDY
A socio-economic impact study attempts to
determine the socio-economic contributions
a business can offer in a particular locality.

It is premised on the assumption that any

project or business contributes to the
success of the economy.
Hence, the first step in the study is to look
into the consumers.
What is consumer?
Consumer- is the person who buys the
product business offers for sale.

It is therefore imperative that we get to

please the consumer, so she/he will buy
from us and gain loyalty from them.
CONSUMER BEHAVIOR
- is the study of consumers and the
processes they use to choose, use
(consume), and dispose of products and
services.
ISSUES TO CONSIDER
1. How to consumers think, feel, reason, and
select between different alternatives (e.g.,
brands, products, and retailers);
2. Understand the influence of environment
(e.g., culture, family, signs, media);
3. Consumer behavior while shopping or
making other marketing decisions;
4. Consumer knowledge or information
influence decisions and marketing outcome.
What is socio-economics?
 SOCIOECONOMICS
OR SOCIAL ECONOMICS
 is a social science that studies or analyzes
the effects of economic activities on the
progress or stagnation of a society.

examines social and economic factors

that can affect an individual or a
country’s standing and economic status.
 SOCIOECONOMIC VARIABLES

-are factors or variables that can affect an

individual, a group, o a country’s social and
economic conditions.

-includes health, education, economic

status, population, gender, income, policies
and programs such as urbanization or
modernization.
 SOCIOECONOMIC VARIABLES

Health Education
SOCIOECONOMIC VARIABLES
 SOCIOECONOMIC VARIABLES

Population Economic Status

 SOCIOECONOMIC FACTORS

occupation gender
 SOCIOECONOMIC FACTORS

Economic Policies
EXAMPLE OF SOCIOECONOMIC CONCERN

Poverty
SOCIOECONOMIC FACTORS

-are attributes that

define the quality of
life in a given
society.

-these factors
influence individuals’
behaviors, trends,
attitudes, and
lifestyles.
 SOCIOECONOMIC FACTORS

-include financial viability and standing in

society, which can be measured by one’s level
of income, education, and health status.
SOCIOECONOMIC FACTORS
SOCIOECONOMIC FACTORS

-a country is defined
by its socioeconomic
development and
standing trough
indicators of GDP,
levels of employment,
labor or employment
conditions, and
literacy rate.
 SOCIOECONOMIC IMPACTS

-are potential changes brought forth by

development activities.
SOCIOECONOMIC IMPACTS

-impacts can
be seen
through the
levels of
income,
quality of
life, and
access to
services,
among
others.
 SOCIOECONOMIC GOALS

-The goal of studying socioeconomic effects and impacts

is to bring about socioeconomic development.
 Socioeconomic Development
-standard
of living
-employment
 SOCIOECONOMIC GOALS

-these development can be measured by

an improvement in a country’s GDP,
employment and literacy levels, etc.
Putting up a business is also concerned
with the following:

Consumer welfare
Job creation
Environmental issues
Uplifting the quality of life
Contributing to the economy
Let us now look how a business can impact
the consumer, the suppliers and investors,
the government and households.
1.Impact on the consumer
A new business, especially one that is
innovative and focused on bringing some
new product or services to the market, is
always welcome to the consumer who is
looking value for his money.
As long as a new business can provide
new goods and services, better quality of
goods and more options, the consumer
can benefit from it. But if a business
comes up with a low quality good and
does not provide the consumer value for
his money, then this business will have a
negative impact on the market.
Consumer will always look for the best.

Innovative / new features

New business will have new product /

services

Introductory price
2. Impact on suppliers and investors

A new business will also provide

opportunities for suppliers and investors.
Opportunities to other businesses.
3.Impact on the government
The government will also benefit from the
establishment of new business, through
revenues earned on fees collected from
them and on taxes imposed on the incomes
of the businesses.
Revenues, fees collection, taxes
Personal income of workers.
National activities, allocation for its
programs
New rules and regulations created.
4.Impact on households
New businesses mean employment
opportunities for the Filipinos.
5.Impact on Community
Corporations and even small businesses have increased
their focus on projects.
Scholarships to the poor
Allocating budgets for housing for low-income
families like gawad kalinga
Tree planting
Elimination of pollution
Sports fest and wellness programs
Livelihood projects
Micro financing
Medical and dental mission
5.Impact on International Trade
Encourage more investments on
importation and exportation of goods and
services in a country.

Good trade relations redound to a more

robust business environment