Consumer

(New Product and Services)

A Socioeconomic Impact Study
What is Socio-economic?
• A socio-economic impact assessment weighs
the socioeconomic cost against the socio-
economic benefit. As far as possible, the
analysis includes the consequences for all
participants in society and all kinds of
impacts, for example: Social impacts (e.g.
health) Economic impacts (can include
effects)
• Poverty is a socio-economic issue. Socio-
economic issues are factors that have negative
influence on an individuals' economic activity
including: lack of education, cultural and
religious discrimination, overpopulation,
unemployment and corruption.
• Importance of a Socioeconomic Impact Study in
Planning a Business Measuring socio-economic
impact can help companies understand the needs,
aspirations, resources, and incentives of their
customers enabling them to develop winning new
products and services and improve existing
offerings. It can help companies answer questions
like: Why haven't our sales grown as expected?
Effects of Business on Consumers

• A successful business influences the behavior

of consumers to encourage them to buy its
products. The business does this by studying
consumer needs and adopting strategies to
persuade as many consumers as possible that
the products have value.
• 1. Consumers are more likely to respond to material that connects on an emotional
level, and surprise combined with repeated episodes of joy or humor is effective.
• 2. Encourage Customers to Look for Value
• - If you solve a common problem for consumers more effectively than your
competitors, or solve it at substantially lower cost, you can influence consumers to
switch to your brand
• 3. Offer Social Responsibility
• - Consumers who want to buy from socially active and environmentally responsible
companies respond positively.
• 4. Change Behavior with Excellent Service
• - The level of service individual customers experience when dealing with your
company can have a profound effect on customer behavior.
 •Factors that Impact
Business and
Consumer Confidence
Several common factors that have
the potential to cause marked shifts
in sentiment includes the
following:
• 1. Changes in interest rates and/or exchange rates, particularly if they are rapid,
large and unexpected;
• 2. Swings in the business cycle and associated movements in
employment/unemployment levels and business investment intentions;
• 3. Dominance of short-term thinking and absence of longer-term strategic activity;
• 4. Risk of a decline in the economy’s structural growth rate and associated
deterioration in productivity growth
• 5. Shifts in the relative prices of non-discretionary goods and services, notably
petrol, healthcare, education and utilities prices;
• 6. Announced policy shifts in the stance of government fiscal policy, including
• large structural spending cuts or increases/decreases in taxation rates.
What are the impact of socio-economic in consumers?

• A large percentage of the consumers are

public servants and business owners. It
was observed that as the socio‐economic
status increased, the proportion of
business owners increased as well.
Consumers in lower status groups spend
the biggest portion of their income on
food products.
Why do we need to study the socio-economic impact of
business to consumers?
• Measuring socio-economic impact can help
companies understand the needs, aspirations,
resources, and incentives of their customers –
enabling them to develop winning new products
and services and improve existing offerings.
Thank you!