Question

The people of some regions translated the slogan of "come Alive" used by pepsi company as "come out of the grave". As a result company lost its market share rather than picking up. This is the effect of which environment and how does this dimension of environment affect the business ?

Answer 1

This is the effect of social environment. As people misunderstood the meaning of slogan and it hurt their sentiments so they decided to stop the use of this product which is playing with their sentiments. The social environment has great influence over the demand of customers because social environment constituents taste preference, tradition and expectations of customers, the customer is the king pin in present day market and you can win over your competitor only by winning large segment of customers. although changes in the social environment may affect the business slowly or quickly but the cost of ignoring the customs, traditions, tastes and preference of the people could be very high.