Indian Retail Industry-Pantaloon Retail (India) Ltd. Part IV (iii)

PEST Analysis (continued)
Social Environment

The components of social environment consist of (1) ideological characteristics, (2) categories of unions, (3) income gaps between different social segments, (4) percentage of the national population in different economic as well as social segments, (5) value systems prevailing among social classes, (6) cultural milieu of citizens and (7) birth as well as death rates. Furthermore, it may be observed that “the social or cultural environment encompassing the religious aspects; language; customs, traditions and beliefs; tastes and preferences; social satisfaction; social institutions; buying and consumption habits, etc. are all very important factors for business”, and hence, it may be said that “the cost of ignoring the socio-cultural environment could be very high” (Cherunilam, 2007, pp.75).
It has been observed that despite being affluent, “customers still weigh up the functional value of products in terms of the ability to satisfy basic needs and wants, and they continue to have regard for prices, promotions, discount, lines of credit, interest payments, etc.”, apart from seeking “pleasure from the activity of shopping, which means the atmosphere and ambience must be appropriate and certain standards of service must be met” (Krafft & Mantrala, 2010, pp.214). In this context, it has been further observed that “the social influences that have such an impact on fashion consciousness also impact on shopping experiences” (Krafft & Mantrala, 2010, pp.214).

It may be observed that the retail stores are continually offering “superior benefits to an electronic channel, such as providing information about ‘touch-and-feel’ product attributes and ability to get products immediately after purchasing them, and offering a stimulating, social experience” (Krafft & Mantrala, 2010, pp.366), and thus the importance of the social context may be comprehended further.

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