Quiz 5

1). Which of the following is not the definition of price

a)amount of money charged for a product.

b) what the buyer must give up in exchange to acquire a product
1 of 4 elements of marketing mix
c)only element that creates revenues; other elements represent cost
price changes are NOT costless
d) all of the above
internal factors affecting pricing decisions-marketing objectives
-marketing strategy
-c-marketing objectives
-marketing strategy
-costsosts

The first step to understanding what socioeconomic factors are is to understand social
economics. This is a specialized branch of economics that concerns itself with studying
the intimate relationship between economics and social behavior. Such things as ethics,
social norms and different social philosophies have an impact on how consumers
behave in an economy and the eventual shape that economy will take.
The study of social economics seeks to predict what kind of results to expect when the
society has been changed. It does this by studying politics, history and other social
sciences.
Socioeconomic factors are, therefore, the social and economic factors that shape and
determine the dynamics a society will experience. These are factors that affect the
behavior of a particular group, also known as a socioeconomic class. Perhaps the most
interesting behavior of members of a socioeconomic class is their behavior as
consumers. Different socioeconomic classes will generally have different priorities, and
this will affect how they spend their money.
How do they spend their money ? ( Money allocation )

How Do Socioeconomic Factors Affect Businesses?

Understand the socioeconomic factors affecting business will help you make better
decisions about the future and direction of your business. To have an intimate
understanding, however, you will have to understand both external and environmental
factors, as well as how their interplay affects your business.

Environmental Analysis
This is a special term that refers to the process of looking at the external socioeconomic
issues in a business. It is considered a part of general business analysis, so it is useful to
the executives of a company. It can help them grow the organization, increase the
streams of revenue the company receives and also get ahead of competitors.
A subset of environmental analysis is the PEST analysis, or some of its variants, such as
the PESTLE analysis. This is a form of analysis that looks at four relevant factors that
affect a business environment, and these – Political, Economic, Social and Technological
factors – create the acronym “PEST.”
There are other variations, such as PESTLE, which includes Legal and Environmental
factors. However, the four factors in PEST analysis are the main economic factors that
affect a business.

Economic Factors and Their Effect on Business

Economic factors are an essential part of all business analysis, no matter whether it is
PEST analysis, PESTLE analysis, or any other kind of business analysis. These are the main
factors considered when a company makes financial decisions.
These factors are connected to money, goods and services. They affect businesses on a
micro-level, but they are a lot more powerful than that – they also affect the entire
economy on a macro-level. The economy, whether a local economy or a global one, will
pretty much be the determining factor in the details associated with the operation of a
company, such as the value of its assets, consumer demand and even taxes.
Some economic factors you must think about in your business include exchange rates,
interest rates, recession, inflation, taxes, and demand and supply.

Three factors and their connection to businesses:

Interest Rates
Interest rates are everywhere, and are imposed by many different people. In fact,
banking institutions are obsessed with knowing what the status for interest rates in the
economy is for a good reason. It is how they determine their lending practices.
It is also good information for a company that relies on debt capital to finance ambitious
projects.

Exchange Rates
This is a slightly more nuanced topic than that of interest rates. At the heart of it,
exchange rates are an important factor to consider for any business involved in
importation and exportation of various goods and services. When exchange rates
fluctuate, they affect the ability of a company to pay its international suppliers in a
satisfactory manner. This can also affect the profit margin of the company, as well as the
amount of resources it needs to stay afloat.
 Recession
Whenever an economy faces a recession, it has the potential to change the attitude
taken by consumers toward their purchasing decisions. This may force companies to
drop prices to stay afloat.

What Are the Socioeconomic Factors That Affect Health?

There are many factors that come together to affect the health of both an individual and
an entire community. The health of a person or people, in general, is to a great extent
determined by the environment as well as their circumstances. These include such
things as the level of education of a person, their genetics, the state of their
environment, their geographic location, the relationships they have with their family
and friends, and so on. In fact, these factors have an even greater effect on health than
access to health-care services.

Covid 19 pandemic

All in all, there are three major factors that affect the health of a society:
 Socioeconomic environment
 Physical environment
 Individual behaviors and characteristics.
In other words, context is the most significant determinant of health. You cannot blame
a person for his ill health, and neither can you give him credit when he's in good health.
For the most part, he's just in the right environment. In fact, individuals do not have
much control over most of the factors that affect their health.
Determinants include:
Social Status and Income
Having a high social status and an above average income predisposes an individual to
better health.
In fact, lots of studies have shown that as the gap between the rich and the poor
increases, so does the gap between their levels of health.
Education Level
It is also commonly observed that the level of education is directly linked to health.
Communities with low average education levels tend to have poorer health, overall. Low
education levels are also linked to lower self-confidence and more stress.

Physical Environment
Such things as safe homes, workplaces that are healthy, safe drinking water, clean air,
wholesome communities and updated infrastructure are important determinants of
good health in a society. Of particular relevance to businesses is the working conditions
of those who are employed.
The mere fact of being employed, to begin with, predisposes an individual to better
health. Also, the more control an individual has over her working conditions, the better
her health.

Social Support Network

When individuals have lots of support from family, friends and the community at large,
they will be predisposed to better health. More support factors include the culture of
the community, such as traditions, beliefs and customs. The improvement of these
factors can lead to the improvement of the health of the community.

Genetics
People's genetics play a large role in their health, their lifespan and their probability of
contracting certain diseases. There are also other personal factors that affect health,
such as a person’s coping skills and behavior.
Do they keep active?
Do they smoke?
Do they drink alcohol?
How do they deal with stress?
All of these things have an impact on the health of an individual.

Access to Health Services

The ability of people to access and use quality health facilities has an effect on their
health. Of particular importance is their access to preventive medication and procedures
that protect them from certain diseases.

Socioeconomic Factors That Influence Educational Development

Socioeconomic status is not based solely on income. There are a slew of other things,
such as education level, financial security, and the perceived social class and status of
the individual. Along with the quality of life enjoyed by the individual, consider the
privileges and opportunities gained as a result of this socioeconomic status.
With that in mind, poverty isn’t necessarily a socioeconomic factor but is brought about
by the combination of many different factors and stressors in the environment.

The Role of Social Economics in Education

Children who come from families of a lower socioeconomic status tend to develop their
academic skills at a much slower rate than their counterparts from higher
socioeconomic status families. Low socioeconomic status has been linked to a variety of
phenomena, such as poor language, cognitive development, socioemotional processing,
memory and a lower income and health status in adulthood.
In communities of low socioeconomic status families, education systems suffer from
fewer resources, which has an adverse effect on the academic progress of children. The
children may receive inadequate instruction and education and will have higher dropout
rates. Their academic achievement can become stunted and the low socioeconomic
status will be perpetuated into the next generation. One way the situation can be
helped is to introduce early intervention programs and improve the school systems in
these areas to mitigate some of the negative factors involved.

The Connection to Family Resources

Gaps exist in literacy in children of different socioeconomic statuses, even before they
begin school. Children who come from lower socioeconomic backgrounds aren’t as likely
as their higher socioeconomic status counterparts to have the right experiences to
encourage the development of oral language, vocabulary and phonological awareness.
All of these are highly important to the development of reading skills. Additionally, the
rate of development of a child’s literacy skills is linked to the literacy levels of the
parents as well as the number of books in the house. Poorer households will generally
have less access to computers, books, learning materials and so on. All of these are
crucial to the learning process of the child.
The Connection to Academic Achievement
Children who come from families of a lower socioeconomic status will be behind their
peers from higher socioeconomic backgrounds by an average of five years by the time
they enter high school. The high school dropout rate in 2014 among 16- to 24-year-olds
was highest among low-income families. The percentage of dropouts in low-income
families was 11.6, while the percentage in high-income families was 2.8.
Students who come from low-income families also tend to do worse in the STEM
(science, technology, engineering, mathematics) fields than their counterparts from
high-income families. According to the United States Census Bureau, in 2014, individuals
from families in the top 25 percent are up to eight times more likely to complete a
bachelor’s degree before age 24 than their counterparts from low-income families.
The Connection to Psychological Health
Students from families of a low socioeconomic status are more likely to suffer from
negative psychological conditions, such as learning disabilities, which will have an
adverse effect on their academic achievement.
These students are exposed to more adversity and toxic stress, especially in early
childhood, which will impact their behavior, health and learning abilities in a lasting
manner. These children are twice as likely as those from high-income families to exhibit
behavior problems related to learning. The socioeconomic status of the mother will also
affect the child’s level of interest, attention, and cooperation in school.

The Connection to Career Aspirations

There is a link between socioeconomic status and the career trajectory and aspirations
of an individual, as well as the resulting achievements.
Such things as socioeconomic, ethnic and racial barriers affect an individual’s ability to
get ahead career-wise. Those from poor backgrounds, women, people of color, the
disabled and those of an alternative sexual orientation are the most affected.
Individuals who come from a higher socioeconomic status, on the other hand, will have
a higher probability of success in their careers and will be better prepared for the work
environment because of their access to such things as career guidance counselors,
better schools and higher quality education.

Final Thoughts
As a business owner, it is your responsibility to raise the socioeconomic status of your
employees and those in your community, even as you seek to raise your own.
Cite San Miguel Group of Companies as been shown in GMA 7 dated.

By doing so, you pave the way for yourself and others to recruit better employees in the
future. You can do this by improving workplace conditions, offering better work benefits
to your employees so they can take care of their families’ health and education, and
take part in corporate social responsibility projects to improve your community at large.