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Which factor in the external environment IS the customer base?EnvironmentalEconomicSocialNone of these

Question

Which factor in the external environment IS the customer base?

  • Environmental
  • Economic
  • Social
  • None of these
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Solution

When considering the external environment, the customer base is primarily influenced by social factors. This includes demographics, consumer behaviors, cultural trends, and societal norms which shape the preferences and buying decisions of customers.

Analysis:

  1. Social Factors: These impact the size and characteristics of a customer base, as they include aspects such as age, gender, income level, education, and lifestyle choices. Understanding these factors can help a business tailor its offerings to meet the needs of different segments.

  2. Environmental Factors: While these can influence market conditions, they are typically more concerned with ecological impacts and regulations rather than directly relating to the customer base.

  3. Economic Factors: These relate to the economy's overall condition, including unemployment rates and economic growth, which affect purchasing power but do not define the customer base itself.

  4. None of These: This option does not apply as social factors are a clear influence.

In conclusion, the correct answer is Social. Understanding the customer base requires keen insights into social dynamics, which play a significant role in shaping consumer behavior and market segments.

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