Question

Marketing environment PESTLE analysis refers to an analysis of political, economic, social, technological, legal, and environmental factors that commonly affect business activities and performance.  Females have dominated global consumer spending. Please conduct a PESTLE analysis of female consumer spending. Discuss each factor's (political, economic, social, technological, legal, and environmental) influence/effect on female purchasing power (female consumer spending).

Answer 1

Women contributes a very large part in total consumer spending. There are many factors that influence the level of spending of female consumers. According to PESTEL analysis, factors that affects the female consumers spending are:

1. Political factors: It includes rules and regulations of the government that may affect the level of spending. If the rules and regulation are against the favor of female, the level of spending for female consumers may decline. For example, if the government implements a job security program only for men, it will reduce the opportunities of women to find jobs and hence will reduce the level of spending of women consumers.  

2. Economic factors: There are various economic issues that may affect the spending of women consumers. Poverty, discrimination, inflation, employment are some of the economic factors that have an influence on consumer spending. High inflation, lack of job opportunities for women, have a negative impact on female spending.

3. Social factors: There are many challenges in the society that women face and hat impact the female spending negatively. Discrimination against women is one of the examples of social factor that will reduce the female consumer spending.  

4. Technology: Technological factors include advancement in technology or change in technology that may influence the female consumer spending. If any advancement or change in technology is easily in reach with the female consumers, then it will result in an increase in level of spending by females.  

5. Environmental factors: It includes environment condition that affects the spending by female. Climate condition affects the demand for goods and thus the level of spending.  

6. Legal factors: These factors are related to the political factors. All the laws implemented by the government are included in legal factors. Employment laws, discrimination laws, consumer protection law are some of the laws that may affect female spending. If these laws are in the favor of female consumers, then it will increase the level of spending by them.