Answer to Question #169602 in Marketing for Konain

Question #169602

Q1. Suppose Walmart has decided to start its operations in Pakistan. Explain how Factors of macroenvironment affect its marketing decisions

Q2. Walmart has introduced its range of western clothing in Pakistan. How do the factors that influence consumer behavior (cultural, social, personal, and psychological) impact the buying decision of an average Pakistani household consumer? 

Expert's answer

Question 1

When a business expands especially to a new country, there are factors that it needs to keep into consideration. Walmart will need to understand the macro environment factors before setting up its Pakistan branch. Walmart will need to thoroughly analyse the demographic factors which include age of the customers and gender. These factors are very essential because before setting up a branch, they need to consider if the target market is present. Moreover, they need to consider the political factors of Pakistan. If the country laws do not approve of a Walmart branch, then it will be extremely difficult to make any profits. Legal factors will need to be considered. Walmart will have to be allowed legally to set up their branch and it should be considered. Walmart will also need to analyze the unemployment rate, the inflation and spending patterns. The gross domestic product determines the growth pattern of the organization which helps to easily monitor the data. Other socio-cultural factors such as the beliefs of the people and the various cultural variances will be considered before moving to a new market. They have to analyze what the people believe and their core values (Lutz, 2019). The New Walmart branch needs to be in line with the customers beliefs and it reduces group mentality. The technological factors such as presence of wireless communication in the area, the use of online websites and the technological level of the area need also to be analyzed before Walmart expands to Pakistan. The Macro-environment is very important because it allows for strategic positioning in the market.

Question 2

When Walmart introduces the western clothing, there are factors that will significantly influence their buying behavior. One of them is cultural beliefs. Mos Pakistan communities are Islam which means the type of clothing is long and one that covers most parts of the bod. The western culture on the other hand does not have much belief in such kind of clothing. Most people wear shorter dresses or skirts and the men also wear shorts and pants. Introducing such fashion to them might go both ways. The sales might be minimum or increase based on the location of the store. Another factor is a personal factor. Some people prefer the western clothing as compared to the local clothing. Such kinds of people might therefore buy the clothing which might improve the sales. Another reason is psychological. People who are born and those that grew up know the social values, what is accepted or not. The psychological aspect therefore plays a significant role in the type of dressing they choose. Walmart therefore needs to know what the people want and what is on demand before bringing any product (Jafari et al., 2020). The Product might be sold off if the people are conversant with the western fashion and if they appreciate the designs from the west. However, some may completely oppose the products and to some extent, it may affect the sale of the clothing in a negative way. Therefore, the growth and decline of Walmart is largely dependent on coming up with proper marketing strategies.


Jafari, A., Ganjehlou, H. G., Khalili, T., & Bidram, A. (2020). A fair electricity market strategy for energy management and reliability enhancement of islanded multi-microgrids. Applied Energy270, 115170.

Lutz, S. U. (2019). The European digital single market strategy: Local indicators of spatial association 2011–2016. Telecommunications Policy43(5), 393-410.

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