Which of the following is a PESTEL factor?

• A. Market share
• B. Legal
• C. Customer loyalty
• D. Product price sensitivity

Answer: (B)

PESTEL analysis looks at external macro-environmental factors that can affect a business. Among the categories, Legal covers the laws, regulations, and regulatory changes that can shape how a company operates, from compliance requirements to potential penalties and shifts in the legal environment. That makes it the correct choice because it represents an outside, legally defined factor a business must anticipate.

Market share is a measure of a company’s performance and position in the market, not an external factor that could affect the business environment. Customer loyalty relates to how customers behave and perceive a brand, a marketing/behavioral concept rather than a macro environment factor. Product price sensitivity deals with how demand responds to price, which is economic/consumer behavior rather than a distinct external category in PESTEL.