How does culture impact buyer demand?

Answer 1

At a very basic level, culture dictates demand for certain items. Culture may only influence other consumer demands.

Consider a strict Muslim culture. There will virtually no demand for Alcoholic Beverages. In a kosher Jewish community, there will be no demand for pork or deer meat. In Hindu society, no one will eat beef. These are extreme examples.

Otherwise, in society driven by consumer consumption, much of the production resources will be devoted to consumer items. In the US, the culture is quite materilaistic. Judgments about the value of people is unfortunately based on the items they own and display. Based on this cultural standard, there is high buyer demand for items that are not necessities. Items like iPods, boats, and 12 bedroom homes continue to be in demand because the culture continues to value conspicuous consumption rather than frugality.

Additionally, things as basic as blue jeans are mass produced because (1) they are a widely accepted manner of dress and (2) the demand is part of literally every household in the US.

As a contrast, in the former USSR, production of consumer goods was regulated by the government. The deciding factor in production is not consumer demand. The culture changed to the point that the country no longer exists in its past form. That change in culture changed things that are produced in that country and the amounts in which they are produced.