Cultural Economic Environment

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Zain Books, Principles of Marketing


The cultural environment is made up of organizations and forces that affect how society thinks and behaves. People growing up in different societies have their beliefs and values shaped by what’s around them, giving them a different view from the rest of the world, thus affecting their marketing decision making.


From the point of view as a marketer, people in different societies hold different beliefs, views of the outside world and themselves, which would affect the consumers purchase decision.

For example, the cultural beliefs of most chinese are education, respecting the elderly, auspicious colors and numbers, languages and having a heir to the family line. These beliefs are often reinforced by their family, peers, and country, thus causing specific attitudes and behaviours to how they react to things in their everyday life. These beliefs are called Core beliefs, and are passed on from generation to generation.

However, secondary beliefs, such as the way they dress, their idols, entertainment and interests are more susceptible to change, because of impact from peers, society and popular celebrities. Marketers will want to predict such change in consumers, so as to identify opportunities or threats to their business.

The many judgements of a customer also comes from their opinion of Themselves, Others, Organizations, Society, Nature and the Universe.

View from the consumer would also affect their purchasing decision. Such as their views of Themselves. People generally use brands as a way of expressing themselves, and marketers cater to that by launching products and services that their target consumers would want to buy.


The need to stick to their cultural beliefs and views would affect a consumer greatly, as to certain things like purchasing a certain brand of product because he/she believes it to be of a higher grade because it was produced from a certain country, or from the pressure of society and their peers, which would shift their secondary beliefs.

A consumers thinking and purchases would also shift because of their views of Others. With the evolution and widespread popularity of the Internet, people tend to spend more time in the comfort of their home, being able to shop, work and do basic social interaction online, with this practice being called Cocooning. When the peers of such consumers practice Cooconing, the consumer themselves would practice it, thus creating a trend and switching their purchasing demands.


Peoples view on Organizations has seen a sharp drop in levels of confidence and loyalty towards America’s business. There’s an overall decline in loyalty within organizations due to companies retrenching to save on costs or scandals triggered by Multinational Corporations like Tyco, where the then CEO and Financial Officers were embezzling company funds by writing off loans from the Company to themselves. As such, People generally start distrusting and losing confidence in large companies, and see work as a chore to earn a living.

Case Study (Threat)

In 2006, Watchdog groups have discovered that a factory owned by New Balance in China are mistreating their employees.


As the the idea for a need to protect both consumers and the environment grows, the marketers of today are called to...
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