Has the global market homogenized consumer demand?

Answer 1

As an international economist (!) I could hardly justify not trying to aswer this question. If I were to write an essay over this theme I would first need to make two things clear. First, does homogenise mean "making homogenous" or "shifting in a more homogenous direction"? Secondly, does demand mean latent demand or fulfilled demand?

Why am I splitting hairs over definitions? Well, taking last things first, some of the marketing gurus of international business will tell you that, given half an inch of "freedom", most consumers regardless of country will behave in a broadly similar fashion. Failure to do so here and now reflects obstacles to free trade, lack of availability of some products in some markets, imperfect information and so on. In other words, they'd argue that "latent demand" is already largely homogenous and observed differences in buying patterns reflect market imperfections. According to this line of thought the global market has little scope to change demand, but can and does change consumption patterns by breaking down barriers.

Others, including myself, disagree. Tastes differ for historical, geographic, religious, ethnic and climatic reasons. However, tastes can be influenced, including through advertising, peer pressure and gradual changes in general living conditions. According to this line of thought, the global market may have changed consumer demand by triggering awareness of hitherto unknown products in a lot of countries and, in some cases, aggressively marketing them. In other word, I personally would argue that the global market has influenced latent as well as fulfilled demand.

But does that mean that all differences are being done away with? I'd say definitely not. Take the German unification as an illustrative example: just after the opening all the Easteners, having been barred from buying western goods for decades, changed their purchasing patterns completely. Things couldn't get western enough! But within a year the tide turned. People discovered that, actually, they preferred many of the old stuff and products that were in vogue in the old East came back on the shelfs. In terms of changing consumer demand, they took two steps forward and one step backward. Most ex-communist countries (and previously shielded Asian economies opened to competition in the 1990s) tell similar stories.

This, therefore, is my answer: yes, global markets have contributed to making consumer demand (latent and, especially, fulfilled) somewhat more homogenous across countries. But, no, there is no indication that this has done away with national differences in consumer preferences, nor that this is about to happen.

Answer 2

There is a correlation between global temperatures during my lifetime and the number of gray hairs I have in any given year. There's been quite a spike in the last few years, in fact, and I suspect there will be a continued upward trend, at least to the 100% level. That does not mean there is CAUSATION, Dana. *L* The growth of the economy, however, does have something to do with both the stock market AND the man-made contribution of green house gases. The growing economies of third world countries, the burning of the Amazon rain forest, and so on also contribute to both the DOW and the green house gases. But the graphs alone don't tell the whole story, and you know it. You do a disservice to the science I think you love when you oversimplify.

Answer 3

It may some day but to day there is more confusion.

Sure more products are available in more countries, and even more choices between the product is enjoyed by the people all over.

But harmonised no for sure for now.

Answer 4

I would say no - I think it has made consumers more interested in various products not found in their own country in great abundance. However, my opinion is just as good as any others.

Good Luck!!!

Answer 5

No not so far