What Drives Consumer Demand in Customized and Tribal Art-Inspired Merchandise? Evidence from Price, Income, and Behavioral Choice

Abstract

This study examines consumer demand behavior in customized art and merchandise markets, including products inspired by cultural and tribal art forms, by analyzing how price, income, product characteristics, and behavioral preferences jointly influence purchasing decisions. Using a cross-sectional survey of 178 respondents across seven product categories and 3,528 observations, the study applies ordinary least squares (OLS) regression, interaction models, product fixed effects, and logistic regression to capture both the intensive and extensive margins of demand. The results confirm a strong negative relationship between price and quantity demanded, consistent with standard demand theory. However, the relatively moderate magnitude of price sensitivity suggests that customization, cultural embeddedness, and perceived uniqueness reduce conventional price effects. Income is found to significantly increase consumption levels and market participation, though it does not significantly alter price elasticity, indicating that income primarily shifts demand rather than changing responsiveness to price. Substantial heterogeneity is observed across product categories, including culturally inspired and functional goods, with functional items exhibiting higher price sensitivity and lower demand, while expressive and symbolic products display comparatively more inelastic demand. Behavioral findings further indicate that design and visual appeal are the dominant determinants of purchase decisions, followed by product quality and cultural meaning, whereas ethical considerations play a relatively limited role in actual consumer behavior. Overall, the findings suggest that demand in customized and culturally inspired merchandise markets, including tribal art-based products, is shaped by both economic constraints and perceived symbolic value. Beyond traditional price and income effects, aesthetic and identity-based considerations play a central role in consumer choice, highlighting the importance of non-functional value in differentiated product markets.