CULTURAL ECONOMICS AND SOFT POWER IN CREATING DEMAND FOR LOCAL CULTURAL PRODUCTS A CASE STUDY OF BAN DON OLD TOWN

Abstract

This research aimed to 1) study consumer behavior and consumer demand for cultural products, and 2) study approaches to applying cultural economics through soft power to create economic sustainability. This mixed-method research utilized a quantitative approach, employing 400 tourists as a sample. Convenience sampling was used to select the sample. The questionnaire was administered with a consistency index of at least 0.80 for all questions. The questionnaire was divided into three sections: 1) Respondent Information, 2) Behavioral Economics and Cultural Consumer Demand, and 3) Guidelines for the Development of Cultural Goods and Services. The statistics used were frequency, percentage, mean, and standard deviation. Logit regression analysis was used. Qualitative research was conducted using focus group discussions with 10 key actors and participants in the promotion, including local leaders, entrepreneurs, civil society groups, and local youth. This study aimed to analyze their perspectives, experiences, and approaches to driving the cultural potential of the community using a SWOT analysis framework. The results revealed that private company employees were approximately 0.88 times more likely to make a purchase than those in other professions. Those who purchased products when their purchase volume increased by approximately 10 percent were approximately 0.10 times more likely to make a purchase than those with other behaviors. Perception via Travel Applications They are about 0.66 times more likely to make a purchase decision than those who know about it from other media. And the results of the focus group meeting, applied approaches for economic sustainability, focus on creating added economic and social value according to the cultural economics framework and designing marketing strategies that give importance to consumers through the use of digital media, developing cultural activities and festivals, contemporary products, and organizing special events to stimulate repeat visits, along with developing an efficient tourist support system