Understanding Consumer Behaviour and Risk Mitigation in Cryptocurrency

Consumer behaviour

Table of Contents
Introduction......................................................................................................................................3
consumer buying behaviour........................................................................................................3
Explain the micro and macro dimensions of consumer behaviour. ...........................................3
Elaborate on this by analysing how a theory from this field helps understanding of consumer
behaviour.....................................................................................................................................3
Define consumer risk to Analyse at least one model/ theory of risk..........................................3
Apply this theory to analyse the risk in cryptocurrency as a product/service.............................4
Define and describe the consumer buying process and apply to cryptocurrency consumers.....4
risk mitigation and its relevance to the consumer buying process..............................................4
Identify at least 3 strategies for consumer reducing risk in the consumer buying process ........5
Critical evaluation of the effectiveness of each risk identified...................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

Introduction
consumer buying behaviour
Consumer buying behaviour is the study of group, individuals and organisations that includes all
activities that are associated with purchase, usage and disposal of foods and services (Chen,
Zhang and Zhao, 2017). It consist of the way customer attitude, preferences and emotions are
affecting the buying behaviour. It emerged as a discipline of marketing.
Explain the micro and macro dimensions of consumer behaviour.
Micro dimension:
Micro dimension factors include:
customers: the type of customer base that a organisation attracts and behind the purchase. It
includes stability of demand, relative profitability and intensity of competition.
Suppliers: Suppliers of specific product may be high and posses a big influence on the
successful business. It includes key link of the delivery process (Izzati, 2020).
Macro environment dimension: it includes several factors that is affecting the business
functioning.
Demographic forces: It is associated with education level, age, country region. These variables
are affecting the business.
Technological factors: These factors are associated with skill and ability that are required to be
considered that includes automation, Internet connectivity and 3D technology.
Elaborate on this by analysing how a theory from this field helps understanding of consumer
behaviour
Theory of customer behaviour:
In context of customer behaviour there are few factors that may affect the purchasing behaviour.
Psychological: In crypto currency is related with perception, it is that is ability to develop
understand the information that is related with aspects of crypto currency.
Define consumer risk to Analyse at least one model/ theory of risk
Consumer risk is a potential risk that is associated with all customer oriented products. It is
related with product not able to meet the quality standards that may remain undetected through
the manufacture quality control system.