Consumer Buying Behaviour of Cryptocurrency

Consumer Buying Behaviour of Cryptocurrency
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Table of content
Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
With reference to a specific theory, explain the multi faceted nature of consumer buying
behaviour of cryptocurrencies users............................................................................................3
Identify and discuss the risks involved in cryptocurrencies........................................................4
Discuss the ways in which cryptocurrency buyers could mitigate risks in consumer buying
processes. ...................................................................................................................................4
Part 2................................................................................................................................................6
Consumer Motivations, cultures and perceptions in relation to cryptocurrencies use................6
Cryptocurrency consumer decision making process with support of consumer decision
making theories. .........................................................................................................................6
Recommendations to FCA to positively influence cryptocurrency consumer behaviour...........7
Conclusion.......................................................................................................................................8
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Introduction
Consumer buying behaviour is referred to the study which focuses upon groups,
individuals as well as organisations along with the processes that are used in order to choose,
secure and further utilise as well as disposal of the products, services as well as ideas. It is
helpful in providing satisfaction to the needs along with analysis of the impact that these process
have upon the society as well as consumer. The success or failure of an organisation in terms of
marketing tends to be dependent upon the consumers upon the target customers and the
reactions of the groups that is expressed in form of buying trends (Arli and et.al., 2020).
Part 1
With reference to a specific theory, explain the multi faceted nature of consumer buying
behaviour of cryptocurrencies users.
The consumer buying behaviour has micro as well as macro dimensions in aspect of the
cryptocurrencies. The micro dimensions of the consumer behaviour include customers,
Suppliers, competitors, general public and Resellers. Customers are the base that is attracted by
the organisations in order to enhance the purchase of the product. The customers in case of
cryptocurrency can be the middlemen (which can be eliminated in the process), banking services,
etc. Suppliers of the funds are also likely to have an impact upon the cryptocurrencies.
Competitors are the parties that sell similar products. In case of cryptocurrencies. Bitcoins can be
considered as the competitor for cryptocurrencies (Auer and Tercero-Lucas, 2021).
The macro dimensions of consumer behaviour in aspect of cryptocurrencies can be
financial market condition, cryptocurrency related fundamentals and technological aspects and
cryptocurrency market sentiment. The financial market conditions will include interest rates
whereas as cryptocurrency related fundamentals include trading volume as well as volatility.
Analysis of consumer behaviour theory has been done with the economic theory of
Income and Savings theory. Consumer behaviour theory is referred to the study of the ways in
which the people make decisions. Economic theory of Income and Savings has been discussed as
a part of consumer behaviour theory that further helps in analysing consumer behaviour in terms
of Cryptocurrencies. Income tends to influence the buying behaviour of a particular person as,
the person with high purchasing power as well as high disposable income is likely to invest more
on the cryptocurrencies.
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