LSBM301 Consumer Behavior: A Report on Cryptocurrency Users

This report explores consumer behavior regarding cryptocurrency, focusing on increasing consumer motivation due to ease of use, instant settlements, and the perception of cryptocurrency as a long-term investment. It discusses how cryptocurrency is influencing culture and perceptions, driven by factors such as owner rights and accessibility. The report also delves into the consumer decision-making process, referencing the Engel, Blackwell, and Miniard theory, which includes information input, processing, and decision stages. Positive influences like fostered trust, high return potential, independence from central authorities, and user anonymity are examined. The analysis incorporates factors influencing investment decisions, including individual differences, market fluctuations, and environmental influences. The report concludes by referencing various academic sources to support its findings and analysis.

Consumer Behaviour
Consumer motivations, cultures and perceptions
in relation to crypto currencies use:
The economy of the world is moving in a fast pace
and adopting the strategy of digital payment that is
crypto currency. From making investment to
exchanging money everything is done by digital
method. A crypto currency is medium of transferring
money but the exchange happen via digital
information
Over the last couple of year crypto currency is highly
motivating the culture and perception to buy or invest
in crypto currency. The reason behind it is:
1) Instant settlement:
Consumer motivation regarding Crypto currency is
increasing because the money can easily be transfer
and settle on instant basis. Ease in use create high
demand and change the perception of the consumer
towards buying it in more. The ease in trading also
attract more customer from the society. It also boosts
motivation of the customer due to the factor of safe
wallet.
2) Long term investment:
A huge speculation about crypto currency is that it
creates a future money and a very good source for
long term investment. They also create a new
investment class of asset. So due to the factor that it
will be a income in the future the buyer motivation
toward the crypto currency is high and they love to
invest in this. The culture toward the resource is also
at it peek because it will help the society to live the
high standard life.

3) Owner right:
While investing in crypto currency it will give the
owner right no other electronic cash system gives that
so this factor boost the motivation as they feel like the
owner.
4) No need to have enough technical skills: Trading
in crypto current does not require enough technical
skills. This help in building the motivation of the semi
educated people to invest in this. Society economy
status will also enhance as anyone can trade in the
crypto process without getting a perception that they
will lose the money.
Crypto currency consumer decision making
process with support of consumer decision making
theories:
The consumer decision making process related to
investing in Crypto currency depends on many
factors, they conduct thorough analysis of the market
and then invest in Crypto currency in order to avail
various benefits. There are various growth drivers in
Crypto currency market which helps in maximizing
the returns such as monetary regulations, transmitting
distributed ledger technology, higher remittances and
cross border remittances are proving to be very costly.
Consumers are investing in crypto currencies as it
helps them to focus on countering transaction
compliance. The other prime driver which attracts
consumer to make decision to invest in Crypto
currency market is its easy transactions, verification
and security. Due to the growth of Crypto currency,
the mobile phone users and their preference to do
maximum transaction over mobile phone increases.
The consumer decision making process for Crypto
currency is based on the demand for Crypto currency
and block chain technology.

Thus, there is a theory which supports the consumer
decision making process: Engel, Blackwell and
Miniard theory. This theory consists of four sections
such as information input, information processing,
decision process and variables that influence the
decision process. Consumers generally make decision
for investing in Cryptocurrency by receiving the
information from the market. If investing in
cryptocurrencies gives productive results it attracts
other people to invest. The information section
includes various stages such as exposure,
comprehension, attention, acceptance and retention.
After collecting the information of Cryptocurrency
market they focus on analyzing and evaluating the
market by identifying the risks which are associated
with investing.
The theory also focuses on decision process stages
such as need recognition, search, pre-purchase
alternative evaluation, purchase, consumption, post
purchase evaluation and divestment. The decision
making process of consumers are influenced by
individual differences, fluctuation in market value,
long term investments and environmental influences.
Positively influence crypto currency consumer
behaviour
1) Foster trust: The first positive impact of crypto
currency is that it boost the trust. The currency is
transparent and accountable which allow in making a
interaction between countries. Crypto currency sees
no border. Crypto currency is very accessible and a
very versatile currency. It can be used everywhere in
the world. It can be used in purchasing things from
every corner of the world. And this can be sold at any
moment. Even crypto can be transfer from one user
to another in very effective way.
2) High return potential:
The rate at which crypto currency moves is at very
fast pace. The prices changes drastically it keep on
changing on a monthly or even on daily basis

The currency gives high return potential, even if the
investment is on lower price. So the behaviour of
consumer towards the crypto increase at a very high
peak as they will get higher amount which help them
in future. Even the investment is for longer period
which enhance the value of Bit coin.
3) Independence from central authority:
Crypto currency is a decentralised currency. It is not
regulated by an individual government or any central
authority. So there is no bank or authority which can
ban or freeze the demand of the crypto coin. Even the
taxes pays on this is not implemented on this. There
is no exact source for paying the legal amount on it.
So this give the right and control to the user for the
money. The price is also not linked with any policies
or rules made by government. So the consumer
behaviour regarding this also enhance as they get the
ownership right.
4) User anonymity:
The user of the crypto currency are being identified
by various codes in the for of numeric’s. They also
have access n multiple public keys. So there is no
way through which there transaction can be track by
the public. This creates a safety as the fraud or theft is
less. The only user of the bit coin knows what they
have in the form of currency. The transaction is so
transparent that even the fraud cannot hack your
address.

References
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Arias-Oliva, M., Pelegrín-Borondo, J. and Matías-Clavero, G., 2019. Variables influencing cryptocurrency use:
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Bratspies, R.M., 2018. Cryptocurrency and the Myth of the Trustless Transaction. Mich. Tech. L. Rev.. 25. p.1.
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