FCA's Role in Influencing Cryptocurrency Consumer Behavior Study

This report analyzes consumer behavior in the context of cryptocurrency, examining the motivations, cultural influences, and perceptions that drive investment decisions. It references consumer decision-making theories, specifically the involvement theory, to understand the level of effort consumers apply when deciding to buy crypto assets. The report provides recommendations for the Financial Conduct Authority (FCA) to positively influence consumer behavior, including advertising the rate of return, sharing information on accountability, and increasing cybersecurity to foster trust and investment. The conclusion acknowledges the opportunities and challenges presented by the emerging cryptocurrency market.

CONSUMER BEHAVIOR
INTRODUCTION
CONSUMER MOTIVATIONS, CULTURE AND PERCEPTIONS IN
RELATION TO CRYPTO CURRENCIES
Consumer motivations- The factors which influence consumer motivation are-
emotions, situations and personality.
Consumer culture- The components of consumer culture define the aestheticization,
alienation, differentiation and speed.
Consumer perceptions- The factors which can influence consumer perceptions are-
personal experience, advertising, influencers, customer reviews and social media.
In context of cryptocurrency, consumers are now more to invest in cryptocurrency as
this seen as the medium of investment. Earlier cryptocurrency was seen as site for
gambling which now is considered as mainstream investment. The consumers are
now using cryptocurrency as an exchanging medium.
CRYPTOCURRENCY CONSUMER DECISIONS MAKING
PROCESS WITH SUPPORT OF CONSUMER DECISION MAKING
THEORIES
Involvement theory- The amount of effort applied by a person in the decision to buy
a product is directly related to how important acquiring said product is for them.
Therefore, involvement theory helps to identify which product is of more importance
to the consumer and the amount profits that will be provided by investing in
particular products will depend based on said involvement theory and its factors.
RECOMMENDATIONS TO FCA TO POSITIVELY INFLUENCE
CRYPTOCURRENCY CONSUMER BEHAVIOR
Advertisement- FCA can share the rate of return of cryptocurrency which will be helpful in getting
customer attention through which customers can engage in investing in crypto. In order to positively
influence the consumer behavior towards cryptocurrency FCA must engage in advertisement
through which they can promote the benefits and profits which can be availed by consumers.
CONCLUSION
As an emerging financial market, cryptocurrency brings greater
number of opportunities whereas can also bring significant
challenges and limitations.
Share rate of return- By sharing the information related
to cryptocurrency and their accountability, this will help
FCA to positively influence consumer behavior towards
cryptocurrency through which their investment can be
increased.
Increase safety and security- As users are scared of
making investment in cryptocurrency, FCA can increase
the cyber safety which will ensure consumers to invest in
crypto currency and this will increase consumer
investment and will create a positive impact on consumer
behavior towards cryptocurrency.
Consumer behavior is the study of individuals, groups
and organization and all the activities associated with
the purchase, use and disposal of goods and services.
This poster will discuss the consumer decision making
process and will list some recommendations which can
positively influence the cryptocurrency consume
behavior.