Report on Factors Influencing Cryptocurrency Consumer Behaviour

This report provides an in-depth analysis of consumer buying behaviour in the cryptocurrency market, exploring consumer motivations, cultural influences, and perceptions related to cryptocurrency use. It examines the consumer decision-making process through established theories, highlighting stages such as identification of decision, data gathering, alternative identification, weighing evidence, choosing alternatives, taking actions, and reviewing decisions. The report evaluates data and findings in the context of the Financial Conduct Authority (FCA), focusing on motivations, cultural aspects, and perceptions of cryptocurrency users. Furthermore, it offers recommendations to the FCA on how to positively influence cryptocurrency consumer behaviour by securing consumer protection, enhancing the integrity of the financial system, and promoting effective competition. The report references various studies to support its analysis and recommendations.

Consumer Buying
Behaviour of
Cryptocurrency

Table of Content
 Consumer Motivations, cultures and perceptions in relation to
cryptocurrencies use.
 Cryptocurrency consumer decision making process with support of
consumer decision making theories.
 Recommendations to FCA to positively influence cryptocurrency
consumer behaviour.
 References

Consumer Motivations, cultures and perceptions in
relation to cryptocurrencies use.
 Motivation is referred as the process that focus upon initiation and guidance
as well as maintenance of goal oriented behaviours. Motivation deals with
the biological, social, emotional as well as cognitive forces that focus upon
activation of a particular behaviour.
 Culture is basically a customary belief, social forms as well as
material traits in terms of racial, religious as well as social group. Culture is
basically a feature that is in existence in everyday life which is shared by
people of a particular place at a particular time ( Mazambani and
Mutambara, 2019).
 Perception is referred as the sensory experience of the world which
involves recognition of environmental stimuli as well as actions in response
to the actions. It is the ability to see, hear as well as become aware of
something through senses in a way that some thing is regarded, interpreted
or understood.

Evaluation of the data and findings in aspect of FCA
 Motivation
 The customers are considering as an alternative to complement the
mainstream investments rather than considering it as a gamble. The customers
who persuaded through adverts were more likely to regret the purchase.
 Culture
 It has been observed that the acquirers of cryptocurrencies are basically the people
of age group of 25-44 years. They have been borrowing money in order to buy
cryptocurrency. People have been happy while trading in an unregulated market
(Mendoza-Tello And et.al., 2019).
 Perception
 Nearly 5% of crypto currency users believe that they discover a type of protection
and further use borrowed funds to invest in crypto. Few per cent of crypto users
believe that they have a sort of protection with the cryptocurrencies but they were
not able to define it in perfect terms.

Cryptocurrency consumer decision making process
with support of consumer decision making theories.
The consumer decision-making process in context of cryptocurrency has
been discussed below.
 Identification of decision
 Gathering relevant data
 Identification of alternatives
 Weighing evidence
 Choosing alternatives
 Taking actions
 Reviewing decisions

Recommendations to FCA to positively influence
cryptocurrency consumer behaviour
 There are various ways through which FCA can positively influence
the cryptocurrency consumer behaviour. The several ways have been
discussed below.
 The FCA can make efforts in order to secure an appropriate degree for
protection of the consumers.
 The FCA can aim at protection and enhancement of the integrity of
the financial system of the united Kingdom.
 Also, The FCA can work upon promotion of effective competition in
accordance with the interest of the consumers (Werle and Lehtonen,
2018).

References
 Mazambani, L. and Mutambara, E., 2019. Predicting FinTech innovation
adoption in South Africa: the case of cryptocurrency. African Journal of
Economic and Management Studies.
 Mendoza-Tello, J.C. And et.al., 2019. Disruptive innovation of
cryptocurrencies in consumer acceptance and trust. Information
Systems and e-Business Management, 17(2), pp.195-222.
 Rice, B. and Williams, B., 2019. Cryptoassets consumer research points
to ignorance and risky behaviour. Journal of Investment Compliance.
 Werle, N. and Lehtonen, L., 2018. Hedging Your Bets: The Prospects of
Cryptocurrency Use in Online Gambling: A Mixed-Methods Study.
 Wu, Y., Li, J. and Gao, J., 2021. Real-Time Bidding Model of
Cryptocurrency Energy Trading Platform. Energies, 14(21), p.7216.

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