LSBM301 Consumer Behaviour: Understanding Cryptocurrency Adoption

This report examines consumer behavior within the cryptocurrency market, focusing on motivations, cultural perceptions, and decision-making processes. It applies the Engel, Blackwell, and Miniard theory to explain the multifaceted nature of consumer buying behavior in the context of cryptocurrencies, highlighting the role of information input and processing. The report identifies risks associated with cryptocurrency use, such as market, business, fraud, and operational risks, and discusses strategies for consumers to mitigate these risks, including fostering trust, ensuring independence from central authorities, and understanding user anonymity. The analysis emphasizes the potential for high returns and the increasing adoption of cryptocurrencies due to factors like instant settlement, long-term investment opportunities, and perceived ownership rights. Desklib offers a wealth of similar reports and solved assignments for students seeking to deepen their understanding of consumer behavior and financial technologies.

Consumer Behaviour
(PART B)

• Introduction
• Consumer motivations, cultures and perceptions in relation to crypto
currencies use
• Crypto currency consumer decision making process with support of
consumer decision making theories
• Positively influence crypto currency consumer behaviour
• Conclusion
• References
CONTENT

• The report highlights about the consumer behaviour while trading in Cryptocurrency
in which one specific theory for explaining multi-faced nature of consumer buying
behavior of Cryptocurrency users is explained including the risk involved and ways to
mitigate the risk is determined. It is a type of digital token which is designed to work
as a medium of exchange by using decentralized technology that make secure
payment and store money without going through bank.
INTRODUCTION

The economy of the world is moving in a fast pace and adopting the strategy of digital
payment that is crypto currency (Alam, 2021).
 Instant settlement: Consumer motivation regarding Crypto currency is increasing
because the money can easily be transfer and settle on instant basis.
 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.
Consumer motivations, cultures and
perceptions in relation to crypto currencies
use

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 (Salcedo and Gupta, 2021).
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.
Continue..

The consumer decision making process is 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. (Albayati, Kim
and Rho, 2020).
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.
Crypto currency consumer decision making process with support of
consumer decision making theories

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 (Yarovaya, Matkovskyy and Jalan, 2020).
CONTINUE..

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 (Bratspies, 2018).
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.
Positively influence crypto currency
consumer behaviour

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.
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 ( De Mooij, 2019).
CONTINUE..

It is being concluded form the above information that Cryptocurrency have
various benefits and risk associated with trading. It is not issued by central authority
due to which there is no interference or manipulation of government. Cryptocurrency
is a digital currency that exists electronically and design to work as a medium of
exchange. There are various risks which are associated such as market risk, business
risk, fraud risk and operational risk.
CONCLUSION

 Alam, K., 2021. Is a cryptocurrency a currency or a
product/commodity? The case of bitcoin. In Islamic Fintech (pp.
65-78). Routledge.
 Albayati, H., Kim, S.K. and Rho, J.J., 2020. Accepting financial
transactions using blockchain technology and cryptocurrency: A
customer perspective approach. Technology in Society. 62.
p.101320.
 Arias-Oliva, M., Pelegrín-Borondo, J. and Matías-Clavero, G.,
2019. Variables influencing cryptocurrency use: a technology
acceptance model in Spain. Frontiers in Psychology. 10. p.475.
REFERENCES