Consumer than in the past. This is

Consumer
Behaviour and Globalisation

Abstract

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Today,
technology is changing the ways in which marketers and consumers interact.
Economies, markets and people in different countries are becoming more
interconnected due to globalisation. Globalisation refers to the integration of
markets in the global economy leading to the interconnectedness of national
economies. Consumer behaviour is influenced by globalisation. It also has an
impact on changing peoples values and lifestyles. Markets are now global in
scope and encompass an expanding range of goods and services. Consumers uses
technology to reach out to the world on the Internet gathering and sending
information, and purchasing goods and services. Globalisation is driven by the
technology and it helps in shaping consumers purchasing behaviours. Consumer
behaviour is affected by internal factors including local culture, it is also
affected by external factors resulting from globalisation such as
communication, information and interaction. The digital era has changed social
trends, which in turn affects consumer behaviour and demands.

            This paper will study the effect of
globalisation on consumer behaviour. It will also analyse various factors which
affects buying behaviour locally and globally.

 

Keywords – Consumer,
Consumer Behaviour, Globalisation.

 

Introduction

Nowadays,
globalization is more comprehensive than in the past. This is due to its dynamism
imposed by new technologies. The rise of globalization can be directly
attributed to advances in technology. Globalization has changed the scenario of
how consumers behave, think, and spend. In the era of globalization countries
are able to more freely trade with each other, which has created an abundance
of products and services that can be offered to the consumer. Many of these
available products and services would have been unimaginable before the advent
of globalization.. The impact of globalization affects consumer behavior and
also the quality of life. With globalization, today the world is different
place.

The background and culture of a person are significant influences
on shopping and consumption behaviour; cultural and national values have been
recognized as an important force in shaping the consumer’s motivations,
lifestyles and, ultimately, product choice.

Due to globalization abundance
of options available to consumers because of this consumers can conduct more
research on products generally looking for the best deal. Consumers have
more purchasing choices than ever before due to the globalization movement. With
the use of internet new opportunities for browsing from the comfort of home,
and there are products available from all over the world that too 24/7 this has
led to the ease of shopping. Globalization has changed consumer buying behaviour
in ways that could never have been anticipated.

Globalization has brought multiple manufacturers competing for
their own stake in the economy. This is a benefit to the consumer as the
quality of goods and services should increase as a result. With more
competitors in the mix looking to gain a part of the market share, companies
have to be constantly improving their goods and create more value for the
consumer. Marketers know that mere advertisements will not indulge the consumer
immediately making a purchase as this generation consumers are empowered and
informed and are smarter and more aware of product options than ever before.

 

Objectives
of the Study

To study the effect of globalisation on
consumer behaviour.To
analyse factors affecting consumer buying behaviour globally.

Literature Review

The behavior of consumers is
affected by globalization, marketers should know this by now  as this is a technological world. The
simplest and most obvious observation related to this is the products that we
purchase. “Globalization and trade”. An example of a successfully globalizing
company is McDonalds; an American company with American values and beliefs that
is succeeding all over the world.

“Marketing globalization puts the power of the world’s markets in
the palm of your hand,” according to Hosmer (2014), the idea that globalization
is driven by the media and technology, and that globalization is shaping
people’s lives and modifying their purchasing behaviours. Steenkamp and Wedel
(1999) have concluded that expansion of world travel, declining trade barriers,
advances in communication technology, the internet, and the emergence of global
media are all factors contributing to the acceleration of a completely
globalized market.

The increase in world trade, an increasing integration of the
world’s major economies, and the progression of globalization, will mean that
understanding marketing strategies will continue to be an important issue
(Viswanathan& Dickson, 2007). 
Krishnan (2011) found that individual lifestyle is important
conceptually in understanding segmented markets and targeting customers. A
lifestyle marketing perspective recognizes that people sort themselves into
groups on the basis of the things they like to do, how they like to spend their
leisure time, and how they choose to spend their disposable income.

Consumer behavior, is depended on various internal and
external factors which are affected locally and globally. Changes associated
with the perception of consumption have changed dramatically due to
globalization. Mass culture influences the development of consumer behavior,
their preferences, lifestyle.

 

Effects of Globalisation on Consumer Behaviour

Consumer
behaviour is affected by internal factors including local culture; it is also
influenced by external factors resulting from globalization such as
communication, information and interaction.

Globalization has had
an impact in changing people’s values and lifestyles. A person’s lifestyle
choices are part of consumer’s behavior. Lifestyle characteristics, can be
segmented into groups based on opinions, attitudes, activities, time and money.
Along with globalization, consumer behavior is influenced by demographics, psychographics
(lifestyle), personality, motivation, knowledge, attitudes, beliefs and
feelings. The psychological factors include an individual’s motivations,
perceptions, attitudes, and beliefs; personal factors include income level,
personality, age, occupation and lifestyle. Behavior can also be affected by
external influences such as culture, sub-culture, locality, ethnicity, family
and social class. It is important to understand why customers make the
purchases they make and factors influence consumer purchases.

The Impact of Globalization

Today,
globalization has made the world a different place. This is important for
today’s marketers to recognize because they face the necessity of designing an
effective strategy that will promote their products and services in foreign
markets, in addition to their home countries. It is important to understand
consumer needs within target countries to create a global marketing mix where
product, price, place and promotion are geared toward specific country’s needs.

Globalization has also increased market competition. A company
cannot assume they are the only player in a domestic market, as there are new
competitors appearing all the time- some of which may be international. One
benefit of this globalization has been an increase in product variety for
consumers. The internet has opened new opportunities for browsing from home,
office or train, with products available worldwide. Today, consumers have more
purchasing choices than ever before due to globalization. Consumers play a
critical role in the economy The natural barriers of time have been reduced,
and the cost of moving information, people, goods and capital across the globe
has been dramatically reduced. Markets are now global in scope and encompass an
expanding range of goods and services. Consumers use technology to reach out to
the world on the Internet gathering and sending information, and purchasing
goods and services. The fact is that all of us are affected by globalization in
one way or the other. Globalization is responsible for the wide range of
choices in most products that are available in the market today. Further,
globalization provides a platform for an exchange of information, ideas, goods
and services. People have more access to in-depth knowledge about other
countries and their cultures

Benefits of Globalization

 

Data
Analysis –

The survey involved 200 respondents of different age groups. The primary data
collected by filling questionnaire from 120 females and 80 males. The secondary
data was collected from various websites, online journals and Books.

 

Do you think globalization affects consumer behavior
– Respondents were give a five point Likert scale  having options like strongly agree, agree,
neutral, disagree and strongly disagree. From the above
diagram it is clearly stated that globalization affects consumer buying
behavior as 56% of respondents strongly agreeFactors which
influence consumer buying behavior globally – Respondents were given options
like Personal factors include Age, income, occupation, lifestyle and
personality. Psychological factors include motivation, perception, attitudes
and learning, Cultural factors include culture and sub culture and social
factors includes family, reference groups and role and status.  From the above
diagram its clearly stated that the most influentialfactors  which affects consumer buying behavior
globally are personal factors then cultural factors.  Does buyingbehavior
of consumer changes with income level – Respondents were give a five point Likertscale  having options like strongly agree, agree,
neutral, disagree and strongly disagree. 

From the above diagram it is
clearly stated that as72% of the respondents strongly agree that consumer
buying behavior is changing with income level.

 

Can
globalization enhance consumer preference to buy foreign brands – Respondents
were give a five point Likertscale  having
options like strongly agree, agree, neutral, disagree and strongly disagree.From the above
diagram it is clearly stated that as 57% of the respondents strongly agree that
globalization enhance consumer preference to buy foreign brands.  

Conclusion

Economies,
markets and people in different countries are becoming more interconnected
every day. Globalization has the potential of raising the standard of living.
Consumer behaviour is dependent on various factors which are affected locally
and globally.

More and more businesses are going global as it is the
need of the day. They look to improve production efficiency, broaden markets,
seek raw materials, new technologies, and increase the diversity of customers.
It is necessary for companies to realize the importance of globalization. Even
if a company or business is considered “domestic”, it needs to be concerned
about foreign competitors that may enter domestic markets. Companies need to be
concerned about price competition from firms taking advantage of cheaper
resources from abroad. Competitors may reap the benefits of increased
efficiencies gained from larger scale operations and may use global
communications to sell to greater number and variety of consumers.  As its the technological era consumers get
information on their finger tips which allow them to shop at their convenience.
Through globalization and advancement of internet consumers can enter any
markets anywhere and anytime.