Abstract local culture, it is also affected by

Abstract

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.

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            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.