IntroductionNowadays, globalization is morecomprehensive than in the past. This is due to its dynamism imposed by newtechnologies. The rise of globalization can be directly attributed to advancesin technology.
Globalization has changed the scenario of how consumers behave, think,and spend. In the epoch of globalization countries are able to more freelytrade with each other, which has created an abundance of products and servicesthat can be offered to the consumer. Many of these available products andservices would have been unimaginable before the advent of globalization.
Theimpact of globalization affects consumer behavior and also the quality of life.With globalization, today the world is different place.The background, lifestyle and culture ofa person carries important effects on shopping and consumption behaviour;cultural and national values have been recognized as a significant factor in shapingthe consumer’s motivations, lifestyles and, ultimately, product choice.In the advent of globalization abundance of optionsavailable to consumers because of this consumers can conduct more research onproducts generally looking for the best deal. Consumers have manypurchasing choices than ever before due to the globalization. Internetrevolution has brought in new opportunities for browsing from the comfort ofhome, and there are products available from all over the world that too 24/7 thishas led to the ease of shopping. Globalization has changed consumer purchasingpatterns in ways that could never have been anticipated.Globalizationhas brought various manufacturers competing for their own stake in the economy.
This is advantageous to the consumer as the quality of goods and servicesshould increase as a consequence. With more competitors in the mix eyeing togain a part of the market share, companies have to be constantly improvingtheir goods and create more value for the consumer. Marketers know that mereadvertisements will not indulge the consumer immediately making a purchase, asthis age of consumers are empowered, knowledgeable and are smarter and moreaware of product options than ever before.
Objectivesof the StudyTostudythe 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 asthis is a technological world. The simplest and most obvious observationrelated to this is the products that we purchase.
“Globalization and trade”. Anexample of a successfully globalizing company is McDonalds; an American companywith American values and beliefs that is succeeding all over the world.”Marketing globalization puts the powerof the world’s markets in the palm of your hand,” according to Hosmer (2014), theidea that globalization is driven by the broadcasting and technology, assumesthat globalization is shaping people’s lifestyles and modifying theirpurchasing behaviours.
Steenkamp and Wedel (1999) have concluded that expansionof world travel, declining trade barriers, advances in communicationtechnology, the internet, and the rise of global broadcasting are all factors backingto the acceleration of an entirely globalized market.The increase in world trade, anincreasing integration of the world’s major economies, and the progression ofglobalization, will mean that understanding marketing strategies will continueto be an important issue (Viswanathan& Dickson, 2007). Krishnan (2011) found that individual lifestyleis important conceptually in understanding segmented markets and targetingcustomers. A lifestyle marketing perception recognizes that people arrangethemselves into common clusters on the basis of the activites they like to do,how they like to spend their free time, and how they choose to spend theirdisposable income.Consumerbehavior, is depended on various internal and external factors which areaffected locally and globally. Changes associated with the perception ofconsumption have changed dramatically due to globalization. Mass culture influencesthe development of consumer behavior, their preferences, lifestyle.
Effects of Globalisation on Consumer BehaviourConsumerbehaviour is affected by internal factors including local culture; it is alsoinfluenced by external factors resulting from globalization such ascommunication, information and interaction. Globalization has had an impactin changing people’s values and lifestyles. A person’s lifestyle choices arepart of consumer’s behavior. Lifestyle characteristics, can be segmented intogroups based on opinions, attitudes, activities, time and money. Besideglobalization, consumer behavior is influenced by demographics, psychographics(lifestyle), personality, motivation, knowledge, attitudes, beliefs andfeelings.
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 byexternal influences such as culture, sub-culture, locality, ethnicity, familyand social class. It is important to understand why customers make thepurchases they make and factors influence consumer purchases.The Impact of GlobalizationToday, globalizationhas made the world a different place. This is important for today’s marketersto recognize because they face the necessity of designing an effective strategythat will promote their products and services in foreign markets, in additionto their home countries. It is important to understand consumer needs withintarget countries to create a global marketing mix where product, price, placeand promotion are geared toward specific country’s needs. Globalization has also increased market competition.
A companycannot assume they are the only player in a domestic market, as there are newcompetitors appearing all the time- some of which can be world-wide. Onebenefit of this globalization is increase in product variety for consumers. Theinternet has opened new opportunities for browsing from home, office or train,with products available worldwide. Today, consumers have more purchasingchoices than ever before due to globalization. Consumers play a critical rolein the economy The natural barriers of time have been reduced, and the cost ofmoving information, people, goods and capital across the globe has beendramatically reduced.
Markets are now global in scope and encompass anexpanding range of goods and services. Consumers use technology to reach out tothe world on the Internet gathering and sending information, and purchasinggoods and services. The fact is that all of us are affected by globalization inone way or the other. Globalization is responsible for the wide range ofchoices in most products that are available in the market today.
Further,globalization provides a platform for an exchange of information, ideas, goodsand services. People have more access to in-depth knowledge about othercountries and their culturesConclusionEconomies, markets and people in differentcountries are becoming more interconnected every day. Globalization has thepotential of raising the standard of living. Consumer behaviour is dependent onvarious factors which are affected locally and globally.Moreand more businesses are going global as it is the need of the day.
They look toimprove production efficiency, broaden markets, seek raw materials, newtechnologies, and increase the diversity of customers. It is necessary forcompanies to realize the importance of globalization. Even if a company orbusiness is considered “domestic”, it needs to be concerned about foreigncompetitors that may enter domestic markets. Companies need to be concernedabout price competition from firms taking advantage of cheaper resources fromabroad. Competitors may reap the benefits of increased efficiencies gained fromlarger scale operations and may use global communications to sell to greater numberand variety of consumers. As its thetechnological era consumers get information on their finger tips which allowthem to shop at their convenience.
Through globalization and advancement ofinternet consumers can enter any markets anywhere and anytime.