Introduction services that can be offered to

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 epoch 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.

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

In the advent of 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 many
purchasing choices than ever before due to the globalization. Internet
revolution has brought in 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 purchasing
patterns in ways that could never have been anticipated.

Globalization
has brought various manufacturers competing for their own stake in the economy.
This is advantageous to the consumer as the quality of goods and services
should increase as a consequence. With more competitors in the mix eyeing 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 age of consumers are empowered, knowledgeable 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 broadcasting and technology, assumes
that globalization is shaping people’s lifestyles 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 rise of global broadcasting are all factors backing
to the acceleration of an entirely 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 perception recognizes that people arrange
themselves 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 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. Beside
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 can be world-wide. One
benefit of this globalization is 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

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.   

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