Explaining the Role of Globalization in Consumer Behavior
The Internet and globalization have had an almost opposite impact on consumer behavior. Before the Internet, people were much more risk-averse, and they were willing to pay more for something sure to be of high quality. Globalization has accelerated this trend, making it cheaper for people worldwide to buy the same things as their neighbors. As a result, consumers are becoming more risk-averse and more selective about which products and brands they buy.
In this article, Alexander Djerassi explores the role of globalization in consumer behavior and how it’s already had a significant impact on our everyday lives.
What is consumer behavior?
Consumer behavior studies the decisions and behaviors of consumers and how they interact with products, services, and brands. The term is often used in business studies and marketing, and it describes how people make purchasing decisions. Consumers may evaluate products and brands based on price, features, quality, reputation, and other factors. Consumers also make decisions about product selection and deal-seeking based on brand loyalty.
Why is consumer behavior important?
Consumer behavior plays a vital role in determining how goods and services are priced, shaded, and delivered. Globalization and the Internet have made it easier for consumers to shop worldwide, allowing them to shop from various points of view. This has led to an increase in town-glorifying hyper-local shopping experiences. As people have more shopping options, they have less reason to be picky, and they are more likely to make decisions based on price, features, and other factors.
The Role of Globalization in Consumer Behavior
While we tend to think of global trade and international communication as negatives, they can positively influence consumer behaviors. Alexander Djerassi notes that, for one, they make products more accessible to a wider audience, increasing the quality of products and increasing consumer confidence in brands.
Increased international travel means that more people are exposed to different cultures, which can also affect consumer buying habits. This can be both good and bad, depending on the individual. When people are exposed to new products and ideas, they can learn about brands they previously heard about but never tried. This can also lead to new brand loyalty, which can improve the health of the brand’s image and help it grow stronger in the long run.
The Future of Consumer Behavior
First, the benefits of being selective have become more apparent over time. Consumers may have become more aware of the benefits of being selective, and the price point may have grown more flexible so that consumers can make more informed buying decisions.
Second, consumers may have become more aware that they can shop around the world, and they can shop at different stores, restaurants, and other places without signing any contracts or giving away any of their personal information. This has made it more difficult for brands to grab consumers’ attention by presenting a high-quality product at a low price. This has seen an increased number of brand reviews online and off, which can help consumers make more informed buying decisions.
