Deciphering the Crypto-shopper: Knowledge and Preferences of Consumers Using Cryptocurrencies for Purchases

TL;DR

This study explores the knowledge, behaviors, and preferences of cryptocurrency shoppers, revealing that purchase frequency is not solely dependent on expertise and highlighting the need for tailored business strategies.

Contribution

It provides new insights into crypto-shopping behaviors by analyzing knowledge levels and purchasing patterns, challenging assumptions about expertise and usage.

Findings

Knowledge varies widely among users.

High purchase frequency occurs even with limited knowledge.

Knowledge only partially explains purchasing behavior.

Abstract

The fast-growing cryptocurrency sector presents both challenges and opportunities for businesses and consumers alike. This study investigates the knowledge, expertise, and buying habits of people who shop using cryptocurrencies. Our survey of 516 participants shows that knowledge levels vary from beginners to experts. Interestingly, a segment of respondents, nearly 30%, showed high purchase frequency despite their limited knowledge. Regression analyses indicated that while domain knowledge plays a role, it only accounts for 11.6% of the factors affecting purchasing frequency. A K-means cluster analysis further segmented the respondents into three distinct groups, each having unique knowledge levels and purchasing tendencies. These results challenge the conventional idea linking extensive knowledge to increased cryptocurrency usage, suggesting other factors at play. Understanding this varying crypto-shopper demographic is pivotal for businesses, emphasizing the need for tailored strategies and user-friendly experiences. This study offers insights into current crypto-shopping behaviors and discusses future research exploring the broader impacts and potential shifts in the crypto-consumer landscape.