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U N I T 1 : E V O L U T I O N O F D I G I T A L
M A R K E T I N G
TASK 1: THE IMPACT OF
TECHNOLOGY ON CONSUMER
BEHAVIOUR
PRESENTED BY LAURA ALEMANY
TALKING POINTS
INTRODUCTION
ACCESS TO THE INTERNET
DIGITAL DEVICES USED
SEARCHING FOR INFORMATION
ONLINE PURCHASES MADE
ONLINE VIDEO CONSUMPTION
CONSUMER TRENDS
CONCLUSION
INTRODUCTION
Major changes for consumers and businesses in
the last decades: emergence of the PC and cell
phone in the '90s and the smartphone in the
'00s.
Technological evolution has led to new
business models, newfound prerequisites for
success and new consumer trends.
Different devices are being used to connect
to the internet and to interact with digital
content, services and experiences.
Need to implement new digital tools: from
dispensable and isolated to mainstream and
necessary to to attract and retain customers
Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.). Internet: Our World In
Data
Share of the population using the Internet, 2017
access to the internet | users
Internet users by country (in millions), 2017
Adapted from Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.).
Internet: Our World In Data
2000: 50% of the US population had access to the Internet vs. 90% in 2017
93% in the East Asia and Pacific region were still offline in 2000. Today: China & Japan are the countries with most
Internet users worldwide.
2017: 3.4 billion global internet users (46% of the population using the internet), which is set to increase to 58% by 2022
according to Euromonitor.
Roser, M., Ritchie, H., and Ortiz-Ospina, E. (n.d.).
Nielsen’s law of Internet bandwidth:
speed of Internet connections should
grow by 50% every year (Nielsen, J,
2019).
ACCESS TO THE INTERNET | SPEED
Back in 1983: 300 Bps rates available to
consumers, vs. 1 Tb transfer rates today.
(Nielsen, J, 2019).
Faster connection over the years: easier to
share and access large files across the
internet.
New consumer trends and increased use
of digital services (streaming, cloud
storage, online shopping,...).Nielsen, J. (2019). Nielsen's Law of Internet Bandwidth
Internet connectivity evolution: 1983 - 2018
DIGITAL DEVICES USED
Consumers: able to access the internet more conveniently from a wide range of devices for everyday tasks.
Companies: must respond to the shifts in device usage with new devices/models every year to stay relevant.
Multi-device ownership: challenge to ad targeting as people can own several devices and use them differently
(Wallace, T, 2019).
PC/LAPTOP SMARTPHONE TABLET SMART TV SMART WATCH
PC/Laptops are expected
to lose popularity over
the next few years, as
the smartphone market
gains prevalence.
Smartphones are
making the use of
larger devices obsolete.
Shopping-related tasks
continue to increase.
88% 75% 48%
Originally expected to
replace computers, but
its usage is in decline.
More popular with older
audiences.
Usage expected to
increase by 8% in the next
5 years (rising popularity
of video on demand:
Amazon Prime, Netflix,...).
15% growth expected by
2024: increasing demand
for wearable
devices/increase in health-
aware consumers.
27% 7%
Share of U.S. Population using Digital Devices, 2017:
Data adapted from Kunst, A. (2017). Electronic device usage.
SEARCHING FOR INFORMATION
Over 50% of shoppers search on a retailer website (mainly Amazon) & the other half
use a search engine (Clement, J, 2019).
Online behaviour is complex and varied: consumers move from retailer to retailer as
they research their purchases.
Consumers today focus on product descriptions, imagery, reviews, and pricing before
purchasing
Clement, J. (2019). Online sources used by consumers worldwide to start searching for products
Online sources used by consumers worldwide
Best-selling Online Products in the UK
ONLINE PURCHASES
Online shopping has become a lifestyle: 57% of consumers prefer to shop online, over
31% of consumers preferring to visit brick and mortar shops.
In the UK, 60% of the population shop online and the consumers’ favorite item to buy
online are clothes, household goods and holiday accommodation (Sabanoglu, T, 2019).
Sabanoglu, T. (2019). Best Selling Online Products 2019.
ONLINE VIDEO CONSUMPTION
Online video consumption continues to rise: growth of mobile video advertising expected to be x3 times larger by 2023.
Average consumer watches 84 mins of online video, up from an average of 67 minutes spent per day in 2018.
Online video consumption is expected to increase to 100 mins by 2021 (Marketing Charts, 2019).
Businesses have adapted their strategy: 81% use video as a marketing tool up from 63% in 2018 (Biteable, 2019).
6 out of 10 people would rather watch
online videos than television
78% of people watch online videos
every week/55% watch videos daily
75% of all video plays are on mobile
devices.
Users view more than 1 billion hours of
video each day on YouTube
Global Online Video Viewing and Ad Spending Forecast
Marketing Charts. (2019) Online Video Consumption Continues to Rise Globally Biteable. (2019). 55 Video Marketing Statistics For 2019
CONSUMER TRENDS
Consumers have consolidated their power through an improved access to information and the ability to easily review
products and share their experiences with other customers via social media.
Businesses have to keep up with emerging trends to avoid disappointing customers and falling behind competitors.
Key Marketing Trends for 2020
Carter, J. (2019). Technology Changing Consumer Behaviour is Biggest Marketing Trend.
CONSUMER TRENDS
Key consumer trends to watch out for in 2020:
Chat bots
Over 50% of users are satisfied with chatbots/around 60% of millennials use them regularly
Available 24/7, they help customers resolve problems easily: can answer up to 80% of questions.
For businesses, its usage can cut operational costs by up to 30% (Milenkovic, M., 2019).
5G network
Faster, more reliable connections and connectivity (internet of things)
5G will reach 45% population coverage and 1.9 billion subscriptions by 2024
Average download speeds of 1GB per second: x10 to x100 faster than 4G (Gemalto, 2019).
Voice user interface
43% of users use VUI to shop/50% use it to research products before buying (Schmidt, A., 2019).
Allows users to communicate with their devices and perform everyday tasks easily.
Accurate and efficient speech recognition: more human experience, more personable tone.
Internet of things
85% of companies have implemented or plan to implement IoT deployments in 2019
Connected devices: increased convenience and improved quality of life for consumers.
For businesses: reduced expenses and strategic advantage over competitors.
Consumers are more connected
Users thrive on being active and informed online at all times:
technological advancements bring together the world as one
big community.
CONCLUSION
Consumer expectations are evolving
E-shoppers have raised expectations: they now understand
the power they have and will use it when not satisfied with a
service (reviews, social media etc).
New communication channels are emerging
Businesses can no longer limit their customer service
strategy to email and phone: integration of innovative web-
based and mobile apps as consumer behaviour evolves.
More transparency required: privacy at stake
Collection of personal data from an increasing number of
connected devices: privacy and personal data at stake.
Companies must be transparent and communicate openly.
REFERENCES
Biteable. (2019). 55 Video Marketing Statistics For 2019. [online] Available at: https://biteable.com/blog/tips/video-
marketing-statistics/ [Accessed 27 Nov. 2019].
Bonderud, D. (2014). Evolution of Internet Connectivity: From Phone Lines to Light Speed. [online] Bandwidth Place. Available
at: https://www.bandwidthplace.com/the-evolution-of-internet-connectivity-from-phone-lines-to-light-speed-article/
[Accessed 23 Nov. 2019].
Carter, J. (2019). Technology Changing Consumer Behaviour is Biggest Marketing Trend. [online] Smart Insights. Available at:
https://www.smartinsights.com/digital-marketing-strategy/technology-changing-consumer-behaviour-is-biggest-marketing-
trend/ [Accessed 28 Nov. 2019].
Claveira, K. (2019). 4 Examples of How Technology Is Changing Consumer Behavior. [online] Visioncritical.com. Available at:
https://www.visioncritical.com/blog/4-examples-how-technology-changing-consumer-behavior [Accessed 23 Nov. 2019].
Clement, J. (2019). Online sources for product searches worldwide 2019. [online] Statista. Available at:
https://www.statista.com/statistics/1034209/global-product-search-online-sources/ [Accessed 6 Dec. 2019].
Gemalto (2019). What is 5G? A helpful illustrated Q&A. [online] Gemalto.com. Available at:
https://www.gemalto.com/mobile/inspired/5G [Accessed 5 Dec. 2019].
Kunst, A. (2017). Electronic device usage. [online] Available at: https://www.statista.com/statistics/702471/electronic-
devices-used-in-us/ [Accessed 24 Nov. 2019].
REFERENCES
Marketing Charts. (2019). Online Video Consumption Continues to Rise Globally. [online] Available at:
https://www.marketingcharts.com/digital/video-110520 [Accessed 27 Nov. 2019].
Milenkovic, M. (2019). The Future Is Now - 37 Fascinating Chatbot Statistics. [online] SmallBizGenius. Available at:
https://www.smallbizgenius.net/by-the-numbers/chatbot-statistics/ [Accessed 5 Dec. 2019].
Nielsen, J. (2019). Nielsen's Law of Internet Bandwidth. [online] Nielsen Norman Group. Available at:
https://www.nngroup.com/articles/law-of-bandwidth/ [Accessed 23 Nov. 2019].
Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.). Internet: Our World In Data. [online] Our World in Data. Available at:
https://ourworldindata.org/internet#:~:targetText=Globally%20the%20number%20of%20internet,online%20for%20the%20
first%20time. [Accessed 24 Nov. 2019]. / https://ourworldindata.org/grapher/number-of-internet-users-by-country?
tab=chart&time=2017&country=BRA+CHN+DEU+IND+IDN+JPN+MEX+RUS+GBR+USA
Sabanoglu, T. (2019). Best Selling Online Products 2018. [online] Available at:
https://www.statista.com/statistics/275973/types-of-goods-purchased-online-in-great-britain/ [Accessed 27 Nov. 2019].
Schmidt, A. (2019). How voice user interface is reshaping our lives. [online] TechTalks. Available at:
https://bdtechtalks.com/2019/04/04/vui-consumer-experience/ [Accessed 5 Dec. 2019].
Wallace, T. (2019). Consumer Behavior in 2019. [online] The BigCommerce Blog. Available at:
https://www.bigcommerce.co.uk/blog/consumer-behavior-infographic/#31-experts-on-dominating-an-omnichannel-
strategy [Accessed 6 Dec. 2019].

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The impact of technology on consumer behaviour

  • 1. U N I T 1 : E V O L U T I O N O F D I G I T A L M A R K E T I N G TASK 1: THE IMPACT OF TECHNOLOGY ON CONSUMER BEHAVIOUR PRESENTED BY LAURA ALEMANY
  • 2. TALKING POINTS INTRODUCTION ACCESS TO THE INTERNET DIGITAL DEVICES USED SEARCHING FOR INFORMATION ONLINE PURCHASES MADE ONLINE VIDEO CONSUMPTION CONSUMER TRENDS CONCLUSION
  • 3. INTRODUCTION Major changes for consumers and businesses in the last decades: emergence of the PC and cell phone in the '90s and the smartphone in the '00s. Technological evolution has led to new business models, newfound prerequisites for success and new consumer trends. Different devices are being used to connect to the internet and to interact with digital content, services and experiences. Need to implement new digital tools: from dispensable and isolated to mainstream and necessary to to attract and retain customers
  • 4. Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.). Internet: Our World In Data Share of the population using the Internet, 2017 access to the internet | users Internet users by country (in millions), 2017 Adapted from Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.). Internet: Our World In Data 2000: 50% of the US population had access to the Internet vs. 90% in 2017 93% in the East Asia and Pacific region were still offline in 2000. Today: China & Japan are the countries with most Internet users worldwide. 2017: 3.4 billion global internet users (46% of the population using the internet), which is set to increase to 58% by 2022 according to Euromonitor. Roser, M., Ritchie, H., and Ortiz-Ospina, E. (n.d.).
  • 5. Nielsen’s law of Internet bandwidth: speed of Internet connections should grow by 50% every year (Nielsen, J, 2019). ACCESS TO THE INTERNET | SPEED Back in 1983: 300 Bps rates available to consumers, vs. 1 Tb transfer rates today. (Nielsen, J, 2019). Faster connection over the years: easier to share and access large files across the internet. New consumer trends and increased use of digital services (streaming, cloud storage, online shopping,...).Nielsen, J. (2019). Nielsen's Law of Internet Bandwidth Internet connectivity evolution: 1983 - 2018
  • 6. DIGITAL DEVICES USED Consumers: able to access the internet more conveniently from a wide range of devices for everyday tasks. Companies: must respond to the shifts in device usage with new devices/models every year to stay relevant. Multi-device ownership: challenge to ad targeting as people can own several devices and use them differently (Wallace, T, 2019). PC/LAPTOP SMARTPHONE TABLET SMART TV SMART WATCH PC/Laptops are expected to lose popularity over the next few years, as the smartphone market gains prevalence. Smartphones are making the use of larger devices obsolete. Shopping-related tasks continue to increase. 88% 75% 48% Originally expected to replace computers, but its usage is in decline. More popular with older audiences. Usage expected to increase by 8% in the next 5 years (rising popularity of video on demand: Amazon Prime, Netflix,...). 15% growth expected by 2024: increasing demand for wearable devices/increase in health- aware consumers. 27% 7% Share of U.S. Population using Digital Devices, 2017: Data adapted from Kunst, A. (2017). Electronic device usage.
  • 7. SEARCHING FOR INFORMATION Over 50% of shoppers search on a retailer website (mainly Amazon) & the other half use a search engine (Clement, J, 2019). Online behaviour is complex and varied: consumers move from retailer to retailer as they research their purchases. Consumers today focus on product descriptions, imagery, reviews, and pricing before purchasing Clement, J. (2019). Online sources used by consumers worldwide to start searching for products Online sources used by consumers worldwide
  • 8. Best-selling Online Products in the UK ONLINE PURCHASES Online shopping has become a lifestyle: 57% of consumers prefer to shop online, over 31% of consumers preferring to visit brick and mortar shops. In the UK, 60% of the population shop online and the consumers’ favorite item to buy online are clothes, household goods and holiday accommodation (Sabanoglu, T, 2019). Sabanoglu, T. (2019). Best Selling Online Products 2019.
  • 9. ONLINE VIDEO CONSUMPTION Online video consumption continues to rise: growth of mobile video advertising expected to be x3 times larger by 2023. Average consumer watches 84 mins of online video, up from an average of 67 minutes spent per day in 2018. Online video consumption is expected to increase to 100 mins by 2021 (Marketing Charts, 2019). Businesses have adapted their strategy: 81% use video as a marketing tool up from 63% in 2018 (Biteable, 2019). 6 out of 10 people would rather watch online videos than television 78% of people watch online videos every week/55% watch videos daily 75% of all video plays are on mobile devices. Users view more than 1 billion hours of video each day on YouTube Global Online Video Viewing and Ad Spending Forecast Marketing Charts. (2019) Online Video Consumption Continues to Rise Globally Biteable. (2019). 55 Video Marketing Statistics For 2019
  • 10. CONSUMER TRENDS Consumers have consolidated their power through an improved access to information and the ability to easily review products and share their experiences with other customers via social media. Businesses have to keep up with emerging trends to avoid disappointing customers and falling behind competitors. Key Marketing Trends for 2020 Carter, J. (2019). Technology Changing Consumer Behaviour is Biggest Marketing Trend.
  • 11. CONSUMER TRENDS Key consumer trends to watch out for in 2020: Chat bots Over 50% of users are satisfied with chatbots/around 60% of millennials use them regularly Available 24/7, they help customers resolve problems easily: can answer up to 80% of questions. For businesses, its usage can cut operational costs by up to 30% (Milenkovic, M., 2019). 5G network Faster, more reliable connections and connectivity (internet of things) 5G will reach 45% population coverage and 1.9 billion subscriptions by 2024 Average download speeds of 1GB per second: x10 to x100 faster than 4G (Gemalto, 2019). Voice user interface 43% of users use VUI to shop/50% use it to research products before buying (Schmidt, A., 2019). Allows users to communicate with their devices and perform everyday tasks easily. Accurate and efficient speech recognition: more human experience, more personable tone. Internet of things 85% of companies have implemented or plan to implement IoT deployments in 2019 Connected devices: increased convenience and improved quality of life for consumers. For businesses: reduced expenses and strategic advantage over competitors.
  • 12. Consumers are more connected Users thrive on being active and informed online at all times: technological advancements bring together the world as one big community. CONCLUSION Consumer expectations are evolving E-shoppers have raised expectations: they now understand the power they have and will use it when not satisfied with a service (reviews, social media etc). New communication channels are emerging Businesses can no longer limit their customer service strategy to email and phone: integration of innovative web- based and mobile apps as consumer behaviour evolves. More transparency required: privacy at stake Collection of personal data from an increasing number of connected devices: privacy and personal data at stake. Companies must be transparent and communicate openly.
  • 13. REFERENCES Biteable. (2019). 55 Video Marketing Statistics For 2019. [online] Available at: https://biteable.com/blog/tips/video- marketing-statistics/ [Accessed 27 Nov. 2019]. Bonderud, D. (2014). Evolution of Internet Connectivity: From Phone Lines to Light Speed. [online] Bandwidth Place. Available at: https://www.bandwidthplace.com/the-evolution-of-internet-connectivity-from-phone-lines-to-light-speed-article/ [Accessed 23 Nov. 2019]. Carter, J. (2019). Technology Changing Consumer Behaviour is Biggest Marketing Trend. [online] Smart Insights. Available at: https://www.smartinsights.com/digital-marketing-strategy/technology-changing-consumer-behaviour-is-biggest-marketing- trend/ [Accessed 28 Nov. 2019]. Claveira, K. (2019). 4 Examples of How Technology Is Changing Consumer Behavior. [online] Visioncritical.com. Available at: https://www.visioncritical.com/blog/4-examples-how-technology-changing-consumer-behavior [Accessed 23 Nov. 2019]. Clement, J. (2019). Online sources for product searches worldwide 2019. [online] Statista. Available at: https://www.statista.com/statistics/1034209/global-product-search-online-sources/ [Accessed 6 Dec. 2019]. Gemalto (2019). What is 5G? A helpful illustrated Q&A. [online] Gemalto.com. Available at: https://www.gemalto.com/mobile/inspired/5G [Accessed 5 Dec. 2019]. Kunst, A. (2017). Electronic device usage. [online] Available at: https://www.statista.com/statistics/702471/electronic- devices-used-in-us/ [Accessed 24 Nov. 2019].
  • 14. REFERENCES Marketing Charts. (2019). Online Video Consumption Continues to Rise Globally. [online] Available at: https://www.marketingcharts.com/digital/video-110520 [Accessed 27 Nov. 2019]. Milenkovic, M. (2019). The Future Is Now - 37 Fascinating Chatbot Statistics. [online] SmallBizGenius. Available at: https://www.smallbizgenius.net/by-the-numbers/chatbot-statistics/ [Accessed 5 Dec. 2019]. Nielsen, J. (2019). Nielsen's Law of Internet Bandwidth. [online] Nielsen Norman Group. Available at: https://www.nngroup.com/articles/law-of-bandwidth/ [Accessed 23 Nov. 2019]. Roser, M., Ritchie, H. and Ortiz-Ospina, E. (n.d.). Internet: Our World In Data. [online] Our World in Data. Available at: https://ourworldindata.org/internet#:~:targetText=Globally%20the%20number%20of%20internet,online%20for%20the%20 first%20time. [Accessed 24 Nov. 2019]. / https://ourworldindata.org/grapher/number-of-internet-users-by-country? tab=chart&time=2017&country=BRA+CHN+DEU+IND+IDN+JPN+MEX+RUS+GBR+USA Sabanoglu, T. (2019). Best Selling Online Products 2018. [online] Available at: https://www.statista.com/statistics/275973/types-of-goods-purchased-online-in-great-britain/ [Accessed 27 Nov. 2019]. Schmidt, A. (2019). How voice user interface is reshaping our lives. [online] TechTalks. Available at: https://bdtechtalks.com/2019/04/04/vui-consumer-experience/ [Accessed 5 Dec. 2019]. Wallace, T. (2019). Consumer Behavior in 2019. [online] The BigCommerce Blog. Available at: https://www.bigcommerce.co.uk/blog/consumer-behavior-infographic/#31-experts-on-dominating-an-omnichannel- strategy [Accessed 6 Dec. 2019].