Customer behavior

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Research on Customer Buying Behavior
Submitted to:
Dr. Usman Yousaf
Hailey College of Banking & Finance
BBA – Program
Submitted by:
Group Members:
Name ID
ABID HUSSAIN M14BBA036
WAQAS AHSAN M14BBA041
MUHAMMAD RIZWAN M14BBA042
Date: March 2017

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Acknowledgement
At first we must show our gratitude to the almighty Allah for giving us enough courage and
strength to prepare the assignment in due time. Then we would like to extend our sincere thanks
and deepest gratitude to our honorable faculty ‘Dr. Usman Yousaf’ for providing us a wonderful
opportunity to work in this term paper. Without his excellent guidance and invaluable support
throughout the semester and for the preparation of the term paper it would not have been possible
to complete the term paper. The topic of the term paper was also wisely chosen by the honorable
faculty so that we get the firsthand experience of real life application of different marketing models
and analysis in one of the leading global fast moving consumer goods company ‘Unilever’ We
would also like to thank all the people who gave their valuable opinion on the products, marketing
campaign, advertisement etc. of Unilever which helped us to reach the conclusion of the term
paper including users and prospective users of the company.

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Table of Content
Content Page No
1.0 Definition of Customer Buying Behavior 5
2.0 Types of Customers Buying Behavior 5
2.1 Programmedorroutinebehavior 5
2.2 Buyingproductsoccasionallyorlimiteddecisionmaking 5
2.3 Complexandinvolvementorextensivedecisionmaking 5
2.4 Thelasttypeistheimpulsebuyingortheconsciousplanningtype 5
3.0 Who is Customer? 6
4.0 How to study Consumer Behavior? 6
5.0 Types of Customers 7
5.1 Loyal Customers 7
5.2 Discount Customers 7
5.3 Impulsive Customers 8
5.4 Need Based Customers 8
5.5 Wandering Customers 8
6.0 Influence of Social Sciences on Buyer Behavior 8
6.1 Influence of Economics 8
6.2 Influence of Psychology 9
6.3 Influence of Sociology and Anthropology 9
7.0 Importantfactorsthatinfluenceconsumerbehavior 9
7.1 Culturalfactors 9
7.2 SocialFactors 10
7.3 Personalfactors 10
7.4 Psychological Factors 11
8.0 Maslow’s Hierarchy of Needs 11
9.0 Consumer Buying Process 13-15

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10.0 Consumer Adoption Process 15-16
11.0 How Consumer Behavior Has Changed in the Digital Age 16-19
12.0 How technology is changing consumer behavior 19-21
13.0 Fivetrends that will change consumer behavior in 2016 21-22
14.0 Change in Customer Behavior Will Impact Marketing in 2016?
22-27
15.0 Want to change customer behavior. 27-28

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1.0 Definition of Customer Buying Behavior
Consumer buying behavior is the sum total of a consumer's attitudes,
preferences, intentions, and decisions regarding the consumer's behavior in the marketplace
when purchasing a product or service.
Whatisconsumerbehavior?
Now that you know who is a consumer you also must know what is consumer behavior and how does
it affect the organizations.
Consumer behavior is a physiological process it is all related to the emotions of the consumer. In this
process the consumer starts with recognizing the need of the product, and then finds a way or a
medium of solving these needs, makes purchase decisions like planning whether he should buy or not
buy a certain product, and then he confirms the information, jots down a plan and then implements
the plan of making the purchase.
Consumer behavior is physiological it is human behavior it can change with the slightest change in the
market, the atmosphere and the trend. Studying consumer behavior is a challenge take look at a few
challenges that is how can you study consumer behavior.
2.0 Types of Customer Buying Behavior
2.1Programmedorroutinebehavior
Buying of regular and daily goods that involve very less money and also minimum research work fits
under this type of goods buying behavior. For example buying goods from the grocery store that are
goods used on daily basis like milk, eggs, bread, etc
2.2Buyingproductsoccasionallyorlimiteddecisionmaking
When a consumer tries to gain information about unfamiliar brands of familiar products of not very
high value goods this is when a consumer makes a decision however occasionally. The time required
to gather such information is quite moderate for example buying of goods like clothes and cosmetics.
2.3Complexandinvolvementorextensivedecisionmaking
Buying of products such as computers, laptops, property, cars, education, etc which requires a huge
amount of research and economic involvement comes under this category or type. This decision take
time as it needs too much of research work as the consumer will study almost all the options available
in his economic range, the research is prolonged as the customer would want to buy the best option
available for the price he is paying.
2.4Thelasttypeistheimpulsebuyingortheconsciousplanningtype
The job of the organizations here is to educate the consumers about their goods and services and
motivate them to buy their goods and services. Predicting single or consumer behaviour of a group is
not just difficult because you never know what factors might influence them and when. Reason being
the consumers today have a huge variety of choice and a number of factors influence the behaviour of

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the consumers. Let’s take a look at the notes given below to understand what influences consumer
behavior.
3.0 Who is Customer?
A consumer need not just be an individual; a consumer can also be an organization. A consumer can
be someone who will buy either goods or services or you can also specify the goods and services as
economic services or products, or good or commodities. A consumer is the end user or a target to
whom the goods and services are sold. In simple words a consumer can be described as:
1. A person or an organization that is specifically targeted tosell a products or a service of a company.
OR
2. Someone again, mind you this someone can either be an individual or an organization that pays a
price to use the goods and services of an organization.
OR
3. A person or an organization who is the final user of the goods and the services produced by a
company.
OR
You can consider all three definitions to define a consumer.
The consumer is the decision maker here in the economic system. He can take the following decisions
1. The decision of buying or not a product in a store or at a shop
2. The consumer will decide if he would want to be influenced by the marketing strategies and the
advertisements of the organization for a product or a service.
3. Many consumers are influenced by marketing and advertisements
4. The consumer decides what they want to buy and when they want to buy it
5. The consumer chooses between competitors and their products.
Decision making is the power given to the consumer.
Everyone has been a consumer and participated in the consumer market. The consumer market is
where the consumer has the right and the power to make a decision of spending their money. Even
buying a packet of chips from a store is being a part of the consumer market as you participate in the
buying a packet of chips buy paying a sum for the purchase. Here you are also taking a decision. This
is a decision of buying goods and spending your money. You are deciding where to spend your money
and on what should you spend your money. You are deciding amongst competitors. The more active
the consumers of the nation the more active will be the nation’s consumer market.
4.0 How to study Consumer Behavior?
1. You need to first understand the physiology of the consumer of a specific class, standard and of a
specific market. You need to understand how does the customer think, reason, feel, and select
between the option of products and services offered

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2. Then understanding the environment of the customer is important. The environment includes the
family of the consumer, their social atmosphere, their culture, etc.
3. The consumer psychology is different when they shop and make decisions of spending their money.
4. The knowledge of the consumer about the products, the industry and your competitors. How can you
influence the customer with minimum knowledge by educating him about your products and
services?
5. How can you motivate the consumer buying behavior, helping him make a decision in selecting
between products, the importance of their product and how will their decision affect them?
6. How should the company improve their marketing strategy and marketing campaigns based on their
focused consumer behavior?
7. How does a single consumer decision effects a group of consumers that is a group of people, this can
include their friends, their family, etc.
8. The consumer’s behavior also depends on buying a new products and reusing the old ones. The
organizations also need to understand how reusing products influences a consumer.
9. The consumers also take decisions based on the after sales services and the service provided by the
organization and their distributors. Service offered to a consumer also matters in influencing their
behavior
10.How a single or a group of consumer behavior does affects the society and the atmosphere and the
economy of the nation.
5.0 Types of Customers
Customers play the most significant part in business. In fact the customer is the actual boss in a deal
and is responsible for the actually profit for the organization. Customer is the one who uses the
products and services and judges the quality of those products and services. Hence it’s important for
an organization to retain customers or make new customers and flourish business. To manage
customers, organizations should follow some sort of approaches like segmentation or division of
customers into groups because each customer has to be considered valuable and profitable.
Customers can be of following types:
5.1 Loyal Customers- These types of customers are less in numbers but promote more
sales and profit as compared to other customers as these are the ones which are
completely satisfied. These customers revisit the organization over times hence it is
crucial to interact and keep in touch with them on a regular basis and invest much time
and effort with them. Loyal customers want individual attention and that demands
polite and respectful responses from supplier.
5.2 Discount Customers- Discount customers are also frequent visitors but they are only
a part of business when offered with discounts on regular products and brands or they
buy only low cost products. More is the discount the more they tend towards buying.
These customers are mostly related to small industries or the industries that focus on
low or marginal investments on products. Focus on these types of customers is also
important as they also promote distinguished part of profit into business.
5.3 Impulsive Customers- These customers are difficult to convince as they want to do
the business in urge or caprice. They don’t have any specific item into their product list
but urge to buy what they find good and productive at that point of time. Handling these

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customers is a challenge as they are not particularly looking for a product and want the
supplier to display all the useful products they have in their tally in front of them so that
they can buy what they like from that display. If impulsive customers are treated
accordingly then there is high probability that these customers could be a responsible
for high percentage of selling.
5.4 Need Based Customers- These customers are product specific and only tend to buy
items only to which they are habitual or have a specific need for them. These are
frequent customers but do not become a part of buying most of the times so it is difficult
to satisfy them. These customers should be handled positively by showing them ways
and reasons to switch to other similar products and brands and initiating them to buy
these. These customers could possibly be lost if not tackled efficiently with positive
interaction.
5.5 Wandering Customers- These are the least profitable customers as sometimes they
themselves are not sure what to buy. These customers are normally new in industry and
most of the times visit suppliers only for confirming their needs on products. They
investigate features of most prominent products in the market but do not buy any of
those or show least interest in buying. To grab such customers they should be properly
informed about the various positive features of the products so that they develop a sense
of interest.
An organization should always focus on loyal customers and should expand or multiply the product
range to leverage impulsive customers. For other types of customers strategies should be renovated
and enhanced for turning out these customers to satisfy their needs and modify these types of
customers to let them fall under loyal and impulsive category.
6.0 Influence of Social Sciences on Buyer Behavior
All major social sciences like economics, psychology, sociology and anthropology have influenced
buyer behavior studies. It is essential to have an idea of the nature of this influence.
6.1 Influence of Economics
Economists describe man as a rational buyer and view the market as a collection of homogeneous
buyers. Under a given set of conditions, all buyers behave in a similar fashion and every buying
decision is a logical process with the ultimate intention of obtaining optimum value for the money
spent. Price is regarded as the strongest motivation for the ‘economic man’. The economic
man’s behavior, in short, is rational.
Though the model of economic man may help us understand certain aspects of buyer behavior, it
certainly cannot answer all the puzzles of buyer behavior. The main problem with the concept of
economic man is the assumption that buyers are absolutely rational in their purchases and that
markets are homogeneous.
Markets are actually a collection of heterogeneous buyers, differing from each other in several
characteristics. The marketing process is intended to match these heterogeneous segments of demand
with heterogeneous segments of supply.
6.2 Influence of Psychology

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The next major influence on buyer behavior came from psychology. According to psychologists, any
human activity is directed towards meeting certain needs. These needs have been categorized in
different ways by different psychologists.
Physiological needs are the basic needs: they include the need to satisfy hunger, thirst, sleep, etc. For
people who are well off, physiological needs are met as a matter of routine, whereas for the poor, a
major part of their time is spent in striving to meet these needs. Safety needs include needs relating to
physical safety and economic and social security.
Social needs come next and they include the need for love and the need to belong. Esteem needs
include the need for self-esteem, the need for recognition by society and the need to be held in esteem
by others. Self-actualization needs include the need for self-development and the need to attain
complete fruition of one’s capabilities and endowments. The actions of individuals are guided by
their need structure and need level.
6.3 Influence of Sociology and Anthropology
Sociology and anthropology lent further dimensions to the subject of buyer behavior. According to
scholars in these fields, group pressure is the motive force behind buying. Sociologists and
anthropologists have tried to establish a logical connection between buyer behavior and the social
environment of the buyer. As a result, several new concepts like social stratification, reference groups,
role-orientation, opinion leadership, etc., have come to be used for giving causal explanations of
buyers’ behavior
7.0Importantfactorsthatinfluenceconsumerbehavior
You for sure might be wondering as to what is it that influences these consumers, how do we analyzes
when is their purchase pattern going to change. Of course only the influencing factors will confirm
what will change the consumers buying pattern.
We have four main factors that affect consumer behaviour they are;
7.1 Culturalfactors
Culture plays a very vital role in the determining consumer behaviour it is sub divided in
 Culture
Culture is a very complex belief of human behaviour it includes the human society, the roles that the
society plays, the behaviour of the society, its values customs and traditions. Culture needs to be
examined as it is a very important factor that influences consumer behaviour.
 Sub-Culture
Sub-culture is the group of people who share the same values, customs and traditions. You can define
them as the nation, the religion, racial groups and also groups of people sharing the same geographic
location
 Social Class

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Society possesses social class; in fact every society possesses one. It is important to know what social
class is being targeted as normally the buying behaviour of a social class is quite similar. Remember
not just the income but even other factors describe social class of a group of consumers.
7.2SocialFactors
Social factors are also subdivided into the following
 Reference groups
Under social factors reference groups have a great potential of influencing consumer behaviour. Of
course its impact varies across products and brands. This group often includes an opinion leader.
 Family
The behaviour of a consumer is not only influenced by their motivations and personalities but also
their families and family members who can two or more people living together either because of blood
relationship or marriage.
 Role and status
People who belong to different organizations, groups or club members, families play roles and have a
status to maintain. These roles and status that they have to maintain also influences consumer
behaviour as they decide to spend accordingly.
7.3Personalfactors
A number of personal factors also influence the consumer behaviour. In fact this is one major factor
that influences consumer behaviour. The sub factors under personal factor are listed below.
 Age and life cycle stage
Age of a consumer and his life cycle are two most important sub factors under personal factors. With
the age and the life cycle the consumers purchase options and the motive of purchase changes, with
his decisions of buying products change. Hence this stage does affect consumer behaviour.
 Occupation
Occupation of a consumer is affects the goods and services a consumer buys. The occupations group
has above average interest in buying different products and services offered by organizations. In fact
organizations produce separate products for different occupational groups.
 Financial or economic situations
Everything can be bought and sold with the help of money. If the economic situation of a consumer is
not good or stable it will affect his purchase power, in fact if the consumers or the economy of a nation
is suffering a loss it defiantly affects the consumers purchase or spending decisions.
 Life style
People originating from different cultures, sub cultures, occupations and even social class have
different styles of living. Life style can confirm the interest, opinions and activities of people. Different
life styles affect the purchase pattern of consumers.
 Self concept and personality
Every individual is different and have different and distinct personalities. Their distinct personalities
and distinct physiology effects their buying decisions. Hence purchase of products and services defers
from person to person.

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7.4Psychologicalfactors
4 psychological factors affect consumer behavior very strongly. Let’s look at them in detail.
 Motivation
Motivation is activating the internal needs and requirements of the consumer. It can also be described
as goals and needs of the consumers. Motivation arouses and directs the consumers towards certain
goals. These needs can be psychological needs, needs of security, social needs, esteem needs and also
self actualizing needs.
 Perception
Perception is sensing the world and the situations around and then taking a decision accordingly.
Every individual look as the world and the situations differently. The judging ability and capacity of
every individual is different and hence the look at the world differently. This is what separates the
decision taking abilities.
 Learning and experience
Learning is the research of products and services before the consumer takes the decision of buying a
product. Learning and self educating these days is done online and also in groups. Experience is
taking a lesson from the past experiences of a product and service. Learning and experience both
again play an important role in influencing the consumer’s behavior as it influences their purchase
decision.
 Attitude and beliefs
Attitude is a consumer’s favorable and unfavorable emotional condition or emotional feeling, also its
tendency of reaction to certain actions and behaviors. Beliefs of people that are the belief that people
assume the products to be as make the specifications of the products. Hence attitude and beliefs are
also important and need to be taken into consideration while studying human behavior.
8.0 Maslow’s Hierarchy of Needs
Maslow's (1943, 1954) hierarchy of needs is a motivational theory in psychology comprising a five tier
model of human needs, often depicted as hierarchical levels within a pyramid.
Maslow stated that people are motivated to achieve certain needs and that some needs take
precedence over others. Our most basic need is for physical survival, and this will be the first thing
that motivates our behavior. Once that level is fulfilled the next level up is what motivates us, and so
on.

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This five stage model can be divided into deficiency needs and growth needs. The first four levels are
often referred to as deficiency needs (D-needs), and the top level is known as growth or being needs
(B-needs).
The deficiency needs are said to motivate people when they are unmet. Also, the need to fulfill such
needs will become stronger the longer the duration they are denied. For example, the longer a person
goes without food, the more hungry they will become.
One must satisfy lower level deficit needs before progressing on to meet higher level growth needs.
When a deficit need has been satisfied it will go away, and our activities become habitually directed
towards meeting the next set of needs that we have yet to satisfy. These then become our salient
needs. However, growth needs continue to be felt and may even become stronger once they have been
engaged. Once these growth needs have been reasonably satisfied, one may be able to reach the
highest level called self-actualization.
Every person is capable and has the desire to move up the hierarchy toward a level of self-
actualization. Unfortunately, progress is often disrupted by a failure to meet lower level needs. Life
experiences, including divorce and loss of a job may cause an individual to fluctuate between levels of
the hierarchy. Therefore, not everyone will move through the hierarchy in a uni-directional manner
but may move back and forth between the different types of needs.
Maslow noted only one in a hundred people become fully self-actualized because our society rewards
motivation primarily based on esteem, love and other social needs.
The original hierarchy of needs five-stage model includes:
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.
2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

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3. Love and belongingness needs - friendship, intimacy, trust and acceptance, receiving and giving
affection and love. Affiliating, being part of a group (family, friends, work).
4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-respect,
respect from others.
5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and
peak experiences.
Maslow posited that human needs are arranged in a hierarchy:
'It is quite true that man lives by bread alone — when there is no bread. But what happens to man’s
desires when there is plenty of bread and when his belly is chronically filled?
At once other (and “higher”) needs emerge and these, rather than physiological hungers, dominate
the organism. And when these in turn are satisfied, again new (and still “higher”) needs emerge and
so on. This is what we mean by saying that the basic human needs are organized into a hierarchy of
relative prepotency' (Maslow, 1943, p. 375).
9.0 Consumer Buying Process
Far too often, retailers think that consumer buying is randomized. That certain products appeal to
certain customers and that a purchase either happens or it doesn’t. They approach product and
service marketing in the same way, based on trial and error. What if there were a distinctive set of
steps that most consumers went through before deciding whether to make a purchase or not? What if
there was a scientific method for determining what goes into the buying process that could make
marketing to a target audience more than a shot in the dark?
The good news? It does exist. The actual purchase is just one step. In fact, there are six stages to the
consumer buying process, and as a marketer, you can market tothem effectively.
9.1 Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a reason to believe that
what they want, where they want to be or how they perceive themselves or a situation is different from
where they actually are. The desire is different from the reality – this presents a problem for the
customer.

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However, for the marketer, this creates an opportunity. By taking the time to “create a problem” for
the customer, whether they recognize that it exists already or not, you’re starting the buying process.
To do this, start with content marketing. Share facts and testimonials of what your product or service
can provide. Ask questions to pull the potential customer into the buying process. Doing this helps a
potential customer realize that they have a need that should be solved.
9.2 Information Search
Once a problem is recognized, the customer search process begins. They know there is an issue and
they’re looking for a solution. If it’s a new makeup foundation, they look for foundation; if it’s a new
refrigerator with all the newest technology thrown in, they start looking at refrigerators – it’s fairly
straight forward.
As a marketer, the best way to market to this need is to establish your brand or the brand of your
clients as an industry leader or expert in a specific field. Methods to consider include becoming
a Google Trusted Store or by advertising partnerships and sponsors prominently on all web materials
and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts – a leading dealer of Ford Mustang parts –
allows you to increase search rankings and to provide a sense of customer security by displaying your
status on your website.
Increasing your credibility markets to the information search process by keeps you in front of the
customer and ahead of the competition.
9.3 Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a customer will absolutely purchase
your product or service. In fact, now more than ever, customers want to be sure they’ve done
thorough research prior to making a purchase. Because of this, even though they may be sure of what
they want, they’ll still want to compare other options to ensure their decision is the right one.
Marketing to this couldn’t be easier. Keep them on your site for the evaluation of alternatives stage.
Leading insurance provider Geico allows customers to compare rates with other insurance providers
all under their own website – even if the competition can offer a cheaper price. This not only
simplifies the process, it establishes a trusting customer relationship, especially during the evaluation
of alternatives stage.
9.4 Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of the six stages of the consumer
buying process. At this point, the customer has explored multiple options, they understand pricing
and payment options and they are deciding whether to move forward with the purchase or not. That’s
right, at this point they could still decide to walk away.

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This means it’s time to step up the game in the marketing process by providing a sense of security
while reminding customers of why they wanted to make the purchase in the first time. At this stage,
giving as much information relating to the need that was created in step one along with why your
brand, is the best provider to fulfill this need is essential.
If a customer walks away from the purchase, this is the time to bring them back. Retargeting or simple
email reminders that speak to the need for the product in question can enforce the purchase dec ision,
even if the opportunity seems lost. Step four is by far the most important one in the consumer buying
process. This is where profits are either made or lost.
9.5 Purchase
A need has been created, research has been completed and the customer has decided to make a
purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean it’s a
sure thing. A consumer could still be lost. Marketing is just as important during this stage as during
the previous.
Marketing to this stage is straightforward: keep it simple. Test your brand’s purchase process online.
Is it complicated? Are there too many steps? Is the load time too slow? Can a purchase be completed
just as simply on a mobile device as on a desktop computer? Ask these critical questions and make
adjustments. If the purchase process is too difficult, customers, and therefore revenue, can be easily
lost.
9.6 Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact, revenues and customer
loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer must decide
whether they are satisfied with the decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take place. This can be
mitigated by identifying the source of dissonance, and offering an exchange that is simple and
straightforward. However, even if the customer is satisfied with his or her decision to make the
purchase, whether a future purchase is made from your brand is still in question. Because of this,
sending follow-up surveys and emails that thank the customer for making a purchase are critical.
Take the time to understand the six stages of the consumer buying process. Doing this ensures that
your marketing strategy addresses each stage and leads to higher conversions and long -term
customer loyalty.
10.0 Consumer Adoption Process
Philip Kotler considers five steps in consumer adoption process, such as awareness, interest,
evaluation, trial, and adoption. On the other hand, William Stanton considers six steps, such as

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awareness stage, interest and information stage, evaluation stage, trial stage, adoption stage, and
post-adoption stage. We will follow six steps.
10.1 Awareness Stage:
Individual consumer becomes aware of the innovation. He is exposed to innovation but knows very
little regarding the innovation. He has only limited information about it. He is aware of either by
discussion with friends, relatives, salesmen, or dealers. He gets idea about a new product from various
means of advertising like newspapers, magazines, Internet, television, outdoor media, etc. At this
stage, he doesn’t give much attention to the new product.
10.2 Interest and Information Stage:
In this stage, the consumer becomes interested in innovation and tries to collect more information.
He collects information from advertising media, salesmen, dealers, current users, or directly from
company. He tries to know about qualities, features, functions, risk, producers, brand, colour, shape,
price, incentives, availability, services, and other relevant aspects. Simply, he collects as much
information as he can.
10.3 Evaluation Stage:
Now, accumulated information is used to evaluate the innovation. The consumer considers all the
significant aspects to judge the worth of innovation. He compares different aspects of innovation like
qualities, features, performance, price, after-sales services, etc., with the existing products to arrive at
the decision whether the innovation should be tried out.
10.4 Trial Stage:
Consumer is ready to try or test the new product. He practically examines it. He tries out the
innovation in a small scale to get self-experience. He can buy the product, or can use free samples.
This is an important stage as it determines whether to buy it.
10.5 Adoption Stage:
If trial produces satisfactory results, finally the consumer decides to adopt/buy the innovation. He
decides on quantity, type, model, dealer, payment, and other issues. He purchases the product and
consumes individually or jointly with other members.
10.6 Post Adoption Behavior Stage:
This is the last stage of consumer adoption. If a consumer satisfies with a new product and related
services, he continues buying it frequently, and vice-versa. He becomes a regular user of innovation
and also talks favorable to others. This is a crucial step for a marketer.
In every stage of consumer adoption, a marketer is required to facilitate consumers. He must take all
possible actions to make them try, buy, and repeat buy the innovation. Be clear that every type of
consumer (innovators, early adopters, early majority, late majority, or laggards) follows all the stages
of adoption process, but takes different amount of time to adopt the innovation.
11.0 How Consumer Behavior Has Changed in the Digital Age

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We all know that consumers change from year to year. It might be slight variations; it might be
huge, sweeping trends that alter the way businesses market and conceive their products and
services. Either way, as Sam Cooke said, “Change is gonna come,” and you better be ready.
For most businesses, predicting and interpreting change is a lynchpin in the success of their
marketing efforts.
The stats that we’ve compiled here begin to paint a picture of some of the most important changes
that have materialized in consumer behavior in recent years, especially in the rise of the Digital Age.
These stats include trends in how consumers research, how they recommend brands, and how they
finally decide to make a purchase.
11.1 Online Reviews Impact 67% of Respondents’ Purchasing Decisions
In a recent study from Moz.com, 67% of respondents cited online reviews as “fairly, very or
absolutely important” to their online purchasing decisions.
For companies who don’t take their online reviews seriously, let alone address them, this is bad news.
Consumers have almost instant access to your company’s Facebook, Yelp page or Google reviews, and
unless a bad review is obviously spammy, it’s essentially impossible to have it removed.
Implication:
Don’t discount the power of a bad review in 2016; your potential customers obviously don’t.
Some steps you can take to handle a bad review? Responding in a timely fashion is always
encouraged; if you have the ability, offer the offended party a limited-time discount or offer. This will
show that you care about their bad experience and are willing to invest the resources to make it right.
11.2. 28% of All Online Activity is Spent on Social Networks
Still don’t see the importance of a social presence? A recent study by GlobalWebIndex found that their
respondent base, which numbered around 170,000 people, spent 28% of their online time on
social networking sites.
Implication:
Not only are more people using social networking sites in recent years, they’re spending increasing
amounts of time there. The social networking “bubble” has not only not burst; it’s growing.
Read More: 4 Great Social Media Trends You Might Not Be Utilizing
11.3 American Adults Now Spend 5.5 Hours a Day Viewing Video Content
eMarketer reports that American adults averaged 5 hours, 31 minutes a day absorbing video
content in 2015. This is up from just 4 hours and 56 minutes in 2011.
What’s driving this significant increase in viewing time? For starters, US adults now own more
connected devices than ever. In fact, of that 5 and ½ hours we spend indulging in video
content, over a quarter of it was spent on mobile devices. More consumers have smart

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phones than ever before. We take our devices with us everywhere we go, and fill the lulls in activity
throughout the day with social media, internet browsing, and online shopping.
Implication:
Your company will be significantly negatively impacted without a mobile-friendly website, a social
media presence or eCommerce capabilities. These new watching habits should also alter the way you
spend your ad dollars.
11.4 Millennial Consumers Trust Their Peers Over Ads
In another recent study, Millennials reported that word-of-mouth recommendations from their
friends were far more influential than advertisements (which had a stronger impact with Baby
Boomers). Millennials listed word-of-mouth and search engines as the two most important influences
in their purchasing habits.
Implication:
Millennials currently make up about 24% of the population, but they purchase differently
than generations before them. Social media plays a huge role in how they hear about products and
brands; they aren’t as influenced by traditional advertisements as their parents and grandparents.
Before long, millennials will be the most important demographic of consumers, as they begin to make
more money and gain more purchasing power. Knowing how to market to them is vital as we look to
the future of the Digital Age.
11.5 85% of Shopify Sales Generated by Social Media Happen on Facebook
A recent study showed that Facebook dominates when it comes to eCommerce sales generated on
social media. A whopping 85% of social-media-driven sales on Shopify stores came through
Facebook accounts.
Implication:
Facebook is not only a viable option for targeting and appealing to the customers who are ready to
buy; it’s a great way to showcase your products or services in a way that draws new prospects in.
Video content on Facebook, for instance, was one of the highest-converting mediums for companies
on the social network.
Building Your Buyer Personas: Questions You MUST Ask
11.6 The End of Conspicuous Branding: Consumers Don’t Want to Wear Their Favorite
Brands Anymore
In the late 1990s and early 2000s, loud and proud branding was the flavor of the week. Apparel
companies like Abercrombie and Fitch, Louis Vuitton and Prada made billions selling their heavily-
logoed merchandise. Wealthy consumers scrambled to shell out money for extremely recognizable
pieces; teenagers were proud to wear a brightly-colored t-shirt emblazoned with the Hollister Co.
logo.

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Fast forward to 2016, and conspicuous branding is a signifier of retrograde marketing and outdated
attitudes about consumption and display of wealth.
Modern consumers have shown a clear preference for more understated and subtle products and
merchandise, which has left previously logo-heavy companies scrambling to assimilate their output to
modern tastes.
Implication:
Your style of branding has a huge impact on how consumers perceive and remain loyal to your
company. Flexibility in your branding is vital to staying relevant as consumer opinions and tastes
change.
Consumer behavior in the digital age is an ever-changing and ever-expanding anomaly. Staying in
tune with consumer behaviors, tastes, and impending trends can help your brand stay relevant, visible
and engaging for your customer base and prospects.
12.0 How technology is changing consumer behavior
The venture capitalist Marc Andreessen once said that software is eating the world. You don’t have to
look very far to see that in action. The ubiquity of smartphones and social networking apps, for
example, has transformed how people keep in touch with family and friends. Amazon and other e-
commerce sites have revolutionized shopping. Even in health care, digital technology has already
started changing how consumers choose service providers.
The pace of change today is the slowest it’ll ever be. As a business executive, you need to keep your
pulse on emerging trends to avoid disappointing customers and falling behind competitors.
If you’re wondering which tech trends are quickly becoming a reality, here are four technologies that
are already shaping consumer behavior—and what they mean for your business.
12.1 Smart devices offer consumers convenience and peace of mind
Connected devices stole the show at the 2017 Consumer Electronics Show (CES). From smart fridges
to voice-activated trash cans, companies showed off futuristic gadgets that promise to make smart
homes a reality.
The connected device market is ready to take off, but how can companies stand out? According to
Carley Knobloch, technical consultant at HGTV Smart Home, companies should focus on customer
needs.
“Consumers are voting again and again [through their purchases] for devices that offer peace of mind
and anticipate their needs,” Knobloch explains to MediaVillage.
A recent study from Scripps Networks Interactive provides some clues on what consumers may be
looking for and who the early adopters are. The research was conducted in the company’s insight
community, Scripps Under One Roof, and found that safety and energy efficiency are two strong
motivations behind smart home device purchases. For example, 75 percent of consumers said they
bought a smart device to help keep their family safe and comfortable. Millennials, according to the
study, are more likely to adopt smart home technology compared to Gen Xers and Boomers.

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When it comes to connected devices, “thoughtful is the new smart,” says Knobloch. To launch hit
products in this lucrative market, companies need to use consumer insight and inform their product
roadmaps with feedback from customers.
12.2 Wearables shape consumer lifestyle—and save businesses money
Most wearable gadgets allow consumers to track their own health data, including activities and diet.
For many consumers, wearable tech is the first step to eating better, reducing stress and adopting a
healthier lifestyle.
Despite a sluggish start, the wearable market is still growing. Experts believe this space will reach $25
billion by 2019, with smartwatches like the Apple Watch taking 60 percent of the market value.
The growth of the wearable market impacts businesses, even those outside of tech. For instance,
Reenita Das, SVP of health care and life sciences at the research firm Frost & Sullivan, predicts that
more companies will provide wearables to employees in an effort to reduce insurance premiums.
Some companies use data from wearables to motivate employees and give incentives for attaining
health goals. Das explains, “wellbeing programs will become a central, critical business imperative,
necessary for optimizing not just the productivity and performance of employees, but also for
managing the bottom line.”
12.3 Fulfillment solutions drive seamless customer experience
Digital transformation has pushed e-commerce and mobile shopping into the mainstream. Now that
digital shopping is the norm, companies need to optimize the supply chain to deliver a superior
shopper experience.
According to the Future of Retail 2016, an annual study from the PR firm Walker Sands, consumer
expectations for seamless shipping, delivery and returns have increased in the past three years. An
overwhelming majority of consumers now expect companies to offer free and one-day shopping. Free
returns and exchanges, as well as easier online returns, are also significant drivers of e-commerce
growth.
Dave Parro, partner and vice president at Walker Sands, says retailers must now improve the end-to-
end customer experience. “The priority for retailers no longer lies in increasing the number of
consumers who shop online, but rather improving their experience—whether it be online, in store or
across different product categories,” he said in a statement.
“The priority for retailers no longer lies in increasing the number of consumers who
shop online, but rather improving their experience.”
To gain competitive edge, many smart retailers are investing in supply-chain technologies. According
to Luxury Daily, 29 percent of capital expenditures in retail now go to fulfillment solutions, which
include transportation, logistics and order and returns management.
Walker Sands’ study reminds retailers that they should consistently focus on the omnichannel retail
experience. More than ever, companies need to understand the entire buying journey, including what
happens after the purchase. Removing friction in all steps of the customer lifecycle is a must.
12.4 Ad blockers allowconsumers to avoid unwanted ads
Ad blockers, software that lets tech-savvy consumers filter online and mobile ads, pose a big challenge
for the media industry. The Interactive Advertising Bureau found that 26 percent of desktop users

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already use ad blockers. Another study, from the media consulting firm Midia Research, found
that 80 percent of consumers who are aware of ad blocking software have used it.
The good news for media organizations is that the use of desktop ad blockers has slowed down,
according to a study released early this year. In some demographics, the adoption of ad blockers even
declined slightly. While the panic over ad blockers has somewhat subsided in 2017, publishers and
advertisers aren’t necessarily in the clear. After all, the lucrative Millennials are more likely to use ad
blockers than any other generation. Also, many consumers have indicated a need for ad blockers for
mobile software.
Unless ads become more interactive, engaging and clever than ever, people will eventually tune out
marketing messages one way or another. More than ever, companies need to get closer to their target
audience in order to optimize their ad content as well as the channels they use.
13.0 Five trends that will change consumer behavior in2016
Commerce is changing rapidly, and the pace is unlikely to slow down in 2016. Expect these trends,
detailed in Trend Hunter’s 2016 Trend Report, to take flight this year.
13.1 Automated creation Funding an idea has been made exponentially easier with crowdfunding
sites like Indiegogo and Kickstarter, but a new cohort of businesses being created are looking to draw
upon vast, active communities in various industries to help produce a product. For example, if you’re
keen on launching an app or website, FiftyThree Paper’s Mix app is where you should head first. A
place where designers and artists come together, Mix serves as an endless resource for inspiration,
offering a wide range of tutorials to advance your skills and templates to get your digital product off
the ground.
13.2 Curated dining Ready-made is still not a sexy term, but that doesn’t mean consumers aren’t
looking for shortcuts. Services like Chef’s Plate offer people the chance to cook gourmet meals without
all of the fuss. The service ships ingredients and instructions so that anyone can prepare a healthy
homemade meal hand-selected by executive chef Jason Rosso of Milestones Canada.
13.3 Resource sharing and community building Consumers care about the global community
and want to know that the brands they purchase from do, too. Social Feed is satisfying the push for
responsible business by allowing brands to buy media that make a real impact on people’s lives in
South Africa. Brands sign up for Social Feed and post advertisements or content they’d like shared.
Consumers can pick which ads or pieces of content they’d like to post to their social networks, and for
each share they complete, a meal goes to a child in need. The more exposure for the brand, the more
meals distributed – it’s a feel-good situation all around. In 2016, we’ll be seeing more businesses align
with environmental, social and even political causes to appeal to a mounting pressure for brands to
authentically stand for something greater than the products they sell.
13.4 Streamlined feedback As the pace of consumer needs quickens, brands have to rely on new
technologies to get feedback and insight about where they are both over and underperforming and
what they can push on. Co-Operative Food’s smart shopping carts are complete with tablets that
prompt shoppers to answer various questions ranging from their thoughts on store layout to
sustainability. Shaftsbury, on the other hand, is using iBeacon technology to provide retailers with
data such as the number of people who pass by their shop versus the number who go in to check it
out.
13.5 Recognition purchasing Brick and mortar and e-commerce have been fiercely competing
over the past handful of years, but the line between the two has become increasingly blurred. One
Canadian business is really trying to take the shopping experience to the next level. Well.ca created a
completely virtual store at Toronto’s Union Station, where passersby could scan the QR code of any

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product pictured on the wall to purchase. Slyce, another Canadian-based company, also provides
consumers with a convenient way to purchase. Just take a picture of a product in a store, and its
visual product search technology will allow you to immediately purchase that item from your
smartphone.
14.0 What Change in Customer Behavior Will Impact Marketing Most in 2016?
Marketers may anticipate frequent changes in customer behavior, but are often surprised by their
magnitude. Ever-rising expectations, mobile obsession, often contradictory preferences—these are
just a few that marketers are dealing with daily. Some customer behaviors, however, matter more
than others. With that in mind, we asked marketing industry insiders what change in customer
behavior will impact marketing the most in 2016, and why.
14.1 Dominic Kinnon, President, Global Customer Experience Solutions, SDL
Today's consumers are being flooded with more digital content than ever before, with a huge number
of brands available at their fingertips via their device of choice. In 2016 customer expectations will
also be higher than ever. Consumers are becoming accustomed to immediate accessibility and will
expect their brand experiences to be personalized and easy to navigate. With so many options just a
click away, customers won't wait around if the brand experience is not a positiv e one. Even
our research found that four out of five customers won't come back after a bad customer experience.
Businesses can no longer afford to drive blind. Instead, brands need to rely on sophisticated
technologies to personally engage with today's customers. Tools like customer analytics, social
intelligence, and machine translation are all crucial components designed to assist brands in the
delivery of the experiences that customers really want, through messages that resonate across the
right languages, markets, and touchpoints.
14.2 Charles Nicholls, SVP of Product Strategy and Marketing Solutions, SAP Hybris
2015 saw mass adoption of ad blocking technology for the first time, with some estimates as high as
140 million people, or 58% of U.S. consumers now blocking ads. While this is already beginning to
have a profound impact on advertising, it is symptomatic of consumers becoming increasingly
intolerant of marketers abusing their data. In short, consumers are looking for a new deal on how
marketers use their data. In parallel, regulators are gearing up for a new onslaught around data
privacy, led by European Union regulators who are planning to ban any form of tracking without
explicit consent.
Consumers will continue to give their information to brands, but with a growing expectation of a fair
value exchange. In return for data, they expect better experiences. This translates into personal offers
and personal experiences that increasingly define the consumer-to-brand relationship. That means
we need to stop shouting at customers and start listening to what they want and need right now.
To create truly personal experiences, marketers have to understand individual customers. The old
adage was never truer: You can't personalize unless you know the person. That means tackling the
customer data problem, because today data is scattered across a large number of customer facing
systems, making it impossible to really understand what's relevant to a particular customer at any
moment in time. Marketers need to start capturing customer intent data so that marketing and
experience can become contextually relevant to individual consumers, perhaps for the first time.
14.3 Julie Ginches, CMO, Kahuna

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In 2016 consumers will fully understand the power they have to unsubscribe and disengage. As
brands begin to realize that marketing is a privilege instead of a right, marketers will have an added
urgency to improve their efforts at personalization or risk being excommunicated. The winning
brands will focus their efforts increasingly on providing personalized, contextual messages that are
driven by data.
We can also expect that marketing will be less about a quick sell and more about building a long -term
relationship. It will be less about immediate sales conversions and more about brand loyalty and long-
term value. Chubbies is a men's apparel brand that's already excelling in this capacity by interacting
with their customers less as a brand and more as a friend. Their communications range from a
touchpoint like a random joke, to something a little more traditional like an alert that something is on
sale.
Further, brands will stop making their customers fit their specific mold and instead learn their
preferences to communicate offerings and deals specific to each individual's needs. This will drive
meaningful interactions and conversions rather than a meaningless onslaught of content.
14.4 Jon Gold, Director, Web Strategy and Design, Blackboard
The biggest change in customer behavior is that customers expect a consistent and personalized
experience— despite their increased engagement with brands across various channels. This was the
case in 2015, but we can expect it to be even more so in 2016. Brands should not only keep the variety
of channels and the expectation for individualized experiences in mind, but also the fact that
customers are increasingly global; they don't only live in your backyard—they're across geographic
borders, speaking various languages with unique cultural nuances. At Blackboard, we [aim] to meet
these digital and global demands by delivering a mobile responsive website and effectively targeting
specific customer personas.
14.5 Bill Muller, CMO, Visual IQ
From mobile phones and tablets to laptops and desktops, today's consumers are using an ever-
increasing number of devices to access the Web, search for information, make purchases, and more.
Even if a brand isn't running campaigns across devices, consumer responses are still being harvested
in greater numbers across multiple device types.
As m-commerce continues to grow in 2016, expect marketers to look for solutions that enhance their
understanding of their marketing's true impact across all channels and devices, as well as how to best
allocate their spend by device to meet their goals. By deduplicating unique users who are exposed to
marketing touchpoints across multiple devices, these solutions will provide marketers with a more
holistic view of their consumers' paths to conversion, and the ability to more effectively allocate their
budget by device type.
14.6 Mayur Anadkat, VP of Product Marketing, Five9
In recent years we've seen customers' expectations grow rapidly as they seek simple and instant 360-
degree support. Customer expectations will only continue to evolve, forcing marketers to keep the
customer experience as top priority.
In 2016 marketers need to collaborate with technology departments to create synergy between
customer relationship management and the technology behind it to improve a brand's voice through
better customer service. By getting behind the right customer relationship management technology,
marketers will be able to keep up with their customers' rising standards.

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14.7 Jim Eustace, Cofounder and CEO, Get Smart Content
The expectations of the B2B buyer can be summed up as: Don't waste my time. If they're an existing
customer, they want to be treated from a standpoint of knowledge about the past business they've
done with you, and if they're a prospect they want relevancy and consistency to their industry.
Why? Consider retail, which often is first to adopt new technology. Retailers have been quick to
adopt segmentation, serving different experiences based on factors such as location, previously
purchased items, and past spend. Business buyers expect that same level of personalization, especially
if they have previously engaged with your content or completed a form, thereby letting you know who
they are.
In the enterprise we see that B2B sellers are not as well prepared to deliver seamless omnichannel
experiences because of the enterprise hurdles of scale and siloed ownership: One group likely owns
acquisition through digital media, while an entirely different group owns the email nurture channel;
CRM is almost always out of the purview of either of those groups. Enterprises often successfully clear
these hurdles when a demand gen or marketing operations function owns the goal of optimizing
omnichannel and can reach across the existing organization barriers.
What should marketers do about it? B2B marketers are quickly realizing that they have access
to the data they need to deliver a seamless omnichannel experience, but it exists in silos that are hard
to manage. Getting a handle on the data channels and using data to market and sell more effectively
will be critical in 2016. New technology offerings will bring together disparate data to enable
marketers to accurately segment visitors, deliver personalized messages to prospects, and help them
quickly move through the buyer's journey. The key is to find solutions that work well together,
allowing marketers toseamlessly transfer customer data from one platform to the next.
14.8 Lisa LaCour, VP, Head of Global Marketing, Outbrain
Customer behavior doesn't change drastically; it evolves and responds according to the environment,
whether virtual or physical.
The mobile landscape, for example, will continue to evolve, putting more power into the hands of the
consumer while creating more audience fragmentation. This fragmentation is not only
about where buyers consume a marketer's message, but also their mind-set. Consumers desire and
expect to be served more personalized messaging from brands, so marketers must connect with them
at the right places and the right times, which involves activating with increased real-time localization.
We'll see more personalization technologies evolve in 2016 that enable marketers to get smarter about
what, where, and how they serve their messages. Look for marketers to become more sophisticated in
their connections using always-on storytelling that won't seem interruptive.
Research reports in the latter half of 2015 indicated that if advertisers serve up more personalized
content to consumers, they're more likely to engage with those brands. Content that is as tailored as
possible to customers' preferences is also less susceptible to ad blocking, which has recently become a
big issue for marketers.
One of the better pieces of marketing I saw in 2015 was the Cover Girl tie-in to The Force Awakens,
the latest film in the Star Wars franchise. It's an example of a smart marriage of two pieces of content
to a young, female audience. Back in August Cover Girl launched a limited-edition line of “light” and
“dark” make-up looks named after the types of characters in the film. The Droid look had products in
light colors while the Storm Trooper look was composed of darker shades of eye shadows, lipsticks,
and the like all co-branded with the Star Wars logo. You can expect to see more of these types of
executions in 2016.
14.9 Patrick Salyer, CEO, Gigya

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In 2016 we predict that consumers' password fatigue will take hold in earnest, driving a shift away
from the use of traditional usernames and passwords toward more convenient forms of
authentication, such as biometrics. With this change in consumer behavior, marketers must ensure
that alternate forms of authentication are made available on their mobile applications and Web
properties. In doing so, marketers will not only be able to ensure that registration and login numbers
increase as friction is reduced from the authentication process, but also capture valuable, permission-
based data they can use to personalize cross-channel customer experiences.
14.10 Greg Peters, CEO, INFORM
In 2016 consumers will access news and entertainment from mobile devices at more explosive rates
than ever before. This means that information provided through digital video will continue to define
new paradigms of user behavior, therefore helping push personalized experiences across everything
from smartphones to smart TVs.
For these reasons, it is imperative that marketers find new ways to use digital video that appeals to
consumers. This includes shifting 2016 budgets toward personalization, mobile-optimized
environments and high-engagement content. Mobile and video are offering marketers the opportunity
to think through what engagement actually means and how to measure it more effectively.
14.11 Tom Stockham, CEO, Experticity
The biggest change in consumer behavior in 2016 is that consumers will increasingly turn away from
anything they perceive as marketing. Instead, they'll increasingly look to small groups of people who
have a high level of credibility in their specific industry or category to influence their buying decisions.
These tastemaker groups are on the rise and should be the targets of marketers in the coming year.
This behavior will be due in part to the vast amount of product information available to the average
consumer. Consumers have more information than they could imagine available to them; however,
they've grown overwhelmed and wary of marketing and so called “trusted sources.”
Recommendations and reviews are no longer enough; consumers in 2016 will continue to believe that
every purchase decision needs to be researched, evaluated, ranked and even crowd-sourced to ensure
that it's the best decision. It makes sense, then, that marketers should focus in 2016 on consumers
who want help sorting through the sea of information to find the very best recommendation sources.
Marketers have learned that branding is more of a two-way conversation rather than a one-way
lecture. But to keep up with consumers, marketers will need to create better strategies to understand
which voices have greater impact among their key consumers and how to connect with these
tastemakers in a more credible way.
14.12 Kaysha Kalkofen, Cofounder, tSunela
What consumer behavior do marketers need to watch in 2016? Mobile mania. According to Gartner,
mobile traffic in 2016 is expected to increase 59% from 2015. In fact, in May, Google confirmed that
more searches are conducted on mobile devices than desktops in 10 countries (including the United
States).
As mobile use continues to dominate so, too, does consumers' demand for a seamless mobile
experience. Marketers must master reaching their audiences through a mobile platform—whether it's
focusing specifically on the design of a responsive mobile site or creating a mobile application that will
engage prospects or help to retain current clients. Additionally, because mobile applications open up
whole new markets (think Uber), successful marketers will continue to create innovative market
segments through mobile applications. Finally, marketers must master mobile search, both organic

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and paid, because mobile searchers behave very differently than desktop searchers. And, because
Google released the “Mobilegeddon” algorithm update in 2015, organizations that are not mobile
savvy will suffer in search engine results.
14.13 Eric Wheeler, CEO, 33Across
The increasing use of ad blockers will continue to impact marketers in 2016. In fact, a recent survey
by The Reuters Institute for the Study of Journalism and Oxford University found that 47% of the U.S.
survey participants use ad blockers. However, this signals opportunity, not doom and gloom.
Specifically, ad blockers will be the driving force behind three of the biggest shifts marketers will face
in the coming year. First, since users turn on ad blockers because they're turned off by ads that are
intrusive, off target, and interrupt their experience with engaging content, this will drive marketers to
raise the quality bar on creative as well as content to ensure that visitors return to their site.
Second, ad blockers are spurring innovation. Today, publishers have no choice but to get more
creative as they experiment with various payment models in exchange for access to high-quality
content.
Last, as those new innovations come to bear and user experiences improve, we'll see greater
transparency among the ecosystem of publishers, advertisers, and users. We're already seeing signs of
improved transparency with the recent launches of several new offerings that guarantee 100%
viewability of ads by humans. As this metric becomes the standard, marketers will have greater
visibility into their target audience. This, in turn, will result in higher engagement.
14.14 Andrew Howlett, Chief Digital Officer, Rain
The consumer buying cycle used to be about the simple act of trading goods and services with a
neighbor. Now there are ever-increasing touchpoints where customers expect to be served and
delighted. In-store, online, mobile, social, smart watches, smart televisions, connected devices, in the
car, in the air, and many more are already available or coming quickly.
This 360-degree experience continues to expand, and brands must now account for all ways that
customers might want to engage with their goods or services. No longer is it enough to have a great
website but a mediocre mobile experience. Consumers are sophisticated and expect not to be “talked
at”; they want to “talk with” brands and even contribute to the conversation.
While it's not smart business to be mediocre ever, it is expedient for brands to master each new
platform one by one, while continuing to pursue all platforms their customers can, do, or could use.
Marketers must first identify where their customers are, both physically and digitally, and then look at
ways to connect the experiences in a way that allows for seamless customer flow. When a new
platform, such as the Amazon Echo, comes along, jump on it quickly. Learn by trial and error, and ask
your customers to help. Then iterate quickly. Brands will learn what is working, what isn't, and where
they can improve.
But hurry…the 360-degree buying experience will only grow more encompassing and waiting too long
will only mean one thing: more places you aren't reaching your customers.
14.15 Pat Higbie, CEO and Cofounder, XAPPmedia
Ad blocking will be one factor in consumer behavior for 2016 impacting both marketers and
publishers. Mobile in general and audio streaming apps in particular will benefit from this trend as
marketers look to reach consumers through mobile apps.
Mobile advertising growth is projected by eMarketer to exceed 40% this year. Consumers' use of ad
blocking may drive that number higher. Audio will also benefit from growing usage in daily time spent
with media that is already two times higher than Facebook. Ad-supported audio will benefit from the

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confluence of several trends including: ad blocking, mobile ad growth, audio usage growth, and the
optimization of audio ads for mobile.
The key behavior change we'll see is consumers engaging with audio ads with their voice. This will
bring about profound change because until now mobile audio ads have relied on touch interaction,
which is ineffective given that a phone's screen is not accessible 85 to 90% of the time while people
are listening.
15.0 Want to change customer behavior
Imagine if you got rewarded every time you rode your bike instead of driving, or if you could received
a tangible benefit whenever you made a greener choice. Would this change how you go about your
day? And could that change be a stimulus to speed up advances in global sustainability?
Convincing consumers to change their behavior is a significant component of the sustainability
agenda. But for the most part, these efforts have been based in apps and campaigns, such as
Alcoa's Aluminate can recycling app or Bank of America's Keep the Change savings program. By
comparison, business models designed to stimulate sustainable behavior change are a relatively new
– and largely unproven – concept.
However, given the growth of smart technology and social media, expect to see a behavior-change-
focused business models in the future. If these models can generate profit and scale, they could help
drive an economy decoupled from resource use.
One company trying to do just that is New York City-based Recyclebank. Its business model, refined
over the last decade, connects behavior change to tangible benefits. The company rewards people for
taking greener actions, like walking rather than driving, with points that they can use to make
purchases at local and national retailers.
A key part of the Recyclebank model is its revenue-generating partnerships across the US and UK. To
help promote behavior change, it works with companies that want to engage "eco-curious" consumers
and cities that want to, say, increase recycling or encourage their residents to walk or bike.
Over the last several years, Recyclebank has worked with Philadelphia to give residents incentives to
recycle more. Here's how it works: residents receive a recycling bin with a unique bar code. When city
trucks pick up the bins, they calculate the weight of the materials inside and credit participants with
reward points that can be used at local and national stores.
As a result of the partnership, Philadelphia has increased its residential recycling by nearly 20,000
tons. Its curbside recycling diversion rate went up 4% between 2010 and 2013.
This behavior changing model, used by just a handful of companies, is one of the emerging
innovations identified in a new report by SustainAbility that I co-wrote and launched last
month. Model Behavior: 20 Business Model Innovations for Sustainability reviews more than 80
companies that demonstrate business model innovations.
At their core, behavior-change business models aim to reduce consumption, change purchasing
patterns or modify daily habits. In the process, they empower consumers with knowledge about their
consumption, helping them track product or service use. To increase engagement, they frequently
employ game dynamics that create competition between customers.

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As consumers become more interested in reducing their energy bills, these models are gaining
traction in the energy industry. Opower is one of several software companies that partners with utility
providers across the US to promote efficiency among energy users. The focus of the company,
expected to go public with a $110m initial public offering on the NYSE today, is two-fold: on the utility
side, it helps companies capture and analyze large datasets to create business value; on the consumer
side, it offers various platforms for engagement. In the process, Opower makes it easier for customers
to understand their energy bills and encourages them to conserve energy, save money and reduce
their carbon emissions.
Opower's business model is tied to the amount of behavior change that it drives. By empowering
consumers with knowledge about their energy consumption, and by leveraging proven behavior-
changing techniques, the company is transforming how people think about their energy use and
driving further engagement between consumers and utilities.
As Opower demonstrates, in behavior-change business models, the nature of the transaction between
consumer and company becomes nuanced: it is less about selling ever more goods or services than it
is about building brand trust and engagement. Companies employing this model aim to increase
"stickiness" with customers, building brand loyalty.
The fundamental challenge for behavior change business models is to find a way to drive revenue
growth while encouraging decreased consumption. The apparel brand Patagonia has experimented
with behavior change marketing in recent years by encouraging consumers to buy less and repair
more. However, because Patagonia is privately held, it's unclear if the company's bet has resulted in
greater revenues or greater loyalty.
In the case of Recyclebank, there have been questions about the effectiveness of its efforts to increase
recycling at the city level. Some municipalities, including Ann Arbor and Cincinnati, have chosen to
end their partnerships with the company and pursue other reward methods.
For now, many companies and organizations are experimenting with apps and information
transparency, rather than business models, to nudge consumers toward behavior change. Nike's
FuelBand engages customers by helping them set and track fitness goals. GoodGuide provides
customers with more information on greener products. Bedsider, designed by Ideo for the non-profit
National Campaign to Prevent Teen and Unplanned Pregnancy, functions as a birth control support
system tohelp prevent unplanned pregnancies.
Hopefully, we will see companies move beyond experimentation as they find scalable ways to
simultaneously reduce consumption, change behavior and earn a profit. It seems Google might be
setting the stage for such a move: earlier this year, it announced plans to buy Nest, a manufacturer of
smart thermostats and other internet-connected devices, for $3.2bn. Nest's thermostats enable
customers to monitor their energy use remotely. More importantly, the thermostats invite customers
to engage more deeply about energy use throughout the home. Google's purchase has been touted as a
big data play, but perhaps it's also an indicator that the rise of new behavior change business models
is closer than we think.