(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
TECHNOLOGY AND ITS IMPACT ON CONSUMER BEHAVIOR.pptx
1.
2. Technology And Its Impact On Consumer Behavior
Meyer, M., (2018), Unsplash, [photograph]
3. INTRODUCTION
Since the beginning of humanity, people have
been developing ways to use the basic tools in
order to survive and improve their daily life.
An absolute technological revolution has been
Internet.
More than half of earth’s population has
access to internet, which has created a
connected digital world.
The rapidly growth of online activity has forced
all kind of sectors from education, fashion,
health to construction make their way into the
digital world and continue their doings there.
The recent COVID-19 pandemic increased
online activity and actually introduced Work
From Home (WFH), which would have been
impossible without Internet.
Kemp, S., (2021), datareportal
4. INTERNET ACCESS
Internet is a worldwide computer network that transfers data and
media, across interconnected devices. (Wikipedia)
The message transmission can be achieved through, depending on your
needs, one of the below broadband types:
• Digital Subscriber Line (DSL)
• Cable Modem lan
• Fiber
• Wireless Fidelity (WiFi)
• Satellite
• Broadband over Powerlines (BPL)
5. ACCESS TO INTERNET
Through internet people can find and share information
and communicate from anywhere across the world as
long as they have connection.
This process takes time.
In 2021 people value their time more than ever, they are
impatient and demand unstoppable fast internet
experience.
According to Datareportal, the average latency of fixed
internet connection has been reduced to
-22.5% in 2021, compared to previous years, while
mobile latency -22.2%
Kemp, S., (2021), datareportal
6. DIGITAL DEVICES
• Desktop computers
• Laptops
• Mobile Phones
• Tablets
• E-readers
• Flash drivers
• Speakers
• Game consoles
Internet of Things (IOT) has made possible the capability
to connect and communicate over internet with a range
of devices and systems by using technologies, like
sensors and cloud system.
Such devices can be a watch, television, radio, air
conditioner, car, washing machine, fridge, home security
system, etc.
All these are called “smart” devices.
Kwong M., (2018), Unsplash, [Photgraph]
7. SEARCH FOR INFORMATION
The role of encyclopedias have now
taken the search engines that are
available for free to everyone with
internet access.
The most used search engine is
Google.
Bing follows in the second place,
and third comes Yahoo!.
Also consumers search for
information using social media like
Facebook and Instagram.
Through social media consumers can
easily and fast share opinions,
experiences and ask or give either
positive or negative feedback about
any matter.
YouTube has also proved to be a
platform that users can search what
they need.
Kemp, S., (2021), datareportal
8. NUMBERS OF ONLINE
SHOPPERS
According to Statista from 2014 to
2021 the number of people who
choose online shopping over in-
store has showed an approximately
50% increase.
Oberlo, n,d
9. WHY CONSUMERS PREFER ONLINE
SHOPPING
comparison 2020-2021
In 2021 the top 3 positions were
occupied by:
• Free and next day shipping
• Lower Prices / Discounts / Offers
• Convenience / Ordering from
Home
In 2020 the first 3 were:
• Convenience
• Variety of Products
• Searching efficiency Boice, M., (2021), Jounglescout
10. ONLINE SHOPPING
Consumers have shown their
preference to make their shopping in
the comfort of their sofa, through their
personal devices whenever they want.
The majority of their purchases are in
the fashion industry, spending in 2020
$665.6 billion U.S dollars.
Other sectors where people spent lots
of money in online shopping are:
• Travel and accommodation
• Electronics
• Toys, including online gaming
• Food and personal care
Kemp, S., (2021), datareportal
11. List with the largest retailers
in the world for 2020 (in US dollars)
• Walmart is on the top of the list
with estimated 527.8 billion dollars
sales
• Amazon is next with 268.2 billion
• Third place belongs to Costco with
156.6 billion
The list include food retailers like
Aldi and Carrefour, as well as cloth
retailers like JD.com
Richter, F., (2020), Statista
12. CONSUMER TRENDS
45.3% of internet users prefer voice search/voice
demands proving why cloud-based voice service
system and devices like Siri and Alexa are so
popular turning them to a trend.
Face recognition to unlock devices and used
instead of a password has also become a trend.
Covid-19 and the necessity to social distancing
created trends that rooting. Some of them are:
• Online banking
• Online job interviews through video platforms
like zoom
• Work from Home
• Virtual health consultation and virtual
appointments with medical staff
• Online streaming of videos, films and video on
demand
• Online shopping (retailers/social media) Kemp, S., (2021), datareportal
13. ONLINE VIDEO CONSUMTION
One-third of online activity is spent watching
videos. (Wordstream)
And more than 75% videos are played on
mobile devices. (eMarketer)
Video consumption increased while the
lockdown due to COVID-19 pandemic.
TikTok which is a video only social media
platform has reached 1 billion users in 2021
and generated an estimated $1.9 billion
dollar revenue. (Business of Apps)
Meta introduced IGTV and Reels which are
based on video making.
According to Datareportal in 2020 users
spent an average of 23.2 hours per month on
YouTube, 13.3 hours on TikTok, 10.3 hours on
Instagram, 7.0 hours on Netflix, 3.7 hours on
Amazon Prime Video and 5.1 hours on
Twitch. All video based platforms.
Kemp, S., (2021), datareportal
14. The Coronavirus impact
Since the end of 2019 the coronavirus pandemic (COVID-19), which kept the majority of the population
inside their homes, helped and encouraged online shopping.
According to PWC’s survey “For the most part, consumers will be quite cautious about what they do in
the world outside their home. Just as mask-wearing will likely continue to some degree long after most
people have been fully vaccinated, consumers probably also will remain more parochial than they’ve
been for years” (PWC, 2021).
Another survey by McKinsey & Company (2021) found that 75% of consumers in US who tried a new
shopping behavior, including curbside pickup and delivery apps, since COVID-19 started, intend to
continue it even after coming back to ordinary daily life.
Kilian, S., (2020), Unsplash [photograph]
15. Conclusion
According to the charts mentioned before focused on the years 2019-2020-2021 is clear that the
influence of technology is powerful. Will keep evolving and impact consumer’s behavior, in a positive
or negative way depended on subjective perspectives.
Because of technology consumers:
• Are able to stay connected
• Can communicate through a variety of channels
• Have changed their expectations
Online shopping rather than in-store, is driving many physical stores either to digitalize themselves or
extinct, as their have been left behind and cannot keep up with the digital world.
If this how the future is being shaped, will people ever again be able to do anything without the help
of technology?