Digital consumer: trends and challenges

Jolanta Tkaczyk
Digital Consumer:
Trends and Challenges
Abstract
In a narrow sense, a digital consumer may be defined as someone using
mobile devices, and in a broad sense, as e-consumer, looking for and
purchasing products on the Internet, taking advantage of the content
published on-line, aware of themselves and of their needs, and keen on
simplifying the decisions they need to make. The aim of this paper is to
present the essence of the idea of digital consumer, to highlight the
considerations related to the behaviour of digital consumers, and to
describe the trends in their behaviour that may pose a challenge to
contemporary businesses. The conclusion lists the main factors enter-
prises should take into account when developing business models to
target digital consumers.
Keywords: digital consumer, trend, e-commerce, s-commerce,
Internet
Introduction
A typical consumer of the digital era of today has access to many sources
of information, functioning in an environment which offers many pos-
sibilities unknown in the pre-Internet age on the one hand, but also
which is characteristic of chaos and an increasingly difficult decision-
making because of information overload. A consumer ‘inhabiting’ a vir-
tual environment becomes more demanding and transfers their expec-
How to cite this chapter:
Tkaczyk, J. (2016). Digital Consumer: Trends and Challenges [in:]
The Impact of the Digital World on Management and Marketing, red. G. Mazurek, J. Tkaczyk,
Akademia Leona Koźmińskiego, Warszawa.

354 Jolanta Tkaczyk
tations to the real world, which forces enterprises to adapt to the
emerging trends and challenges – even if the on-line world isn’t their
main domain of operation. The aim of this paper is to present the essence
of the idea of digital consumer, to highlight the considerations related
to the behaviour of digital consumers, and to describe the trends in their
behaviour that may pose a challenge to contemporary businesses.
The Concept of Digital Consumer
Consumers who are more demanding, conscious, and active are defined
as prosumers (Domańska, 2009; Wolny, 2013). Not every consumer
using mobile devices or consuming on-line content is a prosumer. This
is why the term of e-consumer is used in the context of a virtual environ-
ment; it refers to a physical person manifesting and fulfilling their needs
with products (goods and services) bought on-line (Wolny, 2012). An
e-consumer who fulfils their consumption needs on the Internet without
necessarily purchasing anything, e.g. by using certain services free of
charge in exchange for their personal details, taking advantage of digi-
tal content (audio/video streaming, games), or who just searches for
information about certain products on-line tends to be defined as digi-
tal consumer. Therefore, the notion of digital consumer is broader than
that of e-consumer because it encompasses both passive (visiting web-
sites) and active (commenting, blogging) e-behaviour.
The term of digital consumer may be thus understood in a narrow
sense, referring to a consumer using mobile devices (smartphones, tab-
lets, laptops, etc.) (Persaud and Azhar, 2012, p. 420, after Tarczydło,
2016) or in a broad sense, denoting an e-consumer searching for and
purchasing products on the Internet, taking advantage of the content
published on-line, aware of themselves and of their needs, and keen on
simplifying the decisions they need to make (Tarczydło, 2016).
Today, even the most innovative companies wonder how to make
contact with consumers who are becoming better informed and more
dispersed than ever before. In developed countries, technology is present
in almost every aspect of people’s lives, starting from weather applica-
tions, through on-line shopping, and ending with e-books and wearables.
In the case of developing markets, access to the Internet and to smart-
phones grows exponentially year by year, and on-line retail sales reaches
volumes achievable so far only on highly-developed markets. As for

Digital Consumer: Trends and Challenges 355
mobile technologies in developed countries such as the UK, Germany,
Canada, laptop is still the most popular type of device, while in the case
of developing countries like China, Russia, or Brazil, the main link with
the on-line world is smartphone. In 2015, 77.9% of households in Poland
owned at least one computer. 75.8% of households had access to the
Internet, including 71.0% of households with broadband connection.
59% of Polish consumers owned a smartphone, and 24% – a tablet.
Looking at the structure of taking advantage of access to the Internet
by means of mobile solutions, Poland seems to be similar to developed
countries. The structure of usage of mobile technologies in selected
countries across the world is shown in Figure 1.
Figure 1. The structure of usage of mobile technologies in selected countries across
the world
Source: Euromonitor, 2016, p. 4–5.
Regardless of the means used to connect to the Internet, it is fair to
say that digital consumer has become a global phenomenon. The beha-
viour and preferences of such consumers, shaped mainly by the intense
use of technology, evolve very quickly, so it is important to investigate
the trends accompanying their behaviour in order to be better prepared
to satisfy the resulting needs, demands, and expectations.

356 Jolanta Tkaczyk
The Impact of Digital Consumers On Marketing from the
Perspective of Business and Science
Digital consumer is a consumer who has grown up in the world of the
Internet, a consumer who is more conscious and less prone to influence.
Their specific behaviour changes the approach to traditional marketing
instruments. According to Tapscott (2008), in the case of the digital
world, it is no longer effective to reach for a marketing mix in the form
of 4 or 5 P; instead, consumers should be influenced by means of an
appropriate set of tools in the form of ABCDE (anyplace, brand, com-
munication, discovery, experience). A digital consumer may buy products
anywhere and anytime, unlimited to anything but the Internet infra-
structure. Such consumers want to (and do) participate in co-creation
of their favourite brands and products, keen on customizing them ac-
cording to their own needs and preferences. Digital consumers don’t
want to be merely passive recipients of communication – they want to
be listened to and interacted with. They are willing to negotiate prices,
and want to be able to influence them. Finally, they buy not only a given
brand or product, but most of all a unique experience.
A digital consumer uses the Internet readily and a lot, taking advan-
tage mostly of social media. They use it mainly to look for information
about products, and then to purchase and consumer the selected prod-
ucts, sharing their experience with other consumers on-line. Marketers
respond to this change in behaviour more and more gladly, using differ-
ent digital marketing channels to communicate with these consumers.
According to certain findings, by 2017, one third of the global expendi-
ture on advertising will be spent on digital channels, mostly on social
media and on the mobile sector (eMarketer, 2015).
The phenomenon of digital consumer is also a subject of interest
among the scientific community. A. Stephen (2015) has studied articles
in the most influential consumer research journals from the period of
2013–2015. According to his findings, in recent years, the world of sci-
ence has shown interest in the concept of digital consumer in the fol-
lowing aspects:
• consumer digital culture,
• advertising,
• impacts of digital environments,
• mobile,
• on-line WOM (word-of-mouth) and reviews.

The most popular of these is the issue of WOM; almost half of the stud-
ied articles is devoted to this matter. Consumer digital culture research
considers, quite deeply, the digital environments in which consumers
are situated. A key aspect of this work has been understanding how
consumers’ identities and self-concepts extend into digital worlds (Ste-
phen, 2015).
Digital advertising is a major topic in the marketing literature and,
with respect to consumer behaviour, considers how consumers respond
to various aspects of digital ads. A still-emerging theme in recent years
is how social media environments impact consumer behaviour. The
consequences can be thought of as environment-integral (i.e. digital
environments influence behaviour in those environments) or environ-
ment-incidental (i.e. digital environments influence behaviour in other,
unrelated environments). It is interesting to see how the various infor-
mational and social characteristics of digital/social environments, such
as being exposed to other consumers’ opinions (e.g., reviews) or choices
(e.g., bids in online auctions), or even just to friends’ lives through social
media, can impact subsequent behaviours. The interest in the issue of
consumers’ usage of mobile technologies, especially in the context of
shopping, has been growing as well.
The influence of digital consumers on the world of science is reflected
also by the change in the applied research methods. Technological prog-
ress gives rise to more and more methods based on experimenting and
on the actual consumer behaviour, e.g., eye-tracking, EEG-based or
magnetic resonance based methods. Conventional research methods are
being also subject to modification under the influence of technology and
the geolocation and behaviour of consumers (e.g., FGI conducted in the
virtual environment).
Trends Shaping Digital Consumers
H. Vejlgaard (2012) defines ‘trend’ as a process of change that can be
viewed from different perspectives: psychological, sociological, and
economic. Trends usually emerge as a result of impact of a given environ-
ment in the economic, demographic, social, legal, political, and techno-
logical dimension. In the case of digital consumers, we are interested
mainly in the trends that appear as outcomes of the impact of techno-
logical factors.

358 Jolanta Tkaczyk
Among the global trends shaping the behaviour of digital consumers
there are:
• Common access to the Internet,
• Mobile technology,
• ‘On-demand’ media,
• Wearable technologies.
The impact of the Internet increases with its range. On the one hand, it
gives great opportunities, especially to the developing countries, but on
the other hand, it leads to a growing risk of e.g. cybercrime or personal
data theft.
The development of mobile technology has made mobile phones ad-
vanced telecommunications centres. Apart from the basic functions, they
also feature photo cameras, computing units, and offer mobile access to
the Internet. Today, a mobile phone may become a city guide (when we
download and use a special application), but it can be also used to make
small payments (parking fees etc.). Apart from mobile phones, there are
also other mobile devices that enjoy a high level of popularity; these in-
clude tablets or e-readers, which change the way we can benefit from
education and culture. Some speak of an arrival of a “screen culture”,
where screens are getting bigger and bigger (compared to the size of
mobile phone screens), increasingly cheaper, permanently connected to
the Internet, offering access to “on-line cloud” resources, more interactive
and intuitive in use, and more user-friendly (Tkaczyk, 2012).
The Internet has also made it possible for us to have access to infor-
mation and entertainment virtually anytime and anywhere (Mazurek,
2011). We can now watch films and read books, newspapers, and maga-
zines in real time using our computers, tablets, or even mobile phones.
An option to rent videos with just one click is now offered by both cable
companies and on-line services.
Wearable technology refers to devices such as bracelets, glasses, cloth-
ing and other wearables that track information ranging from a user’s
health to their current location to social media updates (Euromonitor,
2015). Consumers look for wearables that deliver unique safety or secu-
rity benefits; the possibility to make phone calls or send messages in
a hands-free mode or the feature of sending a distress signal in the case
of children or the elderly are ranked as the most desired functions of
wearables, while entertainment-related features – including gaming or
augmented reality – seem to be of much smaller importance.

According to Euromonitor’s report (Euromonitor, 2015), digital
consumers are often overconnected consumers, i.e. consumers who are
constantly on-line, having at least one mobile device connected to the
Internet on them – and going to sleep with such device, keen on mobile
payments. The benefits consumers gain from the easy connection to the
on-line world appear to go hand in hand with the issues that may arise
from the ‘overattachment’ to mobile devices. Among these issues there
are e.g. compulsive reaching for smartphone, which might have distract-
ing effects and lead to a worse performance at work and at school, or to
accidents resulting from parents being engrossed in their smartphones
and not taking proper care over their children; there is also the case of
the so-called ‘vampire kids’ – kids who spend their time using mobile
devices instead of sleeping (Evans, 2016), which often leads to addictions
involving an urge to check the notifications flooding one’s device. In
response to the digital overload, there appear ideas of “digital breaks”,
e.g. spending one’s holiday without access to the Internet, leaving one’s
phone in a special place in cafés/restaurants in order to enjoy the time
and be more present with one’s friends and family, or using smartphone
dummies to disaccustom oneself from the device.
Types of Digital Consumers
Digital consumers are not a homogeneous group, and although the way
they use technology is common to them, the demographic variable and
the lifestyles they live make them different.
Consumerbarometer.com is a website that presents findings of a study
conducted by TNS at Google’s request (2014/2015) on how people from
51 countries across the world use the Internet; it divides digital consum-
ers into four groups:
• Brand advocates,
• Digital moms,
• How to-video users,
• Millennials.
Each of these groups behaves in a specific and individual way.
Brand advocates are extroverts, they are trustworthy, and fluent in
using the Internet. Their strong presence and position across social
media lets them shape the image of products and brands. Brand advocates

360 Jolanta Tkaczyk
are keen on writing about brands (50% of them make comments, write
posts or blog entries on an everyday basis, and 40% of them shares con-
tent or links with other users). Members of this group are often referred
to as trendsetters; they are eager to get to know new products and will-
ing to devote their time to search for information about products they
wish to buy or have bought already. Two out of three brand advocates
look for information about products they intend to buy, using search
engines and brand websites most often to this end. Over 40% of brand
advocates use a smartphone when shopping on-line, and 20% share their
experience with a given product on-line. For 17% of brand advocates,
the video content found on YouTube is of more significance than the
content they can watch on TV; this is why YouTube seems to be the
perfect channel to reach this group of digital consumers.
Digital moms are women who are very well-informed, trendy, and
constantly on-line. They take advantage of the Internet to buy products
necessary for their homes, and they often fulfil themselves as bloggers.
About 75% of them generate own content at least once a month. They
like using smartphones – also when in search for products and making
shopping. They also enjoy looking for and purchasing products on-line.
This is the way that lets them save time; plus, when they shop on-line,
they don’t to take their kids to the shop with them. Apart from household
goods, they also shop on-line for products for themselves – mostly clothes,
shoes, and cosmetics; they are also keen on-line video viewers. They also
are willing to share their experience on-line with others.
How-to-video users are consumers of video content available mainly
on YouTube, showing the way certain products are and can be used –
sometimes in a very creative and original manner. Consumers and
companies use such video platforms to show cooking, building, repairing,
cleaning, or sewing instructions. The recipients of this type of content
are people who are active on-line, creative, and fond of infotainment.
It’s quite a large group – at least 2/3 of Internet users watch YouTube
videos at least once a week, with 10% of them viewing DIY and how-to
videos. About 53% of how-to-video users watch such videos because
they want to learn something new. 46% of them loves talking about
brands they value and are satisfied with.
Millennials are young people, aged 13–25, whose life takes place on-
line to a big extent. They take advantage mainly of social media, but
they also use the Internet to look for products, shopping, and watching
videos. Their everyday life is a constant interpenetration of two worlds

– the on-line and the off-line. They are the group that is the keenest on
using mobile technologies. They want to be able to switch between
various devices, which should be also interconnected with one another.
55% of Millennials use search engines to look for product information.
Millennials love YouTube. For 20% of Millennials, YouTube content is
much more credible and interesting than that found on TV. They turn
to YouTube to search for entertainment, education, and interact with
others. They are keen on viewing YT channels with others (friends and
family members). The first thing a typical Millennial does every day is
check the notifications on the social media platforms they use. They
comment or like posts of their friends at least once a day. They are also
willing to listen to their friends and people whom they trust; they com-
municate mainly through on-line channels.
Challenges for Enterprises
Changes in consumer behaviour and the appearance of digital consum-
ers have made transformation of business models a today’s necessity,
which affects all areas of economy. A big challenge is, for instance, to
adapt to the increasingly popular trend of sharing economy.
The Internet and digitalization have made the costs that producers
need to bear to reach consumers directly very low (PWC, 2016). Anyone
with resources or production capacity in excess of their own needs can
communicate this fact to those who need such resources or capacity in
an easy and quick way. It’s enough to pay to have the whole system or-
ganized, and to ensure that the communication channels are efficient
and that the level of transaction is sufficiently secure. This way, we’re
coming back to a situation from years ago, when goods were exchanged
mostly as a result of direct interaction between prosumers (producers
being consumers at the same time). On the other hand, the exchange of
today is not subject to previous limitations because the new tools of
communication and data analytics makes it possible to bring prosumers
who are often geographically separated together in a flash. Sharing
economy can be defined as an economy involving connecting individu-
als and legal entities by means of on-line platforms (sharing economy
platforms) in order to make it possible for them to provide each other
with services or take common advantage of assets, resources, time,
abilities, or capital, quite often within a limited time span and without

362 Jolanta Tkaczyk
the transfer of property ownership rights (PWC, 2016). A typical client
of sharing economy platforms is a Millennial, a young person, a very
keen smartphone user, mobile and open to people, but at the same time
limited in terms of finance and looking for cost-effective solutions.
The new business models that have come to being on the basis of
sharing economy are changing also the conventional way of doing busi-
ness, mostly through new principles of competition. The so-called
“uberization” of economy is, in fact, a dynamic change of value chains.
Getting ready to compete under new conditions is at the moment one
of the biggest challenges enterprises have to face.
Figure 2. Interactions with Brands and Retailers on Social Media: 2014
Source: Euromonitor International Hyperconnectivity Survey.
S-commerce (or social commerce) seems to be also a matter of sig-
nificance. Currently there are over 2 billion social media users in the
world. Social networking platforms are becoming more and more daring
in their search for ways to monetise their range, but this search is not
an easy one. In 2009, Facebook offered brands an option to run their
shops on their fanpages, but in 2012, after a very limited response, it
gave up on the idea. Twitter has not been very successful in this area

either. Digital consumers get involved in relationships with their favou-
rite brands in different ways; they also tend to use social media to buy
from such brands more and more often, although it needs to be stressed
that the primary aim of use of social media is to socialize. In 2014, an
average of 25% of social media users in the world made some purchase
this way (Evans, 2016). Figure 2 presents various activities of social
media users in their interaction with brands and retailers.
S-commerce now offers producers a possibility to showcase their
offer, to use friends’ recommendations to look for new groups of re-
cipients, and to take advantage of consumers’ feedback concerning
their products. The development of social-commerce is a challenge not
only to enterprises themselves, who can actually benefit from the op-
tion to present their product offers in a new way, but most of all to
social networking platforms. Digital consumers expect enterprises to
provide them with new – often hyper-customized – experience, includ-
ing different purchasing channels to choose from and various ways of
communication.
Figure 3. Evolution of paths-to-purchase
Source: Bradley et al., 2015.
These expectations are coupled with yet another trend that poses
another significant challenge to enterprises – the so-called Internet of
Everything (IoE), which can be understood as a networked connection
of people, process, data, and things (Bradley et al., 2015)

364 Jolanta Tkaczyk
Figure 4. Attitudes toward Internet privacy
Note: Showing percentage of global respondents who agreed with selected
statements. Global survey results include Australia, Brazil, China, Colombia, France,
Germany, India, Indonesia, Japan, Mexico, Middle East, Russia, Spain, Turkey, UK, and
the US.
Source: Euromonitor International consumer survey, Hyperconnectivity Survey 2014.
The pre-e-commerce era process of making a decision in relation to
a purchase was quite simple – the search for a product either took place
in the shop, was induced by adverts and commercials, or was based on
browsing catalogues. The stage of payment, product collection, and
after-purchase support were not too complex either. The arrival of e-
commerce has transformed the process of purchase-related decision-
making, introducing a new channel of both information and distribution
– computer-accessed Internet. The age of mobility and digital media has
brought a new quality into the process of purchase-related decision-
making, and over 800 possible combinations of information search,
order placement, payment, product collection, and after-purchase sup-

port. Every customer may follow a different purchase path. Managing
such a developed and complex system is a major challenge to enterprises.
Since every customer may behave differently and change their path-to-
purchase anytime, according to given circumstances or their mood,
segmentation should be performed in real time, and this would be im-
possible without taking advantage of technology. Figure 3 illustrates
different paths-to-purchase and their evolution as influenced by the
Internet.
Over 58% of global digital consumers avoid public points of access to
the Internet because they consider them to be not secure; only 18% of
them have no concern about the security of such connection. More than
42% think that it is reasonable to make on-line purchases only from
trusted companies (Figure 4).
A recent study by the Central Statistical Office of Poland (2015)
shows that the Polish tend to display a very low level of trust to others
(78% of 14 000 respondents do not trust others). Sociologists seek the
causes of this most often in the price the Polish society had to pay to
become a democratic country and to adopt a market economy.
Utilizing the full potential of sharing economy, s-commerce, or IoE
will not be possible without gaining customers’ trust, and this seems to
be the biggest challenge enterprises need to face at present.
Conclusion
Enterprises need to change constantly in order to be able to respond to
the expectations of the new type of consumers – by means of a better
identification of their needs, for instance. For digital consumers taking
advantage of products in a virtual environment, these products need to
user-friendly and useful, their suppliers should be reliable and trusted,
and their price should be affordable.
By looking at the behaviour and demands of digital consumers, it is
fair to state that the business model adapted to their needs should be
based on the following three qualities: efficiency, savings, and engage-
ment (Bradley et al., 2015). It should offer them an optimal utilization
of resources (time and money), a flexible pricing policy (discounts,
coupons, points awarded in loyalty programmes), and engage them
through personalized adverts, adjusted to the place, time, and viewer,
or through product recommendations. It should be also noted that the

366 Jolanta Tkaczyk
behaviour influenced by technology migrates to the physical world, and
digital consumers transfer their experience with on-line shops to the
real world, expecting similar convenient solutions of traditional shops.
These shops may be then attempt to address such expectations by offer-
ing e.g. augmented reality (facilitated search for products, additional
product information). The phenomena like sharing economy, IoE, and
s-commerce pose a major challenge to contemporary enterprises, regard-
less of whether they occur on-line or off-line, because they all change
the rules of competition for the whole economy.
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Digital consumer: trends and challenges

Digital consumer: trends and challenges

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