Technology and Consumer Behaviour
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The document discusses how technology has transformed consumer shopping habits over the past decade, emphasizing the rise of online research, browsing, and purchasing. It highlights the necessity for retailers to adapt to changing consumer expectations and the shift towards mobile and digital platforms for shopping. Key statistics demonstrate that online consumption, particularly video content, and social media's influence on purchasing decisions are critical factors shaping current consumer behavior.
Technology and Consumer Behaviour
- 1. The impact of technology on today’s consumers
- 2. Consumers’ shopping habits have drastically changed over the past decade as their choice of products and methods of purchasing have increased. Introduction
- 3. The use of digital technology to research, browse and purchase is now common. Retailers and service providers need to embrace this change and evolve with it to survive. Introduction
- 4. Proactive brands are already providing innovations to enhance the shopping experience as customer expectations change. Such an example are Apple Experience Stores. Investing in digital technology is becoming a necessity for any retail brand to survive this new wave of consumer expectations. Introduction
- 5. Access to the internet Digital in 2018 – by Hootsuite People are now spending more time online with the average user spending 6 hours per day using the internet Internet speed is becoming faster making accessibility to information easy Global internet users has now passed the 4 billion mark Well over half the world’s population use the internet Having an internet presence for any business is essential. Here are just a few reasons why:
- 6. Access to the internet Digital in 2018 – by Hootsuite More people are accessing the internet due to affordability of devices and are spending a long time there. People will spend the equivalent of 1 billion years online in 2018 This growth is driven by more affordable smartphones and mobile data plans
- 7. Digital Devices Digital in 2018 – by Hootsuite There are a lot of internet users world-wide but what devices are they using to access information? Being mobile responsive is vital. of the world’s 7.6 billion inhabitants now have a smart phone Two-thirds of the handsets are smart devices so people can also enjoy the internet wherever they are More than half
- 8. Social Media Digital in 2018 – by Hootsuite Social media is more than connecting with friends but has become an essential source of information for consumers. Social media is growing with people using the top social platforms in each country increasing by 1 million new users every day in 2017 – 11 new users every second More than 3 billion people use social media each month, with almost all accessing their chosen platform via a mobile device
- 9. What people use online research for Researching online has become an easy, efficient and reliable source of information for pre-purchasing. People go online to: Look up product information Read peer reviews Check and compare prices Search for deals and promotions
- 10. The Ultimate List of Marketing Statistics for 2018 Online consumption of videos probably has the most momentum right now with video consumption growing at a rapid pace. 4xas many customers would rather watch a video than read about it (Animoto 2015) 50%of internet users look for videos related to a product or service before visiting a store. (Google, 2016) 100Mhours of video are watched every day on Facebook (TechCrunch, 2016) 82%of Twitter users watch video content on Twitter (Twitter, 2015) Online video consumption
- 11. Online video consumption The Ultimate List of Marketing Statistics for 2018 2/3 of consumers prefer video under 60 seconds. (Animoto, 2015) 2/3 of YouTube users watch YouTube on a second screen while watching TV at home. (Google, 2016) 1BYouTube has over a billion users, almost one-third of all people on the internet. (YouTube, 2016) 8out of10In an average month 8 out of 10, 18 to 49 year old's watch YouTube. (Google, 2016)
- 12. Are the way people make online purchase decisions the same for everyone? KPMG researched this question and found the following results: • Online purchase frequency varies considerably depending on geographic location. Consumers in Asia, North America and Western Europe are most likely to shop online, while per capita online purchases in Eastern Europe and Russia, Latin America, and the Middle East and Africa are less frequent. • Generation X consumers (born between 1966 and 1981) made more online purchases in 2016 than any other age group, averaging nearly 19 transactions per online shopper per year. • Baby Boomers shop online just as frequently as the Millennials. • While men and women shopped at similar frequency, on average, men spent more per transaction – men spent US$220 vs. US$151 for women on their most recent purchase. Online purchase behaviour KPMG – Online Purchase Behaviour 16 January 2017
- 13. Online purchase behaviour KPMG – Online Purchase Behaviour 16 January 2017
- 14. Online purchase behaviour KPMG – Online Purchase Behaviour 16 January 2017 Greater options for shipping and delivery have made it easier and more common to buy bulkier products online – including furniture, appliances and even vehicles. Products such as books, music, electronics, accessories and apparel however are the most popular online categories. Online shopping is gradually changing in terms of the types of products that are being bought online. Generally, consumers’ purchases have increased for most product categories. This increase signals a higher willingness to buy new product categories online, even those more traditionally sold in shops.
- 15. Online purchase behaviour The tendency to buy internationally is highest among Millennials. This could mean potential growth for international online shopping as consumers increasingly seek unique or specialised products from other countries. Cross-border shopping is on the rise globally, driving international retail trade. It is also creating a need for renewed tax laws for importing of goods, seen in Australia with the introduction of GST on goods purchased overseas.
- 16. Online purchase behaviour KPMG – Online Purchase Behaviour 16 January 2017
- 17. Online purchase behaviour – device preference Despite the increase in mobile smart phones and tablets, the majority of consumers still prefer traditional desktop PCs or laptops when shopping online. More than half (57 percent) of online purchasers globally said they prefer to use desktop PCs or laptops, while 17 percent said they preferred to use a mobile device and 27 percent had no preference While mobile may not be the most preferred online sales channel, over two-thirds of the consumers said they had used a smartphone for product research while in a physical shop.
- 18. What consumers buy online “Today’s consumer no longer goes shopping, but is shopping, all the time and everywhere. And in a truly global online marketplace, competition is no longer limited to local shops during regular business hours. Consumers can easily buy from retailers and manufacturers located anywhere in the world – or from those with no physical retail locations at all,” Willy Kruh, Global Chair, Consumer Markets, KPMG International KPMG – Online Purchase Behaviour 16 January 2017
- 19. How technology has changed consumer trends The retail industry is going through a transformation mainly driven by the influence of digital technology on the shopping experience. Consumers are performing shopping-related tasks on their mobile phones regularly such as research, buying and comparing prices.
- 20. Consumers are using digital technology to research, browse and purchase. As a result, clever retailers are implementing new strategies to attract and retain this omni- channel shopper. Strategies include responsive website design, free shipping offers, mobile alerts and content marketing. Use of these digital tools has gone from just a few, to mainstream and essential. How technology has changed consumer trends
- 21. How technology has changed consumer trends Online reviews impact 67% of respondents’ purchasing decisions Customers use mobile technology while in the store Social media drives sales, particularly for the millennial consumer The Ultimate List of Marketing Statistics for 2018
- 22. How technology has changed consumer trends A study by GlobalWebIndex found that their respondent base, which numbered around 170,000 people, spent 28% of their online time on social networking sites. For companies who don’t take their online reviews seriously, they are missing an opportunity. Consumers have almost instant access to a company’s Facebook, Yelp page or Google reviews, and unless a bad review is obviously spammy, it’s essentially impossible to have it removed. In a study from Moz.com, 67% of respondents cited online reviews as “fairly, very or absolutely important” to their online purchasing decisions. The Ultimate List of Marketing Statistics for 2018
- 23. Conclusion Consumer purchase behaviour is changing. How consumers conduct research, how they recommend brands, and how they finally decide to make a purchase is going digital. This is not a marketing choice anymore. Those retailers not on board with this – will be the ones left behind.
- 24. References Digital in 2018 – by Hootsuite https://hootsuite.com/pages/digital-in-2018 (accessed 13 June 2018) The Ultimate List of Marketing Statistics for 2018: https://www.hubspot.com/marketing-statistics (accessed 13 June 2018) KPMG – Online Purchase Behaviour 16 January 2017 https://home.kpmg.com/au/en/home/insights/2017/01/online-purchase- behavior.html (accessed 13 June 2018) 6 Important Stats on How Consumer Behaviour Has Changed in the Digital Age http://www.inboundmarketingagents.com/inbound-marketing-agents- blog/6-important-stats-on-how-consumer-behavior-has-changed-in-the- digital-age (accessed 13 June 2018)