The changing consumer behaviour has posed multiple challenges for marketers in the digital age. Several studies have been done to understand the changing consumer behavior owing to the advent and proliferation of digital technologies. The latest OpenAI’s integration of a search function within ChatGPT has raised several doubts over its impact on consumer behavior.
The new development has initiated a global debate on how users will find, learn, and make decisions. While this shift offers clear benefits, it also brings significant risks that deserve attention.
The digital landscape has shifted the traditional sales dynamics, necessitating a deeper understanding of how consumers perceive brands online in the absence of face-to-face interactions. This change emphasizes the need for unique product packaging and the strategic use of colors and sensory elements to influence consumer choices effectively.
Unlike in the past, today’s consumers are more informed, connected, and empowered than ever, leading to a shift in how businesses approach marketing. Unlike in the past, when shopping was constrained by geographical boundaries and time zones, the internet allows for constant access to information and products, transcending traditional limits. If there is night time in India and people in America and Europe may be shopping online.
According to an article in Exchange4Media, the festive mood has encouraged people to fill their homes with new products, benefitting both brand and their marketers.Among college students, a keen observation reveals a strong preference for online shopping. A survey of undergraduates from a reputable media institute indicated that they favor shopping online during the evening, particularly between 7 PM and 9 PM, due to daytime commitments like studying and working. Out of 38 students surveyed, 28 selected this time frame, while others remained undecided. Similar preferences were noted among postgraduate digital marketing students, with most also favoring evening shopping hour
Therefore, the first step towards understanding this new consumer is to analyze their online behavior and preferences. Mass communication students conceded that they prefer online shopping as it can be done from any digital device.
Consumer behavior is the series of steps people go through before they decide to buy something. It begins when a person realizes they need or want a product and ends when they complete the purchase.
Repeat purchases are also part of consumer behavior. For example, some customers may buy every product you offer, while others might buy just once and not return.
By studying consumer behavior, marketers can understand how customers interact with and use your products. This insight can guide your future product development, helping you create items that better meet your customers’ needs.arke
How consumer behavior is measured?
Following are ways to measure consumer behaviour:-
How consumers behave individually and in groups?
Why consumer behavior patterns change based on the types of products and services they purchase?
When consumers are most likely to make a purchase?
How a customer feels directly before buying a product?
How that customer feels directly following the purchase?
Which questions or objections contribute to the buying decisions?
The number of touchpoints a customer makes with a brand or product before buying?
Markerters study consumer behavior,Why?
Consumer behavior has always been an important factor for marketers. Now customers prefer to see and analyse products on mobile or laptop and then order which is in sharp contrast to earlier times when customers used to visit market after market to check stores for good product before buying anything.
Although some shoppers still prefer the experience of going to a physical store or being able to engage with the products in-person before they buy, e-commerce is thriving. In 1998, roughly 0.2% of all retail purchases were made online, according to the Department of Commerce. In the fourth quarter of 2019, online purchases comprised nearly 12% of all retail sales of 158 billion US dollars in United States of America, reported the Forbes magazine. Consumer behavior influences all buying decisions, regardless of the product or service. If you’re familiar with consumer behavior related to your Knowledge Commerce products, you can produce marketing copy that’s more effective.
Consumer behavior can be defined as the actions a consumer takes before, during, and after buying a product. These behaviors are informed by psychological, social, and emotional variables that influence buying decisions.
There are three types of buyers: unconflicted, spendthrifts, and tightwads. Each of these buyers makes purchase decisions differently, so you have to target them at different points on the sale funnel.
First, though, you need to collect consumer behavior related to your target audience. Read customer reviews, visit Q&A sites, run surveys, and conduct focus groups. You can also use tools like Google Analytics, Google Trends, and Twitter Insiders.
Mind your blog comments, research government data, and participate in social media. Don’t forget about your competitors, either. Understanding how your competitors win over your customers can help you convert more consumers.
Why Consumer behavior is changing?
The consumer behavior has been changing due to several reasons. For one, consumers are able to compare dozens of stores and products at once for both better prices and wider selections. Shoppers can also see the reviews and ratings of products within just a few clicks. Convenience plays a big role, too. Consumers now can access millions of goods from all over the world through their phones or computers. These changes have empowered consumers, making their shopping experiences more informed, personalized, and convenient than ever before.
The Exchange4media article quoted Preetham Venkky, Chief Digital Officer at DDB Mudra who said that there are generally two prime periods, around 4 PM and 10 PM, when platforms like Amazon, Flipkart, and other D2C channels experience the highest engagement.
“Every category across e-commerce platforms…they all know…when is their first interest, when is their browse, when is their ‘add to cart,’ and when is their completion,” Venkky explains. Most e-commerce categories tend to see high purchase completions between 8 PM and 11 PM.
How to judge consumer behavior?
According to an article in the medium.com, access to information has led to change in the consumer behavior. A study by GE Capital Retail Bank found that 81% of consumers go online to find information and answer questions about products or services before heading out to the store. This easy access to information shifts the power from brands to consumers, enabling them to make more informed and confident purchasing decisions.
Reviews:
Gone are the days when consumers would seek advice from family members or friends their purchasing decisions. Now they heavily rely on reviews and ratings to guide their purchasing decisions. Positive reviews build trust and credibility, while negative reviews can deter potential customers. This new layer of transparency forces brands to maintain high standards. Precisely for these reasons, it has become extremely important for brands, start ups and individuals to maintain high standard and sell quality products. Most reviews can be found on e commerce sites and Google business profile.
Consumer Awareness:
The rise in consumer awareness has changed the way information is gathered about new and existing products. The availability of information on internet and tools help consumers to make informed choices. However, empowered consumers are able to interact better with businesses, leading to more proactive decisions and higher self-efficacy. The awareness helps them become more confident to try new products or services and expect personalized experiences from brands.
Convenience:
Unlike traditional markets, online shopping can be done 24×7 thus making it convenient for people to buy products any time during the day or night. This was not possible in traditional style of marketing. More so, customers have begun expressing their unique needs and preferences to brands leading them to produce targetted advertising. Besides this, convenience has become very important in online or digital sales, a paramount factor, driving the expansion of online shopping, same-day delivery, and other time-saving services.
Recommendations:
Interestingly, E commerce sites like Amazon and Netflix excel create a customized user experience that feels intuitive and efficient.
Social Media
Many customers use social media platforms like Facebook, Instagram, and Twitter to research products, share their opinions, and connect with companies. This interaction has given consumers a powerful voice, allowing them to influence brands and fellow consumers through digital word-of-mouth. Recommendations from family members and friends along with endorsements from influencers play a significant role in shaping purchasing decisions.
Role of influencers:
Gone are the days when Bollywood personalities would endorse brands and help in increasing sales of brands. On the contrary, influencers like well known sportspersons, radio jockeys, radio broadcasters have become become a cornerstone of digital marketing strategies. Their endorsements can significantly boost a product’s visibility and credibility, leveraging their large follower bases to impact consumer choices. Their endorsements can significantly boost a product’s visibility and credibility, leveraging their large follower bases to impact consumer choices.
Impulse Buying and Emotional Engagement:
Eye –catching visuals and personalized recommendations have played a significant role in influencing consumers and compelling them to do impulsive buying. Digital platforms enable brands to quickly respond to consumer queries and concerns, fostering stronger emotional connections and transparent relationships.It has often been seen that emotional engagement has led to stronger brand allegiance and repeat business. Therefore, Colors, compelling copy, and strategic placement of ads can compel consumers to do impulsive shopping.
Flexibility and brand loyalty:
In view of availability of products variety, customers are open to try new products rather than sticking to branded products. Discounts, features and better value are three factors behind customers switching their loyalty. This shift is significant, making consumers more flexible and informed in their purchasing decisions.
Consumers have become more aware of seeking best deals and discounts. Price comparison websites and mobile apps make it easier than ever to find the lowest price, further eroding brand loyalty.
Data driven marketing:
The availability of online data has helped marketers change their marketing strategies, greatly impacting consumer behavior. Data-driven marketing enables marketers to alter their campaigns in view of specific consumer behaviors, providing personalized and relevant content. This approach not only enhances the consumer experience but also strengthens long-term brand equity.
Consumer behavior, preferences and trends can be analysed through advanced analytics for more insights. This data allows for more precise targeting and more effective marketing strategies, ultimately leading to higher conversion rates.
There are some interesting trends about customers engaging with digital platforms. Fractl conducted a survey of 1,000 consumers and found following points: Ninety nine per cent of the consumers said that they were using a search engine, with 80% saying that they use search engines a lot of times in a day. 91% of consumers used social media platforms, 87% watched YouTube videos and 81% reported reading an article on a website. People of all ages reported using a search engine, making it universal choice. Social media platforms like YouTube and TikTok and ChatGPT were more popular among younger people.
Case Study
The Nature.com conducted a study on the impact of digital technology on changing consumer behaviour with special reference to the home furnishing sector in Singapore.
The present study has evaluated consumer behaviour trends in home furnishing (furniture) expansion in eCommerce in Singapore. It has also compared the advantages and disadvantages of traditional (offline) versus online home furnishing stores (furniture) in Singapore. A further examination of the home furnishing business model’s future omnichannel (online plus offline) approach has also been presented. With the options of omnichannel options, retailers would ideally manage their issues on the level of consumers’ product involvement; offering such conveniences helps with regard to customer retention and managing consumers’ channel switching behaviours (Shankar et al., 2021). Additionally, such an approach would assist organisations in recognising the main enablers of and inhibitors to adopting (Jain et al., 2022). Additionally, organisations must use an appropriate engagement strategy to improve their involvement. Such approaches include online education, online brand engagement, and information system engagement (Jayawardena et al., 2022). As Singapore is a developed society, traditional brick and mortar stores have occupied most of the market share; however, vertical eCommerce is a fast-growing industry due to the effects of the COVID-19 pandemic. The results of the current study show that consumers are motivated if they are engaged online, which helps to change their behaviour and attitudes. It has also been reinforced that an exciting offline experience is one way to cater to consumer needs and enhance consumer buying behaviours. This research is crucial, as the business community needs to capture and retain customers’ attention, while at the same time, the need to brand a home furnishing is a stimulus.
Such a unique value proposition will distinguish competitors. In return, the brand’s image will create positive reinforcement. As using the internet has become the norm for almost everyone, an alternate target market strategy is recommended for gender, education and income level differences, with reinforced consultation and customisation and enhanced content marketing to attract an audience. To retain existing customers, more emphasis should be placed on the post-sale period, as the concerns of buyers include showroom location and quality and design.
How digital platforms influence consumer behavior?
According to an article in the digitalinformationworld.com, AI tools like ChatGPT are also making a remarkable change in the consumer market. 48% of the respondents reported using ChatGPT in the past week. 54% of them were younger people of ages 18-24 and 52% of them were ages 25-34. 16% of the respondents said that they use ChatGPT daily. It is important for digital marketers to have their presence in traditional search engines as well as making their content align with AI platforms.
Social media’s impact on consumer purchasing decisions is steadily increasing. According to the survey, YouTube holds the top spot for purchase influence, affecting 41% of consumers, followed by Instagram at 32% and Reddit at 29%. TikTok shows a particularly strong influence on younger audiences, with half of 18-24-year-olds reporting that the platform motivated them to make a purchase. Additionally, women are more likely than men to be influenced by platforms like Instagram and TikTok. Meanwhile, Facebook’s influence appears to be waning, especially among younger consumers, with only 11% of 18-24-year-olds influenced by Facebook compared to 31% of those aged 45-54.
However, challenges for marketers continue to multiply. Now they face significant challenge due to the use of ad blockers. According to the survey, 47% of respondents reported using an ad blocker, including 52% of those aged 18-24, who actively avoid ads in this way. This trend emphasizes the need for non-intrusive, engaging strategies that attract consumers naturally rather than disruptively. One effective approach is to leverage search engines, as 47% of respondents indicated that discovering a helpful article through a search engine would improve their relationship with a brand. To resonate with consumers, marketers should focus on providing valuable content that enhances the user experience.
Technology has long influenced consumer behavior, continually transforming how people shop, engage, and interact with brands. The rise of e-commerce and online shopping has made it possible for consumers to compare prices, read reviews, and access an extensive range of products globally from their homes . Social media platforms have also become powerful channels where consumers communicate with brands and gather product insights . In addition, the advent of voice assistants and smart speakers is reshaping consumer interactions, allowing people to make purchases, receive product recommendations, and order services through simple voice commands.
Role of Content Marketing
Content marketing remains a critical component of engaging with modern consumers. However, brands should focus on:-
Valuable Content Creation: Producing informative and engaging content that addresses consumer pain points can establish trust and authority.
SEO Optimization: Ensuring that content is easily discoverable through search engines enhances visibility and attracts potential customers.
Social Media Engagement: Actively engaging with consumers on social media fosters relationships and encourages brand loyalty.
Impact of AI tools on consumers
Generative AI tools like OpenAI’s ChatGPT, Google’s Gemini, and Microsoft’s Co-Pilot are now leading this transformation, with profound effects on consumer engagement. These tools enable businesses to deliver personalized recommendations, enhance customer support, and create interactive shopping experiences, all of which significantly influence consumer decision-making and brand interaction. Initial research shows that generative AI is already altering consumer behavior across sectors such as education, retail, and banking.
As generative AI continues to evolve, it becomes crucial to deepen our theoretical understanding of its impact and develop strategic approaches to harness its potential. By proactively integrating these tools, businesses can effectively manage consumer behavior shifts, offering enriched experiences that meet consumers’ growing expectations and preferences in a rapidly changing marketplace.
Generative AI technologies are now central to both current and future landscapes, significantly reshaping consumer behavior and influencing how people interact with products and services. According to onlinelibrary.willey.com article, this shift makes it essential to analyze these changes both theoretically and empirically to fully understand their implications. Brands, products, and services must adapt proactively, evolving their strategies to engage consumers effectively within this new AI-driven environment.
As generative AI continues to influence consumer behavior, there is a need for policymakers, industry leaders, and researchers to establish guidelines, regulations, and ethical frameworks that promote responsible use. Such measures are crucial to protecting consumer interests and ensuring societal well-being. In summary, generative AI is not only transforming everyday life but also prompting a need for comprehensive examination of its impacts.
Doubts on AI tools
Experts have expressed fear over the AI assisted search posing risks in all fields including marketing and research. According to latest article in the Forbes magazine, strong oversight is needed to balance the benefits of AI-assisted search with its risks. The article said that Companies need to establish clear data practices, ensure transparency about how user information is used, and maintain rigorous standards for content accuracy.” Regulations should also set boundaries to prevent AI-generated content from perpetuating misinformation or bias.Users should stay informed about data policies and be aware of what terms they agree to when using such platforms. As AI-enhanced search becomes more embedded in daily life, responsible usage and clear governance will shape its future impact”, the article stated.
The integration of search within ChatGPT marks the beginning of a new era in information access.
Yet, this evolution comes with significant warnings. Digital capitalism, driven by AI growth, risks exploiting users’ time, creativity, and personal data while straining natural resources for computing power and chip production.
The history of tech giants like Google, Amazon, Microsoft, and Apple illustrates how dominant players reshape industries and consumer behavior, the article stated and added that OpenAI now stands on the brink of joining these ranks, poised to influence the landscape of digital technology. To prevent potential pitfalls, robust policies and oversight are crucial.
Conclusion:
The transformation of consumer behavior in the digital age is profound and ongoing. As consumers become increasingly informed, connected, and empowered, marketers must adapt their strategies to meet these evolving expectations. By understanding the nuances of consumer behavior, leveraging technology, and prioritizing personalized experiences, businesses can thrive in a competitive marketplace.
In summary, the digital landscape has reshaped how consumers engage with brands and products. To succeed, marketers must remain vigilant, continually analyzing consumer behavior trends and adapting their strategies accordingly. Embracing innovation, understanding the importance of ethical marketing practices, and fostering genuine connections with consumers will be key to thriving in this dynamic environment.
