1.e Technology and Consumer Behavior¶
Technologies often enhance customer relationships and retention by engaging consumers with brands. Procter and Gamble is the world’s larger manufacturer of beauty and grooming (e.g., fragrances, mouthwash, toothpaste, feminine care) and household care products (e.g., household cleaning, laundry detergents, over-the-counter drugs, and disposable diapers). For every brand, the company’s website includes suggestions on how to use the product more effectively. For example, for shampoo, the company provides a “scalp care handbook.” For its Gillette shaving blades, the website offers comprehensive advice about facial care and proper shaving. For its detergents, P&G advises consumers how to wash white and colors, which temperature is best for which types of fabrics, and how to handle stains on different materials. Amazon.com sends personalized e-mails to previous buyers announcing newly published books that reflect their interests and are based on past purchases.
Researchers have identified two interrelated forms of customer engagement with marketers: Emotional bonds represent a customer’s high level of personal commitment and attachment to the company. Transactional bonds are the mechanics and structures that facilitate exchanges between consumers and sellers. Savvy marketers always strive to build emotional bonds with customers. Technology, mostly in the form of social media, is the most innovative and versatile tool for engaging customers with companies emotionally and far beyond the selling act. Social media include means of interaction among people in which they create, share, and exchange information and ideas in virtual communities and networks. Social media use mobile and Web-based technologies to create highly interactive platforms through which individuals and communities share, co-create, discuss, and modify user-generated content.
Technology significantly influences consumer behavior by shaping how consumers interact with brands, make purchasing decisions, and access information. The impact includes:
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Increased Access to Information: Consumers can easily research products, compare prices, and read reviews online, leading to more informed and confident purchasing decisions.
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Online Shopping and Convenience: E-commerce platforms offer the convenience of shopping anytime and anywhere, influencing consumers to favor online purchases over traditional in-store shopping.
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Personalization: Advanced data analytics and AI allow companies to offer personalized recommendations and experiences, which enhances customer satisfaction and loyalty.
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Social Media Influence: Social platforms enable consumers to share opinions, seek recommendations, and engage with brands, making social proof and influencer marketing powerful tools in shaping consumer behavior.
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Mobile Technology: Smartphones have made it easier for consumers to shop, browse, and interact with brands on the go, increasing the importance of mobile-friendly experiences.
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Digital Payments: The rise of digital wallets and online payment systems has streamlined the purchasing process, making transactions faster and more secure, which can encourage more frequent purchases.
Technology has fundamentally changed the way consumers behave, making it essential for businesses to adapt their strategies to stay relevant and meet the evolving expectations of tech-savvy consumers.
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