IMPACT OF CONSUMER BEHAVIOUR IN DIGITAL ERA
Digitization of products and processes
has changed consumer behaviour in several ways. Changes can
be found not only in human actions
but also in attitudes and ethics. The
music industry has been a pioneer in digitized societies. In the new
millennium it has also faced the downsides of the development: digital
piracy and, as a consequence of it, declining
revenues. These threats are not limited to
the music industry but concern many
other sectors whose products can be
digitized. The mainstream of previous and contemporary IS/IT
research has been optimistic and emphasized the positive impacts of
digitalization. Those who have considered the negative impacts, such as the
consequences of digital piracy, have done it from a single perspective, usually
from the business perspective. A wide understanding of how digitalization takes
place in societies is missing. This research gap is addressed in our
thesis. Although the focus is on consumer behaviour of digital
contents, in general, and of digital music, in particular, the objective
is to get a more comprehensive understanding of digitized
societies.
1.
Consumers
now have their own benchmark of what “Looks Good”
With advent of Digital Marketing, the
consumers are a troubled soul; they have different definition of “what Looks
Good” to them. They will compare an FMCG product’s service with that of TV’s
service. They expect one brand element to be equivalent to another brand’s
element. There have been instances where people tweeted on FMCG companies’
handle on how let’s say Samsung has a better Quality of Service than what they
provide. I mean these two products are far apart. But, consumer is King. So,
now every company has to be on their toes now because, they are now competing
with anyone and everyone on Social Media Space.
2. Consumer Tolerance is reducing at an
alarming level
Consumer wants response as fast and as
clear as possible. It takes merely one Viral tweet or post to destroy or build
a company’s rapport. Platforms like, mouthshut, quora, twitter, facebook, etc.
are being used by consumers to share their misfortunes that they had faced with
a company. Negativity attracts people and this is human psychology. Very few
users will put a grateful post on FB or Twitter. To tackle such situations, a
brand must follow ORM strategy (Online Reputation Management). ORM is basically
a management system where you respond to people who are talking about you. If
they are talking good, then thank them and ask to visit your website. If they
are talking negatively about you, ask them to chill and ask them to register a
complaint on the helpdesk. Make sure that the helpdesk solves the problem
because again the customer will go to Social Media, but now he/she would be
even angrier! Such interactions create a positive impact on people.
3. Consumer Dialogue- Word of Mouth
Word of mouth is still one of the most
effective marketing tools. Before Digital Marketing people used to ask elders,
or people who have domain knowledge of the specific product they are about to
buy. But, now the list has new entries like Rating, Reviews (User and Expert),
Testimonials, etc. The decision of a consumer to buy a product, online or
offline, they will first Google search it, and then they will go to review
sites and read what experts and users have to say about the product.
4. People are not afraid of experimenting
Gone are those days when people are
afraid of using a new product and would use it only when somebody else puts a
trust deal on the product. Now, a new product with good features and quality is
lauded with applause by our consumers. Best example can be Renault Duster car.
This car became national sensation in a very brief period of time. It was also
not backed up by a trusted brand like Maruti or TATA. Experimenting concept
prevailed and due to which many companies like OYO, Uber, Ola, etc. came to life.
5. Consumers are now switchers instead
of Loyal
Loyalty in consumers is now an extinct
feature. There was a time when people in India just had a trust in one brand in
mobile phone industry, NOKIA. Now, NOKIA is nowhere to be seen. Likes of MNCs
like Samsung, Apple is now being threatened by new comers like Oppo, Xiaomi,
Gionee, One+, etc. Flash sales and people getting mad over these low cost
ultra-features phones. Another close to home example is Patanjali, Baba Ramdev
initiative. Patanjali has made MNC sweat. Colgate accepted that they have a new
competitor in town. Patanjali as of now is a Rs. 5,000 crore company!
6. People use more than one Social
Media channels now
It is not upto brands to decide which
social media platform they want to be on. It is now decided by the consumers.
If consumer is on FB, Twitter, Snapchat, Vine, G+, Tumblr, Instagram etc.
brands have to be present there. They have to interact with people to create a
buzz among them. Once a positive buzz is created, word of mouth spreads like
fire.
Conclusion
It is an attempt to understand the
behaviour of Consumer towards online shopping. The data analysis has given
clear indication of increasing significance of online buying of the consumers.
The ease and convenience of shopping and the discounts available has made
shopping convenient for consumers buying online. The majority of consumers
buying online are youngsters and the majority of goods and services demanded
are laptops, mobile phones, electronic goods and booking of travelling tickets
and hotels. The major fear in the consumer’s mind during online purchase is the
difference between the product shown on website and the delivered one. By
improving after sales service, providing more secured payment options, timely
delivery of products can boost the online shopping of consumers.
Mudit Tomar
Assistant Professor
JEMTEC School of Law
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