Lecture 1

Technology-Driven Consumer Behavior

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 Technology-Driven Consumer Behavior refers to how technological
advancements influence the way consumers search for, select, purchase,
and use products or services. This behavior is shaped by digital
platforms, social media, mobile devices, and e-commerce, altering
traditional purchasing patterns and expectations.

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Changing in Consumer Behavior

• Business operations started shifting away from

traditional to advance digitalized processes

• A further boost to the e-commerce industry, making the

online environment more competitive

• However, a consumer market that is not involved in

online shopping at developing countries

• From pandemic, drastic changes to the way

consumers used to form their intention and
behave toward digitalized solutions

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How Will Consumer Behavior Change In
2025?

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• In 2025, consumer behavior will be shaped by increased
demand for personalization, a stronger focus on
sustainability, and the expectation of seamless channel
shopping experiences. The integration of technologies like
AR/VR will enhance the way consumers interact with
products, while growing concerns about privacy will push
consumers to favor brands that offer transparency and data
security. These shifts will require businesses to adapt to
evolving consumer expectations, leveraging technology and
ethical practices to stay competitive.
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Marketing ?

Consumer Behavior ?
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MARKETING
• Marketing, more than any other business function, deals with customers

• Marketing is managing profitable customer relationships

• telling and selling”

• satisfying customer needs

• Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society

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CONSUMER BEHAVIOR
• The study of consumers’ actions during searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will satisfy
their needs

• Explains how individuals make decisions to spend their available resources (i.e., Time,
money, effort) on goods that marketers offer for sale

• Describes what products and brands consumers buy, why they buy them, when they buy
them, where they buy them, how often they buy them, how often they use them, how
they evaluate them after the purchase, and whether or not they buy them repeatedly

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Why It is hard to understand consumer behavior?

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• Understanding consumer behavior is challenging because it
is influenced by a complex mix of psychological, social,
cultural, and personal factors. Consumers' preferences,
motivations, and decisions can vary widely and are often
unpredictable, driven by emotions, trends, and changing
circumstances. Additionally, the rapid evolution of technology
and the vast amount of data generated make it difficult to
accurately analyze and predict behavior patterns. These
dynamics create a constantly shifting landscape that
businesses must navigate to meet consumer needs
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Marketing Concept
• Not try to persuade consumers to buy what the firm had
already produced; instead, they make only products that
satisfy consumers’ needs and aim to convert first-time
buyers into long-term loyal customers
Marketing Concept Application

How does Classico’s ad relate to the

marketing concept?

 Satisfy and turn them into loyal

customers
Socially Responsible Marketing
What is the societal marketing concept?

“fulfill the needs of the target

audience in ways that improve,
preserve, and enhance society’s well-
being while simultaneously meeting
their business objectives”
• The Ugmonk story began with Jeff Sheldon, who wanted to
combine his love for design with high-quality products. In
2008, he launched Ugmonk, initially as a t-shirt company, but
it grew into a lifestyle brand known for its minimalist designs
and premium goods. Jeff's focus on craftsmanship, simplicity,
and storytelling helped Ugmonk stand out, turning it into
more than just a t-shirt company—it became a brand that
values intentional design and a personal connection with its
customers.

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• Ugmonk’s social responsibility push is masterfully integrated
into its brand identity, website, and marketing. The first thing
you see at the top of the homepage is a heads up that Every
item you purchase = 3 meals for kids.

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Technology Benefits Consumers
and Marketers
• Technological innovations: transformed consumer behavior and
marketers’ selection and targeting of potential customers
• Ex: Integrated Marketing Communication (IMC)

• Recent marketing plans: improving digital sites, increasing social media

activity, and switching resources from traditional to digital media

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Behavior Information and Precise Targeting

• Specialized information exchanges

• Cookies

• Consumer access to information

• Consumer’s benefit

• Marketer’s benefit

• Product comparisons
• Comparable brands in a single screen

• One-click access to more tech-information

Interactive communication
• Enable a two-way interactive exchange

• Companies can measure the effectiveness of their promotional messages

instantly, instead of relying on delayed feedback

• Ex: Keep track of shoppers’ purchases  provide personalized coupon at the checkout

counter

• Enables promotional messages designed by the customers themselves

• Cross-screen marketing

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• IMC is broader, ensuring message consistency across all
channels, while cross-screen marketing focuses on reaching
you across multiple devices.

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Group Discussion Questions
In case of Food and Beverage sector during Covid-19
epidemic, please demonstrate

• How do they create value for the consumer?

• How do they communicate this value?

Individual Assignment – : Technology and
Customer Relationships

For Discussion:

• Provide one examples where brands used technology to

engage consumers/enhance customer relationships.

• Provide one examples where technology was used to add

value to the consumer.
Customer Profitability-Focused Marketing

• Tracks costs and revenues of Platinum

individual consumers
• Categorizes them into tiers Gold
based on consumption
behavior Iron
• A customer pyramid groups
customers into four tiers Lead
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Measures of customer retention
• Customer Valuation
• Value and categorize customers by financial strategic worth

• Retention Rates (%)

• At the beginning – the end of the year

• Analyzing defections
• Talking to former customers

• Analysis customer’s complain

• Benchmarking against customer’s defection rate

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Consumer Decision Making
• Inputs
• Firm marketing efforts
• Sociocultural influences

• Process
• Psychological factors
• Need Recognition, Decision Type, Prepurchase Search, Evaluation of Alternatives
• Learning

• Outputs
• Purchase
• Post-purchase evaluation
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THANK YOU

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