• Module III : Consumer Behaviour in Digital Age Descriptors/

Topics : Digital consumer, Digital consumer buying journey,

Consumer Buying Funnel, Emergence of consumer behaviour.
Understand the difference between digital natives and physical
natives Concept of E-CRM. Identify with the concepts of the
future of consumer behaviour
 • Consumer behavior refers to the study of how individuals make
decisions to spend their available resources (time, money, effort) on
consumption-related items. In the digital age, this behavior has
evolved due to technological advancements, the internet, and social
media. Key aspects include:
1. Online Purchasing: Consumers can now buy almost anything
online, influencing how they interact with brands.
2. Omni-channel Experience: Customers expect seamless transitions
between online and offline experiences.
3. Personalization: Brands are using data to personalize offers,
targeting specific consumer preferences.
4. Instant Gratification: The rise of on-demand services and products
means consumers expect fast responses and deliveries.
5. Influence of Social Media: Consumers' decisions are now
influenced by online reviews, influencers, and social media trends.
 • Importance of Understanding Consumer Behavior:
1. Better Marketing Strategies: Understanding how consumers
behave allows businesses to tailor their marketing efforts more
effectively.
2. Improved Customer Experience: By knowing what customers
expect and value, businesses can enhance their user experience,
leading to higher customer satisfaction.
3. Data-Driven Insights: Digital platforms provide valuable data that
can be analyzed to predict future behavior, trends, and demands.
4. Brand Loyalty and Retention: Personalization and timely customer
service create stronger relationships with consumers, encouraging
loyalty.
5. Competitive Advantage: Businesses that adapt quickly to the
changing consumer behavior in the digital age can outperform their
competitors.
 • Digital marketing helps influence and understand consumer behavior
by:
1. Targeted Ads: Personalized ads reach the right audience based on
their preferences, increasing the chances of engagement.
2. Data Analysis: Marketers use consumer data (search habits,
purchases) to predict behavior and tailor campaigns.
3. Instant Feedback: Social media allows consumers to share reviews
and feedback, influencing other potential buyers.
4. Omni-channel Presence: Digital marketing connects with
consumers across multiple platforms (websites, apps, social media),
ensuring a seamless experience.
5. Content Marketing: Valuable content helps educate consumers and
guide their purchase decisions.
Digital consumer buying journey

• The digital consumer buying journey refers to the path a potential customer takes from
the moment they become aware of a product or service to the final purchase.
Understanding this journey is crucial for marketers aiming to optimize their strategies and
influence buying decisions. Here’s a concise breakdown:
• 1. Awareness Stage
• The consumer becomes aware of a need or problem, often discovering products or
services through social media, search engines, or ads. Digital touchpoints include:
• Blog posts
• Social media content
• Paid ads (e.g., Google or social media ads)
• 2. Consideration Stage
• The consumer actively researches solutions, comparing products and services to make an
informed decision. They may:
• Read product reviews
• Watch videos (e.g., YouTube reviews or unboxings)
• Engage with influencers or brand content
• Use comparison tools
• Decision Stage
• At this point, the consumer narrows down their options and is ready to purchase. Key digital interactions include:
• Visiting the brand’s website or app
• Reading customer testimonials
• Using discount codes or special offers
• 4. Purchase Stage
• The consumer completes the transaction via an e-commerce platform, app, or website. It’s important for the process
to be smooth with:
• Easy navigation
• Secure payment gateways
• Responsive customer support
• 5. Post-Purchase Stage
• After buying, the journey continues with follow-up communication like:
• Email marketing (e.g., product recommendations)
• Social media engagement
• Surveys for feedback
• Loyalty programs or referral incentives
 • The emergence of consumer behavior as a field of study is rooted in
understanding how individuals make purchasing decisions, influenced by
psychological, social, and cultural factors. Over time, various trends have
shaped consumer behavior, including:
1. Personalization: Consumers now expect brands to tailor their offerings to
individual preferences. Companies leverage data to create personalized
experiences.
2. Ethical Considerations: Modern consumers are more conscious about
sustainability, ethical sourcing, and social responsibility, influencing their
purchasing decisions.
3. Digital Influence: The rise of digital platforms, including social media, has
transformed how consumers discover, research, and purchase products.
4. Convenience & Instant Gratification: The growth of e-commerce and on-
demand services has driven a desire for fast, seamless shopping
experiences.
• Digital Natives:
• Who they are: People born during or after the rise of digital
technology (like the internet, smartphones, and computers).
• Key traits: They grew up using technology, so they are very
comfortable with it. They often prefer texting, social media, and
online activities.
• Example: Younger generations like Gen Z.
• Physical Natives:
• Who they are: People who grew up before digital technology was
everywhere.
• Key traits: They are more used to face-to-face interactions and
physical experiences, like talking in person or reading books.
• Example: Older generations like Baby Boomers and Generation X.
• Main Difference:
• Digital Natives: Comfortable in the digital world, good at
multitasking online.
• Physical Natives: Prefer real-world interactions, tend to focus
on one thing at a time.
• In short: Digital natives grew up with tech, physical natives
didn’t.
 • E-CRM (Electronic Customer Relationship Management) is the use of
digital technologies to manage and improve a company's relationships with
customers. It helps businesses gather, store, and analyze customer data
to enhance customer service, marketing, and sales efforts.
• Key Features:
1. Customer Data Management: Stores detailed information about
customers, such as purchase history and preferences.
2. Automation: Automates tasks like sending emails, managing leads, and
tracking interactions.
3. Personalization: Enables personalized communication, such as targeted
marketing campaigns.
4. Customer Support: Helps manage customer inquiries and complaints
through online channels.
• In short, E-CRM uses digital tools to build better, more personalized
relationships with customers.
Future of Consumer Behaviour
• The future of consumer behavior is expected to be shaped by
several key concepts as technology advances, societal values
shift, and market conditions evolve. Here are some important
concepts to consider:
• 1. Hyper-Personalization
• Trend: Consumers increasingly expect personalized
experiences. AI and big data will enable brands to deliver
tailored product recommendations, customized ads, and
unique customer journeys.
• Impact: Companies will need to analyze consumer data more
effectively to predict behaviors and preferences, leading to
increased customer satisfaction and loyalty.
• Sustainability and Ethical Consumption
• Trend: Conscious consumers are more concerned with sustainability and ethical
production practices.
• Impact : Businesses that are transparent about their environmental and social impact will
gain trust. Sustainable brands will see growth as consumers prioritize eco-friendly options
and companies with strong ethical values.
• 3. The Experience Economy
• Trend: Consumers will seek experiences over products. The demand for immersive and
memorable experiences will increase.
• Impact : Brands must go beyond simply selling products by offering experiences that
connect emotionally, whether through virtual/augmented reality or real-world engagements.
• 4. Omnichannel and Seamless Shopping
• Trend: Consumers expect seamless transitions between online and offline experiences.
Omnichannel retail, where digital and physical shopping are integrated, will become
standard.
• Impact : Companies will need to provide consistent experiences across all touchpoints,
from mobile apps to in-store visits, and leverage data to create a unified customer journey.
• Artificial Intelligence (AI) and Predictive Analytics
• Trend: AI will drive predictive analytics, helping businesses anticipate consumer needs before they arise.
• Impact: Brands will use AI to optimize inventory, personalize marketing efforts, and offer predictive customer service,
enhancing convenience and reducing friction in the consumer experience.
• 8. Social Commerce and Influencer Trust
• Trend: Social media platforms will continue to merge with e-commerce, creating an ecosystem where consumers
discover, engage with, and purchase products directly within social networks.
• Impact: The role of influencers and peer recommendations will grow as trust shifts from traditional advertising to
individuals with relatable, authentic content.
• 9. Health and Wellness Focus
• Trend: Post-pandemic, consumers are more health-conscious and prioritize wellness in their purchasing decisions.
• Impact: Brands that offer health-oriented products and promote overall well-being will appeal to this growing
segment, while services that cater to mental and physical health will expand.
• 10. Metaverse and Virtual Worlds
• Trend: Virtual worlds, particularly in the metaverse, will create new spaces for consumer engagement, shopping,
and entertainment.
• Impact: Brands will explore immersive digital spaces to interact with consumers, creating virtual stores, products,
and exclusive digital experiences