It may not be an overstatement to claim that a new industrial revolution is currently underway and is being fueled by the internet. Internet has shaped almost every imaginable aspect of our personal and professional lives. It is also true for us as consumers. Internet has not only provided a new platform to consumers for shopping but has also influenced their other behaviors.
In many instances, internet has changed the way consumers consume a particular product or service. One of the best examples may be the decline of Blockbuster and the rise of Netflix. Similarly, consumers would usually go to shops to buy music cassettes or CDs but many now purchase music online and instantly. Record companies primarily used to sell whole albums but now consumers can choose between whole albums or individual songs. Similarly, many consumers now opt out of bank statements that arrive in mail and rely on online bank statement to stay up-to-date on their finances.
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"How Has Internet Influenced Consumer Behaviors?".
Internet may also have made consumers more price-sensitive because it is easier to compare prices on the internet and the time and cost to compare prices online is almost nothing when compared to the time and efforts required to compare prices on the mall. Another reason why consumers may have become more price sensitive is the fact that many goods and services originally for sale now can be obtained for free and this phenomenon is behind the decline of the traditional newspaper industry.
Internet has also made consumers more knowledgeable due to the ease of obtaining information. In addition, internet platforms such as social media also allow consumers to harness the collective knowledge of their family members, friends, and acquaintances. Similarly, there are consumer and expert reviews on the internet which can be accessed with few mouse clicks.
Internet has also inspired consumers to become more engaged with the companies they do business with. Consumers are not afraid to voice their opinions regarding their experiences with products and services and even the ethical conduct of the companies. In addition, they are engaged with two-way communication with companies through social media and they want their opinions to be heard. Companies understand the costs of negative news or even gossip on the internet which is why they are often quick to respond to consumers on social media.
Consumers have also become more willing to share information with companies in the hope that companies keep them up-to-date and are also inspired to improve their offerings. Many customers sign up for email newsletters and promotional materials and similarly ‘like’ corporate pages or follow them in the social media such as Facebook and Twitter. When companies seek suggestions and ideas, consumers are not afraid to speak up.
Internet may have given consumers more power but it has also imposed some costs on consumers, especially loss of privacy and threats to confidential information. There has been no dearth of news of corporate security breaches including Target. Similarly, companies like Google and Facebook have rich data on their users. Many consumers are irritated by what they see as excessive intrusion into their privacies.
Internet has been a revolutionary force and it has given more power to consumers but at the same time, it has also made marketers better at their jobs. But not all effects have been positive. Internet has seriously reduced consumers’ privacy and their information is often collected without their knowledge.
