Consumer Behavior

Slides: Changing Consumer Behavior

Add: McKinsey: Digitizing the consumer decision journey

Welcome to the New First Screen: Your Phone

Generational

• Baby boomers
• Generation X
  • learned Internet and adapted to it
  • adapting to mobile
• Generation Y (millennial)
  • grew up with Internet
  • adapting to mobile
  • Pew Research: lack of trust of traditional institutions, more debt, less employment opps, optimistic in the long run
  • Millennials Consume Content Every Waking Hour (And Then Some) (note, second screen means consumers are more distracted, less likely to consume display ads, reason for growth with native)
• Early teens
  • Mobile First… (Generation S: Is Your Brand Ready For ‘Generation S’ (Screen)?)

Survey results for class include:

• 97/98 have a smart phone
• Access smart phone about 40 times a day: ubiquitous access
• Time spent on smart phone, about 3.5 hours per day (2.5 hours on PC)
• Smart phone primarily used for social activities
• 91/98 students on iOS, remainder Android
• 96/98 Students on Facebook
• 80% also on Twitter, Instagram and Snapchat
• Average number of networks: 4
• 100% students made a purchase on the internet
• 75% of students listed Amazon as a top three e-commerce site from which they have purchased
• More than 50% made a purchase from their smart phone

Purchase Process

Zero Moment of Truth 2 minute video

How the Digital Age Is Rewriting the Rule Book on Consumer Behavior

• Traditional purchase process (a linear, narrowing, funnel), flow
  driven by company driven touch points:
  1. Awareness
  2. Familiarity
  3. Consideration
  4. Purchase (importance of instore experience)
  5. Loyalty
• Internet-based purchase process:
  1. Consideration
  2. Active evaluation (consumer driven touch points)
  3. Moment of purchase (influenced by instore and mobile)
  4. Loyalty loop (active versus passive)
• Increasing consumer empowerment (passive media consumption versus active search)
• Increasing access to Word of Mouth
• Internet used at everystage of the purchase process
• Search behavior
  • Fixed: earlier in the purchase process (research)
  • Mobile: throughout the purchase process: seeking quick, useful information to augment purchase process
• Mobile means internet is always available (ubiqitous access
  throughout purchase)

• Web and Social means customer feedback readily available, throughout purchase process (with Mobile)

Second Screen

Changing consumer behavior, in terms of how we consume
traditional media. Increasing use of a mobile device while watching TV, for example.

Activities include:

• Social media, generally
• Social media, tied to program (Social TV)
• Researching products, being advertised on TV
• Buying products, being advertised on TV
• Apps tied to shows

Demographics

The Web, which was established in 1994 with the first GUI web browser, has experienced a phenomenal growth curve in terms of number of consumers that now use the medium. Social Media, a more recent phenomenon and a subset of the web, has also experienced incredible growth. The following are resources that highlight these growths:

• INTERNET GROWTH AND STATS
• List of countries by number of Internet users
• ClickZ: Audience: Traffic
• Google Images: Number of Internet Users by Year
• Social Networking Statistics
• Pew Internet: Social Networking (full detail)
  Google Images: Number of Social Media Users, by Year

Different types of consumers on social media:

• The 6 Types Of Social Media Users
• Research on Social Media Users

Access

Watch: Going Mobile – Understanding the changes in mobile consumer behaviour

How People Really Use Mobile

The rate of adoption of smart phones is the fastest in technology
history.

The shift to mobile access creates a shift in consumer behavior. It
presents tremendous opportunities, and corresponding risks.

How consumers access the web, and social media, impacts their behavior.
Originally access was PC-based, from a fixed location. iPhone was
introduced in 2007, which innovated the smart phone market, and allowed mobile access to the web. The tablet, innovated by the iPad in 2010, has further increased access via a mobile device. The following resources illustrate the increasing access to the web, and social media, via mobile devices, as well as the growth of a new medium, Mobile Apps:

• Report: Mobile Devices To Surpass PCs in Web Access by 2015
• Report: Nearly 40 Percent Of Internet Time Now On Mobile Devices
• The Rise of the Mobile-Only User
• Pew Internet: Cell Internet Use: 2012
• Mobile consumer behavior
• Mobile App Usage Further Dominates Web, Spurred by Facebook
• Dark Horses In The Cross-Device Targeting Space

Mobile access means:

• Different behavior: task-focused versus information-seeking
• Consumer behavior versus Creative behavior
• Location-based data
• Access to Apps, as well as the mobile web
• Mobile-first generation ?

Consumers using multiple devices

A new revolution ?

• 1999: Cluetrain Manifesto