Consumer Behavior

Slides: Changing Consumer Behavior

Add: McKinsey: Digitizing the consumer decision journey

Welcome to the New First Screen: Your Phone


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


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:

Different types of consumers on social media:


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

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:

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 ?