The impact of digital media on consumer spending has had a positive and negative impact on the average consumer. While digital media has opened up new businesses and career fields, simultaneously it has closed and decimated traditional “brick and mortar” establishments, decreasing the need for sales professionals. Many years prior to the affordability of personal computers in the 1980s, consumers were hunter-gatherers, whereas their actual jobs were hunting and gathering food for everyday subsistence. Once humankind evolved, trading and bartering came into play along with an increased level of occupational specialization. As the world population increased, natural resources decreased, innovation and transportation systems improved, and trade became the vehicle for survival and wealth building. Fast forward to present day, and we can see three major impacts digital media has had on consumer spending, the ease of accessibility for the consumer, the financial benefit to the online retailer, and the impact to the traditional “brick and mortar” establishments.
Seeing that we are becoming more of a sedentary society, ease of accessibility is critical in the influencing consumers spending habits. Fast food restaurants, microwave foodstuffs, and “instant” products all have one major advantage to the consumer…they save time. Consumers spend an average of 8.6 hours working per day (Labor), therefore with only 24-hours in the day; any product or process that can save precious minutes could be destined for success. Online shopping is only a few clicks away, and the product you select will be at your doorstep in a relatively short period. Additionally, with internet accessibility, consumers spend less time and resources researching products...
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While logos may still play a significant role in the way American’s purchase goods, their influence is undeniably waning. Naomi Klein’s conclusions may have been valid in 2002 because no one could have possibly foreseen how the Internet would change the way we do business. Increased information freely accessible to everyone is changing world’s markets. It remains to be seen what our global economy will look like in ten years and what impact well-informed consumers will have on the world’s market-economies.
Orr (2013) has proposed several ways in which the online consumer’s behaviour has changed and suggests that brands need to take this into account and adapt their digital strategy to better facilitate this new “2.0 Consumer”.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
Convenience offerings are items that consumers spend little effort in regards to their buying behavior. These items can be impulse buys and low-involvement products. They carry a low risk of failure, and often times require no planning in the consumer’s mind before
The years between 2000 and 2009 could be regarded as the cradle of the Digital Buyer. Events and developments shape behavior. We went through some very turbulent socioeconomic times while our technologies continued to evolve. We experienced the dot-com shakeout, 9/11 and barely escaped an economic meltdown that was caused by what was supposed to be some of our most trusted institutions. I believe the impact of these events has shaped the overall buyer psyche for risk and the ability to grant trust. On the upside, during this time, technology transformed the buyer a more capable Digital Buyer.
The rise of the Internet in the last decade has brought about a new form of business that has revolutionized the way in which the companies of today operate. There are many possible explanations for the rise of this form of business in society, and all of these explanations are debatable. The rise of digital information and information technology has created a powerful tool that mutually enables consumers and companies to bring about the transformation of traditional capitalism. Companies such as eBay, an online auction site, have created a virtual marketplace for the collectivity of buyers and sellers, improving the dynamics of capitalism. These companies leverage the accessibility, efficiency and information-richness of electronic commerce using the Internet as a tool for the transmission of information. The capitalistic system remains constant in the traditional physical market place, as well as on the Internet; the difference lies in the efficiency of information transmission.
“The term digital marketing has evolved over time from a specific term describing the marketing of products and services using digital channels – to an umbrella term describing the process of using digital technologies to acquire customers and build customer preferences, promote brands, retain customers and increase sales” (Financial Times, lexicon.ft.com; P.K.Kannan Hongshuang “Alice” Li 2017). Following the American Marketing Association's firm centric definition (https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx), digital marketing may be seen as activities, institutions, and processes facilitated by digital technologies for creating, communicating and delivering value for customers and other stake-holders. For the purpose
Another convenience of online shopping is that it is time and energy saving.When we shop for items in the shopping mall, we would have to go from one store to another to look for a specific item, which sometimes we don’t end up finding. This usually puts us in a chain of travelling from one place to another, which is generally very tiring and time consuming. However, with online shopping, all this waste of energy and time can be subtracted; as we would not have to wait for opening hours, face pushy st...
The next argument in favor of online shopping is that consumers might enjoy a lower selling price. A recent survey conducted by Giu...
The advertising industry is a multi-billion dollar industry in the United States. Companies compete against each other and allocate big budget to improve and promote advertisements solely to persuade consumer’s preferences toward their brand or product. Advertisers construct a sense of synonymy to brands and products while influencing consumer’s settled way of thinking or feeling about the brand or product, typically one that is reflected in a person’s behavior. The purpose of advertising itself is to persuade audience (viewers, readers, or listeners) to take some action with respect to products, ideas, or services (Curtis, 2012). The success of advertisements can be determined by the consumer’s final decision to consume the said products or service, in oppose to the competitors. In correlation, consumer behavior indicates the act of acquiring, using and disposing of products, services, ideas, or experiences whilst includes the search for information and actual purchase. It also refers to the understanding of consumer thoughts, feelings, and actions (Harich).
The Internet has significantly transformed how consumers shop for goods or services. While traditional in-store shopping still dominates in some industries in various countries, it has done little to increase convenience, efficiency, and ease of shopping and making travel arrangements. According to a survey conducted by the Nielsen Company in March 2010, there are some products that are universally bought online ...
Digital marketers must keep up-to-date with the consumers preference, trends and needs, in order to meet these needs and to be able to remain competitive in the market . The connectivity created by digital media leads to enhanced product benefits such as online games and applications (Pride & Ferell, 2014). However, the use of the internet to sell products could be a disadvantage to the business since the goods being sold are intangible, the consumer could research and find reviews describing a product as low quality which could result in sale losses (Brand Driven Digital, 2013).
Have you ever bought something online? Did you think about the possibility of the internet scamming you into paying more than you needed to? The next time you shop online, you will likely do a bit more research before taking the risk. The author of "How Online Shopping Makes Suckers of Us All," Jerry Useem, attempts to influences the reader through various issue, arrangement, and style elements that online shopping, and its largest representative amazon, threatens both the economy as a whole and the readers wallets.
In Australia the economy is growing very fast and the buying pattern of the consumer has been changed. The people of Australia are now using internet for their economic transaction and this tendency is growing very fast. Internet based shopping is growing very fast throughout the world. In 2012, US retail sale is $320 billion, increased by 18 per cent from previous year and internet now influences 27 per cent of the total retail sales. By 2014, it ...