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...
... middle of paper ...
...rt journey towards insolvency.
Works Cited
Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Consumers.
Chicago, IL: Retrieved from
http://www.internetretailer.com/trends/consumers/
Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Sales.
Chicago, IL: Retrieved from
http://www.internetretailer.com/trends/sales/
United States Department of Labor, Bureau of Labor Statistics. (2011). American Time Use
Survey. Washington, DC: Retrieved from
http://www.bls.gov/tus/charts/
Hubbard, R. G., & O’Brien, A. P. (2010). Macroeconomics. (3rd ed.). Boston, MA: Pearson.
United States Department of Commerce, Census Bureau, and International Trade
Administration; Advocacy-funded research by Kathryn Kobe (2007). Washington, DC:
Retrieved from
http://www.sba.gov/advo/research/rs299.pdf
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.
Technology is a great gateway to reach the affluent consumer audience. Consumers in this category are likely to use technology to thoroughly research a product or company before making their purchase. It is suggested that companies take extra time and effort to online sources in order to attract affluent customers. Recommendations include, “reach out to users who post negative reviews and find ways to mitigate their impact or explain misplaced blame, connect with shoppers on a more intimate level than broadcast TV through blogs, and use social media as a way to improve customer satisfaction” (Haack,
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 ...
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
M&E industry will likewise profit from continued rise in the propensity to spend among individuals; observational confirmation points to the fact that diminishing dependency ratio prompts higher optional spending on entertainment.Traditionally only advertising has been a key source of income for M&E industry, however off late r revenues from membership and value-added services has also contributed significantly. With customers willing to pay for content and additional services, the membership section will assume a vital part in the post digitization era.
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.
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.
As shown in the figure 1, one of the key factors of market expansion is Technology. Using internet, mobile phone and making transactions online are all put together under one term – The Digital marketing. Digital marketing is the advertisement to boost up the sale of products or brands using the available forms of electronic media. Digital marketing is creating exponential leaps for businesses of all categories and varying sizes.
The Effects of Advertising and Media on Society Advertising is an important social phenomenon. It stimulates consumption and increases energy consumption. economic activity models, life-styles and value orientation. Consumers confronted with extensive daily doses of advertising in multiple media. With the continual attack of marketing media, it is presumable that it will affect our individualism and society as a whole.
The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.
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).
This have create so much ease for the access of information and entertainment. The use of the Internet have constantly increase the amount of user capability to multitasking, as of September 2009 there have been up to an increment of 30% in the US (Gali Einav, 2010). With technology as a rapidly growing trend, consumers find it relatively a necessity to own a smart phone. Having to view the news without the interference of having to wait through commercial or advertisement, the internet has created a passive platform for advertisement to be display passively. With the Internet supporting throughout multiple kind of device’s platform, the hassle of viewing the news will not be an issue for any consumers as long as they are logged on. This has caused a great deal towards the mainstream media, by creating participating communities around the media events. Consumers may choose to desert and choose the Internet as a substitution of traditional news media with the assumption of users being a more active consumer, rather than passive (Scott L. Althaus & David Tewksbury,
Online shopping is strongly beneficial for both consumers and businesses, as it allows ease of service, customization for customers, and can increase sales and reputation of businesses. Giving the consumer the ability to shop in the comfort of their own home, without spending a large amount of time, as they may experience at a Retail location, gives them the sense of freedom while purchasing. This can improve a Company’s reputation, and allow for targeting a larger mass market by appealing to customers.
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach
Traditional marketers achieve consumer loyalty by providing a better product, price, or communication. However, communication tends to be limited in traditional marketing once the product is sold or the service is done (Bush). In order to continue retaining consumers, businesses should provide communication to consumers before and after a product is sold, in order to form a more personal relationship. Such a quality is possible through the use of digital marketing. Since digital marketing allows quicker connections between consumers and businesses, instant feedback of products are easily accessible (“Comparing Traditional Versus Digital Marketing”). In order to gauge customer satisfaction for traditional methods, one must conduct long, time consuming surveys and focus groups. With product feedback through digital platforms, an online survey or analyzation of consumer clicks could provide as much feedback in less time. Those who are skeptical of investing in digital media because the fear of not being able to reach older audiences should consider certain facts, such as the increase in elderly people going online. Despite the belief that elderly people don’t use digital devices, a study on Pewinternet.org showed that about 77 % own cell phones, and 59% use the internet (Smith). If a business plans on targeting an older