The Impact of Technology on Consumers
The impact of technology on today’s consumers
Technology has brought a greater choice of things to buy and how to buy them. People use digital technology for entertainment, to connect with friends and relatives, to stay informed and to buy.
This is the impact of technology:
Global internet users is now past 4 billion
Well over half the population use the internet
People are now spending more time online with the average user spending 6 hours a day
Internet speed is becoming faster therefore more accessible
The increase is due to affordability of smart phones and data plans
2/3 of the world’s population now has a smart phone
Social media is more than just connecting with friends but has become an essential source of information. There are 1 million new users everyday on social media – 11 every second. More than 3 billion people use social media each month
People use online research to:
Look up product information
Read peer reviews
Check and compare prices
Search for deals and promotions
4 x as many customers would prefer to watch a video than read about it
50% of internet users watch videos relating to a product or service before going in store
100 million hours of video are watched everyday on facebook
2/3 of consumers prefer videos less than 60 seconds
YouTube has over a billion users
Online purchase behaviour
Is increasing worldwide
Gen X born 1966 – 1981 made the most purchases in the past year
Men and women shop the same but men spend more per transaction
Greater options for shipping and delivery have made it easier to buy bulkier products
Cross-border shopping is on the rise
People prefer a PC than phone to buy
"Today’s consumer no longer goes shopping, but is shopping"
Willy Kruh, KPMG International
Technology changing consumers
Consumers are using technology to research, browse and purchase.
Consumers use mobile technology while in store.
Online reviews are impacting purchase decisions.