Literature Review

Topic:
How do new marketing technologies change the consumer decision making, satisfaction, communication and
loyalty?

Literature Review:
1. Purchase decision of generation Y in an online environment
The impact of social media usage and electronic word of mouth (EWOM) among Generation Y (born between
1981-1999) is greatly attributed to their enormous exposure to internet and technology. Thus, their buying
behaviour is also influenced by the exposure to new technology and social media. Generation Y actively share,
contribute, search and consume content – plus they playa and work on technological platforms of social media.
Generation Y members suggested that instead of mere trust, mediating role of conviction plays an important
role in determining their purchasing behaviour. The six constructs-
· social media usage
· EWOM
· Conviction
· Firm’s brand reputation
· Purchase intention
· Customer loyalty
The purchase decision consists of pre-purchase stage that is purchase intention and post-purchase stage that is
loyalty. The impact of social media usage and EWOM on purchase decision is mediated by conviction. This is
also indicated by theory of social sensitivity that trust mediates the effect of social media usage and EWOM on
purchase decision involvement. It is found that, it is this trust that becomes conviction with its continuous
development with the passage of time and influences the purchase decision to great extent.

2. Consumer perceptions and purchase behaviour toward imperfect fruits and vegetables in an
immersive virtual reality grocery store
According to a report by the Food and Agriculture Organization (FAO, 2011) of the United Nations, roughly
one third of the edible food produced in the world for human consumption every year – approximately 1.3
billion tons – gets lost or wasted. Fruits and vegetables (FaVs) including also roots and tubers (the FaVs
commodity group) have the highest wastage rates of any food ranging between 40% and 50%.
To assess the consumer buying behaviour towards misshapen FaVs, instead of using pictures or “classical”
marketing techniques to study consumers’ perceptions and purchasing behaviour in real shops, our study
utilizes a virtual grocery store created for the purpose. Recent evidence suggests that shopping behaviour in a
VR store is likely to be more similar to the behaviour in the physical store compared to the pictorial
representation of a number of food products.
It was found that in a virtual supermarket environment consumer tend to prefer “normal” FaVs in terms of
appearance rather than “heavily” misshapen ones. also found that consumers preferred the appearance of the
“moderately” misshapen FaVs compared to the “heavily” misshapen ones. Interestingly, stronger preference
was found for the appearance of the “moderately” misshapen FaVs compared to their “slightly” misshapen
counterparts (except for the appearance of fruits).

3. Consumer experience challenges: bringing together digital, physical and social realms.
In an era where AI, robots and digital twins are a natural part of the service experience, the customer experience
will undoubtedly change – for better or worse – depending on the goals and preferences of the individual
customer. The advance technology can play an important role in improving customer experiences,
organizational outcomes and societal well-being by increasing our knowledge and capabilities for co-creating
service within and across
1. Digital realm
2. Physical realm
3. Social realm
The opportunities and challenges of designing and executing customized service experiences in the future may
seem overwhelming due to the need for connectivity and congruence among the digital, physical and social
realms for each individual customer. The present research has developed a conceptual framework for analyzing
customer experiences at the intersection of the digital, physical and social realms. In this way, it offers a way
forward that explicitly considers how technology-enabled services will change the formation of customer
experiences, as well as providing managerial insights.

4. What extent does digital technology influence marketing capability which leads to companies’ growth
& variables in Consumer behaviour
Digital technology is progressively implemented by firms to respond positively to customer needs and, at the
same time, improve customer-side operations. It supports the interests of consumers and businesses and, at the
same time, helps drive sales and increase efficiencies by reducing costs. Digital marketing leveraging social
media channels provides SMEs with a new innovative way to interact with customers, providing an alternative,
cost-effective and attractive proposition.
Variables to look in consumer behaviour with the impact of technology in lifestyle are:
(1) Satisfaction.
(2) Propensity to complain.
(3) Sensitivity to price.
(4) Propensity to change providers.
(5) Word-of-mouth.
(6) Intention to repurchase.

Along with these there is also a significant relationship between demographic variables (age, level of education,
occupation, region of residence) and the usage of the products as well as the type of customers. Research has
been concluded that technology has a huge impact on consumer behaviour.
5. How does customer engages with brand related content on social media
Customer engagement in both business and consumer markets requires marketing communication strategies to
be modified by leveraging new technologies and tools. Social media has emerged as an effective new tool in
engaging customers with firm-generated or consumer-generated content online. social media has been found to
influence a brand’s reputation.
In the marketing literature, five aspects of social media marketing efforts have been found:
Entertainment
Interaction
Trendiness
Customization and
Word-of-mouth.
Consumers often switch to the different types of social media for the recent brand news because they perceive
these communications as more credible than firm-sponsored marketing communications. eWOM has been
found to have higher credibility, empathy and relevance for customers than firm-generated information on the
web (Gruen et al., 2006). As suggested by Blazevic et al. (2014), future studies on the interactive capacities of
the different communication media must also include individual preferences for interaction. Interaction is the
crux of any success in social media.
The development of information and communication technology (ICT) particularly the use of mobile
technology for marketing is expanding both in interest and relevance and regarded as a substitute for virtual
marketing.

References:
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131-145.
2. Bolton, R.N., Parasuraman, A., Hoefnagels, A., Migchels, N., Kabadayi, S., Gruber, T., Loureiro, Y.K.
and Solnet, D. (2013), “Understanding generation Y and their use of social media: a review and research
agenda”, Journal of Service Management, Vol. 24 No. 3, pp. 245-267.
3. Doyle, J.D., Heslop, L.A., Ramirez, A. and Cray, D. (2012), “Trust intentions in readers of blogs”,
Management Research Review, Vol. 35 No. 9, pp. 837-856.
4. Agin, G.J., Binford, T.O., 1976. Computer description of curved objects. IEEE Trans. Comput. C-25 (4),
439–449.
5. Bitner, M.J., 1992. Servicescapes: the impact of physical surroundings on customers and employees. J.
Mark. 56 (2), 57–71.
6. Virtual reality based conjoint analysis for early customer integration in industrial product development.
Procedia CIRP 25, 61–68.
7. multi-layered architecture for a collaborative design process in virtual environments. Int. J. Interact. Des.
Manuf. 4 (4), 137–148
8. Ray, G., Muhanna, W.A. and Barney, J.B. (2005), “Information technology and the performance of the
customer service process: a resource-based analysis”, MIS Quarterly, Vol. 29 No. 4, pp. 625-652.
9. Weerawardena, J. (2003), “The role of marketing capability in innovation-based competitive strategy”,
Journal of Strategic Marketing, Vol. 11 No. 1, pp. 15-35.
10. Bitner, M., Brown, S. and Meuter, M. (2000), “Technology infusion in service encounters”, Journal of
Marketing Science, Vol. 28 No. 1, pp. 138-49.
11. Mick, D. and Fournier, S. (1998), “Paradoxes of technology: consumer cognizance, emotions, and
coping strategies”, Journal of Consumer Research, Vol. 25, pp. 123-43.