Digital Consumer

Behaviour

Workshop 1

Understanding The
Emergence of Digital
Consumer Behaviour
 Learning Objectives

1. Define Digital Consumer Behaviour

2. Discuss the new customer path from
traditional to digital shift.
3. Describe how consumers buy what they
buy.
4. Understand the three frameworks (3As, 4A
5A and O3) that attempt to explain the
consumer’s path.
Digital consumer

Digital consumer refers to a consumer using mobile

devices (smartphones, tablets, laptops, etc.) to search
for and purchase products on the Internet, taking
advantage of the content published online, aware of
themselves and their needs, and keen on simplifying
the decisions they need to make (Tarczydlo, 2016)
 Single-channel to Omnichannel world

Identic 2017, Omni-channel Marketing - What you need to know, Identic, retrieved 10th October 2023, <https://www.identic.be/en/omni-channel-marketing/>
 The usage of mobile technologies in selected countries across the world

Euromonitor 2016, Digital Marketing Blog, Digital Marketing Blog, retrieved 10 Oct 2023
The Trends Driving The Shift in the Digital World

Focusing on
Mobile Cross-Channel Altered Shopping
Commerce in the Shopping Norms
“Now” Economy

Bringing
“Showrooming” Move to Services
into Online exclusively
Channels
 The Changing Channel Landscape

• Technology advances significantly affect

channel landscapes, manufacturers and
retailers. They face new issues trying to
keep up.

• E-commerce, smartphones, and mobile

technology have changed how consumers
buy. Retailers like Parkson, Diamond
plaza, Dien may Cho Lon have suffered.
 Traditional Marketing Channels

Print (magazines, Broadcast (TV,

newspapers, etc.) radio, etc.)

Direct Mail Outdoor

(catalogues, (billboards, fliers,
postcards, etc.) etc.)

Telephone
(telemarketing, SMS
marketing, etc.)

Sherman 2019, Digital Marketing Blog, Digital Marketing Blog, retrieved 11 September 2022, https://www.lyfemarketing.com/blog/digital-marketing-vs-traditional-marketing/
 Disadvantages of Traditional Marketing

Sherman 2019, Digital Marketing Blog, Digital Marketing Blog, retrieved 11 September 2022, https://www.lyfemarketing.com/blog/digital-marketing-vs-traditional-marketing/
 Digital Marketing Channels

Sherman 2019, Digital Marketing Blog, Digital Marketing Blog, retrieved 10 Oct2023, https://www.lyfemarketing.com/blog/digital-marketing-vs-traditional-marketing/
Traditional Marketing vs
Digital Marketing Channels

Harsh 2021, Digital Marketing VS Traditional Marketing: What is better?, Code Design, retrieved 11 September 2022,
<https://codedesign.org/digital-marketing-vs-traditional-marketing-what-is-better>
Integrating Traditional to Digital Marketing
Channels

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, International edition, Wiley & Sons Inc., New Jersey
 Digital Transformation

Digital transformation is how

companies embed technologies across The customer
path is Build quality
their businesses to drive fundamental imperative for all touch points
industries
change.

Touch points are

the contact
points with your
customers
 The New Customer Path
Customer journey has been shifted from the conventional path to digital path due to the
following reasons:

Increased mobility and connectivity

Limited time to consider and evaluate brands.

Pace of life accelerates

Availability of online and offline channels —

consumers exposed to everything

Confused by too-good-to-be-true advertising

messages
Truelson, M n.d., The New Consumer Path, Mark Truelson, retrieved 10th Oct 2023, <http://marktruelson.com/the-new-consumer-path>
 How people buy?
There are three frameworks that demonstrate how people buy.

Early Pre-Connectivity Era of Connectivity

Elis Lewis Derek Rucker Philip Kotler

A.I.D.A. 4A’s Framework 5A’s Framework
Framework
Attention Aware Aware
Interest Attitude Appeal
Desire Act Ask
Action Act Again Act
Advocate

Namburi, V 2021, AIDA model in Marketing, Smartwriter A.I, retrieved 210th Oct 2023,
<https://www.smartwriter.ai/blog/how-to-use-aida-marketing-like-apple-or-nike-and-convert-strangers-to-customers>
 AIDA framework
1.
ATTENTION

4. Customer 2.
ACTION
Path INTEREST

3.
DESIRE

Namburi, V 2021, AIDA model in Marketing, Smartwriter A.I, retrieved 10 Oct 2023,
<https://www.smartwriter.ai/blog/how-to-use-aida-marketing-like-apple-or-nike-and-convert-strangers-to-customers>
Example
 4A’s Framework

AWARE PHASE • TV advertising, Banner,…

• Consumer’s like or dislike of the

ATTITUDE PHASE
brand

ACT PHASE • Salesperson interaction

ACT AGAIN • After-sales (service center)/

PHASE consumer service

Martinns, Friends watching sport on tv.

Kotler,
stockP.,photo
Kartajaya,
2019, H.,
digital
& Setiawan,
image, iStock
I. 2017,
Photos.
Marketing
retrieved
4.0: 13
moving
October
from2022,
traditional to digital, international edition, Wiley & Sons Inc., New Jersey.
<https://www.istockphoto.com/photo/friends-watching-sport-on-tv-gm1150813731-311670027>
 Connectivity in Digital Era

CUSTOMER CUSTOMER
ATTITUDE LOYALTY

BRAND BRAND
APPEAL ADVOCACY

Nutick Bpromise CS 2021, Why should your Marketing Efforts Align With The New Customer Path? – user’s Blog, Nutick Bpromise CS, retrieved 31st March 2022, http://3.109.65.133/2021/07/23/align-marketing-efforts-with-the-customer-path/

Nilov, M 2021, A woman holding a credit card using a laptop, Pexels, retrieved 13 October 2022, <https://www.pexels.com/photo/a-woman-holding-a-credit-card-using-a-laptop-6963843/>
 5As Framework

Amirali 2017, How Being Connected in Digital Era Has Changed the Customer’s Path?, Marketing In Asia, retrieved 23 March 2022,
<https://www.marketinginasia.com/2017/12/21/connected-digital-era-changed-customers-path>
 Example: Airbnb

Fox, G Airbnb Business Model: How Airbnb Makes Money, digital image, Gary Fox, retrieved 13 October 2022, <https://www.garyfox.co/airbnb-business-model>
 5A Framework Benefits

• Flexible tool
• Display customer’s actual path
• Helpful in Cross industry
comparisons
• Highlights Business’s relationship
with their customers
• Discover customer’s journey
problem
• Demonstrates the customer’s
dropout during the journey.
Figure: The 5A Customer Framework

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
Davis, G n.d. 5As Customer Framework Marketing Model, digital image, Don’t Think Check, retrieved 13 October 2022, <https://www.dontthinkcheck.co.nz/glossary/five-as-
customer-framework/>
 The O Zone (O3)
• The goal of Marketing is to drive
customers from awareness to advocacy.
• In general, there are three main sources
of influence marketers can use to do so.
• A customer’s decisions across The five
A’s show consumer decisions are
influenced by:
• a combination of their own influence,
• others’ influence, and
• outer influence.

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
Douglas, T 2021, Happy women standing on street with shopping bags, digital image, Pexels, retrieved 13 October 2022, <https://www.pexels.com/photo/happy-multiracial-
women-standing-on-street-with-shopping-bags-6567228/>
 The O Zone (O3) Cont.

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
 The O Zone (O3) (Contd.)
The O3 is another tool that helps marketers to
Optimize their marketing efforts.

q Outer Influence is more important than the rest

Marketers can focus more on marketing communications activities and channels.

q Others’ influence is the most important

Marketers can rely on community marketing activities.

q Own influence is the most important

Marketers should put more emphasis on building the post-purchase customer experience.

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
 The O Zone (O3) Cont.

• The Outer influence comes from

external sources (Advertising, and
marketing communications).
• Customers may be influenced by
conversation they heard on Social media
• The Youth, Women, and Netizens (an
active participant in the online
community of the Internet) are the most
influential

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
The rise of social media shopping 2020, digital image, Skubana, retrieved 13 October 2022, <https://www.skubana.com/blog/social-media-shopping>
 The O Zone (O3) Cont.

• Others’ influence coming

from them is often the major
driver of purchase (such as
recommendations or review
etc.)
• On the other hand, own
influence comes from
within oneself (Past
experience, personal
judgement etc.)

Kotler, P., Kartajaya, H., & Setiawan, I 2017, Marketing 4.0: moving from traditional to digital, international edition, Wiley & Sons Inc., New Jersey
Social Media consumers 2015, digital image, Retail Touchpoints, retrieved 13 October 2022, <https://www.retailtouchpoints.com/features/trend-watch/86-of-consumers-believe-
ratings-reviews-are-essential-to-the-shopping-experience >
Reference

Gupta, D. G. (2021). Consumer Behavior: A Digital Native, Chapter

1, 1-38
Tkaczyk, J. (2016). Digital consumer: Trends and challenges. The
impact of the digital world on management and marketing, 353-367.
 Next week
The perception of consumers
in the digital world