Impact of Technology on Family and Consumption
Introduction
The modern consumer market has gone through a variety of changes, related to the development of technology, globalization, and growth of international trade. While these changes can be observed on a global level, one can not avoid looking at the shift in consumer habits on individual and small group levels as well. Several major trends should be taken into consideration when outlining the profile of the contemporary customer: political, social, environmental, legal and technological. This essay aims to look at the family and consumer trends, driven by internal and habitual factors With that in mind, technology, is one of the strongest factors that affect contemporary consumer. The impact of this element should be seen from different angles. First of all, it is important to consider how the use of technology in families and other formal and informal groups of individuals affects consumer habits. Secondly, it is interesting to see the reverse influence of technology – level of acceptance of electronic commerce and alternative to physical stores ways of consumption (Pavlou, 2003).
Individual is a part of a group. While there are several major formal and informal groups that we belong to, a family will always continue being one of the core elements of social interaction and learning. It is not a secret that the use of technology in a modern family has grown dramatically. Burke (2002) argues that over 95% of modern middle-class family use smartphone or laptop. The same statistics also outline 24% growth in the use of cellphones among teenagers and children above 9 years old. These trends inevitably lead to a stable increase in a number of services that families use online, and, thus, which affect their consumer behavior and preferences.
Time and access to information are two of the major reasons for families to use cellphones. That said, parents use technology to keep in touch with their children, teenagers use smartphones, among others, for social media and access to educational resources.
Imposed Technology
While the use of technology in a modern consumer market is a natural trend, which is expected to grow over the coming decade, consumer marketing and companies innovation strategies do not leave a lot of room for a conservative shopping experience. New technology and inovative customer experience strategies are introduced to the market on a monthly basis. Some of the latest trends with high growth rate can be seen in banking and Fast-Moving Consumer Goods (FMCG) industries (Van Den Heijden, Verhagen, and Creemers, 2002). New technology is introduced by the companies, trying to answer two major questions: what role does the consumer want technology to play in their shopping process? How can retailers optimize the in-shop and online shopping experience? (Sadler, 2002).
Taking into consideration the example of online banking, it is possible to argue that modern family approaches consumption of products and services, prioritizing access to information and speed of their experience. The modern banking system, as an example, offers a one-stop-shopping solution, including money transfer, balance check, investment control and other services via smartphone applications (Pikkarainen, Pikkarainen, Karjaluoto and Pahnila, 2004). This not only saves time and provides families with better control over their financial management but also gives a feeling of security to a family overall.
Consumption Trends- Conclusion
Modern family is highly dependent on technology. FMCG market offers numerous options for online shopping and check-out, delivery of the goods home, the banking system is shifting towards electronic services, eliminating physical interaction to unseen levels. The growing role of technology in a modern family is subject to both, family-driven efforts to save time, improve communication channels and access to information, as well as companies` marketing strategies, which aim to bring more consumers to the virtual environment through specific promotional and information strategies.
References
Pavlou P.A. (2003). Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. International Journal of Electronic Commerce. Vol.7., Issue 3: 3-15.
Van Den Heijden H., Verhagen T., Creemers M. (2002). Understanding Online Purchasing Intentions: Contributions from Technoogy and Trust Perspectives. European Journal of Information Systems. Vol. 12, Issue 1:42-48.
Sadler Ph (2003). Strategic Management. 2nd Edition. London: Kogan Page Limited
Pdf
Burke R.R. (2002). Technology and the Consumer Interface: What Consumers Want in the Physical and Virtual Store. Indiana University. Journal of the Academic and Marketing Science. Vol.30, Issue 4:411-432.
Pikkarainen T., Pikkarainen K., Karjaluoto H., and Pahnila S. (2004). Consumer Acceptance of Online Banking: an Extension of the Technology Acceptance Model. International Research. Vol.14, Issue 3:224.
