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The Impact of Changes in Media Consumption
25 June 2019

The digital era has come to the fore. The differences between generations have led to changes in how to consume media. This then affects consumer behavior and demand. The existence of various types of consumer behavior presents its own challenges for companies. It might be difficult to understand or identify, but they need to realize that changing and adjusting the service in accordance with the wishes of the customers in a must. Along with the knowledge about the impact, it is also important for the company and brands to recognize consumer behavior in this digital era (“Perilaku Konsumen,” 2019).

 

The first behavior is how customers set a standard for the brand. They no longer compare brands with the same specification, but all brands that they consumed—regardless the industry or product. They compare various elements of a brand such as service, quality, and overall customer satisfaction. Brands should not only focus on their direct competitors, but also on how they can be better than the best brand that their customers use.

 

The second one is customer tolerance. In this digital era, social media plays a big role in the marketing industry. Customers put great emphasis on the convenience of service, and if this is not delivered, it will be very easy for them to complain on social media, which will certainly worsen the company's reputation. This makes it more difficult for the company to satisfy the wants and needs of their customers. Therefore, they need to always improvise and find a new way to fulfil demand.

 

Next is the customer dialogue. Between social media and forums, customers have the ability to build and destroy brands. Up until now, word of mouth marketing is the most powerful way of promotion. Most customers come from reviews or opinions from their close relatives such as friends and family. Loyalty is also an aspect that needs to be taken into consideration. Customers want the value of money and no longer want to accept cheap products and services. They prefer to pay a higher price for good quality products and services compared to cheap products with bad quality and poor services.

 

Due to easy access to internet and social media, customers can get information and reviews within seconds. It will give them enough details to make the decision to purchase a product or not. This is connected with the behavior of multi-channel communication. Brands cannot  decide which method of communication is best used by the customers. They decide themselves based on which channel is used by friends, family, and their influencers.

 

According to Ferdian Budiarto, it is important for companies to pay attention not only to sell commodities or products, but also consumer experience. He believes that consumer experience is a combination of product, service, engagement, and all elements must be good to create consumer behavior (“CMBS 2018,” 2018). As customers become more actively involved in choosing the products and services, brands should change their approach and strategy in order to accommodate better to the customer’s request.

 

There are two popular trends that have developed in this digital era: webrooming and showrooming. Webrooming is the behavior of consumers who often search items via online channels and compare prices from one platform to another, but ultimately shop in offline stores. While showrooming is the behavior of consumers who try various items in offline stores then buy them online. "The percentage is high, you know, with webrooming is 44% and showroom is 23% [of consumers]," Iwan added (2018).

 

Although the world has not completely changed to digital, the shifting to digital has significantly impacted many offline vendors. Most traditional retailers start going digital. This is the case of some worldwide popular magazines, Teen Vogue, Seventeen, and Glamour. Worse from that is how some traditional retail completely goes out of business for good. The so-called “retail apocalypse” has seen 5,399 store closures in the first 12 weeks of 2019 in the USA (Bell, 2019). Payless and Topshop are some of the unfortunate retails that close the door.

 

However, as said by Kertajaya in WOW Brand 2019 Festive Day, “offline is not dead and it won’t be dead.” So, in order to bridge these two situations, out-of-home advertising could be the right answer, especially the digital ones. Features like a QR code or promotion voucher in an online advertisement are a great example of that case. Sometimes, when a customer scans discount codes, it needs to be redeemed through offline stores. It is a perfect strategy for brands to use DOOH as it gives the customers the experience to choose how they interact or shop, whether through the mobile medium or physical world. Brands will need to continue adapting with the fast-changing condition in both online and offline as the line between them will get blurrier until they could integrate as one in the future.

 

It might take a while for the world to go fully digital, but it will be a smart move to start preparing your company and brand to face the changes. Starting to use DOOH as the medium for your advertisement or campaign could be the first step you should take.

 

 

 

References:

Bell, Jennie. (May 30, 2019). Retail Store Closures: All the Companies That Are Downsizing in 2019. Retrieved from https://footwearnews.com/2019/business/retail/retail-store-closings-list-2019-out-of-business-downsizing-1202765735/

CMBS 2018 Bahas Perubahan Perilaku Konsumen di Era Digital. (October 29, 2018). Retrieved from https://news.okezone.com/read/2018/10/29/1/1970310/cmbs-2018-bahas-perubahan-perilaku-konsumen-di-era-digital

Kertajaya, H. (2019, March 14). WOW Brand 2019 Festive Day: Omni Brands. Seminar presented by MarkPlus Inc. at Raffles Hotel, Jakarta, Indonesia.

Perilaku Konsumen di Era Digital. (January 28, 2019). Retrieved from https://blog.mtarget.co/perilaku-konsumen-di-era-digital/

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