Introduction
A significant part of humanity’s achievements is reflected in technological development. In the years since the invention of technology, society’s reliance on advanced innovations and their use in daily life has increased (Pham 2). As such, the internet’s breadth and reach have expanded to touch all parts of society and the economy. Simultaneously, the significance of Internet intermediaries, who supply the Web’s virtual network and venues by facilitating commerce and interactions between third parties as well as programs and services, has evolved.
As such, internet intermediaries offer third parties access to the hosting, transmission, and indexing of material created by foreign entities. They provide a diverse range of activities through cable and wireless technology. The majority of internet intermediaries come from the corporate sector and are involved in a wide range of online commercial development, including e-commerce intermediaries and streaming companies. Nevertheless, this advancement has had consequences on consumer behavior toward such trending technologies. Hence, this paper will expound on such ramifications as it demystifies how buyer behavior has been affected.
A Game Changer in Shopping
E-commerce has become an integral component of the global retail infrastructure. Similar to many other businesses, the retail environment has seen a significant upheaval since the rise of the internet. As a result of the growing digitization of contemporary life, customers from nearly every nation today enjoy the benefits of online purchases (Pasquali). As internet availability and usage increase rapidly across the globe, and as the internet penetration rate nears five billion, the number of individuals making online transactions continues to rise.
In 2021, global e-commerce sales reached $5.2 trillion, and this figure is expected to continue increasing in the coming years (Pasquali). Additionally, the COVID-19 pandemic has driven the growth of online retailing over the past two years. By 2023, e-commerce revenue in the United States will be projected to approach one trillion dollars (Pasquali). Therefore, it is evident that world business models are shifting online.
As the popularity of e-commerce increases, the purchase of retail storefronts continues to decline. The pandemic accelerated the downfall of department shops, which had been occurring for some years (Amankwah-Amoah et al. 603). In 2020, stores in the United States reported the closure of 12,200 stores, a 59% increase over 2019 (Wahba). With businesses shutting down and authorities issuing stay-at-home directives, the coronavirus outbreak had a profoundly detrimental impact on in-store shopping.
However, this presented an opportunity for sales through another online channel. During the isolation period, customers began ordering food, puzzles, athleisure clothing, and other items online at an unprecedented pace. As vaccines began to be administered nationwide, experts have warned that the virus may not disappear soon, and people are expected to continue purchasing primarily online. In this sense, individuals have altered their buying habits in response to public health concerns.
Therefore, prompted by the revitalization, companies must have robust e-commerce systems to thrive. Customers increasingly choose to shop online rather than in traditional storefronts. For instance, Amazon, a digital commerce colossus, is anticipated to lead online sales in 2023 and beyond (Coppola). Additional factors contribute to Amazon’s unrivaled digital market dominance, even though most firms do not hold as vast and varied an assortment as Amazon. They focus on the following: website speed, checkout simplicity, customer service technology, return convenience, and management software reliability.
Digital Reinvention
Over the last few years, online sales have experienced significant growth. In 2020, sales increased by 35% in just two weeks, primarily due to a surge in purchases made via mobile applications (“E-Commerce in the Time of COVID-19”). Businesses recognized the need to rapidly expand their online presence, reprioritizing their channels and increasing their e-commerce investments. To provide a commitment to the brand, including payment alternatives and real-time buying habits, all online platforms must be unified to accommodate the growing number of mobile clients.
A new focus has been placed on sponsored search, social networks, and paths with highlighted items and interactive content. Almost half of the merchants already intend to install mobile, shopping, and point-of-sale applications and must now expedite their adoption (Faulds et al. 324). In this way, numerous merchants with existing mobile applications have witnessed a rise in downloads, while others are attempting to sustain the pace.
Creating digital involvement possibilities will be a new and required skill. Online organizations have begun connecting with their web audience by providing virtual exercises and have witnessed substantial growth in weekly registered subscribers. Newcomers to e-commerce may be able to surpass more established platforms in terms of providing the most innovative and superior customer experiences. Faced with cutting-edge competition, prominent online merchants must be willing to enhance their offerings to fulfill customer expectations for site performance, reliability, and delivery dates.
Omnichannel Innovation
Leading multichannel companies must continue to explore new opportunities for client acquisition and retention. Without shop interactions, it will be far more challenging to create really unique, brand-specific experiences. As a consequence, some stores now offer online consultations as an option, where salespeople may utilize videoconferencing to provide personalized client interactions (Shi et al. 325). They may acquire new sales skills to deliver superior customer service and assist consumers in finding the right merchandise. New content types, such as webinars, can both entertain and retain customers.
Subsequently, various businesses, such as the fashion industry, incur greater expenses to process product returns due to the inability of internet shoppers to try on merchandise before purchasing. Thence, by utilizing augmented reality (AR), machine learning, and computer vision to develop a Virtual Try-On feature, this issue can be addressed (Jayamini et al.). Their customers can examine fashions as they walk, creating a store-like environment in the comfort of their own homes. Additionally, consumers worldwide are substituting dining out with food delivery and collection services. In this sense, retailers will need to offer a variety of delivery and return options to prioritize the safety of all types of items.
Consequences of E-commerce Technology
Since its emergence, e-commerce has had a profound impact on global society and the economic structure; most notably, it has revolutionized the business process. On the same note, everyone’s internet usage has increased over time. Therefore, the internet has become an integral part of most people’s lives due to its increasing influence. In this sense, e-commerce has impacted consumer buying behavior both positively and negatively.
Positive Impacts
When compared to conventional establishments like a mall or a showroom, online shopping offers a vast array of possibilities. Since online shopping is conducted over the internet, it provides an infinite number of alternatives at once, and a large selection of products is available at any one time (Maheshwari). Incorporating the most recent global trends also enables consumers to make the most advantageous selections in terms of selection and price.
Similarly, internet shopping facilitates easy returns and exchanges, in addition to simple delivery, and also enables hassle-free refunds (Maheshwari). If a customer does not like an item, they may always specify the reason and return or swap it with a single click. One may follow the order and shipping progress using their purchasing website. Further, e-commerce is convenient; hence, it necessitates comfort. For example, consumers can browse and purchase online 24 hours a day, seven days a week, from the comfort of their homes or workplace (Maheshwari). As a result, this attracts many time-starved customers to the internet, allowing them to save time when browsing for products.
Additionally, internet transactions offer several opportunities to save money and time. For example, clients are not required to visit a physical business; therefore, no transit is required. In contrast to traditional shopping, there are no lines for consumers to queue up on the internet. Additionally, some customers have reported feeling pressured by salespeople on occasion, yet the internet makes buying more enjoyable.
Negative Impacts
Although e-commerce has significantly contributed to consumer purchasing, it is not without its disadvantages. Given the reality that data will become a valuable asset in the future, and society is already heavily invested in data, there are significant security concerns; for example, people have trust issues when using credit cards while shopping online (Tran 225). In actuality, just accessing the internet compromises one’s privacy.
As a result, individuals have observed several security vulnerabilities in which client information was exposed or stolen. Equally, lack of personal touch is another concern with e-commerce; humans are sociable creatures who enjoy interacting with new individuals. In addition, personal contact fosters a connection of trust between a seller and a client. For instance, jewelry businesses must overcome obstacles to earn their clients’ confidence.
Streaming Companies
As a number of large media organizations joined the streaming video business in a significant manner, there has never been a time when there was a wider variety of options in this promising field. This has been fueled by various factors, for instance, the recent deadly virus outbreak that confined people to their houses. As such, during the COVID-19 pandemic, consumer television consumption patterns have undergone irreversible changes (Vlassis 957).
Thus, OTT frameworks such as Netflix, Disney+, Hulu, Amazon Prime Video, Peacock, CuriosityStream, and Pluto TV experienced a rise in viewing households, as television is now increasingly occurring on streaming services (Vlassis 957). In this regard, this massive change is disrupting corporate business models, as people have been using cable TV companies less; consequently, they have suffered considerable revenue losses in the past few years.
The need to participate in the streaming boom is increasing louder, but the customer is the final arbiter when assessing triumphs and failures. Thence, there is a need to ensure seamless operations in the platforms to shift buyer behaviors. Accordingly, these modifications to consumer behavior will persist, while certain activities, such as attending amusement parks and movie theaters, may not be ideal. Henceforth, people who have become accustomed to the ease and personalization of digital platforms will not revert to their previous habits.
Intelligent Automation in Boosting Corporate Agility
As media and entertainment (ME) firms look to expand their digital services, it will be crucial to ensure that personnel focus on creating products and services that enhance consumer engagement. ME executives must modify their organizations’ operational methods to foster creativity. Aspects of intelligent automation, such as robotic process automation (RPA), will serve a crucial role in facilitating the speed and adaptability required to enter a new era of streaming (Thompson).
RPA, which employs bots, may automate a significant portion of human tasks, such as gadget registration, form processing, licensing, customer information management, and metadata updates that consume a considerable amount of time (Thompson). Implementing intelligent automation generates advantages that enable people to focus on higher-value tasks, thereby initiating a culture revolution that emphasizes creativity, rigorous assessment, and forward-thinking work over mundane administrative duties.
Personalization and Analytics Facilitate Solid Client Interactions
In recent years, personalized content suggestions have become the standard. For instance, Netflix, TVision, and HBO Max scored top marks for personalization on their platforms. Consequently, the majority of subscribers opt for such customization, which has led to a loss of customers for cable TV providers. In addition, greater personalization improves analytics, enabling ME firms to refine their audience knowledge and forecast the streaming content that consumers would demand (Thompson). ME organizations must enhance their analytics skills over the next year through real-time evaluation, enabling rapid comprehension, action, and refinement to keep their customers satisfied and free from outdated, tedious patterns (Thompson). Overall, the current ME environment is constantly evolving and is expected to remain so for many years.
Impacts of Streaming Companies
It is well known that online streaming titans like Netflix, Amazon, Disney+, and Hulu profited well during the lockdown. Several of these media became a mainstay of daily life for many. The New York Times reports that Netflix attracted 16 million new customers in 2020 (Lee). Therefore, cultural affairs establishments had to evaluate the instant implications of their newfound online footprint, which has been in fierce competition for viewership. Sadly, as with most products that seem too fantastic, keeping the world delighted comes at a price, and the fact is that streaming services also have large carbon footprints.
Advantages
One has access to various media channels thanks to streaming services. One benefit of streaming platforms is the ability to access a wide variety of TV and radio stations. They will have access to a vast selection of films and audio recordings, and they can be confident that such streaming services have something to offer everyone. Customers may therefore use their time more effectively, as they are no longer required to watch programs on free TV that hold little to no interest for them, and can instead watch their preferred shows, movies, or series.
Moreover, it is more convenient to watch movies or sports at home. Another benefit of using streaming services is that, unlike traveling to the theater, it can be reasonably comfortable to relax on the couch and watch movies. Some individuals prefer staying in to going out; thus, they will particularly like utilizing streaming services while at home. Additionally, it is practical in that there are no ads to watch.
While some individuals enjoy watching TV ads, many others find them annoying and would prefer to see the information they came for instead of the advertisements (Finn). Therefore, one can stream whole TV series or movies without interruptions from commercial breaks. This is in contrast to others who do not have access to premium streaming services and will have to rely on free TV, spending a considerable amount of time watching advertisements.
Disadvantages
Socioeconomic Divide
The concept of being able to watch any program in a matter of seconds seems too good to be true, and certain streaming services are ensuring that this is indeed the case. In reality, as the popularity of streaming services has increased, so have their fees; thus, streaming platforms are becoming one of the reasons for the socioeconomic gap that has connections to monoculture (Andrews). Traditionally, Netflix and Hulu were the two main services, with Netflix charging a fair amount for its regular plan and Hulu remaining free with advertisements for a few years. Recently, the standard Netflix package has increased in price, and Hulu with advertisements is no longer free.
Thus, streaming sites are now somewhat costly to the point that a significant number of individuals must choose services they can afford and select the specific plan they can afford. For instance, certain streaming services offer ad-free viewing to subscribers with exclusive plans, while the ad-supported version is available to those with standard payment plans.
Although the difference between these ordinary plans is not substantial, a significant percentage of their user base has found these premium plans to be unaffordable (Whittington). The notion that not everyone has access to the same information was not as significant a problem decades ago, when televisions had just a few channels. Still, today, it is one of the most significant challenges that has been destroying homogeneity. If individuals cannot independently see the same content, the concept of a digital monoculture is dead.
Health Concerns
Streaming services have significantly expanded the practice of binge-watching. The concept of binge-watching has been a subject of controversy, particularly in terms of the potential risks it poses to individuals’ physical well-being. For instance, research has examined the detrimental effects of binge-watching on human health. The issues included decreased sleep quality, higher exhaustion, and elevated symptoms of insomnia. Furthermore, it might lead to mental health concerns following the completion of a series (Alimoradi et al. 9707). The association between these disorders and binge-watching is based on the idea that ingesting so much material simultaneously, particularly at night, overstimulates the brain and contributes to poor sleeping habits.
Conclusion
Generally, technology has played a fulcrum in society and has been fundamental in revitalizing various facets of the business. For example, e-commerce technology has transformed the sector in various ways as modes of operation have been digitized. In this sense, it has rendered brick-and-mortar businesses challenging. People have transformed the way they do business, as they have mainly been involved in online shopping by simply clicking from mobile devices.
Therefore, online platforms have reinvented strategies that enable consumers to enhance their buying behaviors, for example, digital reinvention and omnichannel innovation, which ensure seamless operations. This digitalization has had negative and positive impacts on buyer behavior. Precisely, digitalization has facilitated convenience in shopping. However, the demerits include security issues that often affect online platforms.
Moreover, technology in online streaming has also changed from going to theaters to streaming services in households. This has been driven by several causes, such as the recent outbreak of a deadly illness that kept people in their homes. Consequently, during the COVID-19 epidemic, consumers’ television viewing habits have changed irrevocably. The streaming sites have fueled customer behavior through personalization and analytics, which solidify client interactions and enable intelligent automation, boosting corporate agility and facilitating expansion. However, companies have impacted the business sector in both positive and negative ways.
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