Big data is also shaping consumer behavior and preferences. Businesses analyze large amounts of data to gain insights about the demands of their target market. Big data thus facilitates the creation of more personalized and targeted experiences, which can go a long way in boosting sales and loyalty.
Below are some of the ways big data is affecting consumer behavior and preferences:
- Personalization: Businesses can personalize their offerings for individual consumers with big data. A retailer, for example, would track a customer’s purchase history and browsing trends and recommend new products bought or suggest discounted rates depending on which items such a customer would like.
- Targeted advertising: Businesses can advertise more effectively with big data. For example, a social media platform may track a user’s activities, interests, and demographics. Then, product advertisements would target audiences, which are having aligned preferences.
- Pricing – big data is also helping businesses optimize pricing strategies. A retailer, for example, would track the demand for a specific product and adjust the price accordingly.
- Product development – big data is helping companies develop products and services that consumers need. A technology business, for example, would review clients’ feedback and identify new products and services that consumers would like to see in their offerings .
Overall, big data is positively influencing consumer behavior and preferences. Businesses that use big data wisely have an edge in the competitive marketplace.
Cases of Big Data Shaping Consumer Behavior
The following are some specific uses of big data in influencing consumer behavior:
- Netflix recommends movies and TV shows to viewers based on their history.
- Amazon suggests products to buyers based on their previous orders and searches.
- Spotify creates playlists for users based on their playlist preferences.
- Facebook targets ads to users based on what they have liked or disliked before.
- Google adapts web searches and ads based on a user’s demographic information.
These examples show the power of big data in influencing consumer behavior. As technology evolves, more innovative ways will integrate big data to gain consumer insight and influence their behavior. Therefore, Big data is a powerful tool for shaping consumer preferences giving businesses a competitive advantage.
References
Know the what, why, and how of big data? (2023) Techwave. Available at: https://techwave.net/what-is-big-data-and-how-did-we-get-here/ (Accessed: 17 March 2024).
Revolutionizing sales and marketing with Big Data Analytics: How to leverage customer data for targeted marketing and business growth (2023) LinkedIn. Available at: https://www.linkedin.com/pulse/revolutionizing-sales-marketing-big-data-analytics-how-leverage/ (Accessed: 17 March 2024).
S., N. (2023) Big data ecommerce – definition, trends, and insights, MGT. Available at: https://www.mgt-commerce.com/blog/big-data-ecommerce/ (Accessed: 17 March 2024).
Shaw, J. (2023) Understanding the role of Big Data in market research., Kadence. Available at: https://kadence.com/en-us/understanding-the-role-of-big-data-in-market-research/ (Accessed: 17 March 2024).
