How Digital Technologies Have Affected Consumer Buying Behaviour

How digital technologies have
affected consumer buying
behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Difference between the traditional and digital marketing tools with respect to Netflix........3
Customer touch points and the omnichannel nature of the customer journey.......................4
Analysis of data through digital marketing activities and using it for improving the
performance............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The digital marketing refers to making use of internet for purpose of attracting
consumers. This concept is very broad as it involves various means through which customers are
attracted. In today's, fast moving world, with help of digital marketing, business organizations
can easily track the outcome of the campaigns. It allows the company to compete with their
competitors by exposing to the larger audience which can be done with minimum budget. This
report is about the case study of Netflix. It is an American based media service provider, the
major business of the company is through subscription for the streaming of services which
provides access to movies and television series without any advertisement. This report states
about the traditional and digital transformation of marketing, explaining the customer touch
points and the usefulness of data analysis in improving the performance.
Difference between the traditional and digital marketing tools with respect to Netflix
The marketing mix tools is used to examining the difference in between the traditional
and digital approach of market.
Product: Traditionally, Netflix use to rental DVDs of movies and TV shows which is
only its product and source of revenue. But now, it has its own website providing wide range of
movies and shows option to watch from by a paying a fee (Lobato, 2019). The best part is that
consumers don't have to see commercials. There are mainly 3 plans for accessing the content
which are basic, standard and the premium plan. It also provides software for viewing the
content which is a part of the marketing mix.
Price: The pricing policy used by the Netflix was based on the expected willingness of
the customers for the availing the services. This policy has remained the same in the current
scenario as well. Traditionally, price was pay per rental model which was nearly 50¢US per
rental and also late fees were applicable. But in the digital era, the company attracted its
customer by providing free one month trial after which it charges lower prices which is the form
of subscription as per the plan selected by the consumer. The price set by the Netflix is pocket
friendly.
Place: Traditional, Netflix used to deliver the DVDs directly to the homes of the
consumers and has nearly 44 distribution centres in US which has helped it in easily and quickly
delivering the DVDs to the large group of customers (Barker and Wiatrowski, 2017). Now,
Netflix is providing online streaming services which is available everywhere. The entire business