Significant demographic, technological and economic changes will have unmatched change in the consumer behaviour in future. This is according to a consumer 2020 report by DTTL (Delloitte Touché Tohmatsu Limited). The report gives information on the current demographic and economic trends around the globe, and the effect of technology on the lives of consumers. Over time, population around the world is diminishing rapidly as fertility rate drops. The diminishing population has a significant impact on the economic growth and consumption power of different countries.
The report suggests that in the coming decades, the global economy will balance with countries depending largely on heavy consumer spending and borrowing changing to the export-oriented economy while the countries depending on exports for economic growth changing towards a domestic consumer spending. Consequently, such countries will take measures to stimulate consumers expenditure, for instance through measures like liberalising consumer finance. This will encourage consumers to spend and discourage them to save.
In the future, consumer engagement will not just be about advertising, communicating and marketing, rather, it will involve socialising and connecting with the customers. Today, customers have access to a lot of information, and they are able to make comparisons between shops, products and markets. In addition, customers are able to make purchases at anytime and anywhere. This trend is likely to go up, and new technology will improve the situation further, customers will have quick access to information (BI-ME staff, 2011). This will greatly influence how customers make purchases.
According to the report, customers trust will remain a crucial issue. This will continue trusting their friends’ and peers’ references over organisations’ information. Moreover, customer loyalty that has been in existent over time will become short term. Moreover, social networks will play a great part in determining customer loyalty. Social networks will have a very great impact on the kind of purchases consumers make. This means that companies will have to make a lot of investments in technology as a way of advertising.