Research Paper Sample on Tech-Driven Consumer Marketing: Keeping Pace with Changing Preferences

Introduction

Consumer preferences and needs to inspire modern markets. With technological advances, consumer desires have become extremely dynamic, a factor that demands that brands keep pace with the changes (Zahabi and Abdul Razak, 2020). Today, billions of businesses across the world have embraced technology in marketing to attain growth as well as success. Through technology, businesses have been able to elevate their brands to new unimaginable levels. Some of the most common digital technologies that have revolutionized marketing include artificial intelligence augmented reality, cloud computing, big data and the internet of things among others (Lau and Lee, 2018). Augmented Reality (AR) is an emerging trend in marketing that allows various brands to customize the consumer experience depending on their unique preferences. Barnes (2016) notes that mobile phones are the most utilized media types through which customers explore brands and make purchase decisions. As such, AR allows firms to increase their sales and improve brand value via mobile devices.

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Augmented Reality

A study conducted by Cowan and Ketron (2019) indicated that consumers prefer trying out an item before buying. Through AR, brands can allow prospective consumers to model and try on various products ranging from make-up items, clothing items among others. Drake-Bridges, Strelzoff and Sulbaran (2011) assert that AR negates the need for acquiring large physical inventory for the sole purpose of providing consumer samples.

The application of AR has become more popular for multiple brands across the world due to its convenience. Similarly, Chung (2007) points out that Facebook has been instrumental in pioneering AR applications. The platform’s augmented reality has allowed millions of consumers to sample accessories and makeup, allowing them to model how they look like before purchasing the items. According to Kim and Ah Yu (2016), the first Facebook AR-related advertisement allowed prospective consumers to model virtual sunglasses with the help of the mobile phones’ camera. Recently, the cosmetic industry has been enthusiastic in exploring AR benefits with global brands such as Sephora, Perfect Corp as well as L’Oreal creating partnerships that allow potential clients to see how their make-up would appear. Slab (2019) affirms that AR has been instrumental in online sales involving cosmetic products. By allowing customers to model the products, more and more consumers are willing to purchase these items.

In a study conducted by DeBerry-Spence, Ekpo and Hogan (2018), it was found that AR could be potentially instrumental in creating virtual fitting rooms. Typically, dressing rooms are critical when it comes to buying clothes. Customers often pick stacks of clothes to the dressing rooms, and the store employees are left with the responsibility to restore the discarded clothing items regularly. Similarly, Vukojevic (2015) offers that most stores are often limited by the inventory at hand, mainly when offering clothes for potential clients to fit. In this regard, AR changing rooms reduce this hassle by giving consumers access to a digital library of outfits at the tip of their finger. Minnaar, Mototo and Chuchu (2020) point out that brands such as Topshop and Timberlands have fully embraced AR fitting rooms to afford their customers a virtual experience when selecting clothes. Consequently, these brands have significantly increased their sales as more customers are satisfied by the experience.

Digital Component

AR allows businesses to add a digital component to their physical locations. Consequently, consumers can scan any product and pull up an AR experience designed to either provide more information regarding the product or to provide a specific brand related experience. Robb (2008) notes that the use of AR has stretched to various industries and markets. For instance, StubHub, a ticket sales firm, created an AR app that enabled their clients to access a 3D view of the stadium where the Superbowl was to occur. As a result, fans could visualize the look of the field from various angles and seat positions. Correspondingly, Salman Arshad, Jibran, and Ayaz ul Qasmi (2019) point out that Starbucks has begun using AR to digitize consumer experience in their coffee shops.

Consequently, consumers can scan the objects in the coffee shops and get any additional information that they may need. In this regard, Szymczak (2019) argues that AR is not just a novelty but a new strategy in technological marketing. It has become necessary in increasing sales and encouraging market innovations. Firms that have switched to AR marketing have gained the ability to customize the user experience, a factor that has increased business opportunity and sales.

Kim (2016) maintain that AR creates a rich, interactive, and immersive experience for the consumer. Typically, marketers argue that content is instrumental in marketing a brand. With the help of AR, consumers have gained access to all forms of content from various brands. Wang (2020) notes that with the help of a personalized headset and virtual reality solutions, users can access favorites products, games and places.

Furthermore, AR allows users to experience personalization of content with the help of customized smartphone apps. For instance, Wedel, Bigné and Zhang (2020) point out that through AR, consumers can learn the prices of products on sales in various supermarkets as well as any additional data on the products they desire to purchase. Moreover, users get the opportunity to test their knowledge about specific brands, a factor that is helpful when making purchase decisions.

Zahabi and Abdul Razak (2020) found that AR helps in generating detailed analytics that can be used to understand user behavior. Ideally, the success of any marketing technique is dependent on its ability to positively consumer purchase intentions. How people make decisions is thus essential for marketers. Bae and Kwon (2018) note that human decisions are affected by three factors including desire, knowledge and emotions. Through AR solutions, brands can integrate analytics of social media and other online platforms to understand user behavior. Consequently, brands gain insights about consumer preference, a factor that is utilized in developing marketing techniques.

Bayrak Meydanoglu, Çilingirtürk, Öztürk, and Klein (2020) note that AR is critical in augmenting branding materials. Through AR, business cards, brochures and other branding materials can be revolutionized by adding virtual content. Consequently, potential consumers can scan these materials through their smartphones to gain access to numerous features that provide more information regarding the brand. Alternatively, AR presents an array of contact options that allow the user to gain brand information through a single click on online sites such as LinkedIn, email or even through a phone call. Correspondingly, Bolisani and Gottardi (2005) assert that AR can be instrumental in creating buzz around a brand. This move can be defined as a form of indirect sales and marketing techniques.

From this perspective, AR enhances the brand status by creating a new augmented experience, which can result in the immense buzz around a brand if appropriately harnessed. For instance, Pepsi utilized AR to allow users to access a virtual window along a bus station’s wall. In this ad campaign, consumers viewed robots, UFOs and a marauding tiger running around within an AR vista. With this augmented reality experience, the company was able to generate significant buzz, a factor that strengthened its brand. Barnes (2016) attests that AR strategies can generate billions of dollars for various firms if appropriately executed. In competitive markets, AR campaigns allow brands to stand out by creating sustained discussions that improve brand recognition.

Brengman, Willems, and Van Kerrebroeck (2018) attest that AR can be utilized to transform B2B customer and vendor experience by revolutionizing the entire sales experiences. Through AR, vendors can be able to meet consumer expectations by giving them access to customized augmented reality. Consequently, customers can see and interact with the products in a manner that they desire. Furthermore, Capon and Glazer (2013) affirm that users get to test and inspect individual components before making any purchase decisions. Ultimately, it can be argued that by providing a personalized experience, AR tools are the best for marketing any brand.

Branded Mobile Applications and Their Impact on Customers

Gladston and Duraisamy (2019) define Branded Mobile Applications (BMAs) as applications created by various companies to market their brand. Usually, these applications reflect a brand’s identity and feature company elements such as their logo, colors, style, slogan as well as visual identity among others. BMAs exist in various forms including a simple mobile app highlighting the firm’s website, a game or related service. A study conducted by Greene (2016) confirmed that companies have increasingly embraced BMAs to aid in improving the customer experience. Ideally, BMAs creates continuous contact with prospective clients by keeping them informed and up to date with the brand’s environment. With the help of BMAs, businesses avoid overwhelming their potential clients with ads, a factor that improves user experience.

Grzegorczyk, Sliwinski, and Kaczmarek (2019) maintain that BMAs improve brand awareness among consumers. The most significant method of increasing consumer reach is through brand visibility. In this regard, most advertising marketing firms utilize mobile apps to appeal to the millennial consumer base. Hassan (2019) argues that when users regularly see a brand logo on their mobile phones, the brand visibility increases and consumers become quickly acquainted with a firm’s logo. Consequently, they become more interested in the brand. Correspondingly, Busca and Bertrandias (2020) reason that BMAs serve a data collection tool for most consumers. Ideally, when users have a branded app on their phones, they often input their personal information. Some apps ask the consumer to fill in a questionnaire about their likes and dislikes. This information benefits the firm associated with the app in that it can understand consumer preferences and dislikes. In this regard, Moorhouse (2019) mentions that companies are then able to tailor the consumer experience according to the user’s unique likings. Moreover, mobile apps can be used to understand consumer behavior depending on their indulgence in the app. When users comment or provide reviews on various products listed in the app, the company can easily understand their behavior. This behavior is then analyzed and used in brand development.

Conclusion

In conclusion, most results indicated that these apps elicit loyalty among users. In cases where the users are happy with the products they purchased from the brand, they are more likely to keep browsing on the branded app to explore new offers or discounts by the company. Schmidt, Bruder and Steinicke (2020) maintain that happy consumers are more likely to indulge with the same app to identify any new products that may interest them. This aspect is defined as brand loyalty. Likewise, Steinhoff and Palmatier (2020) reason that BMAs also help in creating consumer traffic. First, the app attracts prospects who later turn into customers. Ideally, the brand can offer some incentives such as free delivery or discounts for a new customer to attract the audience. Through such incentives, users are more likely to purchase brand items due to comfortability associated with it.