Over the last year, many of us have had conversations with our students about how the pandemic might permanently change consumer behavior. While the short-run changes (greater sales of Peloton bikes, more home projects – go Home Depot, and lower sales at restaurants and movie theaters, and of course no indoor concerts) are interesting, I think the fun stuff is thinking about which changes will stick. I like to use this topic as a way to get my students thinking. So I ask them, “Which pandemic changes in consumer behavior are likely to stick?” I often use this as a small group activity so they can chat with classmates.
After soliciting their ideas – and of course asking them “why?” I like to share with them what some of the so-called experts think. This article at McKinsey.com “The great consumer shift: Ten charts that show how US shopping behavior is changing” has lots of good stuff to share with your students — and here is another article. You can cut and paste some of the charts (data is good) into your PowerPoints and either confirm or supplement they ideas they come up with.
A lot of digital advertising is based on the idea that firms like Google and Facebook have data that allows them to microtarget advertising. These two companies now dominate advertising media. But do they really work? On the one hand, you might expect that advertisers can (and should) be tracking the success of their online advertising. Unlike John Wanamaker, a retailing pioneer who is supposed to have said “Half the money I spend on advertising is wasted; the trouble is I don’t know which half,” today’s marketing managers are supposed to know what works and what doesn’t. They can see which ads bring click-throughs that result in sales. They can track those new customers over time and see if they continue to buy and how profitable they are. In theory.