How consumers use technology and the impacts on their lives

This presentation illustrates how consumers use technology and its impact on their lives.

1. Assignment 2 How consumers use technology and its impact on their lives Mathura bALACHANDRAN 74652875923

2. Content Introduction Access to Internet Digital devices used by people to access internet How customers search for information & recommendations What consumers buy online Online video consumption Consumer trends Summary Links to video pitch and Blog Reference List

3. Introduction The way we use digital technology today has vastly changed in the last couple of decades and continues to evolve today. Gen Z’s today are the first generation to be born into a world full of technology and have no idea what life was prior to technology taking over. This presentation analyses the ways in which technology has impacted peoples lives over the years.

4. Access to Internet Changes in the number of people accessing the internet Changes in internet speed

5. Brief History The Advanced Research Projects Agency (ARPA) invented the ARPANET around 1969 using computers and the packet switching technology. Invented for data transfer and communicational purposes. Scientists from other countries started developing their own networks, which came with a few downsides . One, not being able to communicate with each other as the data received were all in their own languages. Resolved in 1983, when researchers started working on Transmission Control Protocol (TCP) and Internet protocol (IP). TCP/IP have then become the universal language of the Internet, connecting all networks together.

6. This graph shows the percentage of adults accessing the internet at home using Dial-up and Broadband. According to Pew research center, the number of broadband users have started exceeding the number of Dial-up users in 2004 . Around 70% of adults were using Broadbands in 2015. Dial- up users dropped to below 10% of adults in 2015 . Fig.1 Access to internet services at home (Pew Research Centre) (2015)

7. Dial-up vs DSL vs Cable vs Fiberoptic Speed ranges Pros Cons Download Upload Dial up Up to 56Kbps Up to 56Kbps Low cost, more affordable Safer connections- assigns new IP address with each access Easy to set up Portable access- can be access anywhere phone service is available Slow speeds of up to 56Kbps Restricted steaming of music and video Downloading and sharing files were time consuming Unable to use landline whilst accessing internet DSL 5-35Mbps 1-10Mbps Faster than Dial- up Landlines can be used at the same time as browsing internet Wider coverage availability than fiberoptic Quality depends on distance between device and interne provider’s hub Slow speed compared to cable and fiberoptic Ethernet Cable 10-500Mbps 5-50Mbps Greater speed compared to Dial-up and DSL Smooth, consistent & reliable internet connection No phone lines needed Bandwidth shared over same cable line Speeds are slower than fiber optic Many users mean slow internet service Fiberoptic 250Mbps-1gB 250Mbps-1gB Faster speed ranges than cable Very low latency Limited availability Installation may be expensive Not as widely available as cable

8. Fixed and mobile broadband increased vastly to 55.07 Mbps and 107.50 Mbps in July 2021 ( Ookla.com ). Comparing it with the year before, the speed of mobile broadband has spiked 59.5% and fixed broadband increased 31.9% . ( Ookla.com ) Today there’s around 5.35 billion global internet users. ( Datareportal.com ) 96.5% of those access the internet through mobile phones. ( Datareportal.com ) Fig 2. Increase in World Download Speeds ( Ookla.com ) (2021) Fig 3. Kemp. S (2022) Overview of internet use in 2024

9. Digital devices used by people to access the internet Desktop Mobile phone Laptop Ipad /Tablets Smart watch TV Game Consoles Echo/Google nest mini Fig 4. Southfltechs.com ( n.d ) Digital devices used to access the internet

10. According to Statista in 2020: A total of 60% of the respondents use smartphones , whilst only 16% use laptops and 8% use desktops . Since Covid-19 lockdown in the UK, more people were using different types of devices to access the internet. Smart phone usage decreased to 46% Laptop usage increased to 46% Tablet usage increased to 26% Smart TV increased to 24% Fig 5. Devices used in the UK to access the Internet (2023) ( Statista.com ) Fig 6. Device usage increase due to Covid-19 in the UK in 2020 (2023) ( Statista.com )

11. Fig 7. Kemp. S (2021) Mobile Internet usage across the globe in 2021

12. How customers search for information and recommendations Fig 8. Chris, A (2019) Types of Search engines

13. Without a question, Google has been the dominant search engine to date. According to Oberlo 91.62% of the population use Google to search. Bing is the second widely used search engine with only 3.31% of the population using it. DuckDuckGo with only 0.53% is the least used search engines. Fig.9 Search engines ranked by market share in the UK in 2024 (2021) Oberlo.com

14. Fig.10 Informational – Know Fig.11 Navigational – Go Fig.12 Transactional – Do Consumers looking for helpful information. E.g., ‘How to meal prep’ Searching with the intention of visiting specific websites. E.g., ‘YouTube’ or ‘Netflix’ Searching for products or services with the intention of making a transaction. E.g., Brand focused: ‘Buy nest café coffee Generic searches: ‘Coffee Machine’ Vertical searches: ‘London coffee shop’ (Storm. M, 2020)

15. What consumers buy online Fig.15 Most common online purchases in the UK in 2023 (2023) Statista.com Fig.14 Most common online purchases in the UK in 2022 (2023) Statista.com Fig13. Most common online purchases in the UK in 2020 (2023) Statista.com

16. Covid effect on consumers shopping behavior With more than 100 countries being in lockdown by the end of March 2020.( bbc.com ) online ecommerce had a rapid surge during the pandemic whilst in store retail shopping were dropping concurrently. Major shift in fashion from 41% consumers in 2019 to 86% of consumers in 2020 . Fig 16. Changes in peoples shopping habits during Covid-19 (Office for National Statistics – Monthly Business Survey- Retail Sales Inquiry )(2020) Fig 17. Allen. E, Smidt. F (2020) Changes in peoples shopping habits before and during Covid-19

17. Why ecommerce is on the lead of rising Fig 19. Dominant e-commerce platforms in selected digital markets as of 2019 (2023) ( Statista.com ) Fig 18. Top reasons people shop online ( Oberlo.co.uk ) (2024)

18. Online Video consumption Online videos are consumed by 92% of global internet users, where around half those population consume music videos. ( statista.com ) 82% of worldwide internet traffic will be caused by streaming videos and downloads, by 2022 . (cisco) ( invideo.io ) Viewers tend to recollect 95% of information by watching a video, compared to 10% when reading it in a text. ( insivia ) ( invideo.io ) Video has become a marketing tool with 86% of businesses employing it. ( wyzowl ) ( invdeo.io ) Fig 20. Leading video content type worldwide in2023 ( Statista.com ) (2024)

19. Social media video consumption YouTube is one of the largest platforms to watch videos on, with over 2 billion users , launching in 2005. TikTok launched in 2016 and has surged through the pandemic with its short videos. Consumers were preferring shorter videos. ( cnbc.com ) As of May 2021, TikTok exceeded YouTube in UK & USA’s average monthly time spent per user on android. YouTube, Instagram and Snapchat adding similar features on their platforms to gain more audience. Fig 21. Norzerand . M (2022) YouTube and Instagram adding similar short video features as to TikTok Fig 22. Average monthly hours per user, TikTok vs YouTube (App Annie Intelligence, Fontaine. A) (2021)

20. Video on Demand ( VoD ) Total average minutes of viewing per day per person on all devices in 2020 is 5h 40minutes . ‘ 53% of all households in the UK are subscribed to atleast 1 VoD service’. ( finder.com ) Broadcast Tv was consumed more by viewers over the age of 45 . ( ofcom org.uk ) Netflix is the leading Subscription Video on Demand ( SVoD ) in the UK, with a 15.53 billion subscribers in 2020. Grew 89% within a year. BBC iPlayer is the leading Broadcast Video on Demand ( BVoD ) in the UK, with 5.8 billion viewers . Grew 26% within a year. Fig 23. Number of UK streams to selected VoD services : 2019 vs 2020. ( Source: Netflix and Amazon Prime Video: Digital- i UK, 2019 and 2020, age: 18-64 year old account holders. Based on at least 2 minutes of viewing of content. BBC iPlayer: BBC Media Centre, Record year helps shape bold future for the BBC, 29 Mar 2021. All 4 views: Channel 4 Financial report and statement for the year ended 31 December 2020. Channel Four Television Corporation Report and Financial Statements 2019 . Note: Data from different sources not directly comparable. (2021) Fig 24. Average minutes of viewing per day, all individuals, all devices (2020) ( Ofcom estimates of total audio-video viewing. Modelled from BARB, Comscore and TouchPoints data.

21. Consumer Trends Before Now Access to Internet Internet of things (IoT)/Smart devices Artificial Intelligence (AI) + (IoT)= Artificial Intelligence of things ( AIoT ) Digital devices Desktop, Tablet & Mobile phone Smart devices Searching for information Search on browser Voice search Shopping Ecommerce Augmented Reality (AR) Video Consumption TV VoD & Virtual Reality (VR) How consumers use of technology has changed over past 3-5 years

22. Negative impacts of internet usage Internet usage threatens our psychological well being . Technology is slowly taking over employment - All impacting the economy in one way or anoth er Misleading information can be spread just as fast. Surveillance capitalism – algorithm limits choices & lacks in personal privacy.

23. Summary The internet has come a long way in a short period of time, impacting people both positively and negatively. From researchers using it for communicational purposes, to people now using it as a form of escapism to people needing it to complete their chores. Starting off with slow speeds to now literally having the internet in one's hands. People can use it for various purposes e.g educational, entertainment, shopping, connecting with people and many more. A necessity that has become a part of everyone's life, though it ”could threaten our psychological, economical and political well being” (Rob Reich, pewresearch.org )

24. Links to video pitch and Transcript blog. YouTube link – https://www.youtube.com/watch?v=d_vpzu62V3k Wordpress link – https://mathuraxbee.wordpress.com/2024/05/08/how-consumers-use-technology-and-its-impact-on-lives/

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