Digital Transformation of Customer Behavior: Intergrated Approach to Research

Abstract

The article provides a content-analysis of scientific approaches to transformation of customer behavior in conditions of digitalization. Findings of the empiric research in the Donetsk People’s Republic showed formation of the hybrid model of customer confidence, where social approval and algorithmic recommendations balance each other. The key change is a shift in the hierarchy of choice factors: service characteristics (convenience of purchase, delivery and customer pick up) became more important than traditional aspects, such as price and quality. It was found that the growth in online-purchases and their spreading are hindered mainly by psychological barriers but not economic ones. The principle obstacles are risk of fraud and difficulties of product refunds, while delivery cost moves to the category of negligible importance. It alters the usual view that price is the primary restriction in buying products. To substantiate managerial decision in this situation integrated approach to researching customer behavior was put forward, which can structurally combine empiric, methodological, segmentation and managerial blocks in the continuous cycle of feedback. This approach can be practically useful as it helps retailer transform data of customer behavior patterns into concrete managerial decisions by adapting technology and forms of buy and sell process to the fast changing digital environment with regard to regional specificities.