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The effect of the consumer behavioral transformation on the company's business in the period of IT penetration


Svetlana E. Ermakova, Natalya A. Bagrova
(about the authors)

Ermakova Svetlana E. – Doctor of Science, Economics, Professor, Chair of Corporate Management, Higher School of Corporate Management (Russian Presidential Academy of National Economy and Public Administration)

Bagrova Natalya A. – Senior Lecturer, Chair of Management of Service Technologies (Russian State University of Tourism and Service, Moscow)

Published in:
Russian Journal of Entrepreneurship
– Volume 17, Number 20 (October 2016)

JEL classification: D80, E21, L21

Keywords: business subject, company, consumer behavior, information economy, IT penetration, need


Citation:
Svetlana E. Ermakova, Natalya A. Bagrova (2016). The effect of the consumer behavioral transformation on the company's business in the period of IT penetration. Russian Journal of Entrepreneurship, 17(20), 2655–2670. doi: 10.18334/rp.17.20.36919


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Abstract:

The article discloses some aspects for modification of the consumer's economic behavior under the influence of information technologies and IT penetration that, in their turn, influence the behavior of the company as a main business subject. The authors note changes in the structure of needs that are characterized by development and prevailing of humanitarian needs as well as modification of the system of values, the style and the life quality of the individual consumer that explain his/her role in the “company-consumer” tandem. Conclusions are drawn on the fact that the company's behavior is modified under the influence of the information economy and requires new competitive strategies and advantages from the company that are oriented on special features in the behavior of the consumer and new features of their interaction. In the information economy, the company's economic behavior acquires specific features not characteristic to the economy of the industrial type and directly related to the increased role of information in the company's business, globalization of the economy as a whole, aggravation and variation of the market competition as well as the modified role of the consumer and the company itself on this stage of the economic development. At this, it is impossible for the company to retain its competitive positions without the close interaction of the company with the consumer.







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