How Inbound Marketing Shapes Gen Z Behavior - A Strategic Perspective by Fabienne Cadet, Suri Weisfeld-Spolter & Luis Casas * [50]

 In an era where consumers actively shape brand narratives, inbound marketing has emerged as a critical strategy for engaging today’s most influential demographic: Generation Z. This cohort, born roughly between 1997 and 2012, has grown up immersed in digital environments and expects brands to meet them on their terms—authentically, responsively, and within vibrant online communities.

In our recent empirical study, we investigate how three core inbound marketing practices—Visibility Management, Active Listening, and Community Building—influence purchase intention and word-of-mouth intention (WOMI) among Gen Z. Framed within the Theory of Planned Behavior (TPB), the research provides valuable insight into the mechanisms through which inbound marketing affects consumer decisions.

The Inbound Marketing Framework

Inbound marketing is a pull strategy that attracts consumers through relevant content and meaningful digital engagement rather than interruptive advertisements. This study formalizes inbound marketing around three operational dimensions:

1. Visibility Management (VM) – Ensuring a brand appears prominently in digital search results and online spaces.

2. Active Listening (AL) – Responsively engaging with customer questions, feedback, and concerns on social media and review platforms.

3. Community Building (CB) – Fostering brand-centered online communities that encourage consumer participation and dialogue.

Key Research Findings

Our study found that all three inbound marketing practices had significant positive effects on both purchase intention and WOM intention, with Active Listening showing the strongest influence overall. Notably, WOMI emerged as a critical mediating variable, meaning a consumer’s willingness to recommend a brand often preceded and predicted their willingness to purchase.

This aligns with the TPB framework, where behavioral intentions are shaped by:

• Attitudes (Do I like or trust the brand?),

• Subjective norms (What do others think?),

• Perceived control (Is the brand accessible and responsive?).

Real-World Applications

Let’s explore how these dimensions play out in practice and what consumer behavior students—and future marketers—can learn from them.

1. Visibility Management: Be Where Gen Z Searches

In the study, high visibility (e.g., a top result in a search engine) increased both WOM and purchase intentions. This underscores the importance of search engine optimization (SEO) and platform-specific search strategies.

Example:

Consider how Chipotle dominates both Google search results and TikTok trends. Their SEO strategy is coupled with influencer campaigns that create viral content—ensuring that when Gen Z searches for “best burrito” or browses food content, Chipotle shows up.

Strategic Implication:

Marketers must prioritize being “discoverable” through search and social algorithms. Visibility is not passive; it is engineered.

2. Active Listening: Turn Feedback into Trust

The study found active listening—timely and meaningful responses to consumer feedback—to be the most powerful predictor of both WOMI and purchase intention.

Example:

Brands like Glossier and Duolingo are masters of this. Glossier responds to customer comments on Instagram with personalized messages, while Duolingo's humorous, fast responses on TikTok have made their owl mascot a fan-favorite. These interactions build trust and encourage advocacy.

Strategic Implication:

Customer service is no longer confined to email or call centers. Brands must invest in real-time social listening tools and train community managers to respond authentically and promptly. In the eyes of Gen Z, being heard is being valued.

3. Community Building: Belonging Drives Behavior

The study confirms that Gen Z’s desire to be part of something bigger translates into stronger loyalty when brands foster community.

Example:

LEGO’s Ideas platform allows fans to submit and vote on new product ideas. By inviting users into the innovation process, LEGO transforms customers into co-creators. Similarly, Nike’s Run Club app creates a sense of identity and shared purpose among athletes.

Strategic Implication:

Community building isn't limited to social media groups. It includes branded apps, forums, and shared storytelling. It requires a shift in mindset—from broadcasting messages to facilitating dialogue.

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Word-of-Mouth is the Bridge

One of the study’s most important findings is that word-of-mouth intention acts as a bridge between inbound marketing and purchase behavior. In fact, the indirect effect of inbound practices on purchase intention—through WOMI—was often stronger than the direct effect.

This is especially relevant in a Gen Z context, where peer influence and authenticity trump traditional advertising. According to the research, if a brand can get young consumers to talk about them, they are far more likely to buy from them.

Example:

Starbucks’s use of seasonal drinks like the Pumpkin Spice Latte isn’t just a product launch—it’s a conversation starter. Fans share their orders, post themed photos, and engage in a ritual that reinforces community identity and promotes organic reach.

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Marketing with Integrity

We note some ethical concerns, particularly around data privacy and manipulation. Gen Z is digitally savvy but deeply skeptical of brands that exploit their data or use AI-driven targeting in manipulative ways.

Key Point:

Ethical inbound marketing must prioritize transparency, offer opt-in participation, and empower consumers with clear data control. Brands that violate these principles risk reputational damage and alienation.

Takeaways:

• To influence Gen Z, brands must be searchable, responsive, and community-oriented.

• WOM intention is the engine driving purchase behavior in today’s social economy.

• Ethical, transparent engagement is not optional—it is a core expectation.

As consumer behaviors evolve in digital spaces, marketers must evolve with them—not by shouting louder, but by listening better.

* Based on "The Impact of Inbound Marketing Practices on the Young Consumer’s Purchase and Word-of-Mouth Intention" by Fabienne Cadet, Suri Weisfeld-Spolter and Luis Casas (Published in Young Consumers, 2025). For further information, contact Dr. Cadet [f.cadet@nova.edu] or Dr. Weisfeld-Spolter [sw887@nova.edu]. 

How AI is Elevating Marketing & Customer Value - From Insights to Impact by Fernanda Almada* [49]

Artificial Intelligence (AI) is reshaping industries worldwide, and marketing is at the forefront of this transformation. With AI-powered tools, businesses can now analyze consumer behavior more effectively, personalize marketing campaigns, streamline workflows, and make data-driven decisions at a speed that was once unimaginable.

In a previous article on this blog, I explored how businesses can identify their ideal customers and develop strategies to engage them.

Customer Value in the Now Economy: Know Your Customer to Bulletproof Your Marketing Strategy by Fernanda Almada * [35]

Today, AI is making it possible to refine those strategies even further. By processing vast amounts of consumer data, AI helps companies gain deeper insights into pain points, make more accurate behavior predictions, develop more relevant products and services, and create highly engaging and effective marketing campaigns.

AI’s Role in Modern Marketing

Marketing has always relied on consumer insights to shape campaigns, messaging, and product positioning. However, traditional methods of gathering consumer insights, such as surveys and focus groups, can be time-consuming and limited in scope. AI now enables companies to automate data analyses, generate insights in real time, and quickly create content that resonates with specific audiences.

For instance, AI-powered tools can analyze social media trends, customer feedback, and purchasing patterns to help marketers make informed decisions. These tools are also being used to optimize digital advertising, automate personalized email marketing, and improve SEO strategies.

Beyond automation, AI has become a strategic asset in marketing, helping businesses test creative concepts, refine messaging, and measure the effectiveness of campaigns at a much larger scale than before.

How Leading Brands Are Using AI to Stay Ahead

Many global brands are already integrating AI into their marketing and consumer research strategies. By doing so, they are not only gaining a competitive edge but also reshaping how industries approach innovation and decision-making.

Estée Lauder, a global luxury beauty brand, is pioneering AI-driven marketing and consumer research. The company partnered with OpenAI to develop over 240 custom GPTs designed to enhance internal workflows, improve market analysis, and develop new products based on consumer insights. Custom GPTs are AI models tailored to a company's specific needs, trained on proprietary data to generate more relevant insights, automate tasks, and enhance decision-making while maintaining data security.

With AI, Estée Lauder can analyze emerging beauty trends, track shifting consumer preferences, and predict which products will resonate with different demographics. These AI-driven insights help the company create more targeted and innovative beauty products, staying ahead of market trends. 

Another example is Zappi, AI-powered consumer insights platform. According to Steve Phillips, Founder & Chief Innovation Officer at Zappi, AI is revolutionizing market research by automating the entire process—from data collection and analysis to reporting and decision-making. Zappi has integrated AI across all stages of research, allowing brands to generate insights at unprecedented speed and accuracy.

One of the biggest developments in this space is the rise of AI-powered agents. Traditionally, market research firms would provide companies with consumer insights in the form of reports, leaving it up to marketing teams to determine the next steps. Now, with AI, businesses can use AI agents to generate product ideas, refine ad campaigns, and optimize messaging based on real-time consumer feedback.

According to Phillips, AI significantly reduces the time needed to develop and test marketing strategies. Instead of taking weeks to brainstorm and refine ideas, companies can now generate and test multiple creative concepts in a matter of hours.

Getting Started with AI

For those looking to explore AI in marketing, the best approach is to start small and experiment with the tools that fit your needs and top priorities.

Here are four practical steps:

            Ø  Identify one area where AI can help. Whether it’s copywriting, image generation, video                              editing, or consumer research, focus on a single tool first.

Ø  Test AI tools that align with your needs. Platforms like ChatGPT, MidJourney, and Descript are great starting points for different marketing functions.

Ø  Use AI to enhance creativity and amplify your skills. The best results come from combining AI’s efficiency with human insight and strategy.

Ø  Stay updated with AI advancements. The field is evolving rapidly, and keeping up with new AI marketing trends will help you stay competitive. 

·       Future of AI in Marketing

AI is not just a trend—it is fundamentally transforming how businesses understand consumers, develop marketing strategies, and create products. This, in turn, creates superior value and enhances business performance. The brands leading the way today are proving that AI is an essential tool for innovation, efficiency, and competitive advantage.

For professionals looking to advance their careers in marketing, AI proficiency is becoming a must-have skill. Companies now expect marketers to leverage AI-driven insights, optimize campaigns through automation, and think strategically about how technology can enhance business outcomes.

If you haven’t started yet, now is the time to embrace AI and stay ahead.

About the Author

Fernanda Almada is an AI marketing strategist and coach with over 15 years of experience leading high-impact digital marketing initiatives. She is the founder of FernandaAlmada.ai, where she helps marketers simplify AI and use it effectively to stay ahead of the competition. Fernanda holds an MBA in Marketing from Nova Southeastern University (Class of 2020) and has worked with some of the most forward-thinking brands in digital marketing.

To help students and professionals explore AI’s potential in marketing, Fernanda has put together a free guide with 50 AI tools covering content creation, image and video generation, and more. The goal is to identify the best tools for your specific needs. Download your free guide and connect with Fernanda.

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Sustainable Growth or Aggressive Transformation? by Rawad Noureddine* [48]

In today’s business landscape, the pressure to constantly evolve can be overwhelming. It's tempting to believe that quick, bold moves—like cutting prices drastically, jumping on every new trend, or making dramatic changes to your strategy—are essential to staying competitive. But, is this constant push really the answer? The reality is, rushing into transformation often comes at a steep price: the quality of your product, the loyalty of your customers, and the very identity of your brand.

The Case for Sustainable Growth

Sustainable growth offers a more deliberate and thoughtful approach. Rather than responding to every market shift or seeking immediate wins, it focuses on the long-term vision. It's about laying a solid foundation that will endure.

This involves prioritizing quality over speed, nurturing customer trust, and investing in meaningful relationships. While sustainable growth may not generate headlines for instant success, it builds something far more valuable: loyal customers and a respected brand that lasts through time.

The Pitfalls of Aggressive Transformation

Focusing solely on quick wins can lead to immediate rewards, like increased buzz or sales spikes. However, these short-term fixes can erode the core of your business in subtle ways.

1. Eroding Your Brand Identity

Your brand is your unique value proposition, the reason customers choose you over competitors. When you chase fleeting trends, drastically lower prices, or enter new markets without a clear strategy, you risk diluting your brand’s meaning.

Example: A luxury skincare company, known for its premium organic products, introduces a budget-friendly line to attract a broader audience. Over time, loyal customers begin to question the brand’s commitment to quality, and the company struggles to maintain its premium image.

2. Alienating Loyal Customers

Your loyal customers are your business's foundation. They come back, spread the word, and often spend more. However, aggressive shifts—like cutting corners or pursuing entirely new audiences—can leave these core customers feeling neglected.

Example: A quaint café, loved for its artisanal coffee and cozy atmosphere, switches to a drive-thru model to compete with fast-food chains. Loyal patrons, who appreciated the café’s personal touch, feel abandoned, and the café loses its core following without winning over fast-food customers.

3. Damaging Your Reputation

Quick, aggressive decisions often leave little room for careful consideration. This can lead to lapses in quality or service. Customers notice, and once your reputation is tarnished, it’s difficult to repair.

Example: An online retailer promises next-day delivery to keep up with competitors, but its logistics system can’t meet the demand. As packages arrive late or go missing, social media buzzes with complaints, and the brand that once represented reliability becomes a cautionary tale.

Why Sustainable Growth Prevails

Sustainable growth is about building your business in a way that ensures long-term success. It’s not about quick wins; it’s about creating lasting value. Here’s why it works:

1. Protecting Your Brand Value

Competing on price alone leads to diminishing returns, where quality often suffers. Sustainable growth focuses on creating value through craftsmanship, innovation, and exceptional customer service.

Example: A high-end fashion brand refuses to participate in discount sales, instead doubling down on storytelling and exclusivity. Customers are reminded that its pieces are more than products—they’re investments. As a result, the brand cultivates a loyal customer base that appreciates its integrity.

2. Building Long-Term Loyalty

Loyalty isn’t instantaneous, but when customers trust you to consistently meet their expectations, they stick around—and they become your best advocates.

Example: A family-owned bakery earns a devoted following by consistently offering fresh, high-quality pastries and making each customer feel valued. Over time, customers not only return, they bring their friends and family.

3. Differentiating Beyond Price

If price is the sole factor that sets you apart, you’re in a vulnerable position—there will always be someone willing to undercut you. Sustainable growth highlights what makes your brand unique, whether it's a superior product, outstanding service, or a compelling story.

Example: A mattress company emphasizes its eco-friendly materials and simple buying process instead of competing on the lowest price. Customers are drawn to support a brand that aligns with their values and are happy to pay a premium.

The Path to True Success

True business success isn’t about chasing quick fixes like slashing prices or jumping on the latest trend. These strategies might get some attention and boost sales for a little while, but they don’t create lasting value or build a solid foundation for the future. In fact, they can hurt your brand by confusing customers, damaging your reputation, and breaking trust. Sustainable growth, on the other hand, takes a bigger-picture approach. It’s about building a brand that’s not just popular today but will continue to grow and thrive in the years to come.

Instead of rushing for quick wins, businesses that focus on sustainability build a reputation for being reliable, offering quality products, and keeping their promises. They build strong relationships with customers and focus on creating something that lasts. While this approach might not bring instant results like deep discounts or viral ads, it helps create loyal customers who value the brand for its consistency and authenticity. Over time, this leads to steady profits and long-term success.

When you feel tempted to take a shortcut or chase something flashy, it’s important to pause and think it through. Ask yourself: Does this decision fit with the company’s values? Will it help or hurt the brand in the long run? Am I focusing on quick profits or investing in something that will last? Taking the time to reflect on these questions ensures that the choices you make support the long-term vision of your business.

Companies that focus on sustainable growth, instead of rushing for quick results, are more likely to handle challenges and stay strong over time. They grow by evolving in thoughtful, meaningful ways, which helps build a loyal customer base and a brand with lasting power. Sustainable growth isn’t the flashiest path, but it’s the one that leads to true, long-lasting success.

* Dr. Rawad Noureddine is a visionary, global leader in business development and large-scale project management. This post has been adapted from his new book "From Lead to Loyalty: Mastering Business Growth". Contact him at: nrawad@hotmail.com or visit his website rawadnoureddine.com 

The Extractive Business Model of Fast Fashion: A Colonial Critique by Kanika Meshram * [47]

The concept of value creation revolves around aligning the interests of customers, stakeholders, and the organization itself. A successful business model effectively leverages these values. Central to this framework is the business model canvas, which outlines nine key elements such as customer segments, value proposition, and revenue streams. A robust supply chain, underpinned by strong partnerships, is essential for delivering this value proposition.

Fast fashion brands have become adept at responding to market demands through agile business models. However, this speed comes at a significant cost. A voracious appetite for textiles, coupled with declining garment utilization, has severe environmental implications. Furthermore, the industry’s reliance on low-cost labour in the Global South raises ethical concerns.

The Fast Fashion Value Proposition: A Disposable Culture

Fast fashion brands have revolutionised the clothing industry, offering trendy styles at rock-bottom prices. This seemingly irresistible value proposition, however, comes with a hidden cost. By constantly churning out new designs – Shein adds 2,000 daily [1], Zara produces 500 weekly [2] – fast fashion cultivates a culture of urgency, detachment, and ultimately, disposability towards clothing. This focus on fleeting trends disrespects the craftsmanship and longevity that garments can possess. It fosters customer value in “wear-once-and-discard” proposition that generates mountains of textile waste. The burden of this waste disposal, however, falls far from the trendy wardrobes of the Global North.

The fashion industry was built on the promise of cheap labour in the Global East. As wages in developed nations like the UK rose, brands shifted production to countries offering lower costs [3]. This pursuit of profit came at a human cost. To maintain low prices, companies chipped away at garment worker rights, suppressing wages, utilizing exploitative short-term contracts, and creating conditions akin to modern-day slavery.

This exploitation has deep colonial roots. The fashion industry frequently leverages state power to stifle labour unions and worker movements in the Global South. They justify these actions by painting a bleak picture – claiming these are the best opportunities available for workers in Global South, who might otherwise face even harsher realities. This logic maintains an exploitative system where Western companies reap vast profits while workers toil in unsafe environments for meagre wages.

Reimagining the Business Model: A Call for Responsibilisation

Most fast fashion business model doesn’t account for the lifecycle of its products. The responsibility for discarded clothing falls on the consumer, often leading to donation piles that end up in overflowing second-hand markets of the Global South. Places like Ghana’s Kantamanto Market and Kenya’s Gikomba Market become dumping grounds for world’s unwanted clothing[4]. This burden goes beyond logistics. The influx of cheap, trendy garments disrupts local economies in Global South and devalues their traditional clothing craftsmanship. Consumers in developing nations feel pressured to adopt Western styles, further perpetuating colonial power dynamics. So, demand for such types of clothes come from a system of colonialism where western style dresses will get you ahead in life perpetuating the notion of power and white supremacy.

The environmental impact is equally staggering. Unsold garments end up in landfills, contributing significantly to the global carbon footprint considering the long journey these clothes take to reach developing countries.  As it turns out, managing this dumped clothing comes at a cost to these countries. For example, the municipal government of Accra, Ghana spends over US $1 million annually on tipping fees for second-hand clothing waste in landfills alone; this includes expenses like fuel, maintenance, and labour. Imagine the burden if the world kept dumping clothes on your doorstep and your tax money was used to clean it up!

As the Figure illustrates, I utilized the H&M business model as a framework to illustrate how the model can be adapted to prioritize clothing circulation over landfill disposal. My suggestions are preliminary and do not comprehensively address the complexities of the issue, particularly the relentless pursuit of new styles. To shift the business model from an extractive, colonial approach to a more responsible operating model, three key areas for improvement are proposed.

Product Take-Back Programs: Retailers can partner with other stores or supply chains to collect used clothes. E-commerce platforms can inform customers about these drop-off points. Incentives can be offered to encourage participation.

Rewear and Upcycle: Brands can offer repair services for damaged clothing, extending their lifespan. Vintage sections in stores can give pre-loved clothes a new lease on life driving product extensions.

Repurposing and Recycling: Unsold clothes can be creatively transformed into packaging materials, cleaning cloths, or even new clothing lines. This requires collaboration with suppliers in the Global South to develop innovative recycling techniques.

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[1] https://www.gittemary.com/2022/07/shein-is-much-worse-than-any-other-fashion-brand-here-is-why.html#:~:text=Shein%20reportedly%20adds%20over%202%2C000,%2Dday%20period%2C%20for%20comparison.

[2] https://www.thefashionlaw.com/fast-fashion-sustainability-is-about-more-than-the-fabrics/#:~:text=As%20the%20largest%20fast%20fashion,20%2C000%20different%20styles%20a%20year.

[3] https://www.amazon.com.au/Consumed-Collective-Colonialism-Climate-Consumerism/dp/1538709848

[4] https://earthyroute.com/blogs/slow-fashion-series/4-places-where-our-clothes-end-up-when-they-are-discarded

 * Dr. Kanika Meshram is a Lecturer in Management and Marketing at the University of Melbourne. She may be reached at kanika.meshram@unimelb.edu.au. Note: the inspiration for this blog comes from Aja Barber's book, Consumed the Need for Collective Change: Colonialism, Climate Change and Consumerism. Read Professor Meshram's other posts on customer centricity [43, 31].  

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Meaningful Consumption – Consumer Behavior Concepts and Applications by Aditya Gupta * [46]

 

What makes a purchase meaningful? Reflect on the things you spent money on recently. Perhaps, bar tabs, gas, groceries, rent/mortgage, takeout boxes, Starbucks and Ubers? While some of these purchases were made from sheer necessity (you need a roof over your head), others were made for pleasure (a Frappuccino on a broiling summer day? Yes please!). But how many (if any) of these transactions would you classify as meaningful?

For the longest time, consumer behavior researchers have invested considerable effort in understanding what makes a purchase useful (the utilitarian perspective) and what makes it pleasurable (the hedonic perspective). In contrast, there’s been scant research on what makes certain purchases – i.e., the products, services, and experiences we buy– meaningful to us. The research I undertook with my colleagues enables me to answer the question as follows: 

Ø     > A purchase is perceived as personally, deeply, and enduringly meaningful if it can enable at least one of three key experiences: rejuvenation, expansion, and consolidation.

The question of meaningfulness arises from a third perspective, eudaimonia. Introduced by Aristotle’s writings, eudaimonia explains how to lead a virtuous, purposeful, meaningful life. These days we see several related concepts in popular culture – flow, flourishing, holistic well-being, and self-expression. Meaningfulness is one of these facets and, as I describe below, it is possible to find through the time, effort, and money spent by consumers. There are three key themes associated with meaningful consumption: rejuvenation, expansion, and consolidation.

      1. Rejuvenation

Consumers are likely to find a purchase meaningful if it can provide a sense of renewal to them. This can happen in two ways: repair and reconnection. The key idea underlying repair is one of escape and healing from the stressors and strains of modern life. Whether it was a vacation getaway or a daily retreat to the gym, people valued experiences that enabled a temporary relief from the many demands of day-to-day life and allowed them to rest and recharge their batteries. In contrast, the central idea behind reconnection was about renewing relationships. People spoke fondly of annual reunions and basketball game tickets because those experiences were instrumental in helping them keep integral ties of family and friendship alive.

2. Expansion 

Many of us are likely to start finding life dull if there are no new horizons to explore. We saw several examples of how consumers would often seek out intellectual, pragmatic, or relational expansion. Simply put, consumers find meaning in purchases that enable them to broaden their intellectual horizons, learn or sharpen a skill, or forge new relationships. People enthusiastically recounted finding meaning through purchases of books on topics they were interested in, DIY furniture that they learned how to assemble, and thoughtful presents for loved ones as a way of building relationships. As can be seen, the central idea underlying expansion is that of growth, and purchases which can help bring that into consumers’ lives are more likely to end up being meaningful to them.

3. Consolidation

The final experience linked to meaningful consumption tries to capture how certain purchases lead to a deeper and richer understanding of who we are and the larger world we inhabit. We term the former crystallization and the latter contextualization. Much as how crystals form through a slow process of solidification, certain purchases lead consumers toward a better understanding of their own selves, strengths, weaknesses, and achievements. In essence, such purchases helped consumers to better crystallize their own sense of self. In contrast to this relatively more inward perspective, examples of contextualization underscored a more outward perspective as seen in certain purchases which allowed consumers to get a stronger grasp on their position relative to the larger contextual aspects of their existence such as the passage of time, the world they lived in, and even the cosmos. Several such examples originated, perhaps naturally, from experiences during travel. People recalled how visiting now-defunct mining caves gave them an eerie inkling of what life must have been like for miners who used to work there many decades ago. Others spoke of how seeing a rapidly diminishing glacier made climate change that much more vivid to them. Given how a lot has been written about how many of us wish to move toward a greater understanding of ourselves and our place in the world, it was no surprise that such purchases ended up resulting in cherished memories because of their consolidative nature.

Marketers Can Create Superior Value and Deliver Meaningful Consumer Experiences

Services (e.g., bike rentals, gyms, higher education, restaurants, spas) and experiences (e.g., amusement parks, concerts, marathons, theaters, travel packages) lend themselves well to building meaningful consumption. Such marketing applications imply that there will be active buyer involvement and co-creation of value opportunities. A great example of this is the tremendous success of Airbnb vacation rentals which disrupted the hotel sector. Under its ambit, a wide variety of meaningful classes/workshops, walking/food and wine-tasting tours, and interesting or exotic trips are offered to consumers worldwide.

You will find rejuvenation, expansion, and/or consolidation and breathe a sigh of relief as you get away from the office for a few days.  Perhaps, learn candle-making or glass-blowing or be inspired by the splendor of a natural wonder at the end of a hiking trail.

Companies should consider revising their value propositions to go beyond utility and pleasure motivations. To what extent can your company provide meaningful consumption experiences for their target markets? Goods, services, and ideas can be redesigned/ repositioned to increase the likelihood of customers finding your products truly meaningful. In turn, such gratitude will be highly rewarded with increased loyalty, word-of-mouth/word-of-mouse promotion, and enhanced business performance.

*Aditya Gupta, Ph.D., is an Assistant Professor of Marketing at Illinois State University. He may be reached at agupt16@ilstu.edu

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5 Think BIG Disruptions by Thomas Ferleman * [45]

 In the next two years, the most innovative companies will take advantage of 5 THINK BIG disruptions impacting the workplace, consumers, and sellers across nearly every industry. These changes are being played out now, and will reach their zenith by 2025. 

1. Renting Things Instead of Owning Them

Many large value purchases will not be sold as long-term capital expenditures, but rented as operational costs. The automobile and insurance industry will be greatly impacted by this change. Vehicle ownership will move from individuals with long-term bank loans and high insurance premiums to corporation investments. Smart vehicles will become safer and more reliable, thereby reducing the need for repairs, and necessitating changes in traffic laws.

Even home ownership will be impacted, as younger consumers increasingly want to work where they live, instead of being rooted in a cul-de-sac neighborhood. The benefits of a home mortgage as equity may shift to alternative investments with greater liquidity. GenX and GenZ increasingly see retirement as a novelty. They prefer to think of post-work life as an adventure. They will have less need for a fixed location and greater need for rental experiences. 

Computer usage will continue to become a utility. The most innovative companies will not own software, but rent it as-needed. Individual computers will become more standardized and less powerful, as compute power moves to the cloud and consumption is variable. Meanwhile, land-line bandwidth will be obsolete as low-earth orbit internet becomes ubiquitous.

2. Commoditizing Data as Bundled Offerings

With an overwhelming bulge of data from IoT devices, the most innovative companies will harvest targeted segments of information and build data lakes of specialized topics that can be analyzed and re-sold with device level accuracy at the point of presence.

Every transaction made by anyone, at any time, will be available for purchase. Privacy concerns will give way to consumer convenience. Marketers, sellers, and data analysts supported by software developers, will use these data lakes with predictive analytics to influence decision-making on every product, political campaigns, and personal purchases.

The mobility of data means that the consumer's location is no longer relevant. Data bundles will follow the consumer based on device location, and change as vendors earn trust and vie for their attention. Consumers will care less about who makes the product and more about who delivers what they want, when they want it. The postal address will become less important than the consumer's physical location.

3. On-the-Go Consumption

The most innovative companies will find ways to package products and services into smaller-and-smaller form factors. Purchase labeling like QR codes will become obsolete as just-walk-out technology eliminates the need to wait in line to check-out and drone delivery makes its way into our everyday life.

Foods and other ingestible products will move to capsulized form and condensed packaging, where the value is weighted by time and convenience. This change will be felt most acutely at fast-food restaurants, the corner convenience store, and legal psychoactive drugs dispensaries, where consumers just want to get in and out quickly. This change lends itself to automation with the increased use of robotics based on pre-defined and re-sold algorithms that need less customized training.

This, too, will be impacted by the mobility of data. Ordering pizza and beer on the beach will become more common. In fact, the bundling of data will ensure that your favorite New York slice is also available in Malibu; delivered on the sand without even choosing options.

4. Quality of Life 

People will no longer work to achieve a good standard of living; quality of life will be seen as a right, not a privilege to be achieved. The most innovative companies will recognize the value of talent; those that don’t, will struggle to retain top performers and eventually become obsolete. The power of work will continue to move into the hands of the worker. Employment packages, ultimatums, restrictions, contracts, and agreements that control the boundaries of work will no longer ensure talent doesn’t go somewhere else.

Employers that demand butts-in-seats and fixed office locations will be seen as out of touch. People will work where and when they believe it will provide the greatest quality of life. The five days a week, eight-hour work day is dead. Some companies will struggle with time-zone differences, but the most innovative companies will learn to flex worker options and collaborate anywhere and at any time.

Even governments will be forced to adopt flexible work schedules. This will impact the competitive landscape for large, multi-year contracts. With location no longer a requirement, companies will continue to diversify their workforce and leverage regional cost savings. Those that centralize will stagnate. New specializations in human resources and corporate law will emerge to manage employment requirements and taxes at every local level.

5. Automation Everything

Any repetitive task or manual sequence will be a candidate for automation. The most innovative companies will mechanize everything, driving workplace tasks to higher-value outputs and lowering human touch. These companies will dramatically reduce error rates, lower costs, and increase speed to delivery. The smart ones will transfer savings to customers and deepen trust with consumers, resulting in higher profits over extended horizons. Others will look internally to benefit and see only short-term gains that eventually lead to stasis.

Job categories like human resources, legal, administration, manufacturing, and the entire supply chain will become increasingly automated through self-serve functionality at the edge. Quick-click enabled by AI/ML solutions will automate the delivery of a laptop, the selection of benefits, the agreement of a contract, and the movement of goods and services. Human-in-the-loop will move from highly educated subject matter experts, to full-stack software developers able to code and review algorithms that drive high-value, low-cost outputs.

Robotics will become common with modular specialization being rented as commodities. New robotics companies will build specialized platforms for fast food restaurants, big bulk store stocking, last-mile delivery, household services, and medical care. A build once, rent many approach to the use of robotics will drive down costs and make implementation much quicker and easier. The workplace robot will become as standard as the copy machine.

Conclusion

The widely available compute capacity, no-code/low-code development, and AI/ML, Robotics, and Space advancements are making choices more available and easily consumable. The value proposition is now in the hands of the consumer at the edge and not the producer at the build point. From new-venture startups to long-standing big-caps, and from cultural discourse in the public square, to the mom-and-pop shop down the street, we are living in a time of unprecedented change. If you thought the Industrial Revolution was something, just you wait. The band is still warming up.

 

* Dr. Thomas Ferleman is an Enterprise Transformation specialist at Amazon.com, where he leads Digital Innovation engagements using Amazon’s innovation mechanisms like, Culture of Innovation, Working Backwards (Design Thinking), Innovation Pulse Check (Lean Six Sigma/DMAIC) Roadmap, and SMART Solution Design (Agile) to identify specific end-user problems or opportunities and build customer obsessed solutions. He is a Professor, Data Analytics Engineering (DAEN) Master of Science Program, George Mason University College of Engineering and Computing. He specializes in a broad range of data analytics algorithms, tools, and processes for solving a wide range of real-world problems. He holds a Doctor in Strategic Leadership from Regent University, and MBA, MS in Management, and Bachelor of Science from University of Maryland Global Campus. This post was reprinted by permission from the ALL THINGS INNOVATION blog. For more insights from Dr. Ferleman, go to https://ferleman.com