Technology has fundamentally reshaped how consumers interact with brands, gather product information and make purchase decisions.
Digital technologies — including online retailers, social media and AI — are influencing each stage of customer decision-making. These shifts affect individual consumer preferences and force businesses to adapt their marketing, engagement and operational strategies to remain competitive.
Understanding the dynamic between technology and consumer behavior is critical for businesses seeking to create loyal, repeat customers. As expectations evolve, so does the need for data-driven insights, targeted content and real-time engagement across channels. Exploring the history of how emerging technologies drive customer behaviors can help businesses align with these trends.
The evolution of consumer behavior
The rise of the internet in the mid-1990s marked a turning point in consumer behavior. While consumers once relied heavily on in-store visits, print catalogs and sales representatives for information, the internet introduced the ability to research products independently, compare prices across retailers and read peer-generated reviews — all before ever stepping into a brick-and-mortar location.
Early internet adoption saw the creation of digital marketplaces and product-comparison websites, which played a crucial role in decentralizing purchasing influence. Sites such as Amazon and eBay offered users access to a vast range of products and enabled buyer reviews, giving consumers more control and transparency. By the early 2000s, search engines and online forums had also become key sources of product discovery and evaluation, further shifting power from brands to customers.
This empowerment required a fundamental change in how businesses communicated with their audiences. Rather than relying solely on traditional advertising, brands needed to build trust through credible, informative content and responsive digital experiences. The ability to access product details, competitive pricing and customer opinions on demand reshaped expectations for convenience, personalization and speed.
The introduction of smartphones accelerated this trend by making the internet a constant presence in everyday life. Consumers began to engage in “micro-moments,” a term popularized by Google to describe real-time, intent-driven interactions in which decisions are made quickly and often on mobile devices. These moments include researching a product while standing in a store aisle, checking reviews during a conversation and making impulse purchases during downtime.
The digital evolution continues to redefine how consumers engage with brands. Businesses that successfully adapt their strategies to reflect these changes can build deeper customer loyalty and more competitive customer experiences.
The role of e-commerce in modern shopping
E-commerce has grown to become a critical force in consumer decision-making. What began as a supplemental channel is now a primary method of shopping for many consumers. According to data from eMarketer, global e-commerce sales surpassed $6 trillion in 2024 and are projected to exceed $6.4 trillion in 2025.
The convenience of online shopping — driven by mobile apps, one-click payments and rapid delivery options — has created new patterns of consumption. Consumers often browse online even when they plan to purchase in-store, blurring the lines between physical and digital retail environments.
Moreover, platforms such as Amazon and Shopify are not only facilitating transactions but also influencing purchase decisions through recommendations and reviews. The effect of technology here is twofold — it accelerates the shopping process and deepens the reliance on algorithms.
For retailers, this means competing not only on price and product but also on digital experience. Easy navigation, responsive mobile design and transparent logistics are now baseline requirements. Brands that fail to meet these expectations risk being excluded from consideration.
Influence of social media on purchase decisions
Social media has evolved from a communication platform to an engine of commerce and influence. Consumers increasingly discover products through curated content, peer recommendations and paid placements within their feeds. According to a Sprout Social report, 90% of consumers rely on social media to keep up with trends. Ad spending on social media is expected to grow by more than 9% each year from 2025 to 2030.
The emergence of social commerce — in which transactions occur entirely within platforms such as Instagram, TikTok and Facebook — illustrates how embedded social media is in the purchase funnel. For many users, ads and influencer content now account for a significant portion of their social media consumption, making the distinction between entertainment and marketing unclear.
Brands must now account for these contextual dynamics. Effective social media campaigns are often visually driven, brief and aligned with trending content formats. Furthermore, social media sentiment and community feedback can rapidly shape a product’s success or failure, requiring agile monitoring and response strategies.
The role of AI in consumerism
AI is redefining how businesses interact with and influence consumers. It enables faster and more precise engagement, including personalized product recommendations, dynamic pricing and automated customer service. A recent development from Meta highlights this trend: The company announced it would begin letting AI systems take over its advertising business, a shift that underscores how automation is becoming central to customer targeting.
AI tools analyze vast amounts of behavioral data to deliver highly relevant experiences. For example, machine learning models can segment customers based on browsing history, predict purchase intent and serve tailored ads in real time. According to Gartner, AI will drive a shift in digital commerce. Many of the vendors on Gartner’s Magic Quadrant for Digital Commerce are integrating AI across all touchpoints to enhance conversion rates and customer loyalty.
However, the rise of AI also introduces new concerns around data ethics, privacy and over-reliance on automation. Businesses must balance efficiency with transparency and ensure that AI-driven content adds value rather than creating noise or confusion.
Adapting to technology-driven consumer trends
As consumer expectations continue to evolve, businesses must adopt strategies that align with emerging behaviors while avoiding common missteps. Overemphasizing technology as a marketing message — rather than using it to deliver value — can backfire. A recent critique of Duolingo’s AI-focused messaging strategy illustrates this risk. While the company’s AI tools may enhance its product, leading with buzzwords rather than benefits diluted its brand message and confused some users.
To succeed, businesses must be strategic in how they use and communicate technology. Key practices include the following:
Dos of targeting consumers using technology:
Don’ts of targeting consumers using technology:
- Avoid excessive personalization that may feel invasive or uncanny.
- Do not treat technology itself as the value offering.
- Resist automating customer engagement without human oversight.
- Do not ignore feedback loops that indicate user frustration with new tools.
In addition to AI, other emerging technologies worth watching include the following:
- Augmented reality (AR). Used for virtual try-ons and immersive shopping experiences. According to Statista, the AR retail market is projected to reach $21 billion by 2028.
- Voice commerce. Smart-speaker integration is growing, with platforms such as Google Assistant and Alexa becoming shopping channels.
- Blockchain for retail. Enhances transparency and traceability in supply chains and supports secure digital identities for consumers.
Technology and consumer behavior are now inextricably linked. Businesses must move beyond one-size-fits-all marketing and embrace tools that enable personalized, timely and context-aware engagement. The ability to adapt to changing behaviors, experiment with new platforms and prioritize customer value over technical novelty will determine long-term success. As digital capabilities expand, the companies that combine strategic insight with technical execution will be best positioned to meet consumer demand.
Griffin LaFleur is a MarketingOps and RevOps professional working for Swing Education. Throughout his career, LaFleur has also worked at agencies and independently as a B2B sales and marketing consultant.
