The Impact of Digitalization on Current Marketing Strategies

This chapter provides an overview of the strategic implications of chatbot use and implementation, including potential applications in marketing, and factors affecting customer acceptance. After presenting a brief history and a classification of conversational artificial intelligence (AI) and chatbots, the authors provide an in-depth review at the crossroads between marketing, business, and human–computer interaction, to outline the main factors that drive users' perceptions and acceptance of chatbots. In particular, the authors describe technology-related factors and chatbot design characteristics, such as anthropomorphism, gender, identity, and emotional design; context-related factors, such as the product type, task orientation, and consumption contexts; and users-related factors such as sociodemographic and psychographic characteristics. Next, the authors detail the strategic importance of chatbots in the field of marketing and their impact on consumers' perceived service quality, satisfaction, trust, and loyalty. After discussing the ethical implications related to chatbots implementation, the authors conclude with an exploration of future opportunities and potential strategies related to new generative AI technologies, such as ChatGPT. Throughout the chapter, the authors offer theoretical insights and practical implications for incorporating conversational AI into marketing strategies.

Customer experience is increasingly recognized as a source of competitive advantage. Customer experience refers to customers' responses and reactions to cues within touchpoints along customer journeys. Nowadays, customers often interact with online touchpoints – such as social media, websites, or e-commerce – in their customer journeys. Given that customer experience is multidimensional, this chapter addresses the following question: How can sensorial experiences be triggered in online touchpoints? Based on a review of the literature on customer experience and sensory marketing, four challenges in triggering sensorial experiences in online touchpoints are identified: (1) limited sensorial cues, (2) lack of thematic congruence between online and offline touchpoints, (3) sensory overload, and (4) lesser control over sensorial cues. Then, two routes through which organizations can trigger sensorial experiences in online touchpoints are proposed: (1) directly influencing sensations through sensory-enabling technologies, and (2) indirectly influencing sensorial perceptions through the use of sensory and nonsensory cues. The chapter closes with a presentation of a model that describes the process of triggering sensorial experiences in online touchpoints as well as a checklist of relevant questions for practitioners who wish to do so.

Today's marketing is dominated by decision-making based on artificial intelligence and machine learning. This study focuses on one semi- and unsupervised machine learning technique, generative adversarial networks (GANs). GANs are a type of deep learning architecture capable of generating new data similar to the training data that were used to train it, and thus, it is designed to learn a generative model that can produce new samples. GANs have been used in multiple marketing areas, especially in creating images and video and providing customized consumer contents. Through providing a holistic picture of GANs, including its advantage, disadvantage, ethical considerations, and its current application, the study attempts to provide business some strategical orientations, including formulating strong marketing positioning, creating consumer lifetime values, and delivering desired marketing tactics in product, promotion, pricing, and distribution channel. Through using GANs, marketers will create unique experiences for consumers, build strategic focus, and gain competitive advantages. This study is an original endeavor in discussing GANs in marketing, offering fresh insights in this research topic.

Buying online has become a widespread and common activity for consumers, and, for many organizations, e-commerce has become a very profitable alternative to sell their products and services, also allowing them to leverage their strategy in new geographical markets immediately. Although the literature on the subject is comprehensive, there is a gap in identifying the holistic constructs that are the determinants of consumers' choice of an online store. This research resorts to an exploratory study, based on a nonsystematic literature review, seeking to identify these constructs. The results obtained allowed us to identify the following constructs: consumer behavior, customer experience, web content, catalog, terms and conditions, customer support, perceived value, trust, security and privacy, satisfaction, and loyalty. Customer experience, satisfaction, and loyalty constructs stand out from a strategic perspective.

Digitalization and marketing technologies have made it possible to overcome some barriers to pricing – a multidisciplinary field between marketing, finance and IT – and have set the stage for a paradigm shift in the pricing profession. Value creation, the pricing process, and price communication have been transformed by innovative business models and advanced algorithmic and human–machine solutions. This chapter synthesizes the literature to date and provides a comprehensive framework for an all-encompassing 360° pricing approach that broadens the understanding of pricing in the context of digital business across all steps of the price management process. Starting from product attributes and motivational beliefs in consumers' value assessment and adoption of (technological or digital) products or services, new business models and pricing models emerge in the digital economy, human–machine solutions for price implementation and repricing are increasingly applied, and price search and communication take place through a variety of digital communication channels. Each stage of this framework discusses concrete examples, highlighting the freemium strategy, the subscription model, price tracking and repricing tools, and digital price information channels such as e-commerce, marketplace, or price comparison platforms. The implications for price management in a digital, technology-driven landscape are discussed from the executive level to the analyst level.

Service robots present a new frontier in the provision of services, with far-reaching implications for customers and managers alike. The purpose of this chapter is to examine how service robots impact service providers' current marketing strategies. For this, the authors perform an integrative, nonsystematic review of international gray and academic literature to understand how both practitioners and academics perceive the impacts of the technology. Based on this analysis, the present work identifies three key themes that emerge from the current state of practitioner and academic research, namely (1) service robots demand new core business capabilities and competencies, (2) service robots offer new value propositions, and (3) service robots impact not only service providers' cost structures but also revenue streams. These insights are combined into the Service Robot Innovation Canvas, a visual tool for service providers to identify the impact of service robot implementations on a company's marketing strategy. In addition, based on the analyzed literature, the most pressing questions for researchers are laid out in a research agenda.

Social media has become an indispensable part of modern politics. Its rise in the political arena has coincided with the decline in trust toward mainstream media. Today, more than half of the population gets their political news and information through social media platforms like Twitter and Facebook. Social media offers a great marketing opportunity to politicians as they allow them to bypass traditional media and communicate directly with voters, engage citizens during campaign and noncampaign periods, and create a brand image. As social media's influence in politics grows, so has the research devoted to political marketing on social media. It is against this backdrop that this chapter is written, which provides readers with an overview of the academic domain and the current state of literature. The chapter highlights the various research areas that have been explored in the literature and the implications of social media for political marketing strategy, along with the domain's current limitations and possible avenues of further research.

The versatility of customer relationship management (CRM) systems has kept these technologies popular over the years. These solutions have been integrated into organizations of all sizes, from large corporations to small- and medium-sized enterprises. Similarly, CRM systems have also found applications in all types of industries and business sectors. All this has been the driving force behind the proliferation of CRM solutions around the world. In this chapter, the author not only reflects on the impact and democratization of CRM systems on business management and marketing strategies but also explores how these technologies can determine the company's income. In particular, the author presents an experiment that analyzes the extent to which the volume of annual investment in CRM solutions can be used to predict annual net income in a sample of companies. Using time series analysis and applying the autoregressive integrated moving average modeling technique, the researcher examines a sample of 10 companies from different industries, and countries, over a 20-year period. The results show the efficiency of the predictive models developed in nine of the 10 companies analyzed. The findings of this study allow us to conclude that there seems to be an association between the investments made in CRM solutions and the income of the companies that invest in these technologies.

The management of consumer privacy has become a critical concern for organizations in the age of artificial intelligence–powered marketing. The impact of data on the market environment has brought both benefits and challenges, with marketers gaining valuable insights but also raising privacy concerns. As artificial intelligence–powered marketing advances, consumer vulnerability increases due to the sensitivity of collected data. This vulnerability leads some consumers to resort to falsifying information, posing a significant threat to the digital economy. Privacy empowerment and customer control play a vital role in addressing these challenges. This chapter explores the influencing factors and ethical considerations surrounding data falsification. It also discusses strategies to mitigate perceived vulnerability through privacy controls and explores the consequences of data breaches and customer vulnerability. The chapter further emphasizes the need for organizations to balance benefits, risks, and customer trust while harnessing the value of customer data. An ethical framework for data privacy marketing audits is proposed to help organizations assess their data practices responsibly and competitively. By integrating personal data protection strategies within an ethical framework, organizations can protect consumer privacy, enhance customer trust, and maintain their competitive edge in the market.

Disruptive technologies are accelerating global growth. Artificial intelligence (AI) has the potential to transform the idea of delivering value to end users. On the other hand, the growth of Industry 5.0 has given rise to the concept of humanizing technology, and AI is a promising technology with the potential to contribute to business success. Nevertheless, the idea of value creation in the field of AI is novel, so it is necessary to define the meaning of value by understanding the context of AI applicability in different environments and industries. In this chapter, the author uses the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) procedure to conduct an SLR that provides interesting insights into the focus, industries, and methodologies and approaches used in existing research. Following the initial literature review on the state of the art of AI and value creation, the author also offers a reflection on the strategic implications of AI in the field of marketing, postulating a macrovalue creation framework that addresses the existence of implications on three different levels: emerging markets, Sustainable Development Goals, and adoption issues. Therefore, this chapter examines the value creation perspectives of AI to understand the current research focus and future directions.

Artificial intelligence (AI) is revolutionizing businesses and daily life, with AI-powered technologies like personal assistants and medical diagnostic systems transforming how we interact and make decisions. However, the ethical implications of these technologies cannot be ignored. AI systems can produce biased results and decisions if not designed to be fair and unbiased. Corporate digital responsibility (CDR) provides a valuable framework for addressing these ethical dilemmas. Service organizations need to navigate CDR issues across the data and technology life-cycle stages (e.g., their creation, operation, refinement, and retention) and across its digital service ecosystem (including its external business partners). Despite the risks associated with poor CDR practices, companies may adopt them to benefit from data monetization, enhanced customer experience, and productivity improvement. To mitigate these risks and build a strong CDR culture, organizations need to establish ethical norms, prioritize customer privacy, and ensure equitable power dynamics with business partners. The emergence of generative AI poses enhanced CDR challenges, such as AI complexity, monitoring, accountability, and workforce changes. Going forward, CDR is a crucial framework for firms to address the needs of their multiple stakeholders and to ensure sustainable business practices in the increasingly digital service world.

Digital influencers, besides being a personal branding phenomenon, constitute, nowadays, important partners for brands in the digital environment. Despite the benefits for both parties, the brand and the endorser, there is a risk when the individuals or the brand take part in some scandal or questionable activity, which causes a loss of credibility and reputation. The contagious effect of personal or corporate brand crisis with the partners is well reported in the literature. However, there are no studies about such occurrence in the digital environment, considering that the phenomenon of digital influence has some particularities differing from traditional celebrity endorsement. This chapter focuses on the research of the consequences of a change in the credibility of influencers or brands, after the occurrence of a negative situation, and the way in which this change affects the two parties involved, the brand and the influencer. We conducted a netnographic study of the social media pages of three digital influencers and the social media pages of a recognized fast fashion brand recognized in the digital world. We analyzed 1500 social media comments from their audiences and found that influencers suffer from a loss in sympathy and credibility by scandals while crisis communication strategies in corporate brands can prevent such damages. Strategic implications for brand managers and digital influencers managing their endorsements are addressed in the discussion.

Consumer behavior has evolved because of technological development. Nowadays, consumers carry out the different stages of the decision-making process by combining multiple devices which has been defined as multi, cross and omnichannel behavior. These behaviors have attracted the attention of academics and become a hot topic in literature. As a result, vast amounts of studies on the subject need to be revised and clarified. Thus, the aim of this chapter is to synthetize the primary academic literature that analyzes multi, cross and omnichannel behavior from the consumer point of view. To do that, first, the main concepts (multi, cross and omnichannel) and their differences are clarified. Second, the major findings of channel mix literature regarding the topics, channel scope and theories are exposed and described. Third, the opportunities and future lines of research are presented. This chapter contributes to the literature by clarifying the conceptualization of multi, cross and omnichannel behaviors; offering a complete picture of the main topics, channel approaches and theories addressed in channel mix literature; and presenting future research opportunities and open research questions in a channel mix context that could serve as a starting point to build further research.