New technology is changing the behaviour of the buyer

Optimising distribution means engaging with accepted buying behaviours. Looking ahead, how will buyer, and seller, behaviours change as a result of new technologies?
What new opportunities will new technologies such as mobile, allowing a more personalised approaches to distribution, presents to Airlines?
Listen to the expert opinion of Nawal Taneja, Professor Emeritus at Ohio State University
www.sitasummit.aero
www.sita.aero

The new technology, basically, is changing the behavior of the buyer, which is more information-based but is enabled by technology.
In the old days, it used to be that the sellers basically sent their information through the television. And it was mass communication, one seller telling millions of people what their product and service is, what their price is.
Then came the second screen which was the computer. Now there could be a little bit of an interaction between the buyer and the seller. It is a one-to-one communication.
Now we have technology, which is mobile devices, where not only can I have a live interaction with you on exactly what I want at this particular time, as opposed to in general, but I can get the views of other buyers instantaneously using social media sources. So now is communication from many people to many people, as supposed to one-to-one, or one-to-many. So that is what is changing the behavior of the buyer. And therefore the sellers must change their behaviour too, to accommodate the changing needs of the passengers.
The opportunities that are provided to airlines is the ability to use the information available through new resources in real time, to be able to provide highly customised service. That will vary from customer to customer, based on not only the needs of the customer, but the ability and willingness of the customer to pay for that service. So the customisation goes both ways, not only what does the customer want, but how much is the customer willing to pay for a variety of services.
The other aspect of it is, as I said, the airlines need to become more of solution providers when problems occur. Find me a solution to my problem even if it means integrating the services provided by other companies and other businesses, and learn to use technology to manage complexity instead of trying to avoid complexity, so that my solution -- my problem can be given a solution.

Category:

Science & Technology

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• Mobile
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• Nawal Taneja
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