Revolution 4.0 and its implications for consumer behaviour

Abstract

Objective: The authors attempted to analyze how the achievements of Revolution 4.0 enable the modification of consumers’ decision-making process by means of profiling algorithms. The authors indicate their potential impact, manifested, for example, in micro-targeting, price discrimination and filter bubbles and conclude with a description of radicalization of views.

Research Design & Methods: The paper represents a theoretical study supported by reference to empirical data, the purpose of which is to determine the scale of the impact of IT sector companies on the economy.         

Findings: IT tools, available mainly thanks to the achievements of revolution 4.0, allow to modify the content of information at the level of an individual consumer, thus determining their decision-making process. This may entail a new phenomenon of the individualization of mass consumption.

Implications & Recommendations: The benefits of profiling algorithms largely contribute to the improvement of market efficiencies. Nevertheless, the threats accompanying them should be clearly articulated and noticed by policy makers. High-tech enterprises, on the other hand, should assume responsibility for the fair and transparent use of profiling algorithms. Consumers' awareness of the use of this technology should also be raised.

Contribution & Value Added: The article constitutes an original analysis of the approach related to the history of economic theory and the analysis of the most recent events and developments of the current fourth industrial revolution. It examines and shows a holistic approach to the concept of "rationality" from the beginnings of economics as a science until today, along with factors influencing its perception.

Keywords

revolution 4.0, digital revolution, 4th industrial revolution, rationality, consumer behaviour

Author Biography

Wojciech Giza

Associate Professor at the Department of Microeconomics at the Cracow University of Economics (Poland). His scientific research interests include the development of economics as a science and the analysis of theoretical and methodological foundations of neoclassical economics, especially the issues of market failure. As far as institutional economics is concerned, he conducts research on comparative analysis of economic systems with particular emphasis on ordoliberalism and social market economy. 

Barbara Wilk

PhD Candidate at the Cracow University of Economics with the specialisation in economics of technological change. Working at the Kosciuszko Institute, Polish non-governmental think tank and research institute, since 2017. She is currently Chief Editor of the European Cybersecurity Journal. She graduated in International Economics and European Studies at the Cracow University of Economics and French Language and Literature at the Jagiellonian University. Her research interests include digital transformation, blockchain technology and impact of artificial intelligence on the labour market.

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