Impact of Next-Gen Technologies on Marketing

Manpreet Singh
(Delhi School of Management, Delhi Technological University, Delhi)

ABSTRACT
This research focuses on four key next-gen technologies – the Internet of Things, Artificial
Intelligence, Machine Learning, and Blockchain – and their respective roles in marketing.
Specifically, this research reviews each of these four technologies in depth, to understand their
key elements, the domains in which they operate, and current use cases concerning these
technologies. The adoption of these next-gen technologies is expected to have an impact on the
outcomes for firms and customers. Nevertheless, these technologies evolve dynamically in a
very short span of time and have not yet been completely explored i.e. their full potential has
yet to be seen. This research paper presents some questions that are specific to key units
(customers, companies, third parties, developers, and regulators), and which merit deeper
investigation in the future. This study also highlights major areas that need managerial focus
in the adoption of these next-gen technologies.

Keywords: Internet of things, Artificial Intelligence, Machine learning, Blockchain, Marketing

strategy

1. Introduction
The world has continued to move towards a digital future over the years. Technology is a large
and integral part of life today, with multiple factors driving and enabling this change. As
customers grow increasingly tech-savvy, they demand fast and seamless digital experiences
and expect immediate solutions to their needs. In response, firms are changing the way they do
business by accelerating the application of technology and reinventing processes,
organizational structures, and business models. By increasing investments in technology, firms
can observe benefits such as lower costs and higher efficiency, and more capably meet
stakeholders’ expectations.

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In the context of technology’s increasing importance, four “next-gen technologies”–the
Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), and blockchain–
are particularly noteworthy. According to Gartner’s Hype Cycle for Emerging Technologies,
IoT, AI, ML, and blockchain are in the breakthrough or early expectation stages, with
mainstream adoption predicted to occur several years into the future. For instance, AI and ML
will be available to the masses, potentially fostering communities of developers, data scientists,
and architects (Panetta, 2018).

While firms have been applying these next-gen technologies to marketing activities and
business tasks in isolation, they have only recently begun to examine the integrated application
of these technologies to marketing strategies. There has been a notice able shift towards data-
driven business and marketing strategies, leading firms towards harnessing the power of next
gen technologies to spur all units of their business, especially marketing. The potential of next
gen technologies to integrate data from varied sources and mine this data using sophisticated
techniques to derive powerful insights has encouraged firms to examine next gen technologies
keenly. Furthermore, firms are now beginning to comprehend the new business opportunities
that these next gen technologies provide, in addition to applying them to solve existing
problems or augment existing capabilities.

2. Rationale of the Study

In this study, we choose IoT, AI, ML, and blockchain as the focal next-gen technologies on
account of their future potential, their interconnectivity, and their linkage to data. Through the
rest of this study, we use the term “next-gen technologies” to specifically refer to these four
technologies: IoT, AI, ML, and blockchain. The rationale for conducting this research was to
find answers to these important questions.

• What do we currently know about the four focal next-gen technologies– IoT, AI, ML,
and blockchain?
• What do we currently know about the impact of these next-gen technologies on firms
and customers?
• Going forward, what would we want to know about these next-gen technologies, i.e.,
what specific research questions would we like to see answered?

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3. Literature Review

3.1 Related Literature

In the extant marketing literature, studies have examined the adoption of different technologies
by firms by considering various antecedents and marketing outcomes. This includes examining
the drivers of firms’ adoption of technology such as e-business (e.g. (Wu, Mahajan, &
Balasubramanian, 2003)), exploring the reasons for differences in technology adoption across
firms (Srinivasan, Lilien, & Rangaswamy,2002),and gauging the marketing impact of firms’
use of technology (e.g. (Gill, Sridhar, & Grewal, 2017; Hao & Song, 2016)). Studies have also
examined the increase in data as a result of the increased adoption of technology (Verhoef et
al.,2017), the impact of this big data deluge on decision-making (Bharadwaj, 2018), and the
changing requirements of this data with regard to analytics (Delen & Zolbanin, 2018). Research
has been conducted on ways to help firms maximize insights from big data (e.g. (Erevelles,
Fukawa, & Swayne, 2016)) and the impact on firm performance(e.g.(Erevelles et al.
,2016;Wambaetal.,2017)).However, there has been limited focus on next gen technologies such
as IoT, AI, ML, and blockchain with regard to their respective marketing impacts (Kumar,
Dixit, Javalgi, & Dass, 2016). Table 1 describes the studies in marketing academic journals
that have focused on these next-gen technologies and their implications for marketing. It is
evident that there have been few studies in the context of next gen technologies. To the best of
our knowledge, there are no studies examining these four next gen technologies and their
impacts on firms and customers, though there have been calls for more in-depth exploration in
this area (Kumar,2018; Verhoefetal.,2017). In the future, technology is expected to influence
greater integration of marketing strategies and operations (Varadarajan & Yadav,2009). The
ubiquity of these next-gen technologies makes it important to understand them in greater detail,
currently and from a future perspective.

3.2 Next-gen Technologies

3.2.1 Internet of Things (IOT)

What is this? IoT operates in the domain of functionality, offering ease of use and convenience
to users through the application of sensors. The foundation of IoT lies in the network of sensors
that capture information about each device and are individually identifiable. IoT devices have
the ability to sense, compute, and communicate wirelessly over short distances, and can

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interconnect to form a wireless sensor network (WSN) (Gubbi, Buyya, Marusic, &
Palaniswami, 2013). IoT devices can detect and record events in the physical world and share
them with data centres and computing systems that analyze and interpret this data from the
sensors across the network–all in real-time. Based on this analysis, alerts such as easy-to-
understand visuals and relevant insights are automatically sent to the device user, while the
sensing and analyses occur at the backend of the IoT networks, hidden from the user. The
communication between the user and IoT devices, and between IoT devices themselves, is
highly simplified and effective. Thus, IoT devices can unobtrusively embed themselves into
the lives of users, automate routine activities, and increase functionality by reducing the need
for human intervention.

How is this applied? For instance, the Hamburg Port Authority installed more than 300
roadway sensors to monitor traffic in the port area and to track wear and tear on bridges.
Sensors are also used on waterways with radar and automatic identification systems that enable
coordination of ship traffic and offer an integrated solution to manage roadway traffic
disruptions that may occur when ship traffic requires bridge closures around the port area
(Macaulay, Buckalew, & Gina, 2015). In the consumer domain, there are countless examples
of IoT devices making consumers’ lives simpler and more efficient. For instance, Evo is a
popular health and wellness app that connects to customers’ smartphones and wearable devices
and captures data on customers’ activities such as steps, exercise, sleep, and stress levels. The
application analyses this data to deliver customized wellness programs designed to achieve
goals set by the customers themselves. The application offers progress recaps, rewards,
motivational nudges, and encourages customers to set new goals when the initial goals are
achieved (EVO,2018).

3.2.2 Artificial Intelligence (AI)

What is this? AI operates in the domain of continuous learning and automation, acting as the
intelligence that drives data-based analytics and enables automated decision-making. AI can
be broadly understood as a technology that is capable of imitating humans and carrying out
tasks in a way that is considered “intelligent” (Marr,2016; Thompson, Li, & Bolen). The
intelligence of AI is derived from its ability to self-learn and constantly improve itself by
updating and adding to its knowledge base and capabilities. So, with every iteration of a task
that is executed through AI, the AI agent improves with regard to its efficiency, effectiveness,
and ability to identify insights for further advancement. This capability can automate non-
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routine tasks and activities by enabling machines to think and act like humans. AI analyzes
complex data to identify behavioural patterns and insights and has the capability to learn from
experience. This makes AI capable of making intelligent decisions, akin to humans, and
automatically triggering responses based on prior experiences. By using various technologies
such as natural language processing, AI can recognize and respond to voice commands, thus
enabling machines to perform human-like tasks. AI is the power behind bots, intelligent agents,
and smart assistants, and can interact with other devices and machines to control them.

How is this applied? For instance, Palo Alto Networks is integrating AI into its cyber threat
detection and prevention software to prevent data breaches, while Affectiva released an AI
platform that could measure emotion by sensing and analysing facial expressions, and is
looking to extend its emotion-sensing technology beyond the face to leverage human
speech(Dickson,2018).Babylon Health is using a mix of AI and video/text consultations to
offer a digital health care application–with an AI-powered chatbot and AI-enabled symptom
checker feature–and has future plans to move towards completely AI-powered diagnosis
(O’Hear,2016). HSBC leverages AI to predict the redemption of loyalty program rewards that
are associated with their credit cards. AI is also applied to building models and rules within
fraud management, which helps the firm to identify anomalous behaviour and protect both the
firm and its customers. HSBC’s chatbot is also expected to supplement the expertise of bankers
by providing rapid and accurate responses to a wide range of queries, thus reducing friction
and wait time, and enhancing customer experience (Olenski,2018).

3.2.3 Machine Learning (ML)

What is this? ML is a specific subset of AI that trains a machine on how to learn by using
datasets to develop automated, self-training models and integrating multiple methods such that
the machine is able to identify patterns and hidden insights without explicit instructions
(Thompson et al.). It is the study of computational methods to automate the acquisition of
knowledge from existing examples of data (Langley & Simon,1995), typically training a model
to recognize patterns in data, apply the model tone data , and make predictions about the
patterns in the new data (Bose&Mahapatra,2001). This places ML within the learning domain.
ML is based on neural networks, which rely on identifying and refining factors of importance
to determine the probable outcomes of a situation and which require hard manual programming
upfront. The factors of importance need to be adjusted repeatedly to arrive at the desired
outcome based on the data that was input into the algorithm. When the algorithm perfects this
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approach, it is capable of adjusting the factors of importance to increase the accuracy of
outcomes, without the need for hard coding by humans. Once it has been trained using a
training dataset, the algorithm can sift through new data inputs, identify patterns similar to the
patterns learned during its training, and produce increasingly accurate results. Thus, through
ML, firms can develop algorithms that enable them to predict future behaviors and trends based
on prior data and patterns in behaviors. ML can handle large datasets, continuously integrate
multiple data sources, and perform complex analyses frequently and with decreasing error, all
in service of training algorithms and delivering accurate and improved prediction results. This
places ML squarely in the domain of learning and training, without the application of real
intelligence (St. Louis,2018). ML can be viewed as an approach to make machines more
intelligent by developing, understanding, and evaluating learning algorithms (Langley, 1996;
Thompson et al.) implying that ML is one way to advance the field of AI(Marr,2016).

How is this applied? For instance, Uber uses ML to estimate arrival times for rides, identify
optimal pickup locations, estimate mealtimes on UberEATS, and detect fraud. FICO uses ML
to develop its credit rating (FICO scores) as well as to assess risks for individual customers.
Amazon uses ML algorithms that can automatically learn to combine multiple relevance
features and past search histories, and to generate individually customized search results for
customers. Similar algorithms are also used to recommend products to customers such as
“customers who viewed this item also viewed,” “customers who bought this item also bought,”
as well as personalized homepage recommendations, bottom-of-item recommendations, and
email recommendations (Narula,2018).

3.2.4 Blockchain

What is this? Blockchain offers process economies by expediting and securing the processes
and data records underlying interactions and transactions. Blockchain is a foundational
technology that consists of an electronic, distributed ledger and creates an immutable database
for securely transferring data (Casey & Paul, 2018). The name is a combination of two words–
the “block” that contains batched transactions and a “chain” that represents cryptographically
linked blocks (Maslova, 2018b). The decentralization of records ensures that no single point of
weakness exists, which lowers the likelihood of hacking and data breaches. While new
“blocks” of information can be appended to an existing blockchain ledger, previous data cannot
be overwritten or erased, thus creating a permanent, verifiable, and traceable trail of
transactions all the way back to the first record (Giordani, 2018; Iinuma,2018).The block chain
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ledger is not controlled by a single entity or central authority; it is stored as multiple copies on
multiple independent computers within a network. This decentralization of the ledger implies
that no single entity can make changes to the ledger without following a consensus protocol,
in which a majority of the users on the network have to agree with the change after
authenticating themselves via mathematical algorithms (Casey & Paul, 2018; Economist,
2015). The definitive version of the ledger is the version that is accepted by a majority of users,
making it difficult for the data in the ledger to be compromised. The blockchain can also be set
up to automatically execute contracts or transactions in an “if-then” manner, thus obviating the
need of middlemen and intermediaries. The blockchain’s security and automatic execution of
transactions helps hasten processes that would otherwise be dependent on the approval of
intermediaries or transacting parties. By specifying the conditions under which a transaction
may be executed, a blockchain allows two or more parties to complete their transactions
efficiently and more quickly, with greater security of data and assets. Thus, blockchain can
help improve process efficiencies by cutting down the time and procedural formalities required
for a transaction, while enabling the secure transfer of data and value.

How is this applied? For instance, Ubiquity is a start-up that is creating a blockchain-based
system to simplify the complications in the legal process of real estate transfer. Transactiv grid
allows members to locally produce and sell energy while reducing the costs involved in energy
distribution (Marr,2018c). Essentia has also been working with the Dutch government to
develop a new system to securely store passenger data and vet passengers traveling between
Amsterdam and London. The goal is to reduce the number of border control checks by enabling
the metrics recorded in the Netherlands to be audited by U.K. agencies (Zago,2018). As a result
of the domains in which these four next-gen technologies operate, they develop certain
orientations that define them at the most foundational level.

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 Table-1
Marketing Literature examining Next-gen Technologies
S. No. Research Research Objective Type of Next- Key Findings
Gen
Technology
Studied
1 (Daskou & Mangina, To present a theoretical Artificial The proposed software
2003) framework for the Intelligence system supports the
development of an intelligent use of more than one
software system aimed at computational
integrating loyalty programs intelligence technique
databases, consumer surveys through agents’
and qualitative studies. technology, enabling
the producing firm to
establish information-
based relationships
with both the end-
customer and the
retailers that distribute
the goods.
2 (Kumar et al.,2016) To propose a definition of Artificial IAT have the
intelligent agent technologies Intelligence, autonomy to sense and
(IAT) and discuss their Machine proactively or
marketing applications. Learning reactively interact with
other agent, humans,
or social systems of
agents in dynamic
environments. IATs
are characterized by
the abilities to search,
acquire, and analyze
information, interact
and communicate,
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 negotiate, and
collaborate.
3 (Mani & Chouk, To develop a better Internet of Perceived uselessness,
2017) understanding of the reasons Things perceived price,
for consumer resistance to intrusiveness
smart and connected (including privacy
products. concerns), perceived
novelty and self-
efficacy impact
consumer resistance to
smart products.
4 (DeCremer, Nguyen, To consider the influence of Internet of Different types of
& Simkin, 2017) the Internet of Things on Things behaviors representing
marketing and identifying the the dark side of IoT
dark side of the Internet of are identified and
Things categorized as:
transaction, knowledge
and intelligence,
relationship, and
integrity. These dark-
side behaviors include
financial penalties,
confusing customers,
information misuse,
privacy issues,
switching barriers,
favouritism
/discrimination,
unfairness, and
dishonesty. These
dark-side behaviors
are linked to strategic
IoT processes and can
9
 be addressed by
adopting a holistic and
more strategic
approach.
5 (J. Wu, Chen, & Dou, To examine the effect of Internet of A friend-style
2017) interaction style on brand Things interaction has a
perceptions of consumers. positive effect on
users’ brand
attachment, mediated
by brand warmth and
brand competence
6 (Ehret & Wirtz, 2017) To examine the opportunities Internet of Industrial Internet of
and threats of Industrial Things Things impacts
Internet of Things. transaction costs and
has implications for
the design of business
models.
7 (Verhoef et al., 2017) To discuss how people, Internet of Although research on
objects and the physical Things consumer IoT is in its
world inter connect with nascent stages, there is
each other resulting in an scope for future
increasing amount of research in the four
connected data, and to important areas:
understand the existing people, physical,
knowledge on these products and data.
connections.
8 (Woodside & Sood, To offer snapshots of the Internet of The proposed
2017) introductions of IoT, and Things framework moves IoT
their impact on the service- from the periphery of
dominant logic paradigm in business activities to
marketing. the core of marketing
strategy by reshaping

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 the focus of marketing
skills and practice.
9 (Ghose, 2018) To examine the role of Blockchain On account of the
blockchain technology in basic principles
addressing concerns related underlying blockchain
to the “veracity” technology, it has the
characteristic of Big Data. potential to change the
data-driven marketing
business landscape,
preventing ad fraud,
enabling engagement
tracking, offering
transparency to
customers.
10 (Laurent et al., 2017) To examine the approaches Blockchain Most companies’
to apply blockchain and IOT & challenges relate to a
in supply chain management Internet of lack of trust-based
Things information.
Blockchain and IOT
can bridge this need
with portable solutions
brought to complex
structures

4. Objectives
In this study, we discuss the salient elements of the four focal next gen technologies and present
research questions that hold the key to understanding their future potential. Our discussion is
structured in the following manner.

• We begin by exploring prior research within marketing that has studied next gen
technology adoption, with regard to IoT, AI, ML, and blockchain. We examine the
11
 elements of next gen technologies that are most important to firms and the domains in
which they operate.
• Based on inputs from managerial interviews, we posit that each of these four next gen
technologies has an orientation that grants the firm certain unique advantages and
capabilities. The managerial interviews will help us discuss the outcomes for firms and
customers as a result of the adoption of next-gen technologies.
• Based on managerial interviews, existing literature, and popular press discussions, we
will try to find the dynamic nature of next-gen technologies and the limitations of the
current knowledge pool. This may even lead us to identify directions for future research
with the aim of expanding our knowledge of next gen technologies.

5. Hypothesis
It is expected that the four focal next-gen technologies will be a critical part of the future of
marketing, making the adoption of next-gen technologies an inevitable decision for firms.

So, on this basis we posit:

H1: Next-gen technologies (AI, IOT, ML and Blockchain will affect marketing domain
positively.

6. Methodology

This research study is conducted through careful investigation of prior research studies and
through survey with managers worldwide in one-to-one interviews, to discuss the focal next
gen technologies, their current and potential applications in firms, and aspects of these next
gen technologies that managers seek greater clarity on. Managers who participate in the study
would belong from firms across the world. These managers would belong to highest positions
in marketing in their respective firms, with titles such as Chief Marketing Officer, Vice
President of Marketing, or Director of Marketing. These managers would be key decision-
makers within their respective firms with regard to technology adoption within marketing,
technology investments, resource allocation, and implementation of new technologies and
processes within the marketing functions in their respective firms.

The interviews will focus on four main areas of interest. Firstly, managers were asked to
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 describe key elements of the four focal next gen technologies based on their exposure to these
technologies. We would ask them to share their opinions on the attributes and capabilities of
these next gen technologies that they perceived as being most important to their firms.
Secondly, we would ask managers if they had adopted any of the four focal next gen
technologies within their firms. Managers who had adopted next gen technologies would be
asked to discuss their applications in their firms, and especially within marketing. Managers
who had not adopted the next gen technologies would be probed further to understand the
underlying reasons. Thirdly, we would ask managers to elaborate on the future that they
envisioned with regard to next gen technologies – whether they anticipated the adoption of
next gen technologies within firms to accelerate or not, potential applications of next gen
technologies within marketing, as well as the challenges that they expected to face in the
adoption and implementation of next gen technologies. Finally, managers would be asked
about any unanswered questions or concerns that they had regarding these next gen
technologies, and their implications for various entities such as firms and their customers,
among others.
The rough draft of the interview is shown in Appendix.

7. Variables Used

Dependent Variable

Marketing Efficiency/Effectiveness

Independent Variable

Four next-gen technologies (AI, IOT, ML and Blockchain)

8. Findings

Impact of Next-gen technologies on Customers and Firms

The impact of these four technologies can be viewed from two key perspectives: that of the
firm that is adopting these technologies, and that of the customers who benefit from the
adoption of these technologies. The popular press discussions helped us identify the following
key benefits of next-gen technology adoption for firms and customers.

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8.1. Firm outcomes

The key benefits to a firm as a result of the integrated adoption of next-gen technologies can
be described as follows.

8.1.1. Personalization of Marketing Mix Elements

Customer demand for personalized content has increased tremendously. As a result of access
to more detailed and real-time information about customers and devices, and more
sophisticated data mining capabilities, firms can gain granular insights that help them to
manage the needs of their existing customers and improve their experiences. By understanding
the individual preferences of customers with regard to marketing mix variables in conjunction
with a big picture perspective of all customers together, firms can develop and de- liver
personalized offerings and communication materials. In this regard, next gen technologies (for
instance, AI) enable a firm to deliver right content to the right customer at the right time.
Furthermore, firms can work towards reducing churn by developing nuanced customer churn
models that can better predict future behaviors of customers.

For instance, AMERICAN Express relies on ML algorithms and data analytics to help fraud
detection in near real-time. As a result, the firm is not only able to save millions in losses, but
also provide special offers, products, and services to cardholders, and information on industry
trends and benchmarks to merchants. Fashion retailer Burberry uses AI and big data to identify
counterfeit products, improve sales, and build and enhance personal relationships with
customers. In order to do so, Burberry uses data gathered from its reward and loyalty programs
to develop personalized digital and in-store shopping experiences for individual customers.

8.1.2. Better prediction of future trends

By leveraging the power of insights from advanced data mining techniques, firms can identify
upcoming trends and craft responses in anticipation (for instance, develop new products,
change delivery mechanisms, etc.). The interconnectivity between business functions and the
automation of analytical and business processes can help firms respond to these trends more
efficiently and effectively. By anticipating customer needs, firms can surprise and delight
customers with offerings that are aligned with their requirements.

For instance, online streaming platform Netflix uses advanced data analytics to predict future
content preferences of audiences. In addition to acquiring content, these insights are applied to
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the creation of con- tent, and the associated investment decisions. Rather than creating just pilot
episodes for shows, Netflix’s strong data analytics capabilities enable it to be confident in
investing in the creation of multiple episodes and seasons of new shows (Marr, 2018).

8.1.3. Disintermediation and Direct Engagement

In addition to developing personalized marketing strategies to engage with their customers,

new-age technologies also hold the key for firms to directly engage with their stakeholders (for
instance, suppliers, customers, etc.). In the future, firms could modify their engagement
strategies to communicate directly in real-time with individual customers about their products
and services, brand stories, promotional content, pricing offers, etc., without intermediaries
such as media buying or planning firms. Firms can validate that they are actually capturing the
audience that they are paying for, as well as measure and enhance the effectiveness of their
marketing efforts. Firms can use blockchain to create individual and automated smart contracts
that can directly and promptly reward customer engagement using micro-currencies. (Harvey,
Moorman, & Toledo, 2018). They can also connect with customers around their values and
brand journeys in a way that is traceable and verifiable, thus increasing customers’ trust in
them.

For instance, at Disneyland, Disney analyzes the data captured by its RFID-enabled
MagicBand wristbands to anticipate individual customer needs, enhance their journeys, and
deliver memorable, personalized experiences. The MagicBand wristband plays an important
role, uniquely identifying individual visitors and functioning as a hotel room key, tickets,
FastPasses, payment systems, and so on. While the overall experience is more convenient for
the customer, Disney collects granular customer data that helps them predict visitors’ needs,
anticipate their next steps in their journey at Disneyland, and deliver personalized experiences.
This data also helps Disney to resolve bottlenecks, provide special services to visitors who may
have been inconvenienced, and schedule staff (Marr, 2018a).

8.1.4. Productivity enhancement

As a result of more granular insights, increased automation, and greater interconnectivity of

business functions, firms can improve their product development and enhancement processes
and achieve process optimization (Davenport & Ronanki, 2018). Since firms can monitor their
equipment, their usage, and proactively conduct maintenance, they can expect increased
productivity, improved efficiency, and reduced operating costs. Applications such as smart
15
warehousing and smart transportation enable intuitive demand fulfilment, warehouse
automation, and route optimization for maximum efficiency (Mitchell). For instance,
HARLEY-DAVIDSON was able to track and record its production steps into a real-time
performance management system by transforming its York, Pennsylvania manufacturing plant
into an IoT- enabled plant. The sensors could measure, record, and manage the performance
of equipment and processes across the production process. The firm observed its production
schedule decrease from 21 days to 6 days, and saw its operating costs decline by $200 million
(Staff, 2018).

8.2. Customer outcomes

When a firm adopts the four new-age technologies considered in this paper, they enable the
firm to create value for customers in multiple ways as discussed below.

8.2.1. Enhanced Functional Ease

The most evident benefit to customers as a result of the improved capabilities of firms is the
increased convenience and ease in per- forming routine tasks. The automation of activities and
reduced need for human intervention makes customers’ lives simpler and hassle free. The
connectivity of IoT devices provides customers with the convenience and flexibility of being
able to remotely monitor, control, and manage all of their connected devices at the click of a
button. The intelligent and automated nature of bots and intelligent assistants can improve
customers’ shopping experiences by automatically monitoring and comparing prices,
recommending repurchases, making rational purchase decisions, and even making actual
purchases on behalf of humans via secure bot-to-bot transactions.

For instance, August SMART Lock allows doors to unlock automatically when the owner gets
home, without the need for keys, and locks automatically when the doors are shut. Homeowners
can grant access to guests via a one-time code or grant remote access to guests. The smart lock
also maintains a detailed activity log (Albright, 2017). CAPITAL One allows customers to
access their account details through Alexa, while Liberty INSURANCE allows customers to
check the status of their claims via Google Home. Both these applications enable customers to
communicate via simple voice commands instead of spending time on long phone
conversations (Morgan, 2018).

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8.2.2. Greater personal relevance

As a direct outcome of the nuanced insights that are made possible by advanced analytical
capabilities, customers receive offerings, communications, and information that are personally
relevant to them. Customers enjoy a better customer experience as they receive proactive
communications about their devices or activities in real-time, giving them the opportunity to
take specific actions to enjoy specific benefits. With the increased automation and
interconnectivity of business functions, customers can exercise greater flexibility in how and
where they choose to interact with a firm depending on their personal preferences. For instance,
MARRIOTT utilized new-age technologies and leveraged the guest profiles of its Marriott
Rewards members to create two prototypes of connected rooms in partnership with Samsung
and Legrand. Marriott has access to the profile of a Marriott Rewards guest, the at- tributes and
likes/dislikes of the guest, and additional information that is used to program the room. Each
room is programmed with different scenarios for three different guest profiles – a yoga-minded
meeting planner; a frequent road warrior; and a family of four on vacation. The scenes and
settings in the rooms can be activated and modified based on the guest profile. Guests can
control the connected room using voice, TV remote, and manual controls. The vision is to have
a smart hotel room that can adapt itself to match specific guests’ preferences and habits, and in
time, make personalized predictions about the room settings (Ting, 2017).

8.2.3. Greater Traceability of Products

Customers can trace the journey of the products and components to verify their authenticity
and evaluate the alignment of a firm’s values with their own by taking advantage of the
transparency offered by blockchain. They can follow the journey of firms’ offerings through
the supply chain, can verify smart contracts and ownership transfers, and so on, giving them
greater insight into the firms’ offerings. Customers today are highly conscious of the origins of
the products and services that they consume, and this helps them connect more closely with,
and form positive sentiments towards the firm and its offerings. In the long run, this encourages
customers to place greater trust in these brands and to patronize their offerings. Customers are
also more inclined to share their personal information and opinions with firms and brands that
they trust, therefore engaging with them more deeply (Harvey et al., 2018).

For instance, ALIBABA developed an internal blockchain system to trace product authenticity
through the supply chain. BlockVerify proposes to effectively detect and combat fraud in the

17
drug industry using IoT and blockchain (Laurent et al., 2017). Everledger enables customers
to verify the provenance of luxury goods, by certifying and publicly storing records of verified
ownership (H., 2018). In Europe, CARREFOUR uses blockchain technology to ensure the
traceability of its free-range chickens from Auvergne – customers can access information on
where and how each animal was reared, the name of the farmer, the type of feed used,
treatments given, quality labels, the location of slaughter, etc. (Carrefour, 2018).
VOLKSWAGEN FINANCIAL Services and RENAULT tested vehicle telematics tracking,
whereby information about a vehicle’s mileage, engine usage history, repair and maintenance
history, etc. can be accurately captured on the blockchain and made available to manufacturers,
dealers, buyers, insurance companies, and other entities involved in the car purchase process
(Lannquist, 2018).

8.2.4. Effective Firm-Customer Engagement

In the long run, customers are more engaged with the firm when they receive offerings and
communications that are personalized to their needs and preferences. They are more inclined
to directly con- tribute by purchasing the firm’s products or consuming its services, as well as
by referring the firm’s offerings to other customers, creating word-of-mouth on social media,
and providing feedback (Kumar & Pansari, 2016). In today’s digital age, customers are vocal
and near instantaneous in sharing their thoughts and opinions about brands and experiences.
They expect seamless experiences that are intuitive, convenient, frictionless, and delightful –
all of which are made possible with next-gen technologies.

For instance, the AMAZON Go store in Seattle was designed to combine machine vision, IoT
sensors, and a mobile app to enable customers to swipe their app at the store entrance and walk
out with the items they need (“just walk out technology”). The systems in the store are capable
of tallying items as the customer places them in the shopping bag or places them back on the
shelves, and automatically charges the customer’s linked Amazon account. This allows the
customer the convenience of shopping and leaving the store without needing to wait in long
check-out lines. Amazon also gains insights to develop and deliver personalized coupons to
customers for future shopping visits, guide shoppers to their preferred items via mobile devices,
alert customers when items are out of stock or on sale, and potentially even analyze shopping
lists to simplify shopping visits (Insights, 2018).

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Thus, firms and customers stand to benefit from the adoption of next-gen technologies in
sustained ways. This has a positive impact on firm performance by way of cost efficiencies,
increased revenues, and positive word-of-mouth.

9. Conclusion

It is expected that the four focal next-gen technologies to be a critical part of the future of
marketing, making the adoption of next-gen technologies an inevitable decision for firms. In
the future, firms will need to make decisions about how many and which specific next-gen
technologies to adopt. This necessitates a deeper examination of their implications for firms,
customers, and other entities who are involved in the implementation of next-gen technologies.
This study provides a broad understanding of the current under- standing of four focal next-
gen technologies and their impact on firms and customers. However, the study of next-gen
technologies in marketing is at a nascent stage, and there is much more to be learned. This
research is conducted in order to encourage researchers in marketing to study these next-gen
technologies in greater depth to truly uncover their potential and business implications.

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10. Appendix

Interview Questions

Basic business characteristics

1. Industry
2. Firms established (Y)
3. Sales revenue
4. Employees

Basic interviewee characteristics

1. Country of origin
2. Area - know-how
3. Time length in job position

Open question

1. Could you tell me a little bit about your company?

2. Who are the customers of your company?
3. What are the marketing strategies utilized by your company?

Next Gen Technologies

1. In your opinion what are the main Social and Cultural Impacts of Next-gen
technologies?
2. How has the Next-gen technologies made a difference to your businesses?
3. What are the main opportunities created by the Next-gen technologies for your
business?
4. What effect do you believe the Next-gen technologies will have on people's daily lives?
5. What impacts will the Next-gen technologies have on performance of your business?
6. How are the Next-gen technologies associated with your relationship marketing
strategies?
7. Has your company ever encountered issues related to privacy and security?
8. How does your company deal with security and data protection? Is there any plan?

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