CONNECTIVITY AND CONSUMPTION: EXPLORING CHANGES IN CONSUMER BEHAVIOR IN THE DIGITAL ERA

Thel Augusto Monteiro E-mail: [email protected] Assoc. Prof. PhD, Pontifical Catholic University of Campinas Piracicaba, Brazil https://orcid.org/0000-0002-0290-1676 Fabiola Cristina Ribeiro de Oliveira E-mail: [email protected] Assoc. Prof. PhD, Pontifical Catholic University of Campinas Campinas, Brazil https://orcid.org/0009-0007-3294-6887 Marcos Ricardo Rosa Georges E-mail: [email protected] Assoc. Prof. PhD, Pontifical Catholic University of Campinas Campinas, Brazil https://orcid.org/0000-0003-2828-6680 Abstract: The study examines the transformative effects of digital economic development on consumer behavior, emphasizing personalization, ethics, and digital marketing's role in reshaping interactions between consumers and businesses. By leveraging secondary data from reputable sources like the OECD and McKinsey, the research highlights how digital technologies, including artificial intelligence (AI), have enabled companies to provide tailored experiences, significantly enhancing customer engagement and loyalty. Case studies, such as Amazon, Netflix, and Tesla, illustrate how personalization and digital innovations have revolutionized industries, setting new benchmarks for convenience and consumer expectations. While the benefits of digital transformation include increased accessibility, operational efficiency, and global reach, significant challenges remain. Issues of privacy, data security, and ethical concerns dominate consumer and corporate discourse, as seen in cases like the Cambridge Analytica scandal. The study also notes the risks of information overload and the exclusion of digitally marginalized populations. Despite these challenges, the research underscores the potential of AI and big data to foster deeper brand-consumer connections and drive long-term business success, provided ethical and transparent practices are adopted. The study offers practical insights for businesses aiming to thrive in the digital era, emphasizing the need for strategies that balance technological innovation with consumer rights. By advancing academic and market-oriented understandings, this work contributes to a holistic view of digital transformations, paving the way for future research on the cultural and demographic dimensions of these changes. Keywords: Digital Transformation, Consumer Behavior, Artificial Intelligence, Personalization, Privacy Ethics. JEL classification: M16