The Impact of Digital Economy on Consumer Behavior

Abstract

This paper examines the impact of big data technology on consumer behavior within the context of the digital economy. Leveraging big data analytics allows companies to better understand consumer needs, optimize products and services, and develop targeted marketing strategies. The study applies game theory and Nash equilibrium to explore the strategic interactions between firms and consumers, with a focus on privacy concerns and data utilization. The analysis highlights the balance between economic benefits for companies and the need for privacy protection for consumers. Through case studies, the paper demonstrates the advantages and risks associated with big data applications, emphasizing the importance of transparency, consumer control, and robust data security measures. The study concludes with policy recommendations for ensuring a balanced approach to data utilization, fostering innovation while safeguarding consumer rights.