Revolution 4.0 and its implications for consumer behaviour

Abstract

Objective: The objective of the article is to demonstrate how the achievements of Revolution 4.0 enable the modification of consumers’ decision-making process by means of profiling algorithms. We indicate their potential impact – for example manifested in micro-targeting, price discrimination, and filter bubbles – and con-clude with a description of the radicalization of views. Research Design & Methods: The article 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: Information Technology tools, available mainly thanks to the achievements of revolution 4.0, allow users to modify the content of information at the level of an individual consumer, thus determining their de-cision-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 accompanying threats should be clearly articulated and noticed by policymakers. High-tech enterprises, on the other hand, should assume responsibility for the fair and trans-parent use of profiling algorithms. Consumer 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. The text examines and shows a holistic approach to the concept of “rationality” from the beginnings of economics as a science until today, along with factors that influence its perception.