"Logic will get you from A to B. Imagination will take you everywhere."
- Albert Einstein
Now, you can book a room/a cab/an appointment/a movie/a table in your favourite restaurant by the click of buttons.
The whole worlds shift their approach to doing business from traditional to on-demand. It is the concept of fulfilling the buyer and seller need without interacting physically. The on-demand economy also called a shared economy or gig economy. The different lifestyle and hectic routines let the people move towards the on-demand economy.
The on-demand economy makes all this possible for you on your palm. We have the oldest on-demand service providers but hardly few recognised it. The “Dabbawalas” in Mumbai has a 99.99% accuracy rate of delivery on time and place. Their services admired by institutions and colleges. The holistic approach of the on-demand economy in India demonstrates significant growth in future. The Urban market contributes the main business into the on-demand economy companies. The technology scope increases and rural part of India started adopting the technology. The internet connectivity and technology reach to the rural population shown the scope of development of the on-demand economy. The statistics said that 42% of the adult American population using on-demand services and 22% serves on-demand services. The potential investment in on-demand economy increases and more coming.
It serves without the interaction of customer and seller. The technological framework designed works as a platform to bring buyer and seller at one place. The buyer who wants to purchase any products or service should log in to the system. He enters specific choice and data of product and places the order. The technology partners intermediate in between to function the transaction without sharing personal information. The notification with order details blinks on the seller side. The seller dispatches or serves to the buyer as per his requirement. The feedback system to acknowledge the better user experience helps the other to make a buying decision.
The existence of an on-demand economy impacted many sectors draws different human behaviour. People choose this digital ecosystem for various reasons and proves beneficial many times. The food delivering partners such as Zomato, Uber Eats, Swiggy and Box8 is changing the hotel industry. It is easy to order food and get it delivered to your place in a short time. The service-based industry such as Byju, Khan Academy, Udemy and UpGrad changed your online learning experience.
Let’s look at the factors associated with the on-demand economy and its impact on human behaviour.
The availability of the services is essential in the on-demand economy. The on-demand economy transactions happen when services catered on consumer demand. The instant availability drives the human behaviour for availing the services.
The delivery of the services should be on time. The food delivery businesses, parking space booking businesses and movie ticket booking are examples where time is essential. On-time delivery triggers human behaviour to seek the same services again. It will be easy if any unplanned action can perform while the need arises.
The on-demand economy works on one simple rule of availing the services when the demand emerges.
Quality and Cost
The quick delivery of services with keeping quality in mind earns the trust of people. The quality of product and cost-effective product arise different impact on the mind of consumers about the services. It is the only factor which drives the sales high.
Quick and Easy payment process
The short and simple checkout process is necessary for any business. The payment gateway handled by the third party in order yo maintain data integrity between buyer and seller. The simple, quick and easy payment process is what impacts consumer behaviour by a pleasant experience. The complicated payment processes and weak digital platform viewed as a hurdle.
It is the by-product of all features provided for the services. Better experience leads to an increase in the awareness of services. It is a common human tendency when we experience absolute quality product than we usually recommend it to someone who needs.
The companies from the on-demand economy consider this as a marketing tool. The brand awareness is a challenging task for the company.
When any purchase experience mess-free, effortless and delight us then we repeat it. When the transaction is convenient people adopt a new way instead of the traditional way. Buying a movie ticket from the online platform is more convenient than buying at the theatre.
The consumer behaviour shifts from a traditional approach to a digital platform because of growth in the on-demand economy. The convenient purchase process, hassle-free access and pleasing services result in shaping consumer behaviour. Apart from this, increasing numbers of startup funding allow new ventures. New startups with an incredible idea can alter human behaviour. The startup promotion by the government increases the expansion of new ventures and investments.