How do you analyze the impact of changes in technology on consumer preferences and market competition?

Sample interview questions: How do you analyze the impact of changes in technology on consumer preferences and market competition?

Sample answer:

1. Identify Affected Consumer Segments and Preferences

  • Examine how technology shifts may alter consumption patterns, values, and lifestyle aspirations of specific consumer groups.
  • Assess shifts in demand drivers, such as convenience, personalization, and information access.

2. Study Market Competition Dynamics

  • Evaluate the potential for new market entrants enabled by technological advances.
  • Determine how technology upgrades can impact barriers to entry and incumbent market positions.
  • Identify opportunities for market consolidation or fragmentation driven by technological disruption.

3. Measure Impact on Consumer Surplus

  • Quantify changes in consumer choice, availability, and affordability.
  • Determine if technological advancements lead to increased consumer welfare or potential substitution or displacement effects.
  • Assess the role of technology in enhancing or limiting access to essential goods or services.

4. Consider Long-Term Structural Changes

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