How can Startups Identify and Understand Consumer Needs Leveraging the Use of Technology
G Vaishnavi, Debajeet Das & Pinak Majumder
MBA 2nd semester
AIMS IBS B- SCHOOL
ABSTRACT
Understanding and recognizing consumer demands is critical for startups because it allows them to develop creative and valued solutions that meet or surpass customer expectations and acquire a competitive advantage in the market. Consumer demands, on the other hand, are not necessarily apparent, stable, or uniform, and they can shift over time and across different segments. As a result, startups confront numerous hurdles when learning about consumer needs, such as limited resources, unclear demand, and high risks.
To address these challenges, companies can make use of technology, which can provide numerous advantages such as scalability, efficiency, precision, and interaction. Startups can use technology to gain access to, analyse, and utilize customer data and insights, as well as to engage and cooperate with customers in the innovation process. Technology, on the other hand, has some limitations and obstacles, such as information overload, data quality, ethical issues, algorithm bias, and customer motivation. Startups have to use technology purposefully and critically, supplementing it with other sources and approaches, as well as human judgment and intuition.
The purpose of this paper is to examine how entrepreneurs might use technology to detect and understand consumer demands. It conducts a literature study on three technology-based strategies that entrepreneurs might employ: online search, artificial intelligence, and consumer co-creation. It also assesses the advantages and disadvantages of each strategy and offers some tips and best practices for startups to maximize their use. Startups can improve their customer-centricity and market competitiveness by utilizing these approaches and resources. However, startups must be aware of the dynamic and challenging nature of consumer wants, as well as regularly monitor and adapt to market changes and trends.
