Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption

Abstract

The e-commerce sector has experienced significant growth in the past two decades, outpacing other economic sectors and contributing to sustainable consumption, increased labour productivity, competitiveness, consumer incomes, and GDP growth. This trend is expected to continue, making e-commerce a key driver of sustainable economic growth in Europe. This study aims to explore the relationship between a nation’s innovation level and its population’s inclination towards online shopping in various EU member states. It hypothesizes that higher innovation levels within a country lead to a greater tendency for online purchases. This study conducts a thorough analysis of the interplay between European economies’ innovation levels and the e-commerce market’s evolution. A composite innovation index was created using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology, and panel data models were utilized to examine the dependencies, with data from Eurostat and the Global Innovation Index. The focus is on the period from 2019 to 2021, which was marked by unique market dynamics and the impact of the COVID-19 pandemic. The findings confirm the significant role of innovation in driving e-commerce expansion within the context of sustainable consumption, supporting the main hypothesis. This research also highlights the pandemic’s positive effect on the e-commerce sector. The pandemic-induced changes in consumer behaviour, particularly due to social isolation and crises in certain economic sectors, have emphasized the importance of online shopping. Notably, the most active online shoppers are identified in the 25 to 54 age group, revealing a key demographic trend.

Unlocking the Power of Data: Effective Data-Driven Marketing Strategies to Engage Millennial Consumers

“…Moreover, enterprises can leverage data-driven insights to identify key social influencers and micro-influencers within millennial social networks, and then partner with them to amplify their brand messaging and reach (Cao, 2021) (Tripathi et al, 2021). This influencer marketing strategy has been shown to be particularly effective in engaging millennial consumers (Roszko-Wójtowicz et al, 2024). Furthermore, omni-channel data integration and analytics capabilities enable enterprises to deliver seamless, personalized customer experiences across multiple touchpoints.…”

“…Recent study done by Roszko-Wójtowicz et al (2024) found that millennials respond more favorably to marketing campaigns that are personalized and delivered through their preferred digital and mobile channels, as these approaches align with their expectations for tailored, on-demand experiences.…”

“…Instances of such rules encompass the General Data Protection Regulation and the California Consumer Privacy Act. Complying with these regulations is vital not only for minimizing legal dangers but also for demonstrating a firm dedication to ethical data procedures and safeguarding consumer rights in marketing efforts driven by data analysis (Roszko-Wójtowicz et al, 2024).…”

“…Moreover, the emphasis on data security and encryption, while important for safeguarding consumer information, can add complexity and cost to data-driven marketing strategies. Implementing robust data security measures, such as encryption and access controls, can significantly increase the operational costs associated with data management and analytics (Roszko-Wójtowicz et al, 2024); (Santo & Marques, 2021). This increased cost may pose challenges for businesses, particularly smaller enterprises, in effectively implementing and maintaining data-driven marketing initiatives.…”

“…Further, data-driven marketing strategies enable enterprises to optimize their marketing mix and maximize the return on investment (ROI) of their campaigns. By utilizing predictive analytics to forecast market trends and consumer behaviors, companies can make more informed decisions about product development, pricing, and promotional strategies (Roszko-Wójtowicz et al, 2024). With the wealth of data available, enterprises can continuously refine and iterate their marketing approaches to drive greater impact and business results.…”