The Evolution of Consumer Behavior in SMEs in Developing Cities: A Literature Review on the Impact of Digitalization in Gorontalo's Karawo | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Tineke Wolok: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

2. Rezkiawan Tantawi: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

3. Umin Kango: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

4. Sri Indriyani S. Dai: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

5. Sunardi: Tourism Diploma Program, University of Merdeka Malang, Jl Bandung No 1, Malang 65111, Indonesia

6. Ismet Sulila: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

7. Meriyana F. Dungga: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

8. M. Taufiq Noor Rokhman: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

9. Mohamad Agus Salim Monoarfa: Faculty of Economcs and Business, Universitas Wisnuwardhana Malang,Jl.Danau Sentani 99 Malang, Jawa Timur, 65199,Indonesia

10. Bambang Supriadi: Tourism Diploma Program, University of Merdeka Malang, Jl Bandung No 1, Malang 65111, Indonesia

Abstract:

This literature review explores consumers’ evolving behavior in the digital era, focusing on its impact on Small and Medium Enterprises (SMEs), particularly those engaged in Gorontalo’s Karawo embroidery craft. The review highlights how digitalization, including expanding internet connectivity and using data for personalization, has reshaped consumer decision-making processes. Consumers are now more informed and influenced by social media, peer reviews, and digital tools, which have replaced traditional advertising as the primary source of product information. Karawo SMEs, while representing a rich cultural heritage, face significant challenges in adopting digital technologies to remain competitive. Limited resources, lack of digital skills, and barriers to accessing new markets hinder their growth potential. The literature suggests that embracing digital transformation-utilizing e-commerce platforms and social media-can help Karawo SMEs expand their reach, strengthen their brand identity, and engage with consumers more effectively. Furthermore, ensuring data privacy and security is critical to building consumer trust, particularly in online transactions. The review concludes that Karawo SMEs must focus on building digital capabilities through online marketing and data analytics training, enabling them to better understand consumer behavior and optimize their marketing strategies. This holistic approach to digitalization is essential for SMEs to thrive in national and international markets.

Page(s): 3492-3502

DOI: 10.57239/PJLSS-2025-23.1.00278

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Consumer Behavior Consumer DecisionMaking Processes Social Media Privacy Concern

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