DIEM (1) 2019 165 Tom Gillpatrick Portland State University, USA School of Business E-mail: tomg@pdx.edu Erskin Blunck Nürtingen-Geislingen University, Germany MBA International Management, Faculty AVM, Nürtingen, Germany E-mail: erskin.blunck@hfwu.de Semra Boğa Adana Alparslan Türkeş Science and Technology University, Turkey Economics Faculty E-mail: sboga@atu.edu.tr UNDERSTANDING THE ROLE OF CONSUMER BEHAVIOR IN FORECASTING THE IMPACT OF INDUSTRY 4.0 AND THE WAVE OF DIGITAL DISRUPTION DRIVING INNOVATION IN RETAILING Review UDK: 658.87:004]:336.1 JEL classification: D10, M31, L81, O33 Accepted for publishing: October 31, 2019 Abstract Industry 4.0 technologies and business practices are expected to radically transform the competitive landscape and society. Retail industries which make up approximately one third of global GDP will be particularly affected by these changes. This paper, guided by the literature concerning the wave of digital disruption brought about by new technology, changes in consumer demand and new forms of business competition are discussed. The drivers of innovation in marketing and the critical role of understanding the consumer value chain. A model of consumer value and the impact of digital disruption and how retail impact can be better understood is discussed. Implications for industry and macroeconomic policy makers and calls for further research based on this research are discussed. Keywords: Industry 4.0, Digital Disruption, Macroeconomics, Retailing, Trends in Consumer Behavior. 1. INTRODUCTION Global retailing is expected to be a 28 trillion USD industry by 2020 and currently represents 31% of global GDP. (Berkshire Hathaway 2016) Currently, across a global landscape the retail sector is experiencing the effects of digital disruption stemming from new technologies, new business forms and new patterns of consumer behavior. This is perhaps the fourth major retail disruption in the last 150 years and arguably will be the most significant, Lewis & Dart (2014). Some analysts