Online shoppers, says the report, will be more reluctant to make purchases in the next 12 months primarily in:
Planned Spending Reductions in Next 12 Months by Online Shoppers | |
Category | % Planning Reduction in Spending |
Auto | 50% |
Travel | 46 |
Consumer electronics | 43 |
Financial services | 40 |
Fashion and style | 39 |
Durable goods | 39 |
Home improvement | 38 |
Computing products | 37 |
Entertainment | 32 |
Telecommunications | 30 |
Education services | 26 |
Health products | 22 |
Housewares | 21 |
CPG | 14 |
Pharmaceuticals | 14 |
Source: Jupiter Research/RichRelevance/BazaarVoice, February 2009 |
Consumers looking to reduce their spend are shopping around; 42% visited 3 or more sites to research their last purchase, and nearly all consumers are spending more time online prior to purchase.
Shoppers who research their purchases online look to content sources that help inspire, discover, and confirm their choices, including:
Multiple Sources Used by Online Shoppers To Find Products | |
Information Source | % of Online Researchers |
Store/retailer websites | 89% |
Search engines | 86 |
Manufacturer websites | 78 |
User ratings and reviews | 77 |
Purchaser's recommendations | 66 |
E-mail recommendations | 61 |
Best sellers | 59 |
Source: Jupiter Research/RichRelevance/BazaarVoice, February 2009 |
In the 2008 Retail Consumer survey, Jupiter Research found that only 33% of online shoppers had made up their minds about the price they were willing to pay for their purchase in advance of going online to research. Even fewer began their research having made up their minds on:
This shift in behavior provides retailers with an opportunity to engage shoppers through content that connects them to products and builds their confidence in these carefully researched purchases.
Brett Hurt, founder and CEO of Bazaarvoice, notes that "... the benefits of user-generated content are amplified in a bad economy... companies have a tremendous opportunity to provide them with the authentic user-generated content that is proven... "
David Selinger, CEO of richrelevance, concludes that "... Personalized recommendations are emerging as must-have functionality for 2009, driven by the value they deliver to the consumer experience."
Please visit Bazaar Voice here for additional information
Ratings and reviews are a great tool for retailers. BUT online ratings and reviews lie.
There are four key ways in which they can be dishonest, you can read about them here: <a href="http://blog.freshnetworks.com/2009/03/the-lies-behind-online-ratings-and-reviews/">ratings and reviews lie</a>