• by Jack Loechner , Staff Writer @mp_research, March 4, 2010

According to The Compete Online Shopper Intelligence study, over 80 million consumers use shopping comparison sites every month. Sites like Cnet, Bizrate, and Yahoo! Shopping each attract over 20 million shoppers.  Only 6% of consumers surveyed as part of the study indicated that they conducted no research prior to their last online purchase. 

From instant price comparisons, to first hand consumer reviews, to video demonstrations, shoppers are taking advantage of this wealth of information. Consumers depend on search engines more than other resources to help them shop online. 3 out of 5 shoppers said that they always or often use search engines when shopping online.  More consumers use search engines than they do coupon sites, retailer emails, consumer reviews, or shopping comparison sites.

Frequency of Using Tools Shopping Online (% of Respondents)
advertisement advertisement Online Tools	% of Respondents Using Always or Often
Search engines	61%
Coupon sites	35
Retailer emails	29
Online product/retail reviews	24
Shopper comparison sites	22
Shopping portals	19
Social networking sites	10
Source: Compete.com, February 2010

The study finds that the differences in consumer behavior across various industries have vast implications for retailers within each sector. Sales assistants, both in store and on web chat, are utilized by online shoe shoppers more than any other shoppers.  Online kitchenware & household appliance purchasers are among the most reliant on in store product displays.   

In the apparel industry, only 1 out of 10 apparel shoppers stated that they used a search engine for their last online purchase.  Instead, they rely on retailer emails and catalogs to learn about products.  That means consumers are more likely to purchase from apparel retailers they have purchased from in the past and are less likely to discover new retailers.

Information Sources Used Before Purchasing Apparel
Information Source	% Apparel Purchasers
Email from retailer	38%
Retail websites	26
Retailer mailing	23
Online advertisement	18
Search engines	12
Source: Compete.com, February 2010

Electronic shoppers, on the other hand, actively seek out new products and manufactures, says the report.  Search engines, professional reviews, social generated reviews, and recommendations from family and friends were among the top 5 resources used.  Electronic manufactures can reach and influence these consumers more easily though a variety of media.

Information Sources Used Before Purchasing Electronics
Information Source	% of Electronic Purchasers
Retail websites	59%
Search engines	45
Online professional reviews	29
Consumer online reviews	21
Friends, family, colleagues	14
Source: Compete.com, February 2010

It is essential, says the report, for retailers to understand how consumers in their space shop online, in order to effectively retain and acquire customers. Retailers should understand their particular customer niche and develop strategies unique to them, concludes the report.

And, in a correlative study regarding information sources, by Opinion Research Corporation and sponsored by ARAnet, young and highly educated consumers say online information sources influence their buying decisions at a markedly higher rate than the rest of the population. Personal advice from friends or family members was by far the most influential source, followed by TV broadcasts and search engines.

Scott Severson, president of ARAnet, says "The eyes of young people 18 to 34... (as well as)... highly educated Americans are looking online to search engines, online articles, online ads, email offers and social media to a degree that is head and shoulders above the average citizen."

According to the study, consumers in the 25-to-34 age range expressed strong preference for:

• Search engines... 50% vs. 39% for all respondents
• Online articles... 39% vs. 28% for all respondents
• Emails from retailers or manufacturers... 32% vs. 20% for all respondents
• Online ads... 30% vs. 19% for all respondents
• Social media... 31% vs. 18% for all respondents

The following data summary shows the percentage of respondents choosing a 4 or 5 out of 5 - where 1 is NOT influential at all, and 5 is VERY influential in buying decisions, and the mean summary rating points:

Influence In Buying Decisions
Influence	% Very Influenced (4 or 5 out of 5)	Average of Rating Points
Personal advice from friends or family members	59%	3.6 out of 5
TV news or other broadcasts	40%	3.1
Search engines such as Google, Bing, Yahoo, or Ask.com	39%	3.0
Ads seen on TV	36%	3.0
Articles seen in newspapers or magazines	33%	3.0
Ads seen in newspapers or magazines	31%	2.9
Articles seen online	28%	2.8
Radio news or other broadcasts	25%	2.7
Direct mail	24%	2.7
Ads heard on the radio	20%	2.6
Emails received from retailers or manufacturers	20%	2.5
Ads seen online	19%	2.5
Messages or posts on social media such as Facebook, Twitter, LinkedIn, or MySpace	18%	2.3
Billboards	15%	2.3
Source: ARAnet, February 2010

For people making $75,000 or more, the report says, search engines are preferred by 49% vs. 39% for all respondents, a signal that high-income consumers are also following the trend to online sources. This supports the industry trend of a higher percentage of marketing budgets flowing into online and digital tactics.

Severson concludes that "Search engine optimization and backlinks from advertising and public relations efforts are providing information in the places where high-value consumers are influenced about buying decisions."

To see more about the younger consumers, please visit the ARA here, or to find more information from the Online Shopper Intelligence study, please go here.