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) |
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.