• by Maryam Banikarim , June 13, 2011

Women represent half the total consumer market and make more than 85% of buying decisions in U.S. households today. Women now drive the world economy. Globally, they control about $20 trillion in annual consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined -- more than twice as big, in fact, according to a 2009 study, "The Female Economy," by the Boston Consulting Group.

Women wield enormous influence and power in today's marketplace. Women are making the vast majority of consumer electronics and home improvement good purchases, in addition to driving family, social, vacation and lifestyle purchase decisions. As a result, they have changed -- and will continue to change -- how products are designed and marketed in America.

At Gannett, we have gone beyond traditional research techniques to more fully understand the unique motivations and determining factors behind women's purchasing decisions to, in turn, help advertisers better understand and target this essential purchasing demographic. Through qualitative interviews with a varied set of women in Indianapolis, we uncovered a surprising picture of the purchasing experience.

For many women, shopping is not the carefree, blissful experience we often see depicted in advertisements. In reality, it is anxiety-laden and fraught with peril at each step. Women fully grasp the shopping environment and purchase process -- from coupons and deals to return policies and guarantees. Each purchase is weighed against their chances of gaming "the system" to their advantage versus becoming prey to it. Should I buy this now? Is it the best deal I can get? What could I be missing out on? These questions are all top of mind for the household's chief purchasing officer.

Following are nine key insights we have compiled from our research that advertisers can reference to ensure they are effectively engaging these shopping decision-makers and creating an experience designed specifically for them that is filled with positive purchase moments versus stress, regrets and ultimately, returns.

1. Play ball. Women know shopping is a game, so help them play it. Don't try to hide the small print. Be transparent about the rules of an offer and help women get the most from them. They realize there is an environment and system built specifically around the whole experience, which they feel is stacked against them. Frustration exists when women have to struggle to make the system work for them. They seek out opportunities to use the system to their advantage, gravitating toward deals and coupons and the companies that offer them.

2. Be clear. Provide price points and checklists so women can see how they fit into the rules of engagement they have created to handle the system and the stress of shopping. These rules are guidelines, often behaviors, women have learned from their parents to help them navigate the shopping experience, including waiting for the right price point for a product and creating shopping lists.

3. The "magic number." Identify the "magic number" for your target audiences. A universal rule that exists among women is the creation of this magic number, which is a threshold dollar amount women are comfortable spending casually or impulsively. Focus your promotions accordingly so that they work within it.

4. Offer comfort tools. Proactively provide reviews by other women who have tried the product for themselves on your Web site. Comparisons and easy-to-understand guides are also very popular. What all women also resoundingly agree on is that pulling the purchase trigger is, in reality, frightening and creates tension -- but anxiety is reduced and even goes away when they can find other sources of reinforcement for their purchase, like online reviews of products written by other women.

5. It's all about the deal. Offer women a deal they simply can't pass up. In our study, some women even mentioned buying items they had absolutely no need for simply because it was such a great deal -- like 50% off. Many will wait until an item goes on sale before they purchase it.

6. Enable purchase validation. Women want to check out their potential purchases with friends and family before they take the plunge. Find creative ways to make this happen for them within your own shopping environment. The response from those who matter most can either validate (keep the item) or negate (return the item) a woman's purchase decision because it is so important to seek out and obtain reinforcement from the people who taught the shopper how to shop and those whose opinion the shopper values.

7. Provide safeguards. Help the purchaser feel safeguarded by offering receipts, return policies and other forms of reassurance. Women seek out safeguards to ensure a good purchase through a variety of methods such as saving the product packaging and requesting both an original and gift receipt to ensure the ease of a potential return.

8. The trust factor. Ensure you are leveraging the full power of your brands. The power of trusted brands can never be underestimated. Where name recognition and trust exists, the purchase decision becomes much easier. The product takes on an almost magical quality because reputation really matters. By building consumer confidence, you become a trusted brand and women will, in turn, become loyal, repeat customers.

9. When the rules don't apply. Understand that women will pay full price under the right circumstances. Certain situations do exist where rules, such as the threshold dollar amount, are thrown out the window, including when women are buying gifts for others and where they have strong social and political beliefs.

Advertisers have the opportunity to redefine the shopping experience for women to create more positive purchase moments that can lead to positive brand interactions -- a winning combination for both consumers and brands.

  The research featured here was conducted by a joint team of Gannett employees at The Indianapolis Star and the Design and Innovation Group in December 2010.