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– Understand Online and Offline resources used & importance of each
– Compare In-store and Online Buyers
– Drill down on Search in the research and shopping process
– Quantify the value of the online consumer
Understand the research and information gathering process of Consumer Electronics Purchasers
Objectives
Survey ComponentOnline and In-Store buyers of consumer electronics products during July-September 2007
• 720 TV buyers Buy Online: 149 Buy In-Store: 571
• 632 Computer buyers Buy Online: 260 Buy In-Store: 372
• 632 Digital Camera buyers Buy Online: 199 Buy In-Store: 433
Data collection: October 5-17, 2007
• Invitations: Sent to the XXX panel via pop-ups and email
Survey ComponentOnline and In-Store buyers of consumer electronics products during July-September 2007
• 720 TV buyers Buy Online: 149 Buy In-Store: 571
• 632 Computer buyers Buy Online: 260 Buy In-Store: 372
• 632 Digital Camera buyers Buy Online: 199 Buy In-Store: 433
Data collection: October 5-17, 2007
• Invitations: Sent to the XXX panel via pop-ups and email
Behavioral ComponentOnline buyers* of consumer electronics products during July-September 2007
• 206 TV buyers
• 956 Computers buyers
• 478 Digital Camera buyers
Sites and search terms for analysis provided by Google
• Data analyzed by 8 individual weeks in addition to two month aggregate period before purchase
Behavioral ComponentOnline buyers* of consumer electronics products during July-September 2007
• 206 TV buyers
• 956 Computers buyers
• 478 Digital Camera buyers
Sites and search terms for analysis provided by Google
• Data analyzed by 8 individual weeks in addition to two month aggregate period before purchase
Research Methodology
* Identified by XXX’s passive observation of an eCommerce transaction
1 Online resources are critically important to the CE buyer
2 Buyers rely on Search throughout the shopping funnel
3 Online consumers are more valuable customers
Key Findings
Q11. How familiar were you with the brand before you bought it or before you started researching?. Base: Buy Online – 597, Buy In-Store – 1,344.
Q5a. Which statement below best describes your mindset when you first considered a purchase? Base: Buy Online – 572, Buy In-Store – 1,200.
Before purchase, shoppers are familiar with the major Consumer Electronics brands, but unsure of what to buy
Source: CE Purchasing Process Study November 2007
65% 68%
0%
20%
40%
60%
80%
Uncertain About What to BuyFamiliar with the Brand that I Ended Up Buying
In-Store buyers
Online buyers
61% 58%
0%
20%
40%
60%
80%
Before purchasing...
86%Online purchasers
60%In-Store purchasers
Q1. Which of the following sources did you use in your shopping and information gathering process to get info about your purchase Please check all that apply. Base: Buy Online - 608 ; Buy In-Store – 1,376. Online purchasers (86%), significantly > than In-Store purchasers (60%) @ 95% confidence,
Both In-Store and Online CE shoppers rely on online research
Research Their Purchase Online
“Online Research is Important to My
Purchase Decision”
Online Buyer89%
In-Store Buyer81%
Source: CE Purchasing Process Study November 2007
* For the 8 week period before purchase. Includes Retail sites (Consumer Electronic and Mass Merchandiser retailers), Manufacturer sites, and technology information, review, and discussion sites.
CE buyers invest hours in online research before purchase
3.7 hrs 1.9 hrs 2.3 hrs
Average 2.6 hours*of Online Research
Time spent on CE research was slightly less than IM’ing and more than reading online news and visiting auction and gaming sites
Source: CE Purchasing Process Study November 2007
3.7 hrs
* For the 8 week period before purchase. Retailers includes Consumer Electronic and Mass Merchandiser sites Other includes technology information, review, and discussion sites.
Focus of research varies by product
1.9 hrs 2.3 hrs
Manufacturer Sites 1.8hrs 0.2hrs 0.1hrs
Retailer Sites 1.1 1.6 1.9
Other Sites 0.8 0.1 0.3
Source: CE Purchasing Process Study November 2007
“Helped Me Learn More about a Brand/Product”
48% 49%46%
43%46%47%
0%
10%
20%
30%
40%
50%
60%
70%
SearchEngines
ManufacturerWebsites
RetailWebsites
Online Buyer In-Store Buyer
Q3. Now we would like to know how each of the following information sources helped you in your shopping and information gathering process for your “TV”, “computer” or “digital camera” purchase. Please indicate the statements you feel apply to each source of information. (You may choose more than one statement for each source of information if you feel it applies.) Base: Base: Buy Online – 240-300 ; Buy In-Store – 345-450. Online Buyer Manufacturer Websites (60%), significantly > @ 90% confidence for “Helped Me Decide What to Buy”.
In-Store Buyer Search (24%), significantly > than Print (18%) at 90% confidence.
Source: CE Purchasing Process Study, November 2007
“Helped Me Decide What to Buy”
45%
60%
50% 50%53%
50%
0%
10%
20%
30%
40%
50%
60%
70%
SearchEngines
ManufacturerWebsites
RetailWebsites
Online Buyer In-Store Buyer
Search engines, manufacturer sites and retail sites lead to the final purchase decision
“Introduced Me to a Brand/Product I Didn’t Know About”
Online Ads are at least as effective as traditional ads…At the top of the funnel…
25%24%
21%
24%
20%
23%
18%
21%21%
24%
0%
5%
10%
15%
20%
25%
30%
Search Online Ad TV Ad Radio Ad Print Ad
Online Buyer In-Store Buyer
Q3c. Please indicate how each of the following was helpful to you, if at all, in your shopping and information gathering process. (You may choose more than one of the ways shown in the top row for each if you feel it applies.). Base: Prompted by ad
to get more information, n = 57 – 349. In-Store Buyer Search (24%), significantly > than Print (18%) @ 90% confidence.
In-Store Buyer Search (24%), significantly > than Print (18%) at 90% confidence.
Source: CE Purchasing Process Study, November 2007
…and even more helpful through to the final CE purchase
Q3c. Please indicate how each of the following was helpful to you, if at all, in your shopping and information gathering process. (You may choose more than one of the ways shown in the top row for each if you feel it applies.)
Base: Prompted by ad to get more information, n = 57 – 349. Online Buyer Search (49%), significantly > than TV (29%) and Radio (31%) at 95%
confidence and Online Ad (40%) and Print Ad (38%) @ 90% confidence. In-Store Buyer Search (45%), significantly > than TV (33%) and Print (33%) @ 95% confidence. Online Buyer Online Ad (40%), significantly > than TV (29%) @ 90% confidence. Online Research, significantly more important to Online buyer (89%) than In-Store buyer (81%) @ 95% confidence.
“Helped Me Decide What to Buy”
49%
40%
29%31%
38%
33% 33%34%
39%
45%
0%
10%
20%
30%
40%
50%
60%
Search Online Ad TV Ad Radio Ad Print Ad
Online Buyer In-Store Buyer
Source: CE Purchasing Process Study, November 2007
69%
49%
Seeing the Product In-PersonIs Very Important in Influencing My Purchase*
Buy In-Store
Buy Online
Still, seeing the product in-person is very important before a purchase
Q6. Please think about your last experience in a retail store (e.g. Best Buy, Circuit City or Wal-Mart) before you purchased your “TV”, “computer” or “digital camera”. Using a scale from 1 to 5, where 1 is “strongly agree” and 5 is “strongly disagree”, indicate the extent to which you agree or disagree which each of the following statements regarding your last visit.Base: Respondents who checked Seeing the product in retail stores (e.g. Best Buy, Circuit City, or Wal-Mart); Buy Online – 244, Buy In-Store - 881.Buy In-Store (69%) significant > than Buy Online (49%) @ 95% confidence.
* “Strongly agree” with this statement
Source: CE Purchasing Process Study, November 2007
20% 30% 40% 50% 60% 70%
In-Store Buyer Online Buyer
Any online resource: 25%Any offline resource: 22%
Any online resource: 22%Any offline resource: 22%
Online resources are as effective as offline resources at driving CE customers into the store
Prompted Me To Visit A Retail Store
Q3. Now we would like to know how each of the following information sources helped you in your shopping and information gathering process for your < “TV”, “computer” or “digital camera” > purchase. Please indicate the statements you feel apply to each source of information. (You may choose more than one statement for each source of information if you feel it applies.) Base: Used any online or offline source: Buy Online – 519/395 respectively, Buy In-Store – 799/1,074 respectively.
Source: CE Purchasing Process Study, November 2007
16
Your customers use Search throughout theshopping funnel
Awareness
Consideration
Purchase
When did you use Search during your shopping and information gathering process?
Online Buyers 29%
In-Store Buyers 30%
Online Buyers 9%
In-Store Buyers 11%
Online Buyers 17%
In-Store Buyers 17%
Throughout the Shopping Process
Online Buyers 46%
In-Store Buyers 43%
Q2. And when did you use search during your shopping and information gathering process to get information about your “TV”, “computer” or “digital camera” purchase? Please select the one response that best applies. Base: Respondents who used search to get information about their purchase; Purchased online – 240, Purchased offline - 345Source: CE Purchasing Process Study, November 2007
69%
70%
Search is Important to My Purchase Decision
Buy In-Store
Buy Online
20% 30% 40% 50% 60% 70%
Search is important to the purchase decision, as much to In-Store as to Online CE buyers
Q3a. How important were each of the following information resources in deciding what “TV”, “computer” or “digital camera” to buy? % “extremely/very” importantBase: Used Search Engine, Buy Online – 240; Buy In-Store– 345.
Source: CE Purchasing Process Study, November 2007
Search is a critical piece of the online research process
Percent of Buyers Who Searched
6.2 4.9 6.44.7
42%
55%
35%
59%
All Buyers Computer Digital Camera TV
6.2Searches
4.9Searches
6.4Searches5.3
Searches
Source: CE Purchasing Process Study, November 2007
Searchers: all products n= 925; computer n= 397; digital camera= 139; television n= 114
All searchers: all terms n= 397 ; branded n= 232 ; generic n= 254; 2-month period before purchase
Total Searches Used For All Purchases
53%Generic
47%Branded
Branded and Generic searches are used equally by buyers
Source: CE Purchasing Process Study, November 2007
But Branded and Generic search terms are used differently by category
Source: CE Purchasing Process Study, November 2007.
Generic
33%
Computer Searchers
Branded
57% 10% 35%
TV Searchers
47% 18%
37%
Digital Camera Searchers
38% 25%
Generic Branded
Generic Branded
Searchers: all products n= 925; computer n= 397; digital camera= 139; television n= 114
Buyers use generic search in the weeks leading up to purchase
6% 5%8% 9%1% 3%
2%
3% 5%4%
8%
3%3%
17%
2%
21%
0%
8%
16%
24%
32%
40%
7 6 5 4 3 2 1 0
Weeks Prior to Purchase
Generic Searches Branded Searches
% of Total Searches During Research Process
Searchers: all products n= 397; computer n= 148; digital camera= 115; television n= 45
Source: CE Purchasing Process Study, November 2007.
Research Online
Research Offline
BuyOnline
BuyIn-Store
CE Average $744 $704 $751 $708
TV’s $1,084 $954 $1,135 $970
Computers $883 $808 $910 $833
Digital Cameras $289 $254 $258 $254
Q9. Approximately how much did you pay for your “TV”, “computer” or “digital camera”? Base: Respondents who know which brand of product they purchased: Researched Online – 638, Researched Offline – 766. Buy Online – 587 , Buy In-Store – 1,317 Research Online/buy Digital Cameras ($289), significantly > than Research Offline ($254) @ 90% confidence. Buy Online/buy TV’s or Computers ($1,135 or $910), significantly > than Buy In-Store ($910 and $833) @ 95% confidence.
Online consumers tend to spend more on CE purchases
Source: CE Purchasing Process Study, November 2007
Online consumers offer a more attractive demographic profile
Research Online
Research Offline
BuyOnline
BuyIn-Store
Average Age 40.8 41.6 40.4 41.7
Male 64% 57% 61% 58%
Female 36% 43% 39% 42%
Average Income $64.1k $63.0k $65.0k $60.8k
College Degree or Higher 43% 35% 42% 35%
Heavy Internet Usage (15+ hours/week) 60% 51% 56% 55%
Source: CE Purchasing Process Study, November 2007
Q’s S1-2 and D1-3: Internet usage and demographic questions Base: Total: Researched online - 656; Researched offline – 791. Buy Online - 608 ; Buy In-Store – 1,376.Research Online, significantly > Male (64%), College Degree or Higher (43%), and Heavy Internet Usage (60%) @ 95% confidence. Research Offline, significantly > Female (43%) @ 95% confidence. Buy Online, significantly > Income ($65.0) @ 90% confidence, College Degree or Higher (42%) @ 95% confidence, Buy In-Store, significantly > Age (41.7) @ 90% confidence.
…and online researchers are stronger brand advocates
46% Buyers who
Research Offline
54%
Buyers who Research Online
How likely are you to recommend your CE brand…?
Q12. How likely are you to recommend your purchase to a friend, family member, or colleague? % “definitely would recommend”Base: Respondents who know which brand of product they purchased; Researched online - 646; Researched offline – 782. Buyers who Research Online (54%), significant > than Buyers who Research Offline (46%) @ 95% confidence
Source: CE Purchasing Process Study, November 2007
Searchers are the most valuable customers
Searchers 4.7
Non-Searchers 2.9
# Photos or Videos Uploaded About
Purchase
Searchers 2.9
Non-Searchers 1.6
# Reviews or Blogs Written about
Purchase
# People Talked to About Purchase
Searchers 7.2
Non-Searchers 5.1 Spend 17% More onCE Purchase
Searchers $803
Non-Searchers $685
Q13. Thinking about “TV”, “computer” or “digital camera” you bought, how many times have you done the following since you bought it? Please give us your best estimate. Base: Respondents who know which brand of product they purchased; Searchers – 573-578 ; Non-Searchers – 1,345-1,359. Q9. Approximately how much did you pay for your “TV”, “computer” or “digital camera”? Base: Respondents who know which brand of product they purchased; Searchers – 567, Non-Searchers – 1,337. Searchers, significantly > # People (7.2), # Photos/Videos (4.7), # Reviews/Blogs (2.9), $ Spend ($803) @ 95% confidence.
Source: CE Purchasing Process Study, November 2007
Searchers have desirable demographics
Source: CE Purchasing Process Study, November 2007
Q’s S1-2 and D1-3: Internet usage and demographic questions Base: Total Respondents: Searchers - 585 ; Non-Searchers – 1,399. Searchers, significantly > Male (64%), Income ($66.3k), College Degree or Higher (48%), and Heavy Internet Usage (61%). Non – Searchers, significantly > Age (41.9), Female (43%) @ 95% confidence
Average Household Income
53%
College Degree or Higher
48%
Heavy Internet Usage(15+ hours/week)
61%
$60.3k
33%
$66.3k
Searchers Non-Searchers
Key Findings
CE Buyers rely on Search throughout the shopping process• Search is used throughout the purchase funnel, not just at point of purchase
• Activity is split about equally between branded and generic terms
• Branded and generic term usage varies by category
Online CE consumers, particularly Searchers, are more valuable customers• Searchers spend more, are stronger brand advocates, are more affluent and highly
educated
• Shoppers who research online spend more, are more likely to recommend their product and have more attractive demographics
Online resources are critically important to the CE buyer• Equally important for in-store buyers and online buyers
• More useful than offline sources in building knowledge about brands/products andhelping with the final purchase decision
Implications For CE Advertisers
Use Online Advertising to Reach the In-store Buyer• All Consumer Electronics shoppers
have exposure to online advertising
• Online research plays a pivotal role to decision making process of in-store buyer
Measure Brand Impact as well as ROI of Search• Buy generic search terms – branded
terms only reach half of all purchasers
• Search is important at the top of the funnel, introducing brands and products
Leverage Online Marketing In Integrated Strategy• Use online channels to drive
customers to the store and reinforce messaging
• Opportunity for manufacturers to partner with retailers
• Use strength of online channels to compliment offline campaigns
Computer buyers use generic search in the weeks leading up to purchase
1% 2%5% 4%
7%
19%
8%5% 7%
11%
2%
1%4%1%
22%
0.0%
8.0%
16.0%
24.0%
32.0%
40.0%
7 6 5 4 3 2 1 0
Weeks Prior to Purchase
Branded Searches Generic Searches
% of Total Searches During Research Process
Searchers: all products n= 397; computer n= 148; digital camera= 115; television n= 45Source: CE Purchasing Process Study, November 2007. Behavioral analysis of online buyers.
Digital camera buyers use generic search in the weeks leading up to purchase
2% 4% 4%8%
26%
2%3%
7%
12%
2%1% 2%3%3%
19%
3%
0%
8%
16%
24%
32%
40%
7 6 5 4 3 2 1 0
Weeks Prior to Purchase
Branded Searches Generic Searches
% of Total Searches During Research Process
Searchers: all products n= 397; computer n= 148; digital camera= 115; television n= 45Source: CE Purchasing Process Study, November 2007. Behavioral analysis of online buyers.
TV buyers use generic search in the weeks leading up to purchase
1% 1% 3%
14% 15%9%
5%
16%
12%
1%
1%1%
18%
3%0%
8%
16%
24%
32%
40%
7 6 5 4 3 2 1 0
Weeks Prior to Purchase
Branded Searches Generic Searches
% of Total Searches During Research Process
Searchers: all products n= 397; computer n= 148; digital camera= 115; television n= 45Source: CE Purchasing Process Study, November 2007. Behavioral analysis of online buyers.