Thursday, July 20, 2006

Consumers Go Online Before Visiting A Store

Hi all -

We visited a client the other day in Baltimore that was really surprised when I told them that their customers, like customers of most businesses, probably go online to learn about their products and services long before they even think of stepping foot inside their store. They were pretty shocked, and until that point didn't really see their Web site as a big draw (therefore they had put no money into making it user-friendly or aesthetically appealing, much less positioned properly).

The Center for Media Research recently put out a research brief that speaks to this point. Here it is:

Shoppers Check It Out Online, Then Go To The Store

According to BIGresearch's June Consumer Intentions and Actions Survey, when asked how often they research products online before buying them in person or in a store, 87% of nearly 7,500 respondents said they did so occasionally to regularly.

Of those who said they researched products online before buying them in the store:

  • 58% made less than $50K per year
  • 51% were female
  • 59% were between the ages of 25 and 54

The survey also divided these respondents into two income brackets to profile which items were most frequently researched online, but purchased in person, by those making above and below $50K per year.(

Joe Pilotta, VP of Research for BIGresearch, said "Those in the higher income bracket researched and then bought electronics most often, followed by home improvement items and appliances. The other group reported electronics, apparel and medicines/vitamins/supplements as their top three products researched online, then purchased in person."((

Types Of Products Researched Online In Last 90 Days Before Buying in Person (% of respondents)

Top 5 Products Researched

Adults (18+)

$50K+/yr.

<$50K/yr.

Electronics

39%

43%

35%

Apparel

17%

18%

17%

Appliances

17%

20%

15%

Home Improvement Items

16%

21%

14%

Medicines/Vitamins/Supplements

15%

14%

16%

Source: BIGresearch CIA, June 2006

In both income groups, the top search engine used for product research was Google.com by a large margin, but WalMart.com made a surprising appearance in the top 5 websites used first among those who did their comparative shopping online before buying in the store.

Websites Viewed First When Researching Products (% of respondents)




Top 5 Search Engines Used

Adults (18+)

$50K+/yr.

<$50K/yr.

Google.com

22%

27%

20%

Yahoo.com

8%

7%

8%

Amazon.com

6%

7%

5%

Ebay.com

3%

2%

4%

WalMart.com

2%

1%

3%

Source: BIGresearch CIA, June 2006




Pilota concludes, "... Retailers cannot view online as ancillary to the store, rather retailer websites must be viewed as extensions of the bricks and mortar as well as a concentrated shopping experience."

Additional information on the CIA may be accessed by going here.

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