SlideShare a Scribd company logo
1 of 18
The 2011 Social Shopping Study
Brief I:
Consumer Research Dynamics,
Mobile and User-Generated Content


June 2011
Table of Contents


                                                                                 I.                                                                      Thoughts from the Author
                                                                          II.                                                                            Survey Methodology and Demographics
                                                                    III.                                                                                 Product Research
                                                            IV.                                                                                          User-Generated Content
                                                                   V.                                                                                    Stay Tuned - Brief II: The Facebook Factor
                                                            VI.                                                                                          About the Companies




2	
      	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
I. Thoughts from the Author



        Today’s shopper is savvy with almost black belt certification in researching product and pricing. There
        is a method to their madness where they are willing to make a significant investment in time when the
        reward reaped is finding the right product at the right price.

        For the past five years the e-tailing group, with sponsorship from PowerReviews, has investigated the
        role of customer reviews, trending that behavior and social shopping to keep pace with consumer
        activity. 2011 has been a volatile year for ecommerce with a multitude of dynamics in play from social
        media and community to mobile. Aware of these changes, in this year’s survey we explored consumer
        utilization of social media across a range of merchants and channels to understand perception,
        interest, and propensity to buy based on that engagement. Secondly we sought to comprehend the
        consumer’s level of interest in community, at retail and across the web. We wanted to know the
        implications for researching and shopping behavior, particularly as it relates to Facebook, which is the
        beneficiary of much of the community attention. That portion of the study and our findings will be
        shared in Brief II.

        Consumers told us loudly and clearly in our April 2011 Social Shopping Survey that they must receive
        rewards, via price or points, in order to expend time. Despite any perceived loyalty, research fueled
        most shopping. In fact, the groundwork for this two-part brief was based on the web’s capacity to
        provide complete details better than almost any channel. Shoppers’ ability to access information at
        home, in the office or via mobile puts even greater pressure on the retailer to enable that process by
        providing comprehensive information. Consumers are gravitating to powerhouses like Amazon, who
        many see as the defacto retailer for comparison shopping, finding credibility in these destinations
        through problem solving prior to purchasing.

        As in our prior joint surveys, there appears to be several personality types that dominate the 2011
        findings, ranging from heavyweights that invest significant time researching to those who might only
        give limited time and lip-service to such behavior. We see similar social patterns playing out on the
        social front where some consumers are heavily invested while others are more voyeuristic toward that
        approach.

        Within each brief and research component we will note the respondents’ introductory premise. From
        there, food-for-thought questions that we contemplated prior to deploying the study will be served up,
        followed by supporting questions for in-depth insights. The Facebook Factor and a discussion
        surrounding community-related behavior will be uncovered in Brief II and round out the ever-changing
        social landscape.




                                                                                                                                                                                                                                                                                                                                                                             Think Social!

                                                                                                                                                                                                                                                                                                                                                                             Lauren Freedman
                                                                                                                                                                                                                                                                                                                                                                             President, the e-tailing group




3	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
II. Survey Methodology & Demographics


        1,004 adults with the following demographic profile completed an online survey:

                                           In what age range do you fall?                                                                                                                                                                                                                                                                                                                Which of the following best
                                                                                                                                                                                                                                                                                                                                                                                      represents your combined annual
                                                                                                                31%
                                                                                                                                                                                                                                                                                                                                                                                         household income from all
                                                      24%                                                                                                                  26%
                                                                                                                                                                                                                                                                                                                                                                                           sources before taxes?
                                                                                                                                                                                                                                      17%
                                                                                                                                                                                                                                                                                                                                                                                         Under $25,000        5%
                                                                                                                                                                                                                                                                                                                                                                                        $25,000-$35,000       6%
          1%                                                                                                                                                                                                                                                                                         1%                                                                                 $35,001-$50,000             13%
                                                                                                                                                                                                                                                                                                                                                                                        $50,001-$75,000                       25%
         18-24                                     25-34                                                      35-44                                                      45-54                                                     54-65                                                       65 or                                                                                   $75,001-$100,000                     20%
                                                                                                                                                                                                                                                                                               older                                                                                More than $100,000                         27%
                                                                                                                                                                                                                                                                                                                                                                                   Prefer not to respond      4%
                                                                                                                                                                                                                                                                                                                                                                                                                                     	
  
                                       What is the highest level of education
                                        that you have completed to-date?                                                                                                                                                                                                                                                                                                                          What is your
             High school graduate                                                                                                                                                                                         8%                                                                                                                                                                       gender?
                                                                                                                                                                                                                                                                                                                                                                                                  51
               Some college, but no
                                                                                                                                                                                                                                                                                   22%                                                                                                            %
                     degree
                                                                                                                                                                                                                                                                                                                                                                                                            49
                                            College graduate                                                                                                                                                                                                                                                              37%
                                                                                                                                                                                                                                                                                                                                                                                                            %
          Some graduate school                                                                                                                                                                               5%

             Post graduate degree                                                                                                                                                                                                                                                                      27%                                                                                       Male      Female
                                                                                                                                                                                                                                                                                                                                                                                                                     	
  



        Respondents shopped online four times or more during the past year, spending at least $250
        online annually for products and services.


                             How often did you shop online for                                                                                                                                                                                                                                                                                                                     How much do you spend on products
                              products during the past year?                                                                                                                                                                                                                                                                                                                          and services online annually?
                                                                                                                 42%
                                                                                                                                                                                                                                                                                                                                                                                            $250-$499                              27%
                                                     30%

                                                                                                                                                                              20%
                                                                                                                                                                                                                                                                                                                                                                                            $500-$749                              24%

                                                                                                                                                                                                                                              8%                                                                                                                                            $750-$999                       16%

                                                                                                                                                                                                                                                                                                                                                                                          $1000-$1499                       16%
                                            Weekly Several Once a 4 times
                                                   times a month per year                                                                                                                                                                                                                                                                                                               $1,500 or more                       17%
                                                    month
                                                                                                                                                                                                                                                                                                                                                                                                                                            	
  



4	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
           	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
III. Product Research


        Introductory Premise

        “We would like to gain a better understanding of how you decide which product best suits
        your needs; what research tools and channels you find most helpful, regardless of where you
        ultimately buy the product (online, in-store, from a catalog), and regardless of finding the
        best price.”

        Food-for-Thought Questions

        To develop the research methodology, our two companies brainstormed today’s emerging
        dynamics of selling and those that are directly related to user-generated content. They
        included general usage, consumption patterns, and changes that have resulted based on
        the current merchant landscape including brand growth, channel access, and in particular,
        social and mobile influences.

         Does user-generated content consumption continue to play a greater and evolving role
          in consumer behavior relative to researching and purchasing product?
         Does search still dominate the consumer’s path to finding the right product?
         As Amazon’s power and prowess progresses will consumers increasingly seek out their
          efficiency model making Amazon a ”one stop” destination for finding product and
          comparing prices?
         Will comprehensive user-generated content result in greater consumer loyalty towards
          those merchants?
         As broader access to user-generated content across social and mobile channels is seen,
          will it wield greater influence and expand locales for consumer consumption?
         With direct-to-consumer growth among brands, what changing dynamics will be seen
          relative to user-generated content among passion brands such as Converse, Under
          Armor, Burt’s Bees, etc.?


        Top Line Findings: Product Researching

        •   Consumers invest greater time researching but shoppers are on a mission to find the best
            price

        •   Search engines serve as the shopping point-of-origin when researching product

        •   Customer reviews continue to wield the greatest influence on buying behavior

        •   Google Shopping features see strong early adoption

        •   Mobile usage relative to shopping is mostly centered on competitive pricing




5	
         	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Time Spent Researching

        This year, unique to years past, we anticipated that time spent on the higher end of the
        spectrum had likely grown so we added new parameters in the 75%+ arena. Our hunch
        proved correct as one in two respondents spent 75% of their overall shopping time
        researching product as compared to just 21% in 2010. The fact that 15% of respondents spent
        90% or more of their time means they must be receiving the kind of information that
        expedites decision-making with the web world playing a vital role.



                                                                                                                                                What percent of your overall shopping involves
                                                                                                                                                        researching products online?

                                                                                                                                                                        90% or more                                                                                                                                                                                  15%


                                                                                                                                                                                                            75-89%                                                                                                                                                                                35%


                                                                                                                                                                        75% or more                                                                                                                                                                                                 21%

                                                                                                                                                                                                            50-74%                                                                                                                                                                          29%
                                                                                                                                                                                                                                                                                                                                                                                            29%

                                                                                                                                                                                                            30-49%                                                                                                                                                   15%
                                                                                                                                                                                                                                                                                                                                                                                      24%

                                                                                                                                                                                                            15-29%                                                                                                                                   13%
                                                                                                                                                                                                                                                                                                                                                                              17%
                                                                                                                                                                                                                                                                                                                          8%                                                                      2011
                                                                                                                                                                                                                     1-14%                                                                                                8%                                                                      2010

                                                                                                                                                                                                                           None                                                       0%
                                                                                                                                                                                                                                                                                       1%




        Information-Intensive Online Research

        We especially wanted to focus on information-intensive products as we believe, given their
        higher retail price points, these products warrant such scrutiny. This is clearly another instance
        where consumer behavior is split and assumes a heavy/medium/light mentality. Novices and
        seasoned shoppers alike often have a lot to learn as they attempt to make smart decisions
        for new or replacement products they may have owned for long periods of time, contrary to
        impulse purchases conducted across other categories.




6	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
      	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
When shopping for an information-intensive product (computer, appliance,
                                                                       television, etc.) how much time do you typically spend online researching
                                                                                            prior to completing the purchase?

                                                                                                                                                                                                A few hours                                                                                                                                                                              22%
                                                                                                                                                                                                                                                                                                                                                                                                29%

                                                                                                                                                                                                                                            A day                                                                               7%
                                                                                                                                                                                                                                                                                                                                                              11%

                                                                                                                                                                                                       A few days                                                                                                                                                                                     34%

                                                                                                                                                                                                                                 A week                                                                                                                               12%
                                                                                                                                                                                                                                                                                                                                                                                                29%

                                                                                                                                                                                             A few weeks                                                                                                                                                                           18%
                                                                                                                                                                                                                                                                                                                                                                                         23%

                                                                                                                                                                                                                        A month                                                                                           3%
                                                                                                                                                                                                                                                                                                                           4%                                                                                 2011
                                                                                                                                                                                                                                                                                                                                                                                                              2010
                                                                                                                                                 More than a month                                                                                                                                                        4%
                                                                                                                                                                                                                                                                                                                          4%




        Product Research Orientation

        Each year we wonder if information seeking behavior will begin at different points of entry.
        Since more manufacturers than ever have gone direct to the consumer, our curiosity pushed
        us to explore where shoppers begin their search. Respondents confirmed that search engines
        are still the main starting point for research with retail close behind and manufacturers serving
        as a launch for most others.



                                                                              When researching branded products online prior to purchasing (e.g. HP
                                                                             computer, Panasonic TV, Nike shoes) which of the following most closely
                                                                                        represents where you would begin that process?

           I start with a search engine and look for top search
                                                                                                                                                                                                                                                                                                                                                                                                                     44%
                        results for products I desire
                            I start with retailer sites that sell the product I’m
                                                                                                                                                                                                                                                                                                                                                                                                            33%
                                                  looking for

                                                                                                                         I start with the manufacturer’s site                                                                                                                                                                                                                                  20%

                    I reach out to my social network on Facebook for
                                                                                                                                                                                                                                                                                                                                                                    2%
                                    recommendations

                                                                                                                                                                       I pose a question on Twitter                                                                                                                                                          1%




7	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
           	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
The Role of Social Sites in Shopping Research

        We introduced the concept of research via social sites given their continued influence and
        time spent by consumers in these communities. I was not surprised that there appears to be a
        divide between community and commerce as just 29% of respondents take advantage of
        social sites for research. Beyond that finding, one in two people do not use social sites for
        research, distinctly choosing to contain their behavior to more traditional shopping tools. It
        will be interesting to monitor and trend this question to see if audiences who grow up with
        social sites rely more heavily on them for researching shopping needs.




                                                                                                         Overall, how often do you use social sites such as Facebook and Twitter
                                                                                                                       for your shopping research to gather ideas?


                                                                          I always read and research on social sites to gather ideas                                                                                                                                                                                                                                         6%

                                                                                      I often read and research on social sites to gather ideas                                                                                                                                                                                                                               10%

                                              I sometimes read and research on social sites to gather ideas                                                                                                                                                                                                                                                                       13%

                                                                                  I rarely read and research on social sites to gather ideas                                                                                                                                                                                                                                            22%

                                                                                   I never read and research on social sites to gather ideas                                                                                                                                                                                                                                                  49%




        Community and Social Influences on Buying Behavior

        Retailers, of course, are interested in where consumer research is being conducted but more
        importantly they need to know what tools and techniques impact buying behavior. Here,
        customer reviews come out strongly on top and their perseverance is a testament to the
        value consumers receive. Q/A, a newer tool, sees strong impact despite what we observe to
        be much more limited deployment across the web. In fact, our 4Q10 Mystery Shopping Study
        of 100 merchants (EG100) revealed that only 18% of sites make this feature available.
        Community forums had impact for one in four individuals where enthusiast categories likely
        pushed this tactic to a higher level. Video is an up and comer that I suspect should grow in
        impact in the coming year and may be the most exciting tactic to watch. Facebook is
        having little influence on buying as is confirmed here and in subsequent discussion that will
        dominate our second brief.




8	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Please indicate the impact of the following Community and Social tools
                                                                                            on your buying behavior. (Top-2: significant/good impact)

                                                        Customer reviews (user-generated product reviews)                                                                                                                                                                                                                                                                                            59%
                              Q&A (customers asking and answering questions about
                                                                                                                                                                                                                                                                                                                                                                                               42%
                                               products on-site)
                                                                                Community forums (for conversations among
                                                                                                                                                                                                                                                                                                                                                                                         26%
                                                                               customers or between you and other customers)
                                 Videos (viewing user-generated videos or creating your
                                                                                                                                                                                                                                                                                                                                                                                   15%
                                                         own)

                                                 Facebook fan page (company fan page on Facebook)                                                                                                                                                                                                                                                                                 13%

                                                       Facebook newsfeed (friends talking about products)                                                                                                                                                                                                                                                                         13%

                                                                                                                                                      Mobile (iPhone application, text alerts)                                                                                                                                                                               9%

                                                                                                    Twitter (monitor, respond to, and post tweets)                                                                                                                                                                                                                           9%



        Google Utilization

        Beyond social networks, Google has expanded their reach further into shopping, warranting
        a question that explores consumer utilization of the search engine. We were careful to
        separate out general Google behavior, which is commonplace for all of us when we view
        shopping results. Given Google’s influence, particularly in searches for specific products,
        SKUs, and almost anything shopping, it was not surprising to see that 57% of respondents had
        compared prices while 58% had read product reviews there and just over half (51%) had
        used Google Shopping to find local businesses. This is noteworthy as greater emphasis is
        being paid to the local market based upon the competitive nature seen among Groupon or
        other local engines.




9	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Over the past year, Google has added more information about local retailers and
                                                                                        their respective inventory. How would you characterize your current Google
                                                                                                   Shopping utilization? (Top-2: all of the time/very often)


                                             I use Google Shopping features to compare prices                                                                                                                                                                                                                                                                                        31%

                                                                   I use Google Shopping to read product reviews                                                                                                                                                                                                                                                                    29%

           I use Google Shopping features to find local businesses
                                                                                                                                                                                                                                                                                                                                                                              22%
                   carrying the products I'm searching for




         Mobile Phone Behavior Prior to Purchasing

         No investigative study would be complete this year without understanding mobile usage,
         one of today’s true game changers for both research and shopping. One-third of people
         have used their mobile phones four or more times to research pricing, promotions, store
         information, and product reviews prior to visiting a physical store. It is here that the notion of
         rewards also becomes apparent with price dominating the top answers.




10	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
We would like to gauge recent usage of your mobile phone for product researching.
                                                                                       Thinking about the product purchases you made within the last 3 months, please tell us
                                                                                        about how often you’ve done each of thefollowing activities using your mobile phone.


                                                                                                                                                                                                                   Checked for sales and specials                                                                                                                                            33%

                                                            Looked up store information (hours, location, map, etc.)                                                                                                                                                                                                                                                                         33%

                                                                                                                                                        Checked for product ratings and reviews                                                                                                                                                                                              32%

                                                                                                                                                Looked for competitive pricing at Amazon                                                                                                                                                                                                   31%

                                                                                                                  Browsed an online store for product of interest                                                                                                                                                                                                                          31%
          Looked for competitive prices on products at retailers online other
                                    than Amazon
                                                                                                                                                                                                                                                                                                                                                                                       29%
            Looked for competitive prices on comparison shopping engines
                           (Price Grabber, Shopping.com)
                                                                                                                                                                                                                                                                                                                                                                                     27%

                                                                                Checked a store’s inventory for a product of interest                                                                                                                                                                                                                                            26%
         Looked up prices on the retailer’s mobile site where I was intending
                                        to buy
                                                                                                                                                                                                                                                                                                                                                                               24%




11	
         	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Top Uses of Mobile Phones While In Physical Stores

         We now turn to usage within the retail environment. Customers are no longer captive but still
         on the hunt for deals. This may mean access to promotional coupons for immediate
         redemption or price shopping from an array of competitors. Information seeking is seen in
         both ratings and reviews and potentially the scanning of bar codes. The options are plentiful,
         as one in three shoppers has already taken advantage of their mobile phone within the store
         confines.




                                                                                                                                               How likely are you to do each of the following using your mobile phone
                                                                                                                                                   when researching a product while in a physical store? (Top-3)

                                      Access promotional coupons for redemption at the store                                                                                                                                                                                                                                                                                                 38%

                                                                                                                                                Look for competitive pricing at Amazon                                                                                                                                                                                                      36%

          Look for competitive prices on products at retailers online other
                                   than Amazon
                                                                                                                                                                                                                                                                                                                                                                                            36%

                                                                                                                                                       Check for product ratings and reviews                                                                                                                                                                                              35%

                                                            Scan bar codes and compare prices to other retailers                                                                                                                                                                                                                                                                          35%

          Look on a retailer’s website for product beyond what they carry
                                    in the store
                                                                                                                                                                                                                                                                                                                                                                                          35%

          Look up prices on the retailer’s mobile site where I am intending
                                       to buy
                                                                                                                                                                                                                                                                                                                                                                                      33%
             Scan bar codes to learn more about a specific product (i.e.
           product information, product images, video, customer reviews                                                                                                                                                                                                                                                                                                               33%
                                        etc.)
            Look for competitive prices on comparison shopping engines
                          (Price Grabber, Shopping.com)
                                                                                                                                                                                                                                                                                                                                                                                      32%

                                                                Scan QR codes and compare prices to other retailers                                                                                                                                                                                                                                                                 31%
              Scan QR codes to learn more about a specific product (i.e.
            product information, product images, video, customer reviews                                                                                                                                                                                                                                                                                                            31%
                                           etc.)
              Check in to take advantage of apps such as Shopkick or
           Foursquare that allow you to receive points, rewards or badges                                                                                                                                                                                                                                                                                                       28%
                            for visiting local retail stores
                                                                            Make a purchase on your phone at another retailer                                                                                                                                                                                                                                                 25%




12	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
IV. User-Generated Content


         Introductory Premise

         “Shoppers rely more and more on user-generated or peer-based content including product
         reviews and ratings. We wish to understand more about how and where you use this
         content.”


         Food-for-Thought Questions

         The balance of this brief is centered on what and where user-generated content may be
         accessed. Additionally we sought to understand respondents’ willingness to be participants
         or bystanders relative to user-generated content.

      Would user-generated content continue to play an important role when conducting
       product research online?
      Is the consumer research dynamic still dominated by search to find the right product
       quickly?
      Knowing that efficiency and timesaving are core to the online value proposition, will
       Amazon and other dominant retailers become important “one-stop” destinations for
       finding product and comparing prices?



         Top Line Findings: User-Generated Content

         •   Amazon is the defacto site for product reviews and price checking

         •   Ratings and reviews remain the most critical product information desired by shoppers

         •   Behavioral differences are not seen relative to user-generated content among
             manufacturers and retailers


         Review Access by Site Type

         Reviews and Ratings are most frequently used on Amazon where they far outpace both retail
         websites at 45% and search engines at 41%. Both retailers and manufacturers should take
         notice of this finding as the concentration of usage is changing consumer shopping
         dynamics.




13	
         	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Given that product reviews and ratings are playing a bigger role in researching and
                                                                     purchasing products online, please tell us how often you use reviews and ratings
                                                                             at each of the following locations. (Top-2: all the time/very often)

                                                                                                                                                                                                                                                                                                           Amazon.com                                                                                                     58%
Retailers’ websites (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom)                                                                                                                                                                                                                                                                                                                                              45%
                                                                                                                      Search Engines (e.g. Google, Bing, Yahoo)                                                                                                                                                                                                                                              41%
Manufacturers’ websites (e.g. HP, Ralph Lauren, Clinique, Nike, Lego)                                                                                                                                                                                                                                                                                                                                 32%
                                                                                                Review Sites (e.g. Buzzillions, Epinions, CNet)                                                                                                                                                                                                                                                 25%
                                                                                                                                                                                                                                                                                                                           Facebook                                                 11%
                                                                                                                                                                                                                                                                                                                             Twitter                                               7%


         User-generated Content Credibility

 User-generated content is considered the most credible on aggregators including Amazon,
 review sites, and search engines. They are perceived as being more unbiased than both
 retailers and manufacturers. I believe volume of reviews contributes to this credibility, as does
 the efficiency of perusing those reviews.
                                                                                                     Please tell us how credible (or trustworthy) you feel the user-generated content
                                                                                                               (e.g. customer reviews and ratings, recommendations, etc.)
                                                                                                         is from each of the following locations. (Top-2: extremely/very credible)

                                                                                                                                                                                                                                                                                                             Amazon.com                                                                                             63%

                                                                                            Review Sites (e.g. Buzzillions, Epinions, CNet)                                                                                                                                                                                                                                                                 51%

                                                                                                                  Search Engines (e.g. Google, Bing, Yahoo)                                                                                                                                                                                                                                                 50%

           Retailers (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom)                                                                                                                                                                                                                                                                                                                                   47%

               Manufacturers (e.g. HP, Ralph Lauren, Clinique, Nike, Lego)                                                                                                                                                                                                                                                                                                                        38%

                                                                                                                                                                                                                                                                                                                           Facebook                                                       21%

                                                                                                                                                                                                                                                                                                                             Twitter                                                    15%




    Future User-Generated Content Access

    Shoppers foresee little change in their behavior relative to user-generated content by
    location. This is interesting as it leaves little room for changing dynamics to have their desired
    impact. This is one of the questions we will ideally circle back to in next year’s survey.




14	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Given the amount of user-generated content (e.g. Review sites, Facebook, Twitter)
                                                                          available to you for researching and shopping online, how do you foresee your
                                                                        shopping behavior changing in the coming year relative to the following locations?



                         Retailers (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom)                                                                                                                                                                                                                                                                                                                     85%

                       Manufacturers (e.g. HP, Ralph Lauren, Clinique, Nike, Lego)                                                                                                                                                                                                                                                                                                                     84%

                                                                                                                                    Search Engines (e.g. Google, Bing, Yahoo)                                                                                                                                                                                                                    79%

                                                                                                              Review Sites (e.g. Buzzillions, Epinions, CNet)                                                                                                                                                                                                                              76%

                                                                                                                                                                                                                                                                                                                           Amazon.com                                                73%

                                                                                                                                                                                                                                                                                                                             Facebook                                               72%

                                                                                                                                                                                                                                                                                                                               Twitter                                             71%




         User Generated Content Availability

         Product reviews were ranked the most critical user-generated content for researching on a
         retailer’s site with Q/A following closely behind. It is also interesting to note that liking product,
         a relative newcomer to retail sites, has already surpassed both product likes and community
         forums. In my mind this emanates from its ease of use and one’s ability to connect with
         others, with only minimal commitment.




                                                                            Outside of the standard product information (images, descriptions, etc.)
                                                                          how important is finding the following user-generated content on a retailer’s
                                                                              site (e.g. Target, Best Buy, Pottery Barn) when researching online?
                                                                                                  (Top-2: critical/very important)

            Customer Product Reviews and Ratings (peer-generated product
                            reviews and related content)
                                                                                                                                                                                                                                                                                                                                                                                                         48%

            Q&A (customers asking and answering questions about products
                                       onsite)
                                                                                                                                                                                                                                                                                                                                                                                            31%

            Product “Likes” (# people who have “Liked” a particular product)                                                                                                                                                                                                                                                                                                         23%

            Product “Likes” by People You Know (people you know who also
                     “Like” a product you are considering buying)
                                                                                                                                                                                                                                                                                                                                                                                     22%

                                                         Community Forums (for conversations among customers
                                                                or between you and other customers)
                                                                                                                                                                                                                                                                                                                                                                                   18%




15	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
User-Generated Content Participation

         Rating a product purchased sees the greatest participation among social activities (70%)
         though liking and sharing exceed 40% penetration. This follows closely in line with the prior
         question though it appears to have legs with 42% of respondents having shared with others
         regarding product. Elevated interest in liking is logical given the 75% penetration among
         EG100 sites. The real question is, can “liking” achieve the same status as product ratings
         have today? Certainly there is a distinct possibility as the tool has had limited time to
         resonate with shoppers and its presence on 36% of the EG100 sites is not nearly universal
         across retail sites.



                                                                                      When thinking about products or brands, how often do you participate in each
                                                                                         of the following activities? (Top-3: all the time/very often/sometimes)

                                                                                                                                                                                      Rate a product purchased                                                                                                                                                                        70%

                                               “Like” a retailer (e.g. Best Buy, Target, Crate &
                                                                                                                                                                                                                                                                                                                                                                                49%
                                                                     Barrel)
                                           “Like” a manufacturer (e.g. Apple, Lego, Under
                                                                                                                                                                                                                                                                                                                                                                                49%
                                                             Armour)
           “Share” with others product you have browsed on a
                                                                                                                                                                                                                                                                                                                                                                              42%
                                 website
               “Share” with others a product you have purchased
                                                                                                                                                                                                                                                                                                                                                                              43%
                                from a website




16	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
V. Brief II – The Facebook Factor



         Consumers have once again embraced user-generation content. Its impact can be seen
         excessively across many devices and touch points. We look forward to exploring The
         Facebook Factor in Brief II along with other community elements that contribute to online
         social dynamics.



         Stay tuned.




17	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
VI. About the Companies



         ABOUT THE E-TAILING GROUP

         The e-tailing group is a niche e-commerce consultancy that helps merchants deliver
         the right customer experience on their websites and across all of their channels while
         adeptly assisting technology companies to create and execute go-to-market
         strategies that simultaneously educate the retail community and deliver cost-
         effective thought leadership and lead generation. For more background about our
         research or for additional information on the e-tailing group, inc. please contact
         Lauren Freedman via email at LF@e-tailing.com, by phone to 773-975-7280 or visit the
         e-tailing group website www.e-tailing.com.




         ABOUT POWERREVIEWS

         PowerReviews is the leading provider of social commerce software-as-a-service
         solutions to global retailers and brands. The company's unique structured data
         approach to collecting, organizing, and analyzing user-generated content
         significantly boosts product sales and customer engagement. PowerReviews is live on
         over 5,000 websites - across 13 languages in 21 countries - including Staples,
         Drugstore.com, Room & Board, ESPN, Neutrogena, Quicksilver, and Jockey.




18	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

More Related Content

Similar to 2011 Social Shopping Study Finds Savvy Consumers Research Products Online

Participatory Democracy With New Age Interactive Media
Participatory Democracy With New Age Interactive MediaParticipatory Democracy With New Age Interactive Media
Participatory Democracy With New Age Interactive MediaKrishnamurthy Hegde
 
Social media and socio analysis - BETA
Social media and socio analysis - BETASocial media and socio analysis - BETA
Social media and socio analysis - BETADavid Patman
 
Future of internet socialrelations
Future of internet socialrelationsFuture of internet socialrelations
Future of internet socialrelationsGenaro Bardy
 
New(ish) media - and what's next?
New(ish) media - and what's next?New(ish) media - and what's next?
New(ish) media - and what's next?Phillip Smith
 
Web 2.0 And Business Attraction Canadian Cities Online Marketing Index
Web 2.0 And Business Attraction   Canadian Cities Online Marketing IndexWeb 2.0 And Business Attraction   Canadian Cities Online Marketing Index
Web 2.0 And Business Attraction Canadian Cities Online Marketing IndexE&B DATA
 
GlobalPulse_CrimsonHex_MethodsPaper2011
GlobalPulse_CrimsonHex_MethodsPaper2011GlobalPulse_CrimsonHex_MethodsPaper2011
GlobalPulse_CrimsonHex_MethodsPaper2011UN Global Pulse
 
Sa presentation 071411
Sa presentation 071411Sa presentation 071411
Sa presentation 071411Cara Rousseau
 
FEED: Digital Brand Experience Report 2009
FEED: Digital Brand Experience Report 2009FEED: Digital Brand Experience Report 2009
FEED: Digital Brand Experience Report 2009United Interactive™
 
customer behavior analysis for social media
customer behavior analysis for social mediacustomer behavior analysis for social media
customer behavior analysis for social mediaINFOGAIN PUBLICATION
 
Conceptualising and evaluating experiences with brands on Facebook
Conceptualising and evaluating experiences with brands on FacebookConceptualising and evaluating experiences with brands on Facebook
Conceptualising and evaluating experiences with brands on FacebookSteve Smith
 
Intro to Service_Brainpop_page 1concept map
Intro to Service_Brainpop_page 1concept mapIntro to Service_Brainpop_page 1concept map
Intro to Service_Brainpop_page 1concept mapbkind2animals
 
Mitt Romney's xrayed 2012 Presidential Campaign
Mitt Romney's xrayed 2012 Presidential CampaignMitt Romney's xrayed 2012 Presidential Campaign
Mitt Romney's xrayed 2012 Presidential CampaignAleix Cuberes i Diaz
 
Mitt Romney's xrayed 2012 campaign
Mitt Romney's xrayed 2012 campaignMitt Romney's xrayed 2012 campaign
Mitt Romney's xrayed 2012 campaigningenia_pro
 
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docx
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docxChapter 1 (4-5pages) Introduction From Assignment 01 include.docx
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docxtidwellveronique
 
Isabelle Scott - Dissertation
Isabelle Scott - DissertationIsabelle Scott - Dissertation
Isabelle Scott - DissertationIsabelle Scott
 
Social Media in Latin America
Social Media in Latin AmericaSocial Media in Latin America
Social Media in Latin Americaakmohr
 
Gary Wic Ok City C2 Er Powerpoint 5 29 12final
Gary Wic Ok City C2 Er Powerpoint 5 29 12finalGary Wic Ok City C2 Er Powerpoint 5 29 12final
Gary Wic Ok City C2 Er Powerpoint 5 29 12finalGary Crossley
 
The Launch of a New Product ALFA Smartwatch
The Launch of a New Product ALFA SmartwatchThe Launch of a New Product ALFA Smartwatch
The Launch of a New Product ALFA SmartwatchAntonio Conte
 
Synthesio luxury-brands-in-social-media
Synthesio luxury-brands-in-social-mediaSynthesio luxury-brands-in-social-media
Synthesio luxury-brands-in-social-mediaAndrei Kamarouski
 

Similar to 2011 Social Shopping Study Finds Savvy Consumers Research Products Online (20)

Participatory Democracy With New Age Interactive Media
Participatory Democracy With New Age Interactive MediaParticipatory Democracy With New Age Interactive Media
Participatory Democracy With New Age Interactive Media
 
Social media and socio analysis - BETA
Social media and socio analysis - BETASocial media and socio analysis - BETA
Social media and socio analysis - BETA
 
Future of internet socialrelations
Future of internet socialrelationsFuture of internet socialrelations
Future of internet socialrelations
 
New(ish) media - and what's next?
New(ish) media - and what's next?New(ish) media - and what's next?
New(ish) media - and what's next?
 
Web 2.0 And Business Attraction Canadian Cities Online Marketing Index
Web 2.0 And Business Attraction   Canadian Cities Online Marketing IndexWeb 2.0 And Business Attraction   Canadian Cities Online Marketing Index
Web 2.0 And Business Attraction Canadian Cities Online Marketing Index
 
GlobalPulse_CrimsonHex_MethodsPaper2011
GlobalPulse_CrimsonHex_MethodsPaper2011GlobalPulse_CrimsonHex_MethodsPaper2011
GlobalPulse_CrimsonHex_MethodsPaper2011
 
Sa presentation 071411
Sa presentation 071411Sa presentation 071411
Sa presentation 071411
 
Content strategy for library websites
Content strategy for library websitesContent strategy for library websites
Content strategy for library websites
 
FEED: Digital Brand Experience Report 2009
FEED: Digital Brand Experience Report 2009FEED: Digital Brand Experience Report 2009
FEED: Digital Brand Experience Report 2009
 
customer behavior analysis for social media
customer behavior analysis for social mediacustomer behavior analysis for social media
customer behavior analysis for social media
 
Conceptualising and evaluating experiences with brands on Facebook
Conceptualising and evaluating experiences with brands on FacebookConceptualising and evaluating experiences with brands on Facebook
Conceptualising and evaluating experiences with brands on Facebook
 
Intro to Service_Brainpop_page 1concept map
Intro to Service_Brainpop_page 1concept mapIntro to Service_Brainpop_page 1concept map
Intro to Service_Brainpop_page 1concept map
 
Mitt Romney's xrayed 2012 Presidential Campaign
Mitt Romney's xrayed 2012 Presidential CampaignMitt Romney's xrayed 2012 Presidential Campaign
Mitt Romney's xrayed 2012 Presidential Campaign
 
Mitt Romney's xrayed 2012 campaign
Mitt Romney's xrayed 2012 campaignMitt Romney's xrayed 2012 campaign
Mitt Romney's xrayed 2012 campaign
 
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docx
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docxChapter 1 (4-5pages) Introduction From Assignment 01 include.docx
Chapter 1 (4-5pages) Introduction From Assignment 01 include.docx
 
Isabelle Scott - Dissertation
Isabelle Scott - DissertationIsabelle Scott - Dissertation
Isabelle Scott - Dissertation
 
Social Media in Latin America
Social Media in Latin AmericaSocial Media in Latin America
Social Media in Latin America
 
Gary Wic Ok City C2 Er Powerpoint 5 29 12final
Gary Wic Ok City C2 Er Powerpoint 5 29 12finalGary Wic Ok City C2 Er Powerpoint 5 29 12final
Gary Wic Ok City C2 Er Powerpoint 5 29 12final
 
The Launch of a New Product ALFA Smartwatch
The Launch of a New Product ALFA SmartwatchThe Launch of a New Product ALFA Smartwatch
The Launch of a New Product ALFA Smartwatch
 
Synthesio luxury-brands-in-social-media
Synthesio luxury-brands-in-social-mediaSynthesio luxury-brands-in-social-media
Synthesio luxury-brands-in-social-media
 

More from Retelur Marketing

Estudio E-commerce España. IAB spain junio 2013
Estudio E-commerce España. IAB spain junio 2013Estudio E-commerce España. IAB spain junio 2013
Estudio E-commerce España. IAB spain junio 2013Retelur Marketing
 
Infoadex cierre 2012 9,9% tpubli -15,8% atl -5% btl
Infoadex cierre 2012  9,9% tpubli -15,8% atl -5% btlInfoadex cierre 2012  9,9% tpubli -15,8% atl -5% btl
Infoadex cierre 2012 9,9% tpubli -15,8% atl -5% btlRetelur Marketing
 
Iab Spain: Estudio sobre inversion publicitaria medios digitales. Total 2012
Iab Spain: Estudio  sobre inversion publicitaria medios digitales. Total 2012Iab Spain: Estudio  sobre inversion publicitaria medios digitales. Total 2012
Iab Spain: Estudio sobre inversion publicitaria medios digitales. Total 2012Retelur Marketing
 
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...Retelur Marketing
 
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados 27mar13
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados  27mar13Bankinter lanza un nuevo club de benefits para sus 4 200 empleados  27mar13
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados 27mar13Retelur Marketing
 
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12Retelur Marketing
 
Informe CMT Comercio electrónico España 2T 2012 Abril-Junio
Informe CMT Comercio electrónico España 2T 2012 Abril-JunioInforme CMT Comercio electrónico España 2T 2012 Abril-Junio
Informe CMT Comercio electrónico España 2T 2012 Abril-JunioRetelur Marketing
 
Informe CMT Comercio electrónico España 1T 2012 Enero-Marzo
Informe CMT Comercio electrónico España 1T 2012 Enero-MarzoInforme CMT Comercio electrónico España 1T 2012 Enero-Marzo
Informe CMT Comercio electrónico España 1T 2012 Enero-MarzoRetelur Marketing
 
The social media report 2012 by nielsen 26dec12
The social media report 2012 by nielsen 26dec12The social media report 2012 by nielsen 26dec12
The social media report 2012 by nielsen 26dec12Retelur Marketing
 
Zanox se instala en España. Sep2003. Revista Estrategias.
Zanox se instala en España. Sep2003. Revista Estrategias. Zanox se instala en España. Sep2003. Revista Estrategias.
Zanox se instala en España. Sep2003. Revista Estrategias. Retelur Marketing
 
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...Retelur Marketing
 
Infografia redes afiliación - IAB Spain NOV12
Infografia redes afiliación - IAB Spain NOV12Infografia redes afiliación - IAB Spain NOV12
Infografia redes afiliación - IAB Spain NOV12Retelur Marketing
 
Informe contenidos digitales España ONTSI edicion2012 3dic12
Informe contenidos digitales España ONTSI edicion2012 3dic12Informe contenidos digitales España ONTSI edicion2012 3dic12
Informe contenidos digitales España ONTSI edicion2012 3dic12Retelur Marketing
 
Estudio Consumo Navidad 2012 (Deloitte) - NOV12
Estudio Consumo Navidad 2012 (Deloitte) - NOV12Estudio Consumo Navidad 2012 (Deloitte) - NOV12
Estudio Consumo Navidad 2012 (Deloitte) - NOV12Retelur Marketing
 
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12Retelur Marketing
 
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)Retelur Marketing
 
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...Retelur Marketing
 
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...Retelur Marketing
 
Content creators vs content curators similarities and differences in between....
Content creators vs content curators similarities and differences in between....Content creators vs content curators similarities and differences in between....
Content creators vs content curators similarities and differences in between....Retelur Marketing
 
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...Retelur Marketing
 

More from Retelur Marketing (20)

Estudio E-commerce España. IAB spain junio 2013
Estudio E-commerce España. IAB spain junio 2013Estudio E-commerce España. IAB spain junio 2013
Estudio E-commerce España. IAB spain junio 2013
 
Infoadex cierre 2012 9,9% tpubli -15,8% atl -5% btl
Infoadex cierre 2012  9,9% tpubli -15,8% atl -5% btlInfoadex cierre 2012  9,9% tpubli -15,8% atl -5% btl
Infoadex cierre 2012 9,9% tpubli -15,8% atl -5% btl
 
Iab Spain: Estudio sobre inversion publicitaria medios digitales. Total 2012
Iab Spain: Estudio  sobre inversion publicitaria medios digitales. Total 2012Iab Spain: Estudio  sobre inversion publicitaria medios digitales. Total 2012
Iab Spain: Estudio sobre inversion publicitaria medios digitales. Total 2012
 
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...
Inspiring benefits genera 850.000€ de ventas en sus tiendas online de abril a...
 
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados 27mar13
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados  27mar13Bankinter lanza un nuevo club de benefits para sus 4 200 empleados  27mar13
Bankinter lanza un nuevo club de benefits para sus 4 200 empleados 27mar13
 
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12
Inspiring benefits amplía capital con una inyección de 400.000 euros 3jul12
 
Informe CMT Comercio electrónico España 2T 2012 Abril-Junio
Informe CMT Comercio electrónico España 2T 2012 Abril-JunioInforme CMT Comercio electrónico España 2T 2012 Abril-Junio
Informe CMT Comercio electrónico España 2T 2012 Abril-Junio
 
Informe CMT Comercio electrónico España 1T 2012 Enero-Marzo
Informe CMT Comercio electrónico España 1T 2012 Enero-MarzoInforme CMT Comercio electrónico España 1T 2012 Enero-Marzo
Informe CMT Comercio electrónico España 1T 2012 Enero-Marzo
 
The social media report 2012 by nielsen 26dec12
The social media report 2012 by nielsen 26dec12The social media report 2012 by nielsen 26dec12
The social media report 2012 by nielsen 26dec12
 
Zanox se instala en España. Sep2003. Revista Estrategias.
Zanox se instala en España. Sep2003. Revista Estrategias. Zanox se instala en España. Sep2003. Revista Estrategias.
Zanox se instala en España. Sep2003. Revista Estrategias.
 
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...
Los Clubs de ahorro online permiten ahorrar hasta 400 euros en las compras na...
 
Infografia redes afiliación - IAB Spain NOV12
Infografia redes afiliación - IAB Spain NOV12Infografia redes afiliación - IAB Spain NOV12
Infografia redes afiliación - IAB Spain NOV12
 
Informe contenidos digitales España ONTSI edicion2012 3dic12
Informe contenidos digitales España ONTSI edicion2012 3dic12Informe contenidos digitales España ONTSI edicion2012 3dic12
Informe contenidos digitales España ONTSI edicion2012 3dic12
 
Estudio Consumo Navidad 2012 (Deloitte) - NOV12
Estudio Consumo Navidad 2012 (Deloitte) - NOV12Estudio Consumo Navidad 2012 (Deloitte) - NOV12
Estudio Consumo Navidad 2012 (Deloitte) - NOV12
 
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12
Looking at the Numbers: Digital in ten minutes (ComScore) - NOV12
 
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)
Estudio sobre el comercio electrónico B2C España 2011 - OCT12 (ONTSI)
 
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...
Estudio sobre inversión publicitaria en medios digitales Primer semestre 2012...
 
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...
IV Estudio Anual IAB Spain Mobile Marketing: Informe de Resultados Septiembre...
 
Content creators vs content curators similarities and differences in between....
Content creators vs content curators similarities and differences in between....Content creators vs content curators similarities and differences in between....
Content creators vs content curators similarities and differences in between....
 
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...
Universia e inspiring benefits lanzan el mayor portal de comercio electrónico...
 

Recently uploaded

8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCRashishs7044
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607dollysharma2066
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Riya Pathan
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Doge Mining Website
 
Church Building Grants To Assist With New Construction, Additions, And Restor...
Church Building Grants To Assist With New Construction, Additions, And Restor...Church Building Grants To Assist With New Construction, Additions, And Restor...
Church Building Grants To Assist With New Construction, Additions, And Restor...Americas Got Grants
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
Chapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditChapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditNhtLNguyn9
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesKeppelCorporation
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfDarshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfShashank Mehta
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menzaictsugar
 
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFGuide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFChandresh Chudasama
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaoncallgirls2057
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy Verified Accounts
 

Recently uploaded (20)

8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
 
Church Building Grants To Assist With New Construction, Additions, And Restor...
Church Building Grants To Assist With New Construction, Additions, And Restor...Church Building Grants To Assist With New Construction, Additions, And Restor...
Church Building Grants To Assist With New Construction, Additions, And Restor...
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
Chapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditChapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal audit
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfDarshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdf
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
 
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFGuide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail Accounts
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 

2011 Social Shopping Study Finds Savvy Consumers Research Products Online

  • 1. The 2011 Social Shopping Study Brief I: Consumer Research Dynamics, Mobile and User-Generated Content June 2011
  • 2. Table of Contents I. Thoughts from the Author II. Survey Methodology and Demographics III. Product Research IV. User-Generated Content V. Stay Tuned - Brief II: The Facebook Factor VI. About the Companies 2                                                                                                                                                                                
  • 3. I. Thoughts from the Author Today’s shopper is savvy with almost black belt certification in researching product and pricing. There is a method to their madness where they are willing to make a significant investment in time when the reward reaped is finding the right product at the right price. For the past five years the e-tailing group, with sponsorship from PowerReviews, has investigated the role of customer reviews, trending that behavior and social shopping to keep pace with consumer activity. 2011 has been a volatile year for ecommerce with a multitude of dynamics in play from social media and community to mobile. Aware of these changes, in this year’s survey we explored consumer utilization of social media across a range of merchants and channels to understand perception, interest, and propensity to buy based on that engagement. Secondly we sought to comprehend the consumer’s level of interest in community, at retail and across the web. We wanted to know the implications for researching and shopping behavior, particularly as it relates to Facebook, which is the beneficiary of much of the community attention. That portion of the study and our findings will be shared in Brief II. Consumers told us loudly and clearly in our April 2011 Social Shopping Survey that they must receive rewards, via price or points, in order to expend time. Despite any perceived loyalty, research fueled most shopping. In fact, the groundwork for this two-part brief was based on the web’s capacity to provide complete details better than almost any channel. Shoppers’ ability to access information at home, in the office or via mobile puts even greater pressure on the retailer to enable that process by providing comprehensive information. Consumers are gravitating to powerhouses like Amazon, who many see as the defacto retailer for comparison shopping, finding credibility in these destinations through problem solving prior to purchasing. As in our prior joint surveys, there appears to be several personality types that dominate the 2011 findings, ranging from heavyweights that invest significant time researching to those who might only give limited time and lip-service to such behavior. We see similar social patterns playing out on the social front where some consumers are heavily invested while others are more voyeuristic toward that approach. Within each brief and research component we will note the respondents’ introductory premise. From there, food-for-thought questions that we contemplated prior to deploying the study will be served up, followed by supporting questions for in-depth insights. The Facebook Factor and a discussion surrounding community-related behavior will be uncovered in Brief II and round out the ever-changing social landscape. Think Social! Lauren Freedman President, the e-tailing group 3                                                                                                                                                                                
  • 4. II. Survey Methodology & Demographics 1,004 adults with the following demographic profile completed an online survey: In what age range do you fall? Which of the following best represents your combined annual 31% household income from all 24% 26% sources before taxes? 17% Under $25,000 5% $25,000-$35,000 6% 1% 1% $35,001-$50,000 13% $50,001-$75,000 25% 18-24 25-34 35-44 45-54 54-65 65 or $75,001-$100,000 20% older More than $100,000 27% Prefer not to respond 4%   What is the highest level of education that you have completed to-date? What is your High school graduate 8% gender? 51 Some college, but no 22% % degree 49 College graduate 37% % Some graduate school 5% Post graduate degree 27% Male Female   Respondents shopped online four times or more during the past year, spending at least $250 online annually for products and services. How often did you shop online for How much do you spend on products products during the past year? and services online annually? 42% $250-$499 27% 30% 20% $500-$749 24% 8% $750-$999 16% $1000-$1499 16% Weekly Several Once a 4 times times a month per year $1,500 or more 17% month   4                                                                                                                                                                                
  • 5. III. Product Research Introductory Premise “We would like to gain a better understanding of how you decide which product best suits your needs; what research tools and channels you find most helpful, regardless of where you ultimately buy the product (online, in-store, from a catalog), and regardless of finding the best price.” Food-for-Thought Questions To develop the research methodology, our two companies brainstormed today’s emerging dynamics of selling and those that are directly related to user-generated content. They included general usage, consumption patterns, and changes that have resulted based on the current merchant landscape including brand growth, channel access, and in particular, social and mobile influences.  Does user-generated content consumption continue to play a greater and evolving role in consumer behavior relative to researching and purchasing product?  Does search still dominate the consumer’s path to finding the right product?  As Amazon’s power and prowess progresses will consumers increasingly seek out their efficiency model making Amazon a ”one stop” destination for finding product and comparing prices?  Will comprehensive user-generated content result in greater consumer loyalty towards those merchants?  As broader access to user-generated content across social and mobile channels is seen, will it wield greater influence and expand locales for consumer consumption?  With direct-to-consumer growth among brands, what changing dynamics will be seen relative to user-generated content among passion brands such as Converse, Under Armor, Burt’s Bees, etc.? Top Line Findings: Product Researching • Consumers invest greater time researching but shoppers are on a mission to find the best price • Search engines serve as the shopping point-of-origin when researching product • Customer reviews continue to wield the greatest influence on buying behavior • Google Shopping features see strong early adoption • Mobile usage relative to shopping is mostly centered on competitive pricing 5                                                                                                                                                                                
  • 6. Time Spent Researching This year, unique to years past, we anticipated that time spent on the higher end of the spectrum had likely grown so we added new parameters in the 75%+ arena. Our hunch proved correct as one in two respondents spent 75% of their overall shopping time researching product as compared to just 21% in 2010. The fact that 15% of respondents spent 90% or more of their time means they must be receiving the kind of information that expedites decision-making with the web world playing a vital role. What percent of your overall shopping involves researching products online? 90% or more 15% 75-89% 35% 75% or more 21% 50-74% 29% 29% 30-49% 15% 24% 15-29% 13% 17% 8% 2011 1-14% 8% 2010 None 0% 1% Information-Intensive Online Research We especially wanted to focus on information-intensive products as we believe, given their higher retail price points, these products warrant such scrutiny. This is clearly another instance where consumer behavior is split and assumes a heavy/medium/light mentality. Novices and seasoned shoppers alike often have a lot to learn as they attempt to make smart decisions for new or replacement products they may have owned for long periods of time, contrary to impulse purchases conducted across other categories. 6                                                                                                                                                                                
  • 7. When shopping for an information-intensive product (computer, appliance, television, etc.) how much time do you typically spend online researching prior to completing the purchase? A few hours 22% 29% A day 7% 11% A few days 34% A week 12% 29% A few weeks 18% 23% A month 3% 4% 2011 2010 More than a month 4% 4% Product Research Orientation Each year we wonder if information seeking behavior will begin at different points of entry. Since more manufacturers than ever have gone direct to the consumer, our curiosity pushed us to explore where shoppers begin their search. Respondents confirmed that search engines are still the main starting point for research with retail close behind and manufacturers serving as a launch for most others. When researching branded products online prior to purchasing (e.g. HP computer, Panasonic TV, Nike shoes) which of the following most closely represents where you would begin that process? I start with a search engine and look for top search 44% results for products I desire I start with retailer sites that sell the product I’m 33% looking for I start with the manufacturer’s site 20% I reach out to my social network on Facebook for 2% recommendations I pose a question on Twitter 1% 7                                                                                                                                                                                
  • 8. The Role of Social Sites in Shopping Research We introduced the concept of research via social sites given their continued influence and time spent by consumers in these communities. I was not surprised that there appears to be a divide between community and commerce as just 29% of respondents take advantage of social sites for research. Beyond that finding, one in two people do not use social sites for research, distinctly choosing to contain their behavior to more traditional shopping tools. It will be interesting to monitor and trend this question to see if audiences who grow up with social sites rely more heavily on them for researching shopping needs. Overall, how often do you use social sites such as Facebook and Twitter for your shopping research to gather ideas? I always read and research on social sites to gather ideas 6% I often read and research on social sites to gather ideas 10% I sometimes read and research on social sites to gather ideas 13% I rarely read and research on social sites to gather ideas 22% I never read and research on social sites to gather ideas 49% Community and Social Influences on Buying Behavior Retailers, of course, are interested in where consumer research is being conducted but more importantly they need to know what tools and techniques impact buying behavior. Here, customer reviews come out strongly on top and their perseverance is a testament to the value consumers receive. Q/A, a newer tool, sees strong impact despite what we observe to be much more limited deployment across the web. In fact, our 4Q10 Mystery Shopping Study of 100 merchants (EG100) revealed that only 18% of sites make this feature available. Community forums had impact for one in four individuals where enthusiast categories likely pushed this tactic to a higher level. Video is an up and comer that I suspect should grow in impact in the coming year and may be the most exciting tactic to watch. Facebook is having little influence on buying as is confirmed here and in subsequent discussion that will dominate our second brief. 8                                                                                                                                                                                
  • 9. Please indicate the impact of the following Community and Social tools on your buying behavior. (Top-2: significant/good impact) Customer reviews (user-generated product reviews) 59% Q&A (customers asking and answering questions about 42% products on-site) Community forums (for conversations among 26% customers or between you and other customers) Videos (viewing user-generated videos or creating your 15% own) Facebook fan page (company fan page on Facebook) 13% Facebook newsfeed (friends talking about products) 13% Mobile (iPhone application, text alerts) 9% Twitter (monitor, respond to, and post tweets) 9% Google Utilization Beyond social networks, Google has expanded their reach further into shopping, warranting a question that explores consumer utilization of the search engine. We were careful to separate out general Google behavior, which is commonplace for all of us when we view shopping results. Given Google’s influence, particularly in searches for specific products, SKUs, and almost anything shopping, it was not surprising to see that 57% of respondents had compared prices while 58% had read product reviews there and just over half (51%) had used Google Shopping to find local businesses. This is noteworthy as greater emphasis is being paid to the local market based upon the competitive nature seen among Groupon or other local engines. 9                                                                                                                                                                                
  • 10. Over the past year, Google has added more information about local retailers and their respective inventory. How would you characterize your current Google Shopping utilization? (Top-2: all of the time/very often) I use Google Shopping features to compare prices 31% I use Google Shopping to read product reviews 29% I use Google Shopping features to find local businesses 22% carrying the products I'm searching for Mobile Phone Behavior Prior to Purchasing No investigative study would be complete this year without understanding mobile usage, one of today’s true game changers for both research and shopping. One-third of people have used their mobile phones four or more times to research pricing, promotions, store information, and product reviews prior to visiting a physical store. It is here that the notion of rewards also becomes apparent with price dominating the top answers. 10                                                                                                                                                                                
  • 11. We would like to gauge recent usage of your mobile phone for product researching. Thinking about the product purchases you made within the last 3 months, please tell us about how often you’ve done each of thefollowing activities using your mobile phone. Checked for sales and specials 33% Looked up store information (hours, location, map, etc.) 33% Checked for product ratings and reviews 32% Looked for competitive pricing at Amazon 31% Browsed an online store for product of interest 31% Looked for competitive prices on products at retailers online other than Amazon 29% Looked for competitive prices on comparison shopping engines (Price Grabber, Shopping.com) 27% Checked a store’s inventory for a product of interest 26% Looked up prices on the retailer’s mobile site where I was intending to buy 24% 11                                                                                                                                                                                
  • 12. Top Uses of Mobile Phones While In Physical Stores We now turn to usage within the retail environment. Customers are no longer captive but still on the hunt for deals. This may mean access to promotional coupons for immediate redemption or price shopping from an array of competitors. Information seeking is seen in both ratings and reviews and potentially the scanning of bar codes. The options are plentiful, as one in three shoppers has already taken advantage of their mobile phone within the store confines. How likely are you to do each of the following using your mobile phone when researching a product while in a physical store? (Top-3) Access promotional coupons for redemption at the store 38% Look for competitive pricing at Amazon 36% Look for competitive prices on products at retailers online other than Amazon 36% Check for product ratings and reviews 35% Scan bar codes and compare prices to other retailers 35% Look on a retailer’s website for product beyond what they carry in the store 35% Look up prices on the retailer’s mobile site where I am intending to buy 33% Scan bar codes to learn more about a specific product (i.e. product information, product images, video, customer reviews 33% etc.) Look for competitive prices on comparison shopping engines (Price Grabber, Shopping.com) 32% Scan QR codes and compare prices to other retailers 31% Scan QR codes to learn more about a specific product (i.e. product information, product images, video, customer reviews 31% etc.) Check in to take advantage of apps such as Shopkick or Foursquare that allow you to receive points, rewards or badges 28% for visiting local retail stores Make a purchase on your phone at another retailer 25% 12                                                                                                                                                                                
  • 13. IV. User-Generated Content Introductory Premise “Shoppers rely more and more on user-generated or peer-based content including product reviews and ratings. We wish to understand more about how and where you use this content.” Food-for-Thought Questions The balance of this brief is centered on what and where user-generated content may be accessed. Additionally we sought to understand respondents’ willingness to be participants or bystanders relative to user-generated content.  Would user-generated content continue to play an important role when conducting product research online?  Is the consumer research dynamic still dominated by search to find the right product quickly?  Knowing that efficiency and timesaving are core to the online value proposition, will Amazon and other dominant retailers become important “one-stop” destinations for finding product and comparing prices? Top Line Findings: User-Generated Content • Amazon is the defacto site for product reviews and price checking • Ratings and reviews remain the most critical product information desired by shoppers • Behavioral differences are not seen relative to user-generated content among manufacturers and retailers Review Access by Site Type Reviews and Ratings are most frequently used on Amazon where they far outpace both retail websites at 45% and search engines at 41%. Both retailers and manufacturers should take notice of this finding as the concentration of usage is changing consumer shopping dynamics. 13                                                                                                                                                                                
  • 14. Given that product reviews and ratings are playing a bigger role in researching and purchasing products online, please tell us how often you use reviews and ratings at each of the following locations. (Top-2: all the time/very often) Amazon.com 58% Retailers’ websites (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom) 45% Search Engines (e.g. Google, Bing, Yahoo) 41% Manufacturers’ websites (e.g. HP, Ralph Lauren, Clinique, Nike, Lego) 32% Review Sites (e.g. Buzzillions, Epinions, CNet) 25% Facebook 11% Twitter 7% User-generated Content Credibility User-generated content is considered the most credible on aggregators including Amazon, review sites, and search engines. They are perceived as being more unbiased than both retailers and manufacturers. I believe volume of reviews contributes to this credibility, as does the efficiency of perusing those reviews. Please tell us how credible (or trustworthy) you feel the user-generated content (e.g. customer reviews and ratings, recommendations, etc.) is from each of the following locations. (Top-2: extremely/very credible) Amazon.com 63% Review Sites (e.g. Buzzillions, Epinions, CNet) 51% Search Engines (e.g. Google, Bing, Yahoo) 50% Retailers (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom) 47% Manufacturers (e.g. HP, Ralph Lauren, Clinique, Nike, Lego) 38% Facebook 21% Twitter 15% Future User-Generated Content Access Shoppers foresee little change in their behavior relative to user-generated content by location. This is interesting as it leaves little room for changing dynamics to have their desired impact. This is one of the questions we will ideally circle back to in next year’s survey. 14                                                                                                                                                                                
  • 15. Given the amount of user-generated content (e.g. Review sites, Facebook, Twitter) available to you for researching and shopping online, how do you foresee your shopping behavior changing in the coming year relative to the following locations? Retailers (e.g. Wal-Mart, Best Buy, Home Depot, Nordstrom) 85% Manufacturers (e.g. HP, Ralph Lauren, Clinique, Nike, Lego) 84% Search Engines (e.g. Google, Bing, Yahoo) 79% Review Sites (e.g. Buzzillions, Epinions, CNet) 76% Amazon.com 73% Facebook 72% Twitter 71% User Generated Content Availability Product reviews were ranked the most critical user-generated content for researching on a retailer’s site with Q/A following closely behind. It is also interesting to note that liking product, a relative newcomer to retail sites, has already surpassed both product likes and community forums. In my mind this emanates from its ease of use and one’s ability to connect with others, with only minimal commitment. Outside of the standard product information (images, descriptions, etc.) how important is finding the following user-generated content on a retailer’s site (e.g. Target, Best Buy, Pottery Barn) when researching online? (Top-2: critical/very important) Customer Product Reviews and Ratings (peer-generated product reviews and related content) 48% Q&A (customers asking and answering questions about products onsite) 31% Product “Likes” (# people who have “Liked” a particular product) 23% Product “Likes” by People You Know (people you know who also “Like” a product you are considering buying) 22% Community Forums (for conversations among customers or between you and other customers) 18% 15                                                                                                                                                                                
  • 16. User-Generated Content Participation Rating a product purchased sees the greatest participation among social activities (70%) though liking and sharing exceed 40% penetration. This follows closely in line with the prior question though it appears to have legs with 42% of respondents having shared with others regarding product. Elevated interest in liking is logical given the 75% penetration among EG100 sites. The real question is, can “liking” achieve the same status as product ratings have today? Certainly there is a distinct possibility as the tool has had limited time to resonate with shoppers and its presence on 36% of the EG100 sites is not nearly universal across retail sites. When thinking about products or brands, how often do you participate in each of the following activities? (Top-3: all the time/very often/sometimes) Rate a product purchased 70% “Like” a retailer (e.g. Best Buy, Target, Crate & 49% Barrel) “Like” a manufacturer (e.g. Apple, Lego, Under 49% Armour) “Share” with others product you have browsed on a 42% website “Share” with others a product you have purchased 43% from a website 16                                                                                                                                                                                
  • 17. V. Brief II – The Facebook Factor Consumers have once again embraced user-generation content. Its impact can be seen excessively across many devices and touch points. We look forward to exploring The Facebook Factor in Brief II along with other community elements that contribute to online social dynamics. Stay tuned. 17                                                                                                                                                                                
  • 18. VI. About the Companies ABOUT THE E-TAILING GROUP The e-tailing group is a niche e-commerce consultancy that helps merchants deliver the right customer experience on their websites and across all of their channels while adeptly assisting technology companies to create and execute go-to-market strategies that simultaneously educate the retail community and deliver cost- effective thought leadership and lead generation. For more background about our research or for additional information on the e-tailing group, inc. please contact Lauren Freedman via email at LF@e-tailing.com, by phone to 773-975-7280 or visit the e-tailing group website www.e-tailing.com. ABOUT POWERREVIEWS PowerReviews is the leading provider of social commerce software-as-a-service solutions to global retailers and brands. The company's unique structured data approach to collecting, organizing, and analyzing user-generated content significantly boosts product sales and customer engagement. PowerReviews is live on over 5,000 websites - across 13 languages in 21 countries - including Staples, Drugstore.com, Room & Board, ESPN, Neutrogena, Quicksilver, and Jockey. 18