web site marketingThursday, March 4, 2010
Search Engines: The Shopper's Aid
According to The Compete Online Shopper Intelligence study, over 80 million consumers use shopping comparison sites every month. Sites like Cnet, Bizrate, and Yahoo! Shopping each attract over 20 million shoppers. Only 6% of consumers surveyed as part of the study indicated that they conducted no research prior to their last online purchase.
From instant price comparisons, to first hand consumer reviews, to video demonstrations, shoppers are taking advantage of this wealth of information. Consumers depend on search engines more than other resources to help them shop online. 3 out of 5 shoppers said that they always or often use search engines when shopping online. More consumers use search engines than they do coupon sites, retailer emails, consumer reviews, or shopping comparison sites.
| Frequency of Using Tools Shopping Online (% of Respondents) | |
| Online Tools | % of Respondents Using Always or Often |
| Search engines | 61% |
| Coupon sites | 35 |
| Retailer emails | 29 |
| Online product/retail reviews | 24 |
| Shopper comparison sites | 22 |
| Shopping portals | 19 |
| Social networking sites | 10 |
| Source: Compete.com, February 2010 | |
The study finds that the differences in consumer behavior across various industries have vast implications for retailers within each sector. Sales assistants, both in store and on web chat, are utilized by online shoe shoppers more than any other shoppers. Online kitchenware & household appliance purchasers are among the most reliant on in store product displays.
In the apparel industry, only 1 out of 10 apparel shoppers stated that they used a search engine for their last online purchase. Instead, they rely on retailer emails and catalogs to learn about products. That means consumers are more likely to purchase from apparel retailers they have purchased from in the past and are less likely to discover new retailers.
| Information Sources Used Before Purchasing Apparel | |
| Information Source | % Apparel Purchasers |
| Email from retailer | 38% |
| Retail websites | 26 |
| Retailer mailing | 23 |
| Online advertisement | 18 |
| Search engines | 12 |
| Source: Compete.com, February 2010 | |
Electronic shoppers, on the other hand, actively seek out new products and manufactures, says the report. Search engines, professional reviews, social generated reviews, and recommendations from family and friends were among the top 5 resources used. Electronic manufactures can reach and influence these consumers more easily though a variety of media.
| Information Sources Used Before Purchasing Electronics | |
| Information Source | % of Electronic Purchasers |
| Retail websites | 59% |
| Search engines | 45 |
| Online professional reviews | 29 |
| Consumer online reviews | 21 |
| Friends, family, colleagues | 14 |
| Source: Compete.com, February 2010 | |
It is essential, says the report, for retailers to understand how consumers in their space shop online, in order to effectively retain and acquire customers. Retailers should understand their particular customer niche and develop strategies unique to them, concludes the report.
And, in a correlative study regarding information sources, by Opinion Research Corporation and sponsored by ARAnet, young and highly educated consumers say online information sources influence their buying decisions at a markedly higher rate than the rest of the population. Personal advice from friends or family members was by far the most influential source, followed by TV broadcasts and search engines.
Scott Severson, president of ARAnet, says "The eyes of young people 18 to 34... (as well as)... highly educated Americans are looking online to search engines, online articles, online ads, email offers and social media to a degree that is head and shoulders above the average citizen."
According to the study, consumers in the 25-to-34 age range expressed strong preference for:
The following data summary shows the percentage of respondents choosing a 4 or 5 out of 5 - where 1 is NOT influential at all, and 5 is VERY influential in buying decisions, and the mean summary rating points:
| Influence In Buying Decisions | ||
| Influence | % Very Influenced (4 or 5 out of 5) | Average of Rating Points |
| Personal advice from friends or family members | 59% | 3.6 out of 5 |
| TV news or other broadcasts | 40% | 3.1 |
| Search engines such as Google, Bing, Yahoo, or Ask.com | 39% | 3.0 |
| Ads seen on TV | 36% | 3.0 |
| Articles seen in newspapers or magazines | 33% | 3.0 |
| Ads seen in newspapers or magazines | 31% | 2.9 |
| Articles seen online | 28% | 2.8 |
| Radio news or other broadcasts | 25% | 2.7 |
| Direct mail | 24% | 2.7 |
| Ads heard on the radio | 20% | 2.6 |
| Emails received from retailers or manufacturers | 20% | 2.5 |
|
Ads seen online | 19% | 2.5 |
| Messages or posts on social media such as Facebook, Twitter, LinkedIn, or MySpace | 18% | 2.3 |
| Billboards | 15% | 2.3 |
| Source: ARAnet, February 2010 | ||
For people making $75,000 or more, the report says, search engines are preferred by 49% vs. 39% for all respondents, a signal that high-income consumers are also following the trend to online sources. This supports the industry trend of a higher percentage of marketing budgets flowing into online and digital tactics.
Severson concludes that "Search engine optimization and backlinks from advertising and public relations efforts are providing information in the places where high-value consumers are influenced about buying decisions."
We use the term research in the broadest possible sense. We do not perform an audit, nor do we analyze the data for accuracy or reliability. Our intention is to inform you of the existence of research materials and so we present reports as they are presented to us. The only requirements we impose are that they are potentially useful and relevant to our readers and that they pass the rudimentary test of relying on acceptable industry standards. We explicitly do not take responsibility for the findings. Please be aware of this and check the source for yourself if you intend to rely on any of the data we present.
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