New CEA Research Defines Consumer Motivations For Online Shopping

Survey Identifies Five Distinct Segments Of Shoppers - Convenience And Price Remain Biggest Factors In Driving Consumers Online

19-Dec-00

The results of a new survey by the market research department of the Consumer Electronics Association (CEA) identify five distinct categories of online shoppers, and also finds that, regardless of category, convenience and price are the major factors that drive consumers to shop online. When compared to the results of a similar survey conducted last year, the importance of price as a driving factor for online shoppers has increased, while the importance of convenience has decreased, the ""Online Shopping: Impact On Consumer Technologies"" survey found. The five categories of shoppers were identified as: Convenience Lovers (52 percent of online shoppers), Focused Shoppers (16 percent), Money Savers (15 percent), Selection Seekers (9 percent) and Smarter Shoppers (6 percent).Convenience Lovers are by far the largest segment of online shoppers, comprising more than half of the total. The main characteristic of this group is the value they place on the time saved by shopping online. Convenience Lovers tend to be middle-aged, higher-income women. They are the group least likely to become better consumers because of the Internet. Rather, they simply want to save valuable time, and are not as concerned with gaining knowledge or confidence.Focused Shoppers are the second largest group of online shoppers. Their defining characteristic is an appreciation of the ability to find exactly what they want when shopping online. They are the most likely to shop online only for a predetermined purchase. Focused Shoppers tend to be middle-aged, higher-income men who utilize the Internet to satisfy a specific goal through online shopping, rather than to browse for a variety of products.Money Savers believe that by shopping on the Internet, they will be able to find better prices. The Money Saver group is made up of more men and Generation-X shoppers than other segments. Money Savers consider online shopping to be fun, and are willing to spend extra time to find the best deals.Selection Seekers are drawn to online shopping because of the wide variety of products and services available. The Selection Seekers group is generally comprised of lower income consumers. These individuals tend to browse more than other types of online shoppers. For Selection Seekers, the Internet provides an avenue for learning about the variety of different products available and helps to ensure that they can get the exact product they want, as they do not necessarily have extra money to spend on products that don't meet their needs.For Smarter Shoppers, information is the key. Shopping online appeals to this group because the Internet provides valuable information and research opportunities before making a purchase. They are the group most likely to use the Internet solely for research, opting to utilize a traditional brick-and-mortar retailer to make an actual purchase. Smarter Shoppers are comprised of more seniors than any other group, and they are the most likely to believe that the Internet makes them more educated and confident shoppers.""We have seen an increase in the importance of price in driving e-commerce transactions,"" said Todd Thibodeaux, CEA Vice President of Market Research. ""However, we cannot overlook the fact that a majority of those surveyed believe that the Internet has made them a more educated shopper. It is the opportunity for research and variety afforded by the Internet that will further extend its role as a retail channel. More than half of the respondents indicated that they expect their level of online shopping to increase in the next year.""An opportunity for expanding the amount of shopping done online lies in wireless products. Thirty-eight percent of online shoppers expressed an interest in using a wireless device (such as a Palm device or wireless phone) to shop and/or buy online. And, despite the considerable amount of publicity that has been given to consumers' fears and the potential risks of buying online, most online shoppers (78 percent) are confident that online retailers have not compromised the security of their personal information.The ""Online Shopping II: Impacts on Consumer Technologies"" survey was designed and formulated by CEA Market Research and fielded during October 2000 to a representative sample of 2,718 online households. The complete study is available free to CEA member companies and the media. Non-members may purchase the study for $495 through www.eBrain.org.

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