2-Jul-99

New Consumer Research On E-Commerce Reveals Four Types Of Online Shoppers

The Consumer Electronics Manufacturers Association (CEMA) has announced new survey results that reveal online shoppers fall into four different categories. Conducted via e-mail with a nationally representative sample of 2,725 online shoppers, Online Shopping: Impacts on Consumer Technology also shows that shoppers primarily use the Internet for convenience and as a shopping research tool. The research results were unveiled at CEMA's conference, Retailing & the Internet - A One-Day Investment with Net Payoffs, held recently in Dallas, Texas. ""Overall, we're seeing convenience, and then price, driving e-commerce. However consumers see one of the biggest benefits for the Internet is as a shopping research tool,"" said Todd Thibodeaux, Vice President of Market Research and Senior Economist for CEMA. ""In our survey, 59 percent of online shoppers think the Internet makes them more educated shoppers. Forty percent believe that online shopping is fun, and 61 percent shop and browse as they might in a brick-and-mortar mall, even when don't have anything specific to buy. More important to the future of e-commerce, 29 percent of online shoppers expect to double their online purchases within the next year."" The survey groups online shoppers into four categories: Money Savers, Smarter Shoppers, Selection Seekers and Convenience Lovers. The largest group with 65 percent of all online shoppers falling into this category, Convenience Lovers, is more likely to be Baby Boomers and part of a higher income household. They also are more likely to make impulse purchases and use both online and traditional retailers for shopping and purchases. The highest percentage of females falls into this category as well. Web sites that might appeal to this group would include www.1800flowers.com, www.etrade.com or www.911gifts.com. The other three groups split the remaining 35 percent of online shoppers fairly equally. Money Savers view the Internet as a place to buy, and buy cheap. Overall a Money Saver is more likely to be a Gen-Xer, male and be in a higher income household. The Money Saver also is more likely to shop at retail and then buy online. This group is the most likely to double their online expenditures during the next year. Web sites that might appeal to Money Savers would include www.eBay.com, www.priceline.com or www.ubid.com. Smarter Shoppers, in general, are likely to be Baby Boomers and have a middle income household. They view the Internet as a research tool. They want savings, selection and convenience but are willing to make trade-offs. They are more likely to have planned online purchases rather than impulse buys, to shop online and then buy at a traditional retailer, and to browse the Internet when shopping online rather than just go directly to a site to buy. Web sites that might appeal to Smarter Shoppers would include www.ConsumerReports.com, www.crutchfiled.com or www.brainplay.com. Selection Shoppers fall into lower income households and have less traditional retail selection where they live. This group is more likely to go directly to the Web sites they want to shop, rather than browse the Internet. Web sites that might appeal to Selection Shoppers would include www.walmart.com or www.amazon.com.