Consumers Do Homework Online


By George Anderson
It’s not news that consumers often research products and services before going into a store to make a purchase. What may surprise some is the number of people who are actually
doing it.
According to a survey of over 7,300 consumers by BIGresearch, 75 percent of shoppers regularly or occasionally go online to do their homework about a product before going to
a store to buy it.
Joe Pilotta, PhD, BIGresearch, said in a released statement. “Most retailers have focused on their in-store experience but for many consumers online research is replacing the
store as a way of gathering information on products and pricing before purchasing at the store level. The new consumer shopping model fits the needs of today’s shopper who is
more knowledgeable and wants to have the option of purchasing goods and services where they want, when they want.”
BIGresearch found the products and services consumers research most often varies by demographic factors. For example: the product category researched most by consumers making
less than $15,000 a year is food. Those earning in excess of $100,000 research financial services most often.
The most often researched category by women online is travel. For men, it’s electronics.
Moderator’s Comment: What multi-channel retailers do the best job of integrating their online and in-store environments? What is your to-do list or Best
Practices for retailers looking to most effectively merge the virtual and actual shopping worlds? –
George Anderson – Moderator
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9 Comments on "Consumers Do Homework Online"
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I’m with Karen – the electronic stores. You can compare prices and find exactly how many of the items are left in their inventory and if they are available.
I shop for travel the most online. I can get a site that shows me the lowest priced airfares, then go directly to the airline site and get fares even cheaper. The same with hotels.
Soon I hope to see medical procedures with prices posted online by various Priceline type companies. Need dental cleaning and exam? Find the best price online. Need a hip replacement? Let your insurance company provide incentives, such as cash rebates, if you go to the hospital with the lowest price.
The “user review” part of online browsing and product research is something that I think deserves more attention as a best practice. I often read the reviews on sites like Amazon and ePinions, even if I have no plans to purchase online. Although I ask myself why I place credence in the opinions of people I don’t know, these reviews influence my decisions. (A crock-pot that chips easily–who needs it? A PDA that’s easy to use–why not?)
Some online enterprises refuse to publish negative comments about the products they sell, but why? I think companies like Amazon that let negative reviews stand are boosting sales, long term, by being seen as a consumer-friendly site. And who knows, if you get enough comments about what a piece of junk some product is, you might even listen to the consumer and take the product out of your assortment.
As consumers go multi-channel, it is increasingly important for retailers to realize that the consumer shopping experience needs to be seamless across channels. Integration of the online and store channels requires a significant alignment of business objectives and operations. Customers expect the same quality of service irrespective of the channel they shop from. Retailers need to master this art or stand to be left by the wayside in the future.
Anything above $100 or so, I am likely to do some online investigation of different stores online. Then, when I understand that a particular product has features I want, I either order online or visit the store depending on the urgency of the need, and how much of a hassle I figure it will be to go to the store, park, find the product, stand online waiting, and get out of there. This second part is very significant. Also significant: some online operations obviously use shipping charges as a profit center. If it’s outrageous, it can get me really bent out of shape and I’ll stop shopping the retailer entirely, on principle. I don’t think many people ever make this plain. A couple years ago, one online retailer wanted to charge me more for shipping than the product, and I wrote a nasty letter back and said “never mind.” They shipped it free, wrote me an apology, and changed their policy. Totally blew my mind.
Since no one has yet ventured out on the “who does it best” limb, here goes.
I agree with Karen that the CE retailers do this well, and my nominee for best in class is Best Buy. A recent experience with setting up a wireless home office set up to connect with our regular office system involved online and in-person contact with both my local retail outlet and the “Geek Squad”. It was almost seamless and relatively painless. More important, it worked.
Interestingly enough, my second category of nominees would be the sporting goods stores, and in particular “the World’s Foremost Outfitter” Cabela’s. Their website comes closer to duplicating their experience-driven retail environment than any other I know of. Both are heavy on shopper interaction, product knowledge and service.