Showrooming: Empowering Consumer Electronics Shoppers - IAB

Showrooming: Empowering Consumer Electronics Shoppers

February 20, 2013

1

Contents Introduction and Topline Summary Research Results Appendix

3 6 21

2

Introduction and Topline Summary

3

Introduction

•

This Showrooming: Empowering Consumer Electronics Shoppers Study focuses on consumer electronics and explores the influence of mobile devices on the shopping process, general shopping behaviors in physical stores/online and “showrooming”.

•

Ipsos fielded the online survey with 482 consumer electronics shoppers (past 6 months) in February with its HearWatchSay (HWS) community. Quantitative results were supplemented with qualitative input about shopping and showrooming behaviors.

•

HWS is an online community whose members are media forward enthusiasts of movies, TV, technology, gaming.

•

Respondents are Adults 18-64 in the US. 4

Topline Summary Key Insights • • •

• • • • • • • • •

•

86% of consumer electronics shoppers surveyed did their shopping online, while 74% shopped in a physical store. Nearly one third (31%) of consumers used their mobile device for shopping related activities while in a store. Among in-store shoppers, over a quarter of consumers intended to showroom by trying out the products in the store and then buying online. However, more than half of in-store consumer electronics shoppers intended to buy the product in the store. In line with showrooming expected behaviors, close to three-quarters of consumers who went to a store went there to try out a product.. Over 3 in 4 consumers did some form of online research prior to going to a store, while 6 in 10 did so after visiting a store. Shoppers who used their mobile device while in the store were more likely to do online research after their store visit. Whether doing research before, during or after going to the store, the most popular research types done were: checking prices, reading reviews and looking up product features. Over 4 in 10 consumers who ultimately made an online purchase used their mobile device in store for showrooming/shopping related activities. Price is the top driver of consumer electronics purchases online. Convenience and the ability to try/see the products are the top reasons for purchases in the store. Biggest spenders did in-store research on a mobile device. In-store mobile users were much more likely to make unplanned purchases while shopping: 1 in 3 bought something spontaneously in the store, 1 in 4 bought something spontaneously online. On average, mobile device owners and those that use their mobile device while shopping spend more on consumer electronics. (However, this could be due to increased frequency of purchases and not increased spending per occasion). Over a third of shoppers recall seeing ads for consumer electronics they were shopping for. Among these 5 shoppers over 7 in 10 report seeing digital ads.

Research Results

6

Where Did You Shop for Consumer Electronics? • 86% of Consumers Shopped Online • 3 Out of 4 Shopped in a Physical Store Did You Shop In A Store?

Did You Shop Online?

14%

26% 74%

86% Yes

Yes

No

No

Q1a. Did you shop ONLINE for the following products? Q1b. Did you go to a physical STORE to shop for any of these products?

More Than Half of In-store Consumer Electronics Shoppers Intended to Buy the Product in the Store • Over a Quarter Intended to Showroom, by Trying Out the Product in the Store and then Buying Online In Store Intentions 58% No, I intended to try out the product, but wasn’t ready to buy it yet

“I always first go to the store to look at a product and then buy it online (especially off of Amazon).”

25%

27%

No, I intended to try out the product at the store and then buy it online 23%

Yes, I intended to buy the product at the store, but after trying it out I had questions/needed more time Yes, I intended to buy the product at the store

Q1c. Did you intend to buy the product when you went into the store?

Three-Quarters of In-Store Shoppers Went There to Try Out the Product • Nearly Half Visited the Store for Convenience or Price • Service Was Not a Key Driver of In-Store Shopping Why Did You Go To The Store? 74%

Try It/See It

46%

Convenience

43%

Price

29%

Selection/Availability

27%

Service

23%

Shop Experience Saw an Ad/Promotion/Sale… Preference/Habit

22% 9%

“Even though I may buy the product online I do like to go to the physical store so I can actually see it and perhaps try it”

“It's great to check out phones (new iPhones, iPads and other tablets, TVs) and really get to feel and touch and try them in a store”

“I go to the store for service. If the employees are friendly and knowledgeable and try to help me find the perfect item for me I'll most likely buy it from them.” “If I have a coupon that I can only use in store and it beats an online price then I will go there for sure to do that.”

Q2. Thinking about the products you recently shopped for, please tell us why you went to a physical store. Please select all that apply.

Over 3 In 4 Consumers Did Some Form Of Online Research Prior To Going To A Store • Top Research is Checking Prices, Reading Reviews And Looking Up Product Features “Any and all price/product research is done on my computer before I even set foot outside the door!”

Did You Do Online Research?

Type of Research Before Checked prices of the product(s) at online retailers

80%

Read reviews of the product(s)

79%

Looked up product features

Yes, on mobile device Yes, on computer

21% Yes (Net) 78% 73%

No

76%

Checked prices of the product(s) at physical stores

59%

Checked in-store availability/stock

33%

Asked friends for advice online (social networks,…

16%

Checked warranties

15%

22%

Checked store hours

14%

Total

Looked up directions to the store

6%

Q3. Still thinking about the products you shopped for in a store, did you do online research BEFORE you entered the store? Q4. What type of online research did you do BEFORE visiting the store(s)? Please select all that apply.

“I am a big comparison shopper and will always check prices and reviews on higher ticket items before going to a store.”

Nearly One Third Of Consumers Used Their Mobile Device For Shopping Related Activities While In A Store • Smartphones Were The Most Common Device Used Used Mobile Device For Shopping Related Activities

31%

“When shopping, I'll use my phone to compare prices at stores.”

Yes, Smartphone

Yes, Tablet

69% Yes No “I have not used my smartphone as yet in the shopping process but do intend to in the future.”

Type of Device Used

Yes, Feature phone (regular cellphone) Yes, InternetEnabled Device (iPod Nano, iPod… No, did not use device

Q5. Did you use your mobile device for any shopping-related activities WHILE IN THE STORE(s)?

26%

6%

3%

“Using a smartphone has made it much easier to check out deals online while I'm shopping in a store.”

3%

69%

In-Store Mobile Usage:

• Most Checked Prices While in the Store • About Half Read Reviews • About One Third Scanned Bar Codes and Sought More Info How Mobile Device is Used While In Store Checked Price

60%

Reviews

46%

Scanned Bar Code

35%

More Info

34%

Coupons and Discount Codes

30%

Checked Availability

27%

Photo

19%

Store Locator

14%

Check-In

14%

Advice

10%

Q6. How did you use your mobile device WHILE SHOPPING IN THE STORE(S) for consumer electronics? Please select all that apply. Q7. How does using your mobile device while at a store impact your shopping experience? Q8. Did you plan to use your mobile device as part of your shopping process?

“I mainly use my phone to look up prices and reviews while I'm shopping. I've found the Amazon PriceCheck app to be particularly helpful, because you can just scan the barcode and it finds the product (and other comparable products) for you.”

Two-Thirds of Shoppers Who Use Their Mobile Device in the Store Say it Makes Them More Likely to Buy the Product Impact on shopping experience Makes me more likely to buy the product

Makes me less likely to buy the product

Does not impact my purchase decision

65%

5% Used Mobile Device For Shopping Related Activities Yes

30%

Q6. How did you use your mobile device WHILE SHOPPING IN THE STORE(S) for consumer electronics? Please select all that apply. Q7. How does using your mobile device while at a store impact your shopping experience? Q8. Did you plan to use your mobile device as part of your shopping process?

69%

31%

In-Store Mobile Device Users Were More Likely to Do Online Research AFTER Their Store Visit

Online Research AFTER Store Visit

42%

3% 45%


62% 53% 18% Used Mobile Device IN STORE for Shopping Related Activities

Did NOT Use Mobile Device IN STORE for Shopping Related Activities

Q9. Did you do any online research AFTER visiting the store(s)?

No

Nearly 6 In 10 Shoppers Did Online Research After Visiting a Store • Checking Prices and Reading Reviews are the Most Common Post-Store Visit Activities • Research Activities are Similar Whether Before, During or After Type of Research After Shopping Checked prices of the product(s) at online retailers

73%

Read reviews of the product(s)

Online Research AFTER Store Visit


15%

Checked prices of the product(s) at physical stores


50%

No

Yes (Net) 58%

59% 53% 40%


21%

Asked friends for advice online (social networks,…

13% 12%

Checked warranties

42%

Checked other store hours

Total

Looked up directions to other stores

10% 4%

Q9. Did you do any online research AFTER visiting the store(s)? Q10. What type of online research did you do AFTER visiting the store(s)? Please select all that apply.

“My husband will go look at products at a store and then shop on line to compare prices and look for a better deal.”

About 6 in 10 Consumer Electronics Shoppers Ultimately Made a Purchase • Shoppers Were Evenly Split Between Purchasing Online or In-Store Where Purchased?

In a Physical Store

54%

Purchased (Net) 59%

Online 55%

Did Not Purchase 41%

Total

Q11. Where did you end up purchasing your consumer electronics product(s)?

Those Who Used Their Mobile Device in the Store Were More Likely to Make a Purchase • In-Store Mobile Users Were More Likely to Buy Online • However, Nearly One-Third Did Make a Purchase In-Store Didn't Purchase Purchased Product

Used Mobile Device IN STORE for Shopping Related Activities

In A Physical Store 41%

29%

59%

71%

30%

Online

Did Not Purchase

42%

29%

4 in 10 Showroomed

Consumer Electronics Those Who Used a Shoppers Mobile Device InStore

““While I was shopping in Walmart … I saw a better prices for it online. I went home and brought it for a cheaper price online and had it shipped free to Walmart!”

Q11. Where did you end up purchasing your consumer electronics product(s)?

Top Reasons for Shopping Online vs. In Store • Price Is the Top Driver of Online Purchases • Convenience and the Ability to Try/See the Products are the Top Reasons for In Store Purchases Why Purchase Online

Why Purchase In Store 74%

Price

53%

Convenience

39%


31%

Research/Info

Convenience

51%

Try It/See It

44%

Price

44%


29%

Saw an…

25%

Service Saw an Ad/Promotion/Sale… Preference/Habit

24%

24%

Trust

17%

Shop Experience

11%

16%

Preference/Habit Spontaneous

7%

Spontaneous

10% 4%

55%

54%

Purchased Online

Purchased In Store

Q11. Where did you end up purchasing your consumer electronics product(s)? Q14. Why did you purchase the following Consumer Electronics ONLINE vs. in a STORE? Q15. Why did you purchase the following Consumer Electronics in a STORE vs. ONLINE

Top Reasons For Shoppers Not Making A Purchase: Cost, Just Looking, Not Being Ready

Q12. Why didn’t you end up buying the product(s)?

Biggest Spenders Did In-store Research on a Mobile Device Average Amount Spent

$1,539 $891

Total

$929

Used Mobile Device Did NOT Use Mobile While Shopping Device While Shopping

Over A Third Of Shoppers Recall Seeing Ads For Consumer Electronics They Were Shopping For • Among These Shoppers Over 7 In 10 Report Seeing Digital Ads 35% of people recalled seeing ads

Digital Ad Influence

Why Purchase In Store Online Ad

50%

Email from retailer

36%

Groupon type site

14%

Social Media

14%

Online coupons

8%

Mobile App

7%

Digital (Net) 71%

TV

64%

Print Ads

28% 50%

Yes, made me visit a physical store Yes, made me visit an online store No, did not influence either way

54%

Direct Mail Billboard/other signage

38%

35% 10% Q17. Do you recall seeing any ads for Consumer Electronics around the time that you were shopping for the product(s)? Q18. Where did you see these advertisements for Consumer Electronics? Q19. Did seeing the following digital ad(s) influence your decision to visit a store or online retailer?

In-Store Mobile Users Were Much More Likely to Make Unplanned Purchases While Shopping • 1 in 3 Bought Something Spontaneously in the Store • 1 in 4 Bought Something Spontaneously Online Made Unplanned Purchases Did NOT Use Mobile Device While Shopping

7% 3% 90%

32% Used Mobile Device While Shopping

22% 56% Yes, while shopping in a store Yes, while shopping online No, I did not buy any extra Consumer Electronics products that I hadn’t planned to buy

Q13. While you were shopping for your product, did you end up buying any other Consumer Electronics products

On Average, Mobile Device Owners And In-Store Mobile Device Users Spend More On Consumer Electronics Amount Spent Mean Spent =

$891

$1,010

$533

$1,539

12% 24%

25%

28%

27%

19%

21% 11% 10%

23% 10%

21% 42% 26%

15% 14%

$929

28%

22%

$1000 or more

$500 to $999

$250 to $499

20% 16%

8%

8% 4%

21%

Total

Mobile

Non Mobile

5% 7% 1% Used Mobile Device While Shopping

12% 12% 6% Did NOT Use Mobile Device While Shopping

Q16. How much have you spent on Consumer Electronics over the past 6 months?

$100 to $249

More Consumers Engage In Pre-Shopping Research • Most Lucrative Buyers Do In-store Research • Most Mobile In-store Shoppers Do Post-Store Research Type of Research Done Before Store Visit

During Store Visit

After Store Visit

Checked prices at online retailers Read reviews

59% 76% 53% 59%

Checked prices at physical stores

40%


21%

27%

33%

16% 10% 13% 15% 12% 14% 10%

Asked for advice online (social networks, email) Checked warranties Checked store hours

Online Research AFTER Store Visit Did NOT Use Mobile Device IN STORE for Shopping Related…

6% 4%

Scanned Bar Code

3%

45% 53%

35%

More Info

34%

Coupons and Discount Codes Check in

73% 79%

46%


Directions to the store

80%

60%

30% 14%

Used Mobile Device While Shopping

42% 18%

62%

Yes, on mobile device Yes, on computer No

Appendix

25

Top Comments Key Verbatims •

“I showroom every single electronic item that I buy. I want to be able to try it out before buying but I also want the lowest price when purchasing so I end up finding a lower price online every time. I have never found a price at a store that I couldn't beat online. Why would anyone pay a higher price to buy an item in a store?”

•

“I think the bar for "showrooming" has really been set by Apple. Of course you can actually buy Apple products in the store but the prices are crazy and for lots of other reasons it is less about taking the sale on the spot and more about planting the seed (and offering amazing after sales support). The experience of playing around with a product, uninhibited with the fun atmosphere and friendly help of the Apple store is what sold me on the actual product. Showrooming is especially important for mobile devices, if something is going to be attached to my hip and used every day of my life I have to know how it looks, feels, carries (will it fit in my pocket?) and the user interface.”

•

“I'm definitely a window shopper and technology has only increased this tendency. I enjoy just going and walking around stores on my lunch break or even some evenings or weekends because it's relaxing, but I'm never one to take a deal at face value - and using a smartphone has made it much easier to check out deals online while I'm shopping in store. It doesn't really matter what type of product it is - I do this for everything from toilet paper to electronics, although I'm much more likely to spend more time researching bigger ticket items. I mainly look up prices, but I also look at reviews while I'm shopping too. I've found the Amazon PriceCheck app to be particularly helpful, because you can just scan the barcode and it finds the product (and other comparable products) for you. I think I'm about 50-50 on whether it makes me more likely to buy items in store or not - there have been times in the past before my smartphone days that I've walked away from deals to research them later and regretted not getting them when I discovered it really was a good deal. Now, having the technology at my fingertips, if I find out it's a great deal on the spot, I'm more likely to buy it then. However, there are also many times when I look it up online while I'm shopping, find out I can get it cheaper elsewhere, and walk away - unless the convenience of having it immediately outweighs the better deal. All that being said, if I'm pressed for time, I'm much less likely to showroom and more likely just to trust my instincts on whether it's a good deal or not (and take the chance of having to possibly return it later). One thing about the in-store experience that would make me wait to buy a product online is the length of the checkout line. If I can get as good a deal or better online (or maybe even a little more) and don't need the product right away, and it's the only thing I'm buying in the store that day, I might avoid the long line and opt for the ease of having it delivered in a couple days. Plus, there's always the possibility of finding a coupon code online or getting points through a rewards site to get an even better deal”

•

“I do my research online before making any major purchases. It narrows my list to just a few makes and models. I will then go to see these at a local store to make my final evaluation. Where I make the purchase depends on where I find the best balance of value and service. While I carry my smartphone with me, I rarely use it in a store. I did my research already and I know what the going prices are before I leave home. In a great many instances, these stores wind up being nothing more than an Amazon showroom. The stores are rarely price competitive and almost none of them service anything they sell on site. In-store service was the last unique feature stores had, but now even they mostly ship any items needing repair to some distant place. Customer service has gone, too. Often the in-store staff know less about the products than I do. Cornering an employee is often impossible ( there are too few of them) and the result unsatisfying anyway.”

26

Smartphones, flat screen TVs, tablets and laptops are the most popular consumer electronics shopped for in the last 6 months Shopped For In Past Month Smartphone

40%

Flat screen TV

33%

Tablet

31%

Laptop or Computer

31%

Headphones

17%

Digital Camera

15%

DVD/Blu-Ray player

14%

Gaming console

12%

MP3 player

7%

Speakers

7%

GPS device

5%

Home entertainment system

4%

iPod Dock

4%

Other Consumer Electronics

8%

Q1. Have you shopped for any of the following products in the last 6 months? You do not need to have purchased these products but simply have shopped for them. Please select up to 3 products that you most recently shopped for.

Ownership Laptop

81%

Desktop Computer

74%

Smartphone (iPhone, Android, Blackberry, Windows Phone, etc.)

67%

Tablet (iPad, etc.)

49%

Feature phone (regular cellphone)

Internet-Enabled Device (iPod Nano, iPod Touch or other)

33%

26%

Q0. Which of the following do you own? .

Showrooming: Empowering Consumer Electronics Shoppers Questions? Kristina Sruoginis Research Director, IAB [email protected] Joe Laszlo Sr. Director Mobile Marketing Center of Excellence, IAB [email protected] Sherrill Mane SVP Research, Analytics, Measurement, IAB [email protected]

29