Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Tuesday, April 14, 2009   
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Consumers shift spending online, citing convenience and savings, poll shows

Although 45% of consumers say they plan to cut spending this year, 22% say they plan to buy more on the Internet, according to an Ouch Point survey from Opinion Research Corp. Consumers say it’s easier to find items and bargains online, but frustrations remain.

77% of respondents say the economic situation has changed the way they shop, with 45% of them spending less, 24% looking for the best deal and 24% only shopping for necessities. Nonetheless, 22% of those surveyed say they will spend more this year on the Internet.

In addition, 36% say the web accounted for a larger share of their purchases last year. Asked the primary reason for shifting their buying to the web, they cited ease of locating items (25%), better discounts (19%), time savings (14%) and convenience (13%).

"While our data indicates that people are spending less, it is equally clear that shoppers are increasingly turning to the Internet as the channel of choice when they do buy,” says Linda Shea, senior vice president and global managing director of the Customer Strategies Practice at Opinion Research, a subsidiary of research and marketing firm infoGroup. “This underscores the need for merchants to realize that even in a self-service environment, customers need enough information to make a purchase decision and validate that they are making the right decision. In the end, this drives revenue and minimizes returns for merchants, while at the same time entices customers to return to the site and to recommend it to others."

Despite the ongoing shift of purchasing to the web, consumers still have complaints. Here are the top frustrations with online shopping mentioned by those responding to the Ouch Point survey, with the percentage of respondents citing each one in 2009 and 2008:

  • Not being able to speak to anyone who can answer questions: 25%, 21%

  • Learning that items are back-ordered or out of stock after they are in the shopping cart: 11%, 17%

  • Receiving an item that doesn’t look anything like it did on the Internet: 11%, 21%

  • Web sites that malfunction as the payment is being processed: 9%, 14%

  • Not being able to find an item: 8%, 13%

  • Unclear shipping information: 5%, 5%

  • An uncertain return policy: 5%, 7%

  • Not receiving an acknowledgement after an order has been placed: 2%, 5%

The results are based on a telephone survey of 1,004 U.S. adults conducted Feb. 20-23.

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