JUPITER TO CPG`S: USE THE INTERNET TO IDENTIFY MOST LOYAL CUSTOMERS AND WEED OUT BARGAIN HUNTERS
Online women more deal conscious, online men less price sensitive
NEW YORK, May7, 2002 - Jupiter Media Metrix (NASDAQ: JMXI), the global
leader in Internet and new technology analysis and measurement, today
reports that consumer packaged goods (CPG) marketers can best use their
digital marketing dollars and Web sites to identify and target their most
loyal customers instead of consumers looking for bargains. In segmenting
online adults by their attitudes toward brands, pricing and shopping,
Jupiter analysts distinguished the two most desirable segments for CPG
marketers: "Brand Bonders" (25 percent of U.S. online adult population) who
believe that the brands they use reflect their personality; and, "Brand
Loyalists" (21 percent) who are generally unwilling to try new brands once
they have found the ones they like. Although both groups are relatively
affluent, "Brand Bonders" are mostly female (58 percent) and relatively
young, while "Brand Loyalists" tend to skew older and male (60 percent).
Three other, yet less influential, CPG customer segments Jupiter analysts
identified include: "Shopophobes" who tend to dislike shopping, "Bargain
Hunters" who search for deals online and "Skeptics" who like deals, but
generally do not believe in brands.
"CPG manufacturers need to start thinking about the Internet as the channel
to identify their best, most loyal customers," said David Card, Jupiter vice
president and research fellow. "They can best use their own Web sites to
segment customer sets, not for couponing or information dispersal."
Understanding the "Brand Bonder"
Through attitudinal analysis, Jupiter has found that "Brand Bonders" are
very busy consumers, and a relatively large number of them consider the
Internet to be their favorite entertainment. Of the five segments, the
"Brand Bonder" group includes the largest percentage (49 percent) of
consumers who believe the Internet has made them more up to date on the
news. Jupiter analysts advise CPG companies to take note of this statistic
because it suggests that "Brand Bonders" use the Internet to gain knowledge
and advantage. Web sites that enable online bill payment or couponing and
sites dedicated to movies are efficient ways to reach "Brand Bonders."
"Brand Loyalists" - Best to Target, Toughest to Reach
The "Brand Loyalist" segment contains the highest proportion of men. Almost
two-thirds of these consumers are over age 35, and 40 percent are over 45.
They also comprise the most affluent segment: one-third have a household
income over $75,000, and 18 percent have a household income over $100,000.
A November 2001 Jupiter Consumer Survey reveals that over 80 percent of
"Brand Loyalists" think consumers generally get what they pay for - and
almost 50 percent equate quality with price. Although "Brand Loyalists" are
hard to reach both online and off-line, Jupiter analysts believe that these
customers are worth holding onto once they`ve bonded to a brand because they
aren`t particularly price sensitive and they won`t shop around. Sports
sites, online brokerages and adult content sites are effective ways to
target "Brand Loyalists."
Couponing
Overall, only 14 percent of online users say that they never use coupons
when shopping online or off-line, wherever they might find them.
Seventy-three percent of online users find their coupons in newspapers or
magazines, and 65 percent get them from paper-based mail. The most
prevalent online method of acquiring coupons is via e-mail from a merchant
they`ve purchased from (21 percent of consumers gather coupons this way).
"When targeting the `Brand Bonders` and `Brand Loyalists,` CPG marketers
should spend more of their Internet-focused dollars on direct marketing,
advertising and sponsorship. While men appear to be slightly more driven to
actively make purchases by online ads than women, an online ad has driven
over one-third of online women to register at a Web site in exchange for a
coupon or discount," Card said.
Companies interested in purchasing the Jupiter Research Report - titled
"Jupiter Consumer Survey Report: Consumer Packaged Goods" can call
toll-free at 1-877-464-6627 or visit www.jmm.com. Jupiter Research helps
companies develop, extend and integrate business strategies across online
and emerging channels. Backed by proprietary data, Jupiter`s
industry-specific analysis, competitive insight and strategic advice give
businesses the tools they need to exploit new technologies and business
processes.
Jupiter CPG Consumer Survey Research Methodology
Jupiter utilizes a wide set of data-gathering tools to conduct research,
including systematic polling of leading industry executives, extensive
consumer surveys, extensive executive surveys, Media Metrix audience
measurement data and a rigorous approach to building market forecasting
models. Jupiter analyses and forecasts are based on a number of
methodologies, including close examination of analogous markets (either
previous growth of new technologies or relevant off-line market case
studies), consumer self-stated intentions culled from proprietary Jupiter
surveying, complex market segmentation analysis, and analysis of historical
trends. Additionally, all forecast assumptions are rigorously debated in a
process designed to capture the collective judgment of analysts with
relevant experience and perspectives on each given market. For a fuller
explanation of the methodology, please visit www.jmm.com.
Jupiter CPG Consumer Survey - In November 2001, Jupiter designed and fielded
a survey to online consumers selected randomly from NPD consumer panels. A
total of 2,054 individuals responded to the survey. Respondents received an
e-mail invitation to participate in the survey with an attached URL linked
to the Web-based survey form. The samples were carefully balanced by a
series of demographic and behavioral characteristics to ensure that they
were representative of the online population. Additionally, Jupiter took the
unconventional step of weighting the data by AOL usage, online tenure and
connection speed (broadband versus dial-up), three key determinants of
online behavior. Balancing quotas were determined by an ongoing weekly
random digit dialed (RDD) survey of almost 5,000 US households.
The NPD Group, Inc. (NPD) is a global market information company that
provides business-critical information to companies in a range of industry
segments, including: food, fashion, toys and video games, consumer
electronics and technology, housewares, automotive, beauty and music. NPD`s
clients, many in the Fortune 500, use this information to uncover market
opportunities, strengthen channel relationships and benchmark industry
performance. Since 1967, NPD has introduced numerous industry firsts, most
recently the NPD Worlds. As the definitive online source for essential
market information and insights organized around business issues, NPD Worlds
provide access to information from the company`s uniquely combined
point-of-sale tracking and world-class online consumer panel. In doing so,
NPD Worlds offer a personalized view into what is selling, where, to whom
and why. NPD has offices and affiliations in 60 countries. For more
information on The NPD Group, visit http://www.npd.com.
About Jupiter Media Metrix
Jupiter Media Metrix is the global leader in Internet and new technology
analysis and measurement. The Company delivers innovative and comprehensive
Internet measurement, analysis and events to provide businesses with
unmatched global resources for understanding and profiting from the
Internet. Jupiter Media Metrix brings together world-class, innovative and
market-leading products, services, research methodologies and people.
Jupiter Media Metrix services include Media Metrix and Jupiter Research. The
Company is headquartered in New York City. Visit www.jmm.com for more
information.
This press release contains statements of a forward-looking nature relating
to future events or future financial results of Jupiter Media Metrix.
Investors are cautioned that such statements are only predictions and that
actual events or results may differ materially. In evaluating such
statements, investors should specifically consider various factors, which
could cause actual events or results to differ materially from those
indicated from such forward-looking statements, including the matters set
forth in Jupiter Media Metrix reports and documents filed from time to time
with the Securities and Exchange Commission.
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