Channel Intelligence 2004 Holiday Season Buying Intent Survey:Online research leads to more purchases at retail store locations
Survey of SellPath(SM) Product Pinpointer Services clients reveals nearly 37 percent of online and retail store customers make product purchases within one week of conducting Web research
Orlando, Fla. – Dec. 21, 2004 – More than a third of computing and consumer electronics shoppers who research product purchases online will buy that particular product within seven days, according to a recent buying intent survey.
The 2004 Channel Intelligence Buying Intent Survey features responses from customers of the 25 manufacturers who subscribe to Channel Intelligence’s SellPath(SM) Product Pinpointer Services, which determines local in-store stock status of products available for sale among a number of retail partners.
Channel Intelligence, a Florida-based commerce data interchange services company, surveyed more than 5,200 customers of Channel Intelligence clients just in time for the holiday shopping season. Nine manufacturers representing 518 different products were featured in the survey, including Belkin, Hewlett Packard, InFocus, Iomega, Lexar Media, Maxtor, Microsoft, Roku and SanDisk. The average price of products researched by those surveyed was $609. Products purchased by survey participants cost an average of $383.
The most recent Channel Intelligence survey reveals a remarkable 37 percent conversion rate among consumers interested in purchasing a particular product, either online or at a local retail store. That high rate, which is consistent with a similar survey conducted this summer by Channel Intelligence, represents nearly 10 times the industry average for online shoppers who frequently abandon shopping carts when browsing the Web.
The survey validates a multi-channel sales approach to consumers who may display varying buying preferences. Of the nearly 37 percent who made purchases, more than 23 percent were bought at a local store that carries that particular product. A little more than seven percent made the purchase online and six percent bought directly from the manufacturer’s online store.
Some other results for the survey:
• 78 percent of consumers surveyed “frequently” visit a manufacturers’ Web site to do product research before committing to a purchase decision
• 77 percent visit manufacturers’ Web sites for product information, but 36 percent of all consumers surveyed want to know if a local store carries that particular product
• More than three-fourths (76%) of respondents were buying for personal use or as a gift
• 67 percent of survey respondents preferred to buy locally, especially if they know their local retailer or reseller has the item in-stock (SellPath(SM) Product Pinpointer Services can tell them so)
• 57 percent of respondents indicated that they intended to buy within one week of conducting research; 37 percent of all respondents actually made at least one purchase
• 49 percent of consumers look to local retailers (e.g., Best Buy, Circuit City, OfficeMax) to supply product information; 43 percent rely on online product reviews; 37 percent take advice from family, friends and co-workers with regard to purchases of computing and consumer electronics
“The survey results, though not surprising, indicate a strong preference among consumers to fully research their products before making a buying decision,” said Alan Fulmer, vice president and co-founder of Channel Intelligence. “If consumers feel confident about the product, they will buy that product if they know where that product is in stock, preferably at a local store. It’s not only a matter of confidence, but a matter of convenience that consumers seek when researching the products they wish to buy.”
SellPath(SM) Product Pinpointer leads consumers from the manufacturer’s Web page through the retail channel to local stores where select products are in-stock and available for local purchase (determined by zip code.) More than 3.1 million Product Pinpointer local searches valued at $2.14 Billion in potential sales were sent through the retail channel in 2004.
About Channel Intelligence (www.channelintelligence.com)
Founded in 1999 and headquartered near Orlando, Fla., Channel Intelligence develops suites of commerce data interchange services, which enhance the online and offline sales process among manufacturers, retailers, value-added resellers (VARs) and consumers. Channel Intelligence serves more than 100 manufacturers and 400 retailers and resellers worldwide with SellPath(SM) Services and BrandPath(SM) Services that increase channel sales. Channel Intelligence also offers commerce data and product content syndication services, which are built upon the proprietary Commerce Data Interchange (CDI) platform.
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