Online Shopping Trends

From a recent email:

Online Ratings, Recommendations and Reviews Influence Shoppers' Selections

According to a new study from Bazaarvoice and richrelevance, conducted by JupiterResearch based on a survey of over 800 consumers nationwide, 48% of all online shoppers plan to spend less this year, but 61% of those reluctant to make certain purchases can be positively influenced by online shopping resources. The study shows that consumers are finding significant value in online content tools that connect them to the opinions and behaviors of other shoppers. These tools are particularly relevant to shoppers who are cutting back, as those affected by economic conditions seek more validation for their purchase decisions.

Online shoppers, says the report, will be more reluctant to make purchases in the next 12 months primarily in:

• The automotive sector
• Travel
• Consumer electronics

Planned Spending Reductions in Next 12 Months by Online Shoppers
Category	% Planning Reduction in Spending
Auto	50%
Travel	46
Consumer electronics	43
Financial services	40
Fashion and style	39
Durable goods	39
Home improvement	38
Computing products	37
Entertainment	32
Telecommunications	30
Education services	26
Health products	22
Housewares	21
CPG	14
Pharmaceuticals	14
Source: Jupiter Research/RichRelevance/BazaarVoice, February 2009

Consumers looking to reduce their spend are shopping around; 42% visited 3 or more sites to research their last purchase, and nearly all consumers are spending more time online prior to purchase.

Shoppers who research their purchases online look to content sources that help inspire, discover, and confirm their choices, including:

• User ratings and reviews
• Recommendations based on other consumers' purchasing behaviors
• Recommendations based on others' browsing behavior

Multiple Sources Used by Online Shoppers To Find Products
Information Source	% of Online Researchers
Store/retailer websites	89%
Search engines	86
Manufacturer websites	78
User ratings and reviews	77
Purchaser's recommendations	66
E-mail recommendations	61
Best sellers	59
Source: Jupiter Research/RichRelevance/BazaarVoice, February 2009

In the 2008 Retail Consumer survey, Jupiter Research found that only 33% of online shoppers had made up their minds about the price they were willing to pay for their purchase in advance of going online to research. Even fewer began their research having made up their minds on:

• Which item or title to choose (31%)
• Which brand to buy (23%)
• Which store they would use (16%)
• When to make their purchase (13%)

This shift in behavior provides retailers with an opportunity to engage shoppers through content that connects them to products and builds their confidence in these carefully researched purchases.

Brett Hurt, founder and CEO of Bazaarvoice, notes that "... the benefits of user-generated content are amplified in a bad economy... companies have a tremendous opportunity to provide them with the authentic user-generated content that is proven... "

David Selinger, CEO of richrelevance, concludes that "... Personalized recommendations are emerging as must-have functionality for 2009, driven by the value they deliver to the consumer experience."

Please visit Bazaar Voice here for additional information

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