Wednesday, January 12, 2011

Boomers' Online Shopping Outpaces Gen Y for Health, Beauty, Food, Beverage Products


Study Shows Shoppers' Behavior Shifting to More Purchases Online

Despite shopping in general being down, online shopping has increased. 73 percent of shoppers who are buying more online are NOT shopping more -- they are just shopping differently. This was revealed in The Checkout, a newsletter that compiles data from the ongoing shopper experience study currently underway by The Integer Group ® and M/A/R/C ® Research.

"The number one reason why people decide to purchase online is to get a better deal. This is no surprise. When shoppers hunt for a singular item online, they search for a good price, attractive shipping options, and then they buy," said Randy Wahl, executive vice president, M/A/R/C Research.

While younger generations (18-24 year-olds) appear more comfortable shopping online, they continue to stick with 'safe' purchases in categories that historically, are purchased online (electronics, clothing, books and music). The surprise comes from the boomer shopper segment. When considering the somewhat newer CPG online shopping world (health, beauty, food, beverage), it's the older shoppers making these purchases. Although Gen Y may be increasing their overall online shopping (more than twice as many compared to 50-64 year-olds), they are not as quick to adopt when it comes to experimenting with making purchases in new categories. This behavior also seems to surface with marital status—married individuals are 58 percent more likely to buy food and beverage products online than single individuals.

"Categories that require hunting for multiple items at once, like food and beverage or health and beauty, introduces a new online buying mentality," said Craig Elston, senior vice president, Integer. "The concept of completing standard grocery shopping online is still new for most of us, and manufacturers and e-tailers need to understand that there are conventions ingrained in shopper behavior that they must disrupt."

Overall, the majority of shoppers still have trouble adapting to the world of online CPG. In the food and beverage category, nearly half of shoppers are currently saying they "haven't and never will" buy this category online.

Data for The Checkout comes from a national survey conducted by Integer and M/A/R/C where consumers are asked about their shopping attitudes, shopping behaviors, and economic outlook. Topics range from criteria shoppers use to select retailers, to which in-store stimulus is most likely to drive purchase, to factors that might lead shoppers to leave an aisle empty-handed. The Checkout is available for download at Integer's blog www.ShopperCulture.com or M/A/R/C's web site www.MARCresearch.com/thecheckout.

About The Integer Group

The Integer Group (www.integer.com) is one of the world's largest promotional, retail, and shopper marketing agencies, and a key member of TBWA Worldwide. Integer lives at the Intersection of Branding and Selling® and creates strategic marketing solutions for clients in categories that include retail, beverage, packaged goods, telecommunications, home and shelter, automotive aftermarket, and power sports. Integer has more than 1,200 employees, with global offices in the U.S., Europe, Asia, Africa, South America, and the Middle East. Join the conversation on shopping culture and brand strategy at www.shopperculture.com.

About Omnicom

Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and other specialty communications services to over 5,000 clients in more than 100 countries.

About M/A/R/C ® Research

M/A/R/C ® Research (www.MARCresearch.com) is a brand development firm dedicated to helping clients create, evaluate, and strengthen their brands. Our teams design and execute qualitative and quantitative, traditional and online solutions while adhering to a client-service ethic built on being easy to work with and delivering what is promised. Our core competency is measuring attitudes and behaviors to accurately explain and predict market share, revenue, and bottom line impact of a client's actions. We help our clients address consumer, channel, and B2B marketing issues to launch better products and services, attract and retain valuable customers, and build stronger brands. Our proven, marketing-issue focused solutions, support clients' brand building efforts.

SOURCE: The Integer Group

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