Researching and-shopping-online-in-belgium research-studies

Vertical Deep Dive Retail Belgium

2

Methodology – Vertical Deep Dive Retail Belgium

•  Target group: Internet user in Belgium, 14 years and older

•  Sample: N=1,000 Internet user •  Methodology:

§  Online Questionnaire §  Representative weighting by age, gender, education, income, frequency of online access,

frequency of online purchase, usage of YouTube

•  Period of analysis: §  Fieldwork: from April 11th to April 28th 2011 §  Final Report: May 20th, 2011

•  Research company: TNS Infratest

Source: Google, Vertical Deep Dive Finance, Belgium : May 2012 |

3

Methodology – SRS Telephone Survey

•  Target group: General population in Belgium, 14 years and older

•  Sample: n=366 Internet users

•  Methodology:

–  CATI (Computer Aided Telephone Interviews)

–  Collection of representative figures for the online population in terms of: age, gender, region, education, frequency of online access, frequency of online purchase, usage of YouTube

•  Period of fieldwork: February 15th – April 28th, 2010

•  Research company: TNS Infratest


4

Weighting of the data

•  Online surveys are usually conducted via online access panels.

•  This is a widely accepted method and TNS Germany has sound experience with online surveys in every respect.

•  We’ve learned that respondents in online surveys can be seen as lead users, reflecting media- and internet usage very well.

•  However, respondents on panels tend to use the internet quite intensively and are usually media inclined in general and internet inclined in particular.

•  Therefore we applied a weighting process based on our representative offline telephone survey in order to minimize this effect.

•  Having applied the weighting procedure our survey is representative for the Belgian online population aged 14+ which reflects 72% of the Belgian population aged 14+


100%

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Analysis of the data

72%

100%

0102030405060708090100

Our study reflects 72% of the Belgian population aged 14+ or 100% of the Belgian online population aged 14+.

SRS Telephone Survey VDD Retail Belgium

Belgian Population aged 14+

Belgian Onliners aged 14+

Belgian Onliners aged 14+

5 Source: Google, Vertical Deep Dive Finance, Belgium : May 2012 |

Relevant Retail Products for Belgium

The following provides insights on the purchase and research behaviour in different product categories out of the retail vertical

Consumer Electronics (e. g. TV, Hifi, MP3 player, iPod, DVD player …)

Domestic Appliances (e. g. fridge, washing machine, stove ...)

Entertainment (e. g. DVDs, CDs, …)

Clothing & Accessories (e. g. footware, trousers, shirts, ...)

Home Furnishings (e. g. sofa sets, racks, tables, ...)

Garden Equipment (e. g. DIY, tools, barbecue, ...)

Ret

ail


7 7

Shopping Behaviour

Clothing & Accessories

Entertainment

Consumer Electronics

Garden Equipment

Home Furnishings

Domestic Appliances

46%

24%

14%

18%

8%

8%

22%

17%

14%

12%

11%

9%

15%

14%

14%

8%

9%

8%

10%

17%

13%

14%

14%

92%

65%

60%

51%

42%

39%9%

Shopping in the Past

Q103: When did you last buy or shop any products out of the following categories? Within the last month, the last 3 months, the last 6 months, the last 12 months, the last 24 months, more than 24 months ago or never? Base (weighted): All Respondents n=1,000

Shopping in the past 12 months All Respondents

All categories receive significant purchase shares – obviously the purchase shares are in line with the actual product life cycle

Past 3 months Past 6 months Past month

On average 3 categories were bought within the last 12 months

Past 12 months


Online

online shop producer / brand

online shop retailer / supplier

online auctions (e. g. Ebay)

classifieds (e. g. leboncoin)

Offline

specialized shop / retailer

mass retailer

delivery service

11%

3%

4%

2%

2%

77%

47%

27%

3%

Place of Purchase

Place of last Purchase Shopper per Category

Q201:Thinking about the last time you made a purchase in each of the following categories. How did you actually purchase? Base (weighted): Shopper per category: Consumer Electronics n=971, Domestic Appliances n=920, Entertainment n=941, Clothing & Accessories n=992, Home Furnishings n=949, Garden Equipment n=814; answer categories “Other online / Other offline / Don’t know” not shown

Home Furnishings



Domestic Appliances

7%

1%

3%

2%

1%

77%

42%

32%

2%

Entertain-ment

Garden Equipment

9%

1%

3%

1%

3%

76%

52%

22%

2%

16%

3%

6%

3%

3%

70%

32%

35%

2%

10%

3%

2%

2%

1%

74%

47%

23%

1%

12%

4%

3%

3%

2%

78%

47%

24%

5%

Offline is the dominating purchase method in the analyzed retail categories – online purchase most popular for entertainment products



Entertainment


Garden Equipment

Home Furnishings

Domestic Appliances

29%

16%

12%

9%

6%

7%

21%

22%

16%

16%

11%

10%

50%

38%

29%

25%

18%

17%

Likelihood for buying online in the next 12 months All Respondents

Likelihood for buying online

Q202: How likely is it that you will make a purchase in the following categories online within the next 12 months? 5-point-scale: (1) Very likely – (5) Very unlikely Base (weighted): All Respondents n=1,000

Very likely Somewhat likely

Online will rise its importance as a sales channel across all categories - esp. for everyday goods such as clothes and entertainment products


It is available 24 hours and 7 days a week Convenience

Special promotions online Prices/Payment

Possibility to buy products not available in my home country Assortment/Clarity

Availability of special products which are hard to get offline Assortment/Clarity

Easier to compare prices Convenience

No long queues like in the store / supermarket Convenience

Large and complete assortment Assortment/Clarity

Presence of customer reviews from other people Personal Advice

You can shop from anywhere (e. g. from the office, from home) Convenience

Lower prices than offline Prices/Payment

Drivers for buying online

Drivers for buying online - Top 10 All Respondents

Convenience (‘shop anywhere at any time’) and assortment (‘special, not locally available products’) are important drivers for online shopping

Q205: […] What are from your perspective reasons for buying products on the internet? Base (weighted): All Respondents n=1,000

38%

35%

32%

31%

29%

28%

27%

25%

23%

23%


I appreciate the recommendation and expertise of a salesperson Personal Advice

I want to see or touch the products therefore I buy life in a store Convenience

I don’t trust online payment (stolen payment details) Prices/payment

I'm used to buy those things in a store Convenience

I don’t trust online payment (don’t trust that the product will be delivered) Prices/payment

It is more complex to compare products Assortment/Clarity

I don’t want to pay for delivery Prices/payment

Security concerns in general Convenience

I like the shopping experience/it gives me a good feeling Convenience

Online shops charge too much for delivery Prices/payment

Barriers for buying online

Barriers for buying online - Top 10 All Respondents

Needs for consultancy and physical product experiences are top barriers – trust and habitual buying behaviour constrain online shopping too

Q204: [...] What are from your perspective reasons for NOT buying products on the internet? Base (weighted): All Respondents n=1,000

49%

43%

31%

31%

29%

29%

28%

28%

26%

26%


Free shipping costs

Clear after-sales services

Usability of the website

Contact details

Presence of well-known brands

Availability of special online offers

Seals of approval and quality

Consumer reviews and comments

Printed information leaflets online

Physical address in Belgium

Offline stores near to my home

Presence of web-coupons

The local domain name is .be

Email newsletter

Customer service (e. g. free shipping, after-sales support), website usability and brand presence are crucial for pushing online sales

0%

20%

40%

60%

80%

100%

Importance Online Sales Promotion

Q206: How important are the following characteristics of online shops for you? 5-point scale:(1) very important - (5) very unimportant Base (weighted): Online Shopper n=276

Importance Online Sales Promotion Online Shopper

Top 2: very important and important characteristics of e-shops


Wrap up Purchase Behaviour

1 Offline is currently the most common purchase method across all analyzed retail product categories – nevertheless visible growth potential for online in the future

2 The spread of online as a place of purchase differs per product category: already significant shares for entertainment, expandable for garden equipment

3 Outstanding shopping experiences in terms of special offers, exceptional assortment and perceived product quality can push online as a sales channel

4 In this respect service orientation, user-friendly design and trust building (brand presence, quality seals) are core factors for successful online shops

5 Additional benefits can be derived from a variety of features such as consumer reviews, availability of printed leaflets and local contact channels


15 15

Research Behaviour


Domestic Appliances

Entertainment

Home Furnishings

Garden Equipment


General Research Behaviour

Q301: How often do you inform yourself about the following categories before you decide to buy? Q302: And how often do you use the internet to inform yourself before you make a purchase in the following categories? Base (weighted): Shopper per category: Consumer Electronics n=971, Domestic Appliances n=920, Entertainment n=941, Clothing & Accessories n=992, Home Furnishings n=949, Garden Equipment n=814; answer categories “Seldom / Never / Don’t know” not shown

Across all categories high information needs prior to purchase – online research most popular for consumer electronics and entertainment

Online research prior to purchase Shopper per Category

Research prior to purchase Shopper per Category

79%

76%

60%

59%

56%

54%

64%

61%

51%

43%

42%

42%



Domestic Appliances

Entertainment

Home Furnishings

Garden Equipment


64%

61%

51%

43%

42%

42%

14%

10%

25%

14%

11%

19%

77%

79%

63%

72%

78%

70%

Q302: And how often do you use the internet to inform yourself before you buy products out of the following categories? Q201: Where do you usually buy products out of the following categories? Base (weighted): Shopper per category: Consumer Electronics n=971, Domestic Appliances n=920, Entertainment n=941, Clothing & Accessories n=992, Home Furnishings n=949, Garden Equipment n=814; Researcher per category: Consumer Electronics n=625, Domestic Appliances n=559, Entertainment n=482, Clothing & Accessories n=414, Home Furnishings n=411, Garden Equipment n=344 answer categories “Seldom / Never / Don’t know” not shown

ROPO effect visible in all retail categories: the vast majority of the shoppers who researched online made their purchase offline

Purchase Online vs. Offline Shopper who research online

Research Online Shopper per Category

Online Offline

Research Online – Purchase…?



Domestic Appliances

Garden Equipment

Entertainment

Home Furnishings


Benefit of Online Research

Q303: How helpful is the internet as an information source when it comes to deciding to make a purchase in the following categories? Base (weighted): Shopper who research online per category: Consumer Electronics n=625, Domestic Appliances n=559, Entertainment n=482, Clothing & Accessories n=414, Home Furnishings n=411, Garden Equipment n=344

Shoppers who research online prior to purchase regard the internet as a helpful tool for preparing purchase decisions – regardless of category

Extremely helpful Helpful Very helpful

Benefit of Online Research Shopper who research online

27%

23%

19%

19%

17%

16%

36%

37%

29%

26%

25%

25%

34%

37%

46%

48%

49%

46%

96%

93%

92%

91%

87%

97%


a PC / laptop / netbook at home

a laptop / netbook on the go (e. g. with an USB surf-stick)

a mobile phone / smartphone

a tablet PC (e. g. Apple iPad, Samsung Galaxy)

78%

12%

9%

7%

Q304: You’ve stated that you used at least one online information source in your research process. Which of the following devices did you use for getting product information on the internet? Base (weighted): Shopper who research online n=740

Channels Online Search

Channels Online Search Shopper who research online

For getting product information on the internet, I used …

Stationary internet is first choice for online research prior to purchase – however the mobile web already receives noticeable shares


Domestic Appliances


Entertainment

Garden Equipment


Home Furnishings

Research Funnel: Online vs. Offline Search

Online plays an important role for starting and intensifying research -whereas final decisions are usually prepared via offline sources

Base: Respondents who purchased in the categories within the last 24 months and used online or offline touchpoints in the research process

Research Funnel Shopper last 24 months per Category

online touchpoints used in the respective stage of research funnel offline touchpoints used in the respective stage of research funnel

Intensive Research

Final Decision

Initial Research

68%

66%

56%

51%

49%

48%

53%

51%

45%

48%

48%

46%

45%

44%

34%

34%

32%

33%

52%

53%

43%

44%

42%

43%

23%

24%

22%

19%

18%

19%

47%

46%

38%

46%

44%

41%


Search Engine

Online shops of producers/ brands

Online shops of supplier/ retailer

Product or price comparison sites

Consumer reviews on the internet

Online blogs and forums

Video portals

Editorial websites

Social networking sites

Online Research Funnel: Domestic Appliances

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased domestic appliances within the last 24 months and used online touchpoints in the research process on domestic appliances: initial research n=356, intense research n=237, final decision n=118

Search is the top online starting point for research on domestic appliances with high relevance for the in-depth research as well

Online Touchpoints

Intensive Research

Final Decision

Initial Research

50%

42%

34%

30%

21%

13%

12%

12%

9%

16%

17%

14%

22%

11%

6%

9%

3%

3%

37%

37%

34%

35%

25%

11%

9%

14%

4%


Offline Research Funnel: Domestic Appliances

Offline Touchpoints

Throughout the whole path from research to purchase personal consultancy from sales staff is the preferred offline information source

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision? Base: Respondents who purchased domestic appliances within the last 24 months and used offline touchpoints in the research process on domestic appliances: initial research n=276, intense research n=273, final decision n=246

Intensive Research

Final Decision

Initial Research

Sales clerk in shop

Information brochures

Family members

Friends and colleagues

TV – advertising/ commercial TV

Special magazines

Newspapers

TV – special television programs/shows

Special books

Radio

56%

37%

30%

25%

24%

21%

20%

12%

10%

8%

56%

29%

26%

22%

12%

17%

11%

8%

12%

4%

55%

6%

14%

9%

3%

4%

1%

3%

2%

2%


Search Engine






Editorial websites

Video portals


51%

39%

37%

29%

24%

14%

12%

9%

6%

Online Research Funnel: Consumer Electronics

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased consumer electronics within the last 24 months and used online touchpoints in the research process on consumer electronics: initial research n=474, intense research n=317, final decision n=175

Search engines are the most frequently considered online source for starting and intensifying research on consumer electronics

Online Touchpoints

44%

38%

32%

37%

30%

13%

12%

9%

7%

13%

19%

15%

22%

11%

2%

3%

10%

4%

Intensive Research

Final Decision

Initial Research


Sales clerk in shop



Family members


Special magazines

Newspapers


Special books

Radio

Offline Research Funnel: Consumer Electronics

Offline Touchpoints

Consultancy from trustable sources (sales staff, friends & family) is crucial for preparing buying decisions on consumer electronics offline

Intensive Research

Final Decision

Initial Research

57%

26%

28%

23%

9%

18%

13%

7%

15%

6%

52%

41%

28%

27%

24%

18%

14%

13%

12%

9%

56%

6%

12%

12%

1%

3%

2%

1%

2%

2%


Search Engine





Video portals

Editorial websites



Online Research Funnel: Entertainment

Among the online sources search engines play an outstanding role throughout the whole path to purchase for entertainment products

Online Touchpoints

Intensive Research

Final Decision

Initial Research

49%

30%

26%

21%

19%

16%

15%

12%

11%

42%

23%

29%

24%

20%

12%

18%

12%

9%

21%

17%

16%

13%

11%

11%

3%

2%

4%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased entertainment products within the last 24 months and used online touchpoints in the research process on entertainment products: initial research n=416, intense research n=256, final decision n=163


Offline Research Funnel: Entertainment

Offline Touchpoints

Sales staff and information brochures create a first buzz; intensive research and final decision are driven by sales staff, family and friends

Intensive Research

Final Decision

Initial Research

Sales clerk in shop




Family members

Radio


Newspapers

Special magazines

Special books

37%

36%

31%

25%

21%

19%

19%

18%

17%

9%

34%

23%

32%

17%

24%

11%

10%

12%

10%

8%

44%

8%

12%

5%

18%

3%

1%

1%

3%

1%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision? Base: Respondents who purchased entertainment products within the last 24 months and used offline touchpoints in the research process on entertainment products: initial research n=332, intense research n=323, final decision n=279


Search Engine





Editorial websites

Video portals



Online Research Funnel: Garden Equipment

Search engines crucial for initial and intense research – for preparing final decisions online shops and comparison sites are most influential

Online Touchpoints

Intensive Research

Final Decision

Initial Research

45%

33%

32%

16%

12%

11%

10%

10%

8%

39%

27%

30%

22%

16%

11%

5%

8%

9%

14%

20%

21%

21%

12%

2%

5%

3%

2%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased garden products within the last 24 months and used online touchpoints in the research process on garden products: initial research n=299, intense research n=197, final decision n=111


Offline Research Funnel: Garden Equipment

Offline Touchpoints

The sales staff is the dominant information source for offline research on garden equipment - brochures and WOM contribute as well

Intensive Research

Final Decision

Initial Research

Sales clerk in shop



Family members

Special magazines


Newspapers


Special books

Radio

48%

37%

18%

18%

18%

14%

11%

10%

9%

6%

52%

34%

21%

24%

14%

8%

11%

7%

12%

5%

52%

10%

9%

13%

4%

1%

2%

3%

2%

2%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision? Base: Respondents who purchased garden products within the last 24 months and used offline touchpoints in the research process on garden products: initial research n=282, intense research n=259, final decision n=267


Search Engine






Editorial websites

Video portals


Online Research Funnel: Clothing & Accessories

Search engines and online shops are the predominantly used online sources in the path from research to purchase on clothing

Online Touchpoints

Intensive Research

Final Decision

Initial Research

42%

37%

33%

16%

11%

10%

9%

9%

9%

37%

31%

34%

20%

7%

15%

10%

5%

8%

16%

21%

23%

14%

3%

3%

5%

8%

6%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased clothing & accessories within the last 24 months and used online touchpoints in the research process on clothing & accessories: initial research n=463, intense research n=298, final decision n=169


Offline Research Funnel: Clothing & Accessories

Offline Touchpoints

Offline research on clothes starts in a shop or via brochures, family and friends gain importance for intensive research and decision making

Intensive Research

Final Decision

Initial Research

Sales clerk in shop



Family members


Special magazines

Newspapers


Special books

Radio

42%

41%

23%

22%

17%

16%

15%

11%

8%

7%

44%

9%

14%

18%

2%

4%

1%

2%

1%

1%

44%

30%

24%

24%

9%

17%

10%

6%

8%

3%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision? Base: Respondents who purchased clothing & accessories within the last 24 months and used offline touchpoints in the research process on clothing & accessories: initial research n=455, intense research n=395, final decision n=415


Search Engine





Editorial websites



Video portals

Online Research Funnel: Home Furnishings

High variety of online sources considered for information about furniture – search engines are the top source for initial and intense research

Online Touchpoints

Intensive Research

Final Decision

Initial Research

38%

37%

30%

22%

17%

12%

12%

9%

8%

33%

32%

32%

29%

21%

11%

13%

6%

12%

11%

21%

17%

20%

8%

2%

9%

2%

6%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision (e. g. choosing the product, the brand)? Base: Respondents who purchased home furnishings within the last 24 months and used online touchpoints in the research process on home furnishings: initial research n=254, intense research n=176, final decision n=101



Sales clerk in shop


Family members

Special magazines


Newspapers


Radio

Special books

Offline Research Funnel: Home Furnishings

Offline Touchpoints

Offline research on furniture starts with brochures and sales staff – sales staff most important for ongoing research and decision-making

Intensive Research

Final Decision

Initial Research

41%

39%

23%

22%

20%

19%

13%

12%

11%

6%

26%

46%

23%

23%

14%

10%

13%

9%

6%

8%

12%

42%

8%

22%

5%

2%

2%

2%

1%

1%

Q305: How did you first find out about the products / services you purchased in the last 24 months? Where did you start informing yourself? Q306a: And how did you collect intensive and deeper information about the products / services you purchased within the last 24 months? Q306b: How did you make your final decision? Base: Respondents who purchased home furnishings within the last 24 months and used offline touchpoints in the research process on home furnishings : initial research n=244, intense research n=230, final decision n=220


Wrap up Research Behaviour

1 High information needs across all categories: the majority of the shoppers research prior to purchase, online research widely spread with differing intensity

2 A variety of different information sources – online as well as offline sources – are considered in the single stages of the research process on retail products

3 Online sources are particularly strong in the initial as well as the intensive research phases – final decisions are predominately supported by offline sources

4 Among the online information sources search has an outstanding position ahead of other sources such as online shops, comparison sites and consumer reviews

5 Among the offline sources sales stuff and information brochures often create first awareness; trust (WOM with family & friends, sales staff) is driving final decisions

6 Online research impacts offline sales: the vast majority of the shoppers who researched online made their purchase offline (60-80% per category)


Management Summary

1 Offline shopping is the prevailing purchase method in the retail categories under analysis – however, visible growth potential for online in the future

2 Online research drives offline sales: online research prior to offline purchase is very popular across all categories (ROPO effect)

3 Accordingly presence in the online research process is crucial for relevance in the offline purchase process

4 In the online research process search is the dominant tool for initial and intensive research: search creates awareness and navigates to relevant sources

5 Presence on search engines enables presence in the online research process and subsequently relevance for the offline purchase


Business

Researching and-shopping-online-in-belgium research-studies