Vertical-Purchase Funnel Analysis

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    SwedenTechMedia Touchpoints in the Consumer Path to Purchase

    Date: Dec 2011

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    Agenda

    Methodology

    Purchase behaviour

    Research behaviour

    Summary

    2

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    MethodologyVertical Deep Dive Tech Sweden

    Target group: Internet user in Sweden, 14 years and older

    Sample: N=1,000 internet user

    Methodology:

    Online questionnaire

    Representative weighting by age, gender, education, income, frequency ofonline access, frequency of online purchase, usage of YouTube

    Period of analysis:

    Fieldwork: from November 11th to November 24th 2011

    Final report: December 8th, 2011

    Research company: TNS Infratest

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    Products under analysis

    The following report provides insights on the purchase and research

    behaviour in different product categories out of the Tech vertical

    TV(e.g. LED TV, LCD TV,Plasma TV, etc.)

    Home appliances(e.g. refrigerators, vacuum cleaners,

    washing machines, cookers, air-conditioning, irons, etc.)

    Computer hardware(e.g. desktop PCs, laptops, printers, etc.)

    Photo/Video(e.g. digital cameras, camcorders,

    digital photoframes, etc.)

    Mobile devices(e.g. mobile phones, smartphones,

    communicators, tablets, etc.)

    Audio & Video equipment(e.g. audio-systems, home theatresystems, MP3 and MP4 players, DVD-/Blu-ray players, etc.)

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    Purchase behaviour

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    Mobile Devices

    Home appliances

    Computer Hardware

    Photo/Video

    TV

    Audio & Video equipment

    13%

    9%

    9%

    4%

    7%

    4%

    11%

    8%

    9%

    6%

    4%

    18%

    16%

    13%

    10%

    12%

    9%

    16%

    10%

    12%

    13%

    10%

    9%

    58%

    43%

    42%

    34%

    33%

    27%5%

    Shopping in the past

    When did you last buy the following products?

    All respondents

    Significant purchase shares regardless of category more than half of

    the Swedish onliners bought mobile devices in the past 24 months

    Past 6 months Past 12 monthsPast 3 months

    On average 2categories were

    bought within the last24 months

    Q3: When did you last buy any products out these categories?Base (weighted): All respondents n=1,000; answer categories more than 24 months ago /never / Dont know not shown

    Past 24 months

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    Online

    Retailer web shop

    Producer web shop

    Online market place

    Online auctions

    Offline

    Mass retailer/hypermarket

    Producer store

    Specialized store/retailer

    Delivery service

    31%

    20%

    3%

    5%

    2%

    64%

    47%

    5%

    4%

    4%

    31%

    18%

    5%

    2%

    2%

    62%

    42%

    9%

    3%

    2%

    How did you make your latest purchase?

    Shopper of the past 24 months per category

    Place of last purchase

    Tech sales are driven by retailers: mass retailer stores (e. g. Mediamarkt)are across the board the most frequently chosen purchase channel,retailer web shops on 2nd position

    Q4:Thinking about the last time you made a purchase in each of the following product categories. How did you actually purchase? Base (weighted): Shopperper category: TV n=330; Audio/Video equipment n=273; Photo/Video n=341; PC hardware n=424; Mobile devices n=575; Home appliances n=432; answercategories Other online / Other offline / Dont know not shown

    PC

    hardware

    Photo/

    Video TVMobile

    devices

    Home

    appliances

    Audio/Videoequipment

    31%

    19%

    4%

    2%

    2%

    65%

    56%

    4%

    2%

    1%

    30%

    19%

    3%

    1%

    5%

    65%

    51%

    3%

    4%

    5%

    17%

    12%

    2%

    1%

    0%

    80%

    63%

    6%

    6%

    1%

    14%

    9%

    2%

    2%

    1%

    81%

    57%

    4%

    13%

    3%

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    PC/laptop at home

    Tablet PC

    Mobile/smartphone

    Laptop/netbook on the go

    Devices for online purchases

    Which devices have you already used in order to purchase online?

    Online shopper of the past 24 months

    Q9: Which of the following devices have you already used in order to make an online purchase?Base (weighted): Online Shopper n=301; answer category Don know not shown

    74% 27%

    3%27%

    More than one fourth of the online shoppers of the past 24 months

    have already used a mobile or smartphone to make an online purchase

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    Budget of last purchase

    5% 9%27% 16% 20%

    34%

    5%10%

    19% 41% 24%

    29%

    25%

    24%

    17%

    21%24%

    14%

    29%

    29%

    8%

    7%11%

    5%

    26% 20% 22%

    5%1% 3%

    How much did you spend on your latest purchase?

    Shopper of the past 24 months per category

    Q5: And how much money did you approximately spend? Base (weighted): Shopper per category: TV n=330; Audio/Video equipment n=273; Photo/Videon=341; PC hardware n=424; Mobile devices n=575; Home appliances n=432; answer categories Dont know not shown

    7.500 SEK and more

    5.000-7.499 SEK

    2.500-4.999 SEK

    1.000-2.499 SEK

    less than 1.000 SEK

    PC

    hardware

    Photo/

    VideoTV

    Mobile

    devices

    Home

    appliancesAudio/Video

    equipment

    TV sets, PC Hardware and Home appliances are the categories with

    the highest average spendings in the past 24 months

    6,100 SEK 2.300 SEK 2.900 SEK 5.800 SEK 2.700 SEK 5.700 SEK

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    Mobile Devices

    Computer Hardware

    TV

    Home appliances

    Audio & video equipment

    Photo/Video

    21%

    19%

    17%

    16%

    10%

    10%

    24%

    20%

    15%

    20%

    21%

    16%

    22%

    32%

    21%

    26%

    31%

    38%

    52%

    37%

    46%

    53%

    54%

    46%

    Shopping within the next 12 months

    Somewhat likelyVery likely

    Do you plan to buy tech productsin the next 12 months?All respondents

    How likely is it that youll makeyour purchase online?Purchase intender

    31% dont plan any techpurchase in the next 12 months

    Q10: Do you plan to buy any products out of the following product categories within the next 12 months? Q11: How likely is it that you will make your purchase(s)online? 5-point-scale: (1) Very likely (5) Very unlikely; Base (weighted): All respondents n=1,000/ Purchase intender: Mobile Devices n=213; PC Hardwaren=193; Home appliances n=158; TV n=172; Photo/Video n=101; Audio&Video equipment n=104

    69% of the Swedish onliners plan a tech purchase in the next 12months. Highest purchase intention for mobile devices more than onethird of the purchase intenders per category plan to purchase online.

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    Replacement of my

    old product

    I looked for new

    features

    I didnt have thisproduct previously

    New product to the

    market

    Change of brand

    TV

    Audio & Videoequipment

    Photo/Video

    PC hardware

    Mobile devices

    Home appliances

    Triggers for Purchase

    Shopper of the past 24 months per category

    Triggers for purchase

    Q6: Which of the reasons listed below best represents your motivation for making your latest purchase? Base (weighted): Shopper per category: TV n=330; Audio/Videoequipment n=273; Photo/Video n=341; PC hardware n=424; Mobile devices n=575; Home appliances n=432; answer categories Other / No answer not shown

    0% 20% 40% 60% 80% 100%

    Replacing old with new and more advanced products is the dominant

    motive for tech purchases buying products not owned so far mostlikely in the categories audio and video equipment or photo and video

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    It is available 24 hours and 7 days a week Convenience

    Large and complete assortment Assortment/Clarity

    Easier to compare prices Prices/Payment

    Lower prices than offline Prices/Payment

    Presence of customer reviews from other people PersonalAdvice

    Special promotions online Prices/Payment

    No long queues like in the store / supermarket Convenience

    It is fast and it is a gain of time Convenience

    Easier to compare products Convenience

    You can shop from anywhere Convenience

    49%

    45%

    43%

    42%

    37%

    37%

    36%

    36%

    34%

    32%

    Drivers for buying online

    Drivers for buying online - Top 10

    All respondents

    Convenience and assortment advantages are the most frequentlystated reasons for buying online apart from this obviously pricecomparison and good pricing in general are important aspects as well

    Q7: What are from your perspective reasons for buying products on the internet? Base (weighted): All respondents n=1,000

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

    Recommendation/ expertise of a salesperson is appreciated Personal Advice

    I dont want to pay for delivery Prices/Payment

    I dont trust online payment Prices/Payment

    Security concerns in general Convenience

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

    Im used to buy those things in a store Convenience

    I want to try the product before I buy it Convenience

    Range is very high so its too complicated to find my products Assortment/Clarity

    I cannot return the product if Im not satisfied Convenience

    44%

    40%

    25%

    24%

    23%

    22%

    22%

    18%

    17%

    14%

    The lack of physical product experiences as well as the need for personal

    consultancy are clearly the main barriers constraining online purchase

    Barriers for buying online

    Barriers for buying online - Top 10

    All respondents

    Q8: What are from your perspective reasons for NOT buying products on the internet? Base (weighted): All respondents n=1,000

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    Have you ever commented on a product online?

    All respondents

    Product promotion online

    One third of the onliners have already communicated about products

    on the internet liking products on facebook is most popular

    Liking it on facebook21%

    Becoming a fan of a product /brand on facebook13%

    Writing a review on a reviewor comparison site

    Tweeting the product2%

    Following a product / brandon twitter

    2%

    Yes33%

    No67%

    13%

    Q14: Have you ever promoted a product online by ? Base (weighted): All respondents n=1,000

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    Clear return options

    Existence of a phone number

    Clear after-sales services

    Availability of all relevant contact details

    Usability / ease of use of the websitePresence of well-known, trustable brands

    Seals of approval and quality

    Speed of delivery

    Wide range of products

    There is a physical address in Sweden

    Free shipping costs

    Consumer reviews and comments

    Availability of special online offers

    Real life recommendations

    Internet recommendations

    Presence of offline stores nearby

    The local domain name is .se

    Fun on the website: presence of videos & games

    Characteristics of an online shop

    How important are the following features of online shops for you?All respondents

    0% 20% 40% 60% 80% 100%

    Q13: How important are the following characteristics of online shops for you? On a 5-point scale from 1-very important to 5-very unimportant.Base (weighted): All respondents n=1,000

    Top 2: very important and importantcharacteristics of e-shops

    Designing comprehensive customer services (clear return options and after-sales service, offline contact details) is a core factor for successful online shops trust building (brands, quality seals) contributes too

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    Wrap up purchase behaviour

    1

    In the past 24 months Swedish onliners purchased on average in two tech

    categories mobile devices are most popular in this respect and were bought by

    every second onliner.

    2Online purchase is an established purchase method across all tech categories.

    Retailer websites are the 2nd most important channel for tech purchases only

    retailer stores score better in this respect.

    3

    Online will rise its importance as a sales channel: every second purchase

    intender in the categories computer hardware, photo/video, audio and videoequipment states that it is likely that he will make his next purchase online.

    4Mobile commerce somewhat established as well: 27% of the onliners who

    bought tech products online in the past 24 months have already made a

    purchase via smartphone this equals about 8% of all onliners.

    5Enhancing online product experiences and online product presentations in

    combination with giving relevant product advice or category recommendationscan contribute in order to further push online as a sales channel.

    6Comprehensively designed customer services (clear return options, after-sales

    services, availability of offline contadct details), user-friendly navigation and

    trust-building (brands presence) are core factors for successful online shops.

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    Research behaviour

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    Computer hardware

    TV

    Photo/video

    Audio & video equipment

    Home appliances

    Mobile devices

    General research behaviour

    Q15: How often do you inform yourself about products out of the following categories before you decide to buy? Q16: And how often do you use the internet to inform yourselfbefore you buy products out of the following categories? Base (weighted): Shopper per category: TV n=330; Audio/Video equipment n=273; Photo/Video n=341; PC hardwaren=424; Mobile devices n=575; Home appliances n=432; answer categories Seldom / Never / Dont know not shown

    Almost every shopper of the past 24 months researched prior to purchase

    and the vast majority used the internet as an information sourceDid you use the internet forpre-purchase research?Shopper of the past 24 months

    Did you research prior toyour latest purchase?Shopper of the past 24 months

    90%

    89%

    87%

    86%

    86%

    86%

    86%

    79%

    78%

    81%

    80%

    81%

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    Computer hardware

    TV

    Photo/video

    Audio & video equipment

    Home appliances

    Mobile devices

    86%

    79%

    78%

    81%

    80%

    81%

    ROPO effect visible: across all categories the majority of the online

    researchers made their subsequent purchase offline

    Where did you buy?Shopper who researched online

    Did you use the internet forpre-purchase research?Shopper of the past 24 months

    Research onlinepurchase?

    Q16: And how often do you use the internet to inform yourself before you buy products out of the following categories? Base (weighted): Shopper per category: TV n=330;Audio/Video equipment n=273; Photo/Video n=341; PC hardware n=424; Mobile devices n=575; Home appliances n=432; answer categories Seldom / Never / Dont know notshown Q4: Thinking about the last time you made a purchase in each of the following categories. How did you actually purchase them? Base (weighted): TV n=262; Audio/Videoequipment n=221; Photo/Video n=267; PC hardware n=363; Mobile devices n=466; Home appliances n=345; answer category Other / Dont know not shown

    34%

    19%

    32%

    32%

    16%

    34%

    63%

    79%

    63%

    63%

    81%

    60%

    Online

    Offline

    19

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    PC/laptop at home

    Tablet PC

    Mobile/smartphone

    Laptop/netbook on the go

    Mobile research receives already significant shares one out of four

    online researchers used a mobile device for pre-purchase research

    85% 24%

    4%25%

    Channels online search

    Which devices did you use for researching product information online?

    Shopper of the past 24 months who researched online

    Q17: Youve stated that you at least sometimes use the internet to inform yourself about products out of the following categories . Which of the following devices did you use forgetting product information on the internet? Base (weighted): Researchers in one of the product categories, at least sometimes n=700; answer category Dont know not shown

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    TV

    Audio & Video equipment

    Photo/Video

    Computer hardware

    Mobile devices

    Home appliances

    Base: Respondents who purchased in the categories within the last 24 months and used online or offline touch points in the research process; TV n=330; Audio/Video equipmentn=273; Photo/Video n=341; PC hardware n=424; Mobile devices n=575; Home appliances n=432

    53%

    59%

    56%

    61%

    58%

    51%

    45%

    37%

    43%

    46%

    48%

    47%

    68%

    68%

    68%

    78%

    70%

    65%

    60%

    52%

    56%

    56%

    56%

    60%

    offline touch points used in the respective stage of research funnel

    24%

    33%

    28%

    28%

    26%

    28%

    55%

    41%

    52%

    50%

    52%

    49%

    online touch points used in the respective stage of research funnel

    Research funnel:Online vs. offline search

    Research funnel

    Shopper last 24 months per category

    Intensive research Final decisionInitial research

    Online sources are used for initial and intense research prior to purchase

    when it comes to decision-making offline information gains importance

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedTV within the last 24 months and used online touch points in the research process: initial research n=226, intensive research n=173, final decision n=80

    Website of retailer/ distributor

    Product or price comparison sites

    Search Engine

    Website of contractor/ brand manufacturer

    Consumer reviews on the internet

    Newsletter

    Online blogs/ online forums

    Video portals (e.g. YouTube)

    Social networking

    Online research funnel: TV

    O

    nlinetouchpo

    ints

    Intensive Research Final DecisionInitial Research

    Retailer websites, comparison sites and search engines are the mostfrequently used sources in the online research process on TV sets

    54%

    46%

    37%

    25%

    24%

    7%

    6%

    4%

    3%

    41%

    29%

    29%

    21%

    24%

    7%

    3%

    3%

    5%

    35%

    24%

    9%

    10%

    8%

    1%

    4%

    3%

    7%

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    Sales person

    Friends/ colleagues

    Family members

    Display in store

    Advert in newspaper/ magazine

    Article in newspaper/ magazine

    TV advert

    Radio program

    Radio advert

    TV program

    Billboard

    Offline research funnel: TV

    Offlinetouchpoints

    Professional in-store consultancy with the sales staff is by far thedominant and most important offline research source on TV sets

    Intensive Research Final DecisionInitial Research

    52%

    29%

    24%

    19%

    18%

    12%

    8%

    5%

    5%

    4%

    2%Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedTV within the last 24 months and used offline touch points in the research process: initial research n=198, intensive research n=149, final decision n=181

    58%

    17%

    26%

    17%

    15%

    10%

    6%

    4%

    2%

    4%

    4%

    51%

    8%

    23%

    6%

    5%

    1%

    1%

    0%

    1%

    0%

    2%

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchased

    Audio&Video equipment within the last 24 months and used online touch points in the research process: initial research n=187, intensive research n=161, final decision n=91

    Website of retailer/ distributor

    Search Engine

    Product or price comparison sites

    Consumer reviews on the internet

    Website of contractor/ brand manufacturer

    Newsletter

    Online blogs/ online forums

    Video portals (e.g. YouTube)

    Social networking

    Online research funnel:Audio & Video equipment

    O

    nlinetouchpoints

    Intensive Research Final DecisionInitial Research

    Various sources in use for online research on audio & video equipmentwith retailer websites and search engines in the lead

    53%

    45%

    38%

    31%

    28%

    12%

    11%

    7%

    4%

    37%

    36%

    30%

    23%

    29%

    6%

    11%

    10%

    5%

    22%

    13%

    22%

    16%

    10%

    3%

    9%

    1%

    4%

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    Sales person

    Friends/ colleagues

    Article in newspaper/ magazine

    Family members

    Advert in newspaper/ magazine

    Display in store

    TV advert

    Billboard

    TV program

    Radio program

    Radio advert

    Offline research funnel:Audio & Video equipment

    Offlinetouchpoints

    Word-of-Mouth either professional with a sales person or with family and friends isthe core offline information source on audio/video equipment

    Intensive Research Final DecisionInitial Research

    44%

    30%

    23%

    22%

    21%

    19%

    11%

    11%

    8%

    6%

    5%

    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchased

    Audio&Video equipment within the last 24 months and used offline touch points in the research process: initial research n=143, intensive research n=100, final decision n=112

    57%

    30%

    20%

    24%

    16%

    15%

    8%

    9%

    12%

    6%

    7%

    45%

    16%

    0%

    27%

    4%

    4%

    0%

    0%

    0%

    2%

    3%

    25

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedPhoto/Video within the last 24 months and used online touch points in the research process: initial research n=233, intensive research n=189, final decision n=95

    26

    Product or price comparison sites

    Website of retailer/ distributor

    Search Engine

    Consumer reviews on the internet

    Website of contractor/ brand manufacturer

    Online blogs/ online forums

    Video portals (e.g. YouTube)

    Social networking

    Newsletter

    2626

    Online research funnel: Photo/Video

    O

    nlinetouchpoints

    Intensive Research Final DecisionInitial Research

    Comparison and retailer websites are the top online sources for researchon photo/video, search engines leading to them are quite strong as well

    48%

    46%

    41%

    29%

    22%

    13%

    8%

    5%

    5%

    39%

    34%

    32%

    27%

    30%

    9%

    6%

    3%

    5%

    28%

    25%

    15%

    12%

    11%

    4%

    2%

    0%

    2%

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    Sales person

    Friends/ colleagues

    Family members

    Advert in newspaper/ magazine

    Display in store

    Article in newspaper/ magazine

    Radio advert

    TV advert

    Billboard

    TV program

    Radio program

    Offline research funnel: Photo/Video

    O

    fflinetouchpoints

    Intensive Research Final DecisionInitial Research

    44%

    35%

    29%

    26%

    23%

    13%

    9%

    7%

    6%

    5%

    2%Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedPhoto/Video within the last 24 months and used offline touch points in the research process: initial research n=190, intensive research n=145, final decision n=177

    57%

    30%

    23%

    10%

    20%

    9%

    7%

    6%

    5%

    3%

    7%

    51%

    14%

    25%

    0%

    4%

    2%

    2%

    0%

    2%

    0%

    0%

    WOM is the most important offline source: either professional or withfriends/family. In-store displays + print ads contribute for initial research

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedComputer hardware within the last 24 months and used online touch points in the research process: initial research n=329, intensive research n=257, final decision n=117

    Website of retailer/ distributor

    Product or price comparison sites

    Search Engine

    Consumer reviews on the internet

    Website of contractor/ brand manufacturer

    Online blogs/ online forums

    Newsletter

    Social networking

    Video portals (e.g. YouTube)

    Online research funnel:Computer Hardware

    O

    nlinetouchpo

    ints

    Intensive Research Final DecisionInitial Research

    Retailer and comparison sites together with search engines are the coreonline information sources on computer hardware

    48%

    47%

    40%

    25%

    24%

    8%

    8%

    4%

    4%

    37%

    37%

    37%

    27%

    26%

    9%

    8%

    3%

    8%

    35%

    17%

    13%

    12%

    12%

    5%

    2%

    3%

    1%

    28

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    Sales person

    Friends/ colleagues

    Family members

    Advert in newspaper/ magazine

    Display in store

    Article in newspaper/ magazine

    TV advert

    Radio advert

    TV program

    Billboard

    Radio program

    Offline research funnel:Computer Hardware

    O

    fflinetouchpoints

    Intensive Research Final DecisionInitial Research

    51%

    39%

    30%

    20%

    15%

    13%

    8%

    6%

    4%

    4%

    3%Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedComputer hardware within the last 24 months and used offline touch points in the research process: initial research n=235, intensive research n=194, final decision n=212

    54%

    30%

    25%

    14%

    10%

    17%

    5%

    3%

    9%

    8%

    7%

    49%

    17%

    24%

    3%

    2%

    1%

    0%

    0%

    2%

    0%

    1%

    Both offline research and decision making on computer hardware isstrongly influenced by in-store consultancy from sales persons

    29

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedMobile devices within the last 24 months and used online touch points in the research process: initial research n=403, intensive research n=334, final decision n=150

    Website of retailer/ distributor

    Product or price comparison sites

    Search Engine

    Consumer reviews on the internet

    Website of contractor/ brand manufacturer

    Newsletter

    Online blogs/ online forums

    Video portals (e.g. YouTube)

    Social networking

    Online research funnel: Mobile Devices

    O

    nlinetouchpo

    ints

    Intensive Research Final DecisionInitial Research

    Various sources in use for online research on mobile devices retailerand comparison sites as well as search engines are most relevant

    43%

    42%

    41%

    32%

    28%

    8%

    7%

    5%

    3%

    33%

    37%

    36%

    29%

    28%

    4%

    6%

    5%

    3%

    21%

    24%

    14%

    12%

    20%

    1%

    5%

    2%

    0%

    30

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    Sales person

    Friends/ colleagues

    Family members

    Advert in newspaper/ magazine

    Display in store

    Article in newspaper/ magazine

    TV advert

    Billboard

    TV program

    Radio advert

    Radio program

    Offline research funnel: Mobile Devices

    O

    fflinetouchpoints

    Intensive Research Final DecisionInitial Research

    50%

    32%

    29%

    20%

    18%

    16%

    9%

    8%

    4%

    4%

    3%Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedMobile devices within the last 24 months and used offline touch points in the research process: initial research n=322, intensive research n=276, final decision n=298

    58%

    25%

    25%

    13%

    5%

    12%

    5%

    5%

    6%

    2%

    5%

    54%

    12%

    21%

    2%

    3%

    1%

    1%

    2%

    2%

    0%

    1%

    Among the offline information sources personal consultancy from salesstaff plays an outstanding role throughout the path to purchase for TV sets

    31

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    Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedHome appliances within the last 24 months and used online touch points in the research process: initial research n=283, intensive research n=219, final decision n=119

    Website of retailer/ distributor

    Product or price comparison sites

    Search Engine

    Consumer reviews on the internet

    Website of contractor/ brand manufacturer

    Online blogs/ online forums

    Newsletter

    Video portals (e.g. YouTube)

    Social networking

    Online research funnel: Home appliances

    Onlinetouchpoints

    Intensive Research Final DecisionInitial Research

    Search engines play a major role for initial and intensive research on homeappliances, for decision-support retailer and comparison sites are strong

    49%

    45%

    42%

    24%

    20%

    6%

    5%

    4%

    3%

    35%

    40%

    36%

    26%

    24%

    6%

    4%

    4%

    1%

    28%

    27%

    12%

    13%

    9%

    4%

    2%

    4%

    0%

    32

    Off f

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    Sales person

    Advert in newspaper/ magazine

    Family members

    Friends/ colleagues

    Display in store

    Article in newspaper/ magazine

    TV advert

    Radio advert

    Billboard

    TV program

    Radio program

    Offline research funnel: Homeappliances

    Offlinetouchpoi

    nts

    Professional consultancy is the top source in the offline researchprocess on home appliances, family members impact decision-making

    Intensive Research Final DecisionInitial Research

    46%

    29%

    23%

    21%

    20%

    15%

    7%

    4%

    4%

    3%

    3%Q18: Where did you start informing yourself about the products you purchased in the last 24 months? Q19: And how did you collect intensive and deeper information about theproducts you purchased in the last 24 months? Q20: How did you make your final decision (choosing the brand and the product)? Base (weighted): Respondents who purchasedHome appliances within the last 24 months and used offline touch points in the research process: initial research n=259, intensive research n=204, final decision n=211

    61%

    15%

    16%

    14%

    13%

    11%

    5%

    3%

    4%

    1%

    4%

    52%

    6%

    28%

    7%

    4%

    2%

    0%

    0%

    0%

    1%

    1%

    33

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    Wrap up research behaviour

    1High information needs in the tech vertical: the vast majority of the shoppers

    research prior to purchase and almost every shopper uses the internet as a

    research source regardless of category.

    2 Online research impacts offline sales: across the board 60% (or more) of theshoppers who researched online made their purchase offline (ROPO effect).

    3Along the path from research to purchase online sources are particularly strong

    for starting and intensifying research on tech products whereas final decisions are

    predominantly supported by offline sources.

    4 In comparison with offline sources in use for pre-purchase research onlineinformation sources are used on a higher level of variety.

    5

    Among the various online sources retailer websites, comparison sites as well as

    search engines are predominantly used ahead of other sources such as

    consumer review or manufacturer sites . Among the offline sources it is primarily

    in-store consultancy or WOM with friends and family that contributes in the

    research process.

    6Stationary internet is still the most common device for online research. However,

    mobile research share already established with about 24% of the online

    researchers having used a smartphone for researching.

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    35

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    Summary

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    Management summary

    1

    Online purchase is an established purchase method in the tech vertical with retailerwebsites being the 2nd most important channel for tech purchases. However, overall

    offline purchase is still the predominantly chosen purchase method with retailer stores inthe lead.

    2Mobile commerce already with significant spread: about one fourth of the onliners who

    bought tech products online in the past 24 months have already made a purchase via

    smartphone this equals about 8% of all onliners.

    3

    Online research highly relevant in all product categories: 8 out of 10 tech shoppers of the

    past 24 months used the internet for pre-purchase research. For starting and intensifying

    research on tech products online information sources are clearly first choice and already

    outpacing offline sources.

    4 Online research drives offline sales: across the board 60% (or more) of the shoppers whoresearched online made their purchase offline (ROPO effect).

    5Search engines are among the top frequently used sources for the actual online research

    process with Google being clearly the most frequently used search engine. Almost half ofthe search engine users remember having clicked on ads on search and more than one

    third made a purchase as a result.

    6 Accordingly presence on search engines enables presence in the online research processand subsequently relevance for the offline purchase.3