Research: Consumer Electronics ShopperPulse

In-store marketing plays an important role in improving customer satisfaction in the consumer electronics category, according to a ShopperPulse study commissioned by marketing agency The Integer Group.In an age when much of the "path to purchase" for big-ticket electronics takes place online and many consumers "know exactly what they want when they go to buy," the function of displays and signs often is one of assurance for -- rather than direct influence of -- the purchase decision, according to the study.That means manufacturers and retailers should develop P-O-P that clearly and concisely educates consumers about the product's benefits and how to use it properly. Effective displays can improve purchase satisfaction by nearly 300%, according to the study.Conducted in April 2007, the ShopperPulse study polled 618 consumers aged 21 and older who had made an electronics purchase in the past 90 days. Respondents' mix of gender, education, income and other characteristics were representative of national averages for category buyers. (Buyers in the electronics category tend to be more affluent and more often Caucasian than the general U.S. population, the study notes.)Due to the relatively high cost and technical complexity of many items, shopping for electronics requires more "preparatory work" than other consumer product categories, according to the study. In general, the more expensive the product, the more time consumers will devote to the process.For about 75% of respondents, the "path to purchase" began on the Internet, with the average person making three investigative trips but some conducting as many as 10. Manufacturer sites were visited most often, by 53% of respondents; retailer sites were used by 42%. But 42% also said they visited sites "recommended" by search engines. Men were more likely (53% vs. 41%) to visit manufacturer sites, while women were more likely (47% vs. 42%) to visit retailer sites.Correspondingly, women are also more apt to illustrate brand loyalty. They are more likely to begin the process by looking at all the choices available from a favored brand. Men, on the other hand, typically first identify the type of product they want, and then investigate all brands offering the features and benefits that they want.Despite the dominance of the Internet, nearly one-third of consumers visit retail as part of their fact-finding process, typically to see the product "in person" before buying it. The store visited to "see" the product isn't necessarily the same one in which it ultimately will be purchased. Women are more likely to visit a store (nearly one-third of men never do), and "big ticket" products like TVs and audio systems tend to drive visits more often.Dedicated electronics stores were far and away the destination of choice for these visits, with 48% of respondents making a trip there. Mass merchants were visited by about 24%, followed by warehouse clubs at 16%. Women were less likely to visit electronics stores and more likely to visit mass merchants.The ultimate purchase was made online only one-fourth of the time. Although they are willing to spend more time researching the purchase, consumers still want immediate gratification when they finally decide what to buy, according to the study. Another factor driving consumers to stores is the shipping charges generally associated with online purchases.Among the 75% of respondents who bought at a bricks-and-mortar location, 49% said they selected the store because it offered the lowest price on the product they had decided to buy. Almost one-third were influenced by a special offer or promotion. (For other criteria, see the Executive Summary attached at right.)Only 3.6% of the purchases on which respondents based their answers were identified as impulse buys, a product that they hadn't intended to buy during that specific store visit, according to Kim Menier, director of account planning at Integer. Women were more likely to make impulse purchases than men. Impulse purchases generally entail less expensive, ancillary products, such as video games or carrying cases for digital cameras.ImplicationsNearly half of consumers notice in-store promotional materials, according to the study. Menier posits that recall levels in the study were impressive considering that some of the purchases in question occurred nearly three months prior to the survey.But with so much of the path to purchase taking place online, the study implies that in-store marketing has less direct impact on big-ticket electronics purchase decisions than it does in other consumer product categories (or on less-expensive electronics items).But the role of in-store marketing in helping confirm the shopper's planned purchase is nearly as important, and its effect on purchase satisfaction is vital: Depending on the specific category, average return rates in the channel can be as high as 25%, according to various sources.To the first task, it is extremely important for in-store materials to be consistent with what is available about the product online and elsewhere, so that the purchase decision isn't negatively affected. "The experiences online and offline are intertwined, so you have to be consistent from place to place," said Menier. "Make certain that your primary message and offer are the same from place to place, and that there is consistency in 'feel,'" she said. That "helps consumers feel more confident about their purchase." Best Buy is "best in class" in maintaining consistency of message, she noted.As an example, Best Buy launched an "HD Done Right" informational campaign this fall after a study it commissioned found that 89% of consumers admit to having an incomplete understanding of the technology and 48% underestimate all the costs involved in purchasing an HDTV (such as the need to upgrade cable TV service). The effort is conducted both online and in stores.Enhancing customer satisfaction requires in-store materials that help buyers clearly understand the product's benefits and capabilities. It also should explain how to use the product "right out of the box" at home, Menier said. Employee training is also very important in this regard, Menier noted.Effective product displays also merchandise related accessories with the primary product, both to insure that buyers go home with all the necessary components and to drive impulse purchase, Menier said.The Integer Group collected the data internally using participants recruited from a national online panel generated by ZPro Marketing Tools. Analytics work was conducted by Polaris Market Research.

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