Everywhere Commerce Consumer Study

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsTABLE OF CONTENTS3 SUMMARY OF FINDINGS6 RECOMMENDATION7 DETAILED FINDINGS24 ABOUT RESOURCE©2011 Resource Interactive. All rights reserved. 2

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsSUMMARY OF FINDINGSEverywhere Commerce is undergoing exponential growth and rapid transformation and is anempirically observable phenomenon. Yet, like so many macrotrends, the consumermotivations and attitudes for embracing it wholeheartedly are less knowable than the varioustechnologies that make it feasible.To learn more about the Everywhere Commerce consumer, Resource Interactive conducted astudy from August 24 through September 9, 2011. We tested for consumers’ awareness andreceptivity to shopping in new digital contexts, specifically via Facebook, video (YouTube) anddisplay advertising. We also researched the specific inducements to shop in new formats, theobstacles to it, and whether early adopter attitudes about Everywhere Commerce—ifenthusiastic—could be perceived as a bellwether for more mainstream consumer adoption ofthe trend.OBJECTIVETo test consumer awareness and receptivity to shopping via Facebook, video (YouTube) ordisplay advertising, three relatively new “shopportunities” or digital shopping contextsbeyond the ecommerce site that comprise “Everywhere Commerce.” Specifically, we wantedto learn: – Amidst the growing instances of Everywhere Commerce in the marketplace, are consumers really ready for it? – How aware of these new shopping contexts are they? – What would induce consumers to embrace new shopportunities? – What would prevent them from doing so? – Do early adopters differ significantly from the general population in their awareness of and interest in Everywhere Commerce?METHODOLOGYFollowing a secondary research review, we surveyed over 4465 U.S. consumers: 3451 onlineconsumers and 1014 “early adopters” ages 13-plus. All respondents must have at leastshopped/browsed online within the past three months, but did not have to have purchasedonline to qualify. Early adopters met the following criteria: – Owns a smartphone – Had heard of Google+ – Regularly uses smartphone for at least 7 of 14 representative activities, e.g., use of location-based services, use of shopping and/or planning apps – Had to at least ‘agree’ with 5 attitudinal statements, with at least 1 being ‘strongly agree’ (9 statements such as: “I frequently upload text, photos, videos or other things I want to share on social or sharing sites like Facebook, Twitter, YouTube” and “People often ask my advice about new websites, applications, or software”)©2011 Resource Interactive. All rights reserved. 3

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsRespondents self-selected into a category of preference—Apparel, Consumer Goods or self- preference—Electronics. When apparel and electronics had sufficient respondents, the remaining wereassigned to Consumer Goods, provided they had shopped online in thecategory. Respondents were then randomly split into three groups and exposed toaudiovisual commerce prototypes within one of the following touch points: Social(Facebook), Video (YouTube), or Display Advertising.KEY FINDINGS“Early adopters,” a concept defined in Everett M. Rogers’ seminal Diffusion of Innovations,are a very important consumer segment for Everywhere Commerce—the increasing variety ofdigital shopping contexts that include mobile phones and tablets, Facebook, video anddisplay advertising. As bellwethers for eventual general population adoption of trends, theirfavorable responses indicate that a company or brand’s investment in Everywhere Commerceis highly advisable. – Early adopters were twice as likely as general population participants to “realistically see” themselves “purchasing using a mobile phone in 2012 for purchasing phone” electronics, apparel or consumer goods. – In terms of product categories, seven out of ten early adopters could see themselves buying electronics, while 67% and 69% of the early adopters self- predict buying apparel and consumer goods via mobile phone next year, respectively.A minimum of 20% of general population consumers across the electronics, apparel andconsumer goods categories reported that they are open to and believe they will buy via anon-traditional touch point including display advertising, video and Facebook over the nextyear. – Close to 4 out of 10 general population consumers believe they’ll purchase apparel via display advertising next year—the highest score among the four shopping contexts—mobile, Facebook, display, video. – Nearly 35% of general population consumers believe they’ll shop electronics and consumer goods via mobile next year. – Both mobile and display ad shopping outranked Facebook shopping in all three product categories when general population consumers predicted where they’d purchase in 2012.©2011 Resource Interactive. All rights reserved. 4

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsConsumer purchasing propensity was driven by several factors: – The top-ranked reason across product categories was receiving a discount the top- consumer could not find elsewhere. – The ability to access ratings & reviews for electronics and being offered a product not available elsewhere for electronics was in the top four inducements to purchase. – The contextual relevance of a shopportunity specifically when reading about a product in a news article or blog is a strong inducement to buy for early adopters. When shopping apparel or electronics, a full 75% of early adopters agree they’d be interested in purchasing when they read about it in an article or blog relevant to what they were reading/viewing on the content page. The 75% was also statistically significantly more likely than other situations tested (e.g., when seen in an online ad, in a YouTube video, or on Facebook.) – The social-related offers, such as the ability to post the product under consideration on Facebook to solicit feedback, were consistently rated lowest by both early adopters and general population participants for all touch points. These social incentives rated the lowest in display ads, likely because it is the least “social” of the touch points.Barriers to adoption of Everywhere Commerce exist in the form of concerns over security andprivacy. – General population respondents were consistently more likely to indicate they would feel secure if the transaction were completed out of platform, meaning at the retailer’s site. At least directionally and often statistically significantly early adopters were more likely to feel secure across touch points, reaching as high as 81% for apparel display ads. – Facebook, interestingly, was consistently least likely to be considered secure Facebook relative to video and display ad commerce. – Privacy fared only slightly better than security. Across categories and touch points, respondents showed signs of concern about their ability to manage their privacy settings. Facebook scored lowest relative to the other touch points for apparel and consumer goods shoppers For electronics shoppers, display shoppers. ad shopping within the touch point received similar levels of agreement to Facebook in terms of privacy. – All respondents acknowledged the potential convenience factor of in-platform transactions. Interestingly, when asked about convenience immediately after seeing either in- or out-of touch point examples, consumers were fairly equal in their likelihood to agree that the option would be convenient – with a slight bias for in-touch point transactions in apparel and CG, and a similar bias for out of touch point in electronics.©2011 Resource Interactive. All rights reserved. 5

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsRECOMMENDATIONSIn order to take advantage of consumers’ receptivity to Everywhere Commerce—and theconsequent new revenue possibilities, marketers need to do several things: – They need to ensure and market security and privacy across touch points as they do on ecommerce sites. Using a commerce application like Resource Interactive’s DCPSM, retailers can then create explicit messages assuring consumers that regardless of the touch point they are in, their transaction is being handled securely through the retailer’s website. Most consumers believed the VeriSign was the element most assuring of a safe place to transact, with transact https (Hypertext Transfer Protocol Secure) also faring fairly well as an element ensuring their purchase safety. – They should raise awareness of Everywhere Commerce opportunities via advertising first and foremost When respondents were asked how brands foremost. could raise awareness of the ability to buy, advertising was the top response, though 21% of respondents cited a “shop now” call to action for display ads. – They need to reconceive of their online ads as close-the-sale opportunities, rather than merely as brand equity building pre-commerce expenditures. According to eMarketer, online ad spending is expected to reach $31 billion in 2011 and continue high single digit growth through 2015. A good portion of this investment could be immediately recouped by making ads ecommerce-enabled. – They need to show consumers how a complete commerce interaction works in each touch point. This is because all respondents were significantly more likely to indicate that they would try Facebook commerce or video commerce after being shown how an interaction would occur. – Adopt a posture of launch-and-learn using dynamic, scalable solutions while presenting multiple experiences in the marketplace simultaneously. This provides the ability to gain traction quickly and allows for optimization of the experience that produces the best results in real time. – They should focus on targeting early adopters through contextually relevant ads and with incentives to shop appropriate to the touch point and category.We are fully engaged in leading our clients through the rapidly changing EverywhereCommerce landscape—from understanding consumer motivators to the strategy andexecution of connected brand commerce experiences—and we are committed to pushing ourclients ahead of the curve and in front of the next trend. This research along with theupcoming releases of detailed findings for the consumer electronics and apparel categoriesare part of an ongoing series that address Everywhere Commerce which can be found on oursite, in our social streams and the weThink Blog. We are also looking at this topic by involvingour clients, partners and other industry experts to see how they are approaching thechallenges ahead. Watch the highlights reel from our iCitizen Everywhere Commerce: FromShareable to Shoppable Moments Symposium to learn more about they are thinking.©2011 Resource Interactive. All rights reserved. 6

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsDETAILED FINDINGSNote on Methodology and Detailed FindingsRespondents were split into three (3) groups, based on self-selecting into a relevant category– Apparel, Consumer Goods, or Electronics. The following detailed findings includesresponses to questions that were asked of the entire survey sample, where applicable, butfocuses primarily on the responses of the subset that was exposed to Consumer Goods stimuli(970 Online Consumers + 243 “Early Adopters”).©2011 Resource Interactive. All rights reserved. 7

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsDETAILED FINDINGSAwareness - Gauge Consumers ’ Awareness of Purchasing Opportunities Consumers’The survey results indicate a surprising level of reported awareness overall, althoughqualitative research suggests that consumers consider a link from a distributed commercetouch point to a traditional ecommerce site to qualify as “making a purchase.”Early Adopters reported significantly higher awareness than general Online Consumers did ofdistributed commerce across all touch points.Generationally, there was statistically no difference in awareness, with the exception beingBoomers who were significantly less likely to indicate awareness of commerce in Facebook,Online Video and Twitter.Q. Before this survey, were you aware that it could be possible to make purchases from thefollowing places online? (Asked post-exposure to commerce prototypes to all respondents) 100% 77% 80% 66% 63% 60% 46% 43% 40% 29% 27% 16% 20% 0% Online Facebook Video Twitter Advertising Online Consumer (n=3451) EA (n=1014) Numbers in red indicate statistically significant difference from comparison bar a b c d Gen Z Millennials Gen X Boomers Online Advertising 67% 69% 68% 68% Facebook 53% d 55% d 50% d 38% abc Online Videos 38% d 35% d 30% 25% ab Twitter 18% 20% d 19% d 12% bc n=315 n=2072 n=1166 n=914 Note: Letters indicate significant difference between that cell and the letter’s corresponding cell in the same row.©2011 Resource Interactive. All rights reserved. 8

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Awareness – How to Raise Awareness? After respondents had been shown an example of being able to purchase from a non- traditional ecommerce experience, they were asked to weigh in on what methods would be effective in making them more aware of the option. Respondents claimed that some of the most familiar methods of driving awareness—most notably advertising of various forms—would be an effective way of driving awareness of distributed commerce opportunities. Q. How could the retailer make it more apparent to you that you could shop from [insert touch point]? (Asked post-exposure of all respondents relative to initial concept shown)Facebook Video Display Adsn=1527 n=1467 n=146823% advertisement 17% notification 28% it’s apparent21% FB ad 14% advertisement 23% webpage/style17% website ad 11% intro/conclusion 21% “shop now”16% layout 8% aesthetics 17% obvious messaging stating that you can shop14% security 8% banner ad/pop-up 14% security11% discount 8% descriptive title 10% webpage/banner, graphic, or pop-up10% emails 7% incentives 7% price 7% more info 7% discount 7% advertisementNote: Question was open-ended – not a Likert-scaled response. Results are based on text-analytic aggregation ofsimilar responses/themes. Facebook n=1520 ©2011 Resource Interactive. All rights reserved. 9

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsTrial – Pre-Exposure Interest Pre-Many tactics are at the marketer’s fingertips for driving desired consumer behaviors – fromoffering discounts to consumers who ‘like’ your brand on Facebook to providing theconvenience of instant gratification by providing a “buy it now” option.In order to better understand how consumers feel about these various tactics, we asked fortheir agreement to a series of attitudinal statements, prior to being exposed to our prototypeexamples.Tactics were not parallel across though points, but when we look at tactics in terms of generalthemes some patterns emerge. – While it’s not surprising that consumers, both Early Adopters and Online Consumers are primarily motivated by discounts, exclusivity was also an appeal option. – While options in display media were limited to convenience, all convenience offers received a majority of respondents’ agreement with nearly three-fourths of Early Adopters reporting agreement, suggesting the general appeal of the offers. Facebook n=1520©2011 Resource Interactive. All rights reserved. 10

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Trial – Pre-Exposure Interest in Facebook Pre- Early Adopters indicated an extremely high level of interest in ‘liking’ a brand for discounts or exclusive products. Three-quarters would purchase directly on Facebook instead of the store for special discounts. Although the general population of online shoppers reported significantly lower interest in all Facebook options, half would ‘like’ a brand for discounts or exclusive products. Interestingly, the social value of social media did not rise to the top of options that could be offered. Q. Now we’d like to explore some of your attitudes toward different shopping options that could be made available to you online. For each of the following statements, please rate your level of agreement. CG CG Online EA Consumer Theme n =318 n =104I would "like" a brand/company/retailer on Facebook in order to get discounts Discount 57% 91%I would "like" a brand/company/retailer on Facebook in order to get access to Exclusivity 50% 82%exclusive productsI would buy directly on Facebook in order to get special discounts Discount 40% 78%If the brands I buy offered me deals for purchasing through Facebook, Id Discount 42% 73%purchase from there instead of going to the storeIf a favorite product of mine was only available through that brands Facebook Exclusivity 44% 72%page, I would buy it from thereI would buy directly on Facebook in order to get access to exclusive products Exclusivity 34% 68%I would buy directly on Facebook in order to have the ability to ask my friends Social 17% 45%for advice on productsIf I could, I would like to get my everyday shopping done while spending time Convenience 18% 44%on FacebookIf I could shop while spending time on Facebook, my life would be better Convenience 17% Facebook 40% n=1520Numbers in red indicate statistically significant difference from comparison column. ©2011 Resource Interactive. All rights reserved. 11

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Trial – Pre-Exposure Interest in Video Pre- Early Adopters were significantly more likely to agree to all video commerce options than their Online Consumer counterparts, although the 72% of Online Consumers that agreed that they would watch a video for discounts is not inconsequential. Again, while discounts ruled, exclusivity was an important option with over 1/3 of Online Consumer and nearly 2/3 of Early Adopters showing interest. Convenience should also not be overlooked for Early Adopters with nearly ¾ indicating the would buy something in a video if they liked it and could do it right then and there. Although rated lowest among both groups, 51% of Early Adopters agreed that their lives would be better if they could shop while watching videos! Q. Now we’d like to explore some of your attitudes toward different shopping options that could be made available to you online. For each of the following statements, please rate your level of agreement. % AGREE/STRONGLY AGREE CG CG Online EA Consumer Theme n=322 n=81I would watch a video demonstration in order to get discounts Discount 72% 88%If I saw something in a video that I really liked, I would buy it if I could do Convenience 33% 72%it right then and thereIf my favorite brand or retailer created videos of their products in use(such as a person modeling clothing, demonstrating cookware, using a Convenience 31% 69%tool, etc.) I would be interested in purchasing directly from the videoIf a favorite product of mine was only available in video demonstrations, Exclusivity 39% 63%Id purchase from thereIf I could, I would like to get my everyday shopping done while watching Convenience 21% 54%videos that included those productsIf I could shop while spending time watching videos, my life would be Convenience Facebook 21% 51%better n=1520Numbers in red indicate statistically significant difference from comparison column. ©2011 Resource Interactive. All rights reserved. 12

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Trial – Pre-Exposure Interest in Display Ads Pre- Respondents reported relatively high attitudinal agreement with display options with all commerce options favored by more than ¾ of Early Adopters and over ½ of Online Consumers. Q. Now we’d like to explore some of your attitudes toward different shopping options that could be made available to you online. For each of the following statements, please rate your level of agreement. % AGREE/STRONGLY AGREE CG CG Online EA Consumer Theme n=330 n=58If I saw something in an ad that I wanted to buy, Id like to beable to add it to a digital list (online shopping or wish list, mobile Convenience 60% 86%list, etc.)If I saw something in an ad that I wanted/needed to buy, Id like Convenience 53% 79%to be able to buy it right then and thereI would like the ability to purchase directly from any experience Convenience 51% 74%that makes me aware of a product I need or wantNumbers in red indicate statistically significant difference from comparison column. ©2011 Resource Interactive. All rights reserved. 13

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsTrial – Post-Exposure Interest and Intent Post-After being exposed to prototypes of purchasing from one of the distributed touch points—Facebook, video, display ad (within a relevant article/context)—we asked respondents abouttheir interest in purchasing the category (in this case, consumer goods) via several options.It is important to note that respondents were asked to respond not only to whether or notthey would be interested in purchasing from the touch point they had seen, but also abouttheir interest in purchasing from a variety of other touch points as well. Respondents were alsoasked about their purchase intent immediately after seeing each of the prototypes:transaction completely within the touch point, and transaction occurring upon redirect to aretailer’s site.We also asked respondents to weigh in as to whether they could realistically see themselvespurchasing the category within the next year via various touch points.While difficult to statistically prove, there is some evidence that familiarity is correlated withrespondents’ likelihood to agree to interest or future purchase intent. – Online Consumers gravitated to display ads, blogs and Facebook in terms of their desire to make a purchase. They also indicated they were as likely to purchase from a display ad within the next year as they were to purchase via mobile. – Respondents who saw a prototype of a touch point were statistically significantly more likely to indicate agreement that they could imagine purchasing with touch point within in the next year. Facebook n=1520©2011 Resource Interactive. All rights reserved. 14

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Trial – Post-Exposure Interest and Intent Post- After seeing an example of distributed commerce, respondents indicated the most overall interest in purchasing directly from advertisements. – Early Adopters remained highly interested in purchasing consumer goods via online ads and Facebook. – Also promising is that 46% of Online Consumers would like to purchase goods when they see them in an online advertisement. Results for this question were slightly lower for consumer goods than they were for electronics and apparel (to be reported separately)—although comparisons should only be considered directional, since different samples were surveyed. These results are consistent with current online shopping behavior (consumer goods purchasing lags behind other product types). Q. Please rate your agreement with the following statements. “I would like to be able to purchase consumer goods…” % AGREE/STRONGLY AGREE Online Consumer Early Adopter n=970 n=243 ...when I read about it in an article or blog. (ad) 42% 73% ...when I am interacting with a brand on Facebook 40% 68% ...when I see it in an online advertisement. 46% 66% ...when I see it in a YouTube video. 33% 55% ...when I see it in a picture on Facebook or Flickr. 31% 55%Numbers in red indicate statistically significant difference from comparison column. ©2011 Resource Interactive. All rights reserved. 15

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsTrial – Post-Exposure Purchase Intent Post-After seeing prototypes of both in- and out-of-touch-point transactions, we asked aboutpurchase intent overall. – As seen throughout the survey, Early Adopters were far more likely to agree when predicting their future use of distributed commerce touch points within the next year than were Online Consumers. – While the level of agreement with mobile purchasing within the next year may not be surprising given current mobile adoption levels overall, by comparison, emerging (and less familiar) touch points were not dramatically far behind, and the level of agreement is relatively high considering the category.Q. Within the next year, I can realistically see myself buying consumer goods through…” % AGREE/STRONGLY AGREE Mobile 69% 30% 58% Display Ads 30% 51% Facebook 23% 44% Video 21% Early Adopter, n= 243 Online Consumer, n=970 Numbers in red indicate statistically significant difference from comparison column.©2011 Resource Interactive. All rights reserved. 16

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsTrial – Post-Exposure Convenience Impression Post-Immediately after seeing a prototype of a distributed commerce transaction—eithercompletely within the transaction or upon redirect to a retailer’s site, respondents were askedif they thought purchasing this way would be convenient. – Overall, convenience received very high agreement, regardless of whether the transaction shown was completely within the touch point or redirected to the retailer’s site. – More than half of all respondents—and over 70% of Early Adopters—agreed that distributed commerce would be convenient, regardless of the touch point tested.Q. Thinking about the shopping experience you were shown, please rate youragreement with the following statement […]: Purchasing like this is convenient. % AGREE/STRONGLY AGREE 86% In 66%Display Ads 81% Out 66% 74% In 51%Facebook 71% Out 53% 90% In 65%Video 86% Out 61% Early Adopter Online Consumer ©2011 Resource Interactive. All rights reserved. 17

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsConversion – Post-Exposure Purchase Hurdles Post-After being exposed to prototypes of purchasing from one of the distributed touch points—Facebook, video, display ad (within a relevant article/context)—we asked respondents aboutpotential hurdles to purchasing the category (in this case, consumer goods), from security toprivacy and ease of use. – Facebook was least likely to achieve respondents’ agreements for both privacy and security, while display ads, particularly among Early Adopters were most likely to be seen as secure and allowing for privacy maintenance. – Transactions completed on the retailer’s website (as opposed to within the touch point) elicited slightly higher agreement for security and privacy, although results may only be directional. – In-touch point transactions failed to receive 50% agreement among Online Consumers for security, suggestion that a significantly portion of consumers who would otherwise be willing to try distributed commerce might abandon due to security concerns.©2011 Resource Interactive. All rights reserved. 18

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsConversion – Post-Exposure Privacy Impression Post-Immediately after seeing a prototype of a distributed commerce transaction, eithercompletely within the transaction or upon redirect to a retailer’s site, respondents were askedif they felt that they would be able to manage their privacy settings if they used this purchasemethod. – Facebook was least likely to receive agreement from respondents regarding the ability to manage privacy settings, but especially among Early Adopters. – Video privacy was one area that Early Adopters weren’t significantly more likely to agree relative to Online Consumers, perhaps due to lower familiarity with commerce in the medium.Q. Thinking about the shopping experience you were shown, please rate youragreement with the following statement […]: I trust that I could manage the privacysetting if I purchased this way. % AGREE/STRONGLY AGREE 71% In 46%Display Ads 83% Out 59% 58% In 41%Facebook 61% Out 45% 63% In 53%Video 62% Out 55% Early Adopter Online Consumer©2011 Resource Interactive. All rights reserved. 19

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsConversion – Post-Exposure Security Impression Post-Immediately after seeing a prototype of a distributed commerce transaction, eithercompletely within the transaction or upon redirect to a retailer’s site, respondents were askedif they felt that their transaction would be secure purchasing this way. – In-touch-point transactions failed to receive 50% agreement among Online Consumers when it came to security, although out-of-touch-point transactions did not fare much better. – Across all touch points, and all respondents, transactions that were handed off to the retailer’s site appeared to provide a greater sense of security.Q. Thinking about the shopping experience you were shown, please rate youragreement with the following statement […]: I feel that my transaction would be securepurchasing this way. % AGREE/STRONGLY AGREE 67% In 48%Display Ads 71% Out 55% 58% In 38%Facebook 63% Out 43% 64% In 49%Video 67% Out 53% Early Adopter Online Consumer©2011 Resource Interactive. All rights reserved. 20

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsOvercoming Conversion BarriersSince security is often a critical barrier to conversion, we asked our respondents about variousmethods that can be used to reassure the purchaser that a transaction would be secure.Respondents were first asked to click on the element that most reassured them that the sitewas secure, and then were asked their level of agreement relative to several possible tacticsthat could be used to reassure the purchaser of security. – A third party endorsement symbol (such as VeriSign) was the element most likely to reassure our respondents—regardless of segment or touch point—that their transaction would be secure. – Third party endorsements, links to privacy policies, and pictures of padlocks received higher levels of agreement than the use of a secure address (https://); this, combined with the third-party endorsement suggests the potential importance of iconography (particularly if it is branded) • Gender-wise, women were significantly more likely than men to strongly agree that a picture of a padlock provided security reassurance (result not specific to consumer goods). • Millennials and Gen X (relative to Gen Z and Boomers) were more likely to strongly agree with most security elements, except the use of a padlock image, 3rd party endorsement, and banking security statement (result not specific to consumer goods).©2011 Resource Interactive. All rights reserved. 21

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Overcoming Conversion Barriers Respondents were asked to click on the page to indicate the element that most reassured them that their transaction would be secure. The images below are “heat maps” that capture where respondents clicked, with red being the most-clicked areas, followed by yellow and green. – While there is some evidence of respondents clicking on https in the URL as well as privacy statements and pictures of locks, the vast majority of respondents— regardless of touch point—clicked on the third-party endorsement (in this case, VeriSign). Q. Please click on the element that most assures you that this is a safe place to make a purchase.Video Commerce Facebook Display Ad ©2011 Resource Interactive. All rights reserved. 22

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer Goods Overcoming Conversion Barriers Early Adopters were significantly more likely than the general Online Consumer to agree that each method of reassurance we queried would be an effective method of reassurance. Typical security measures rose to the top (https and 3rd party endorsement), but interestingly, respondents rated the privacy statement (who’s seeing my info and how is it being used) as the second highest reassuring tactic. A picture of a padlock received higher levels of agreement than the use of a secure address (https://). Q. For each of the possible ways listed below that a website could reassure you about making a purchase, please indicate your level of agreement as to how effective the method would be.Third-party endorsement (e.g. VeriSign, Digicert). 85% 73% A link to an explanation of "who is accessing my… 79% 65% Picture of locked padlock. 81% 63% https:// in the URL. 78% 59% A familiar brand logo. 66% 54% Knowing its a brand that you buy from online or… 63% 51% Hearing that a lot of people are doing it… 63% 50%A statement that the site uses such as "The same… 64% 49% Knowing that a friend successfully made a… 67% 48% Seeing that the website is well-designed. 61% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Early Adopter n=243 Online Consumer n=970 Numbers in red indicate statistically significant difference between Early Adopters/non-Early Adopters. ©2011 Resource Interactive. All rights reserved. 23

RESOURCE INTERACTIVE Everywhere Commerce Consumer Study – Consumer GoodsABOUT RESOURCEFor more information on this study or the topic of Everywhere Commerce, contact:Melissa DorkoDirector of Business Developmentmdorko@resource.com614.621.2888About Resource InteractiveResource Interactive is one of the nation’s top-rated independent digital marketing agencies –named No. 4 on Ad Age’s A-list of top agencies in 2010. With offices in Columbus, Cincinnati,Chicago and San Francisco, the firm leads Fortune 500 companies and helps them capitalizeon today’s digital economy, creating consumer experiences that drive sales for reputablebrands. Now in its 30th year, Resource is the largest women-owned agency in the nation.Clients include Procter & Gamble, Hewlett-Packard, Victoria’s Secret, Sherwin-Williams, andNestlé. For more information, visit us at www.resource.com or on Facebook(www.facebook.com/resourceinteractive) or Twitter (@resource).©2011 Resource Interactive. All rights reserved. 24

Everywhere Commerce Consumer Study

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Everywhere Commerce Consumer Study — Document Transcript