1. Attracting and Retaining Customers in a Challenging Economy An exclusive report into the UK’s online retail market, in association with JupiterResearch

6. European Online Retail Spending Has Tripled In the Past Four Years European Online Retail Spending (in billions) Source: JupiterResearch Internet Retail Model, 8/07 (Western Europe) Note: Retail does not include auto, travel, or prescription drugs.

7. Britons Spend More Online Than Any Other Consumers in Europe UK Online Retail Spending (in billions) Source: JupiterResearch Internet Retail Model, 8/07 (Western Europe); Xe.com: €1 = £ 1.287 (an average of monthly exchange rate for Jan through Sept 2008, using the rate on the first day of each month) Note: Retail does not include auto, travel, or prescription drugs; All years converted to Pounds based on 2008 average Euro/Pound exchange rate

8. Groceries Generate Highest Spending, Followed by Electronics 2007 UK Online Retail Spending by Category (in billions) Source: JupiterResearch Internet Retail Model, 8/07 (Western Europe); Xe.com: €1 = £ 1.287 (an average of monthly exchange rate for Jan through Sept 2008, using the rate on the first day of each month) Note: All years converted to Pounds based on 2008 average Euro/Pound exchange rate

10. However, UK Consumers are Worried about the State of the Economy Percentage of Online Consumers Question: Please indicate to what extent each statement describes your attitudes. (Select one for each) Source: Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=1,000 (UK only)

11. Consumers Will Turn to the Internet to Help Them Find the Best Prices Percentage of Online Buyers Question : Given the current state of the UK economy, how are you planning to change your shopping habits? (Select all that apply) Annual Online Spend: Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=645 (Online buyers who spent less than or equal to £750 online in last 12 months); n=143 (Online buyers who spent more than £750 online in the last 12 months), UK only Note: Only select responses shown

12. UK Consumers More Likely to Decrease Offline Spending than Online Spending In Billions of Euros Source: JupiterResearch Internet Commerce Forecasts, 08/07 (Western Europe Only) excl Travel Percentage of Online Consumers Who Know How Their Spending Will Change Question: Due to the current economic conditions, how do you plan to change your spending online and offline in the next 12 months, as compared to the previous 12 months? (Select one for each) Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=763 (online consumers who know how their online spending will change, UK), n=804 (online consumers who know how much their offline spending will change, UK) Overall Online Spending Change = 4.9% Decrease Overall Offline Spending Change = 6.4% Decrease 42% 56% 46% 8% 46% 2%

13. That Will Continue to Push a Greater Share of Consumer Spending Online UK Online Retail Spending (in billions) UK Online Retail Spending as Percentage of Total Retail Spending Source: JupiterResearch Internet Retail Model, 8/07 (Western Europe); Xe.com: €1 = £ 1.287 (an average of monthly exchange rate for Jan through Sept 2008, using the rate on the first day of each month) Note: Retail does not include auto, travel, or prescription drugs; All years converted to Pounds based on 2008 average Euro/Pound exchange rate

15. Nearly All UK Online Buyers See the Benefit of Shopping Around Usually like to shop around Percentage of Online Buyers Question: Why did you use more than one site when deciding what products to buy online? (Select all that apply) See more prices Validate/contrast info from the retailer/manufacturer See more product information See if other sites have similar products Seek out expert reviews/opinions information Better sense of what others said about the product Not sure what store to buy from Usually don’t trust single site for purchase decisions Gather purchase suggestions from other sites Note: Only select responses displayed I did not visit more than one site Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=788 (Online buyers, UK only)

16. Percentage of Online Shoppers Question: Which of the following have you used when researching and purchasing products or services both online and offline? (Select all that apply) Note : Only select responses shown. Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=914 (Online shoppers, UK only); JupiterResearch/ LinkShare Shopper Consumer Survey (6/08), n=1087 (Online shoppers, US only); UK Consumers Use a Wide Range of Online Shopping Resources

17. Percentage of Resource Users Question: How useful were each of the following resources while researching your most recent online purchase? (Select one for each) Sites Offering the Most Information are the Most Used, and the Most Useful Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=788 (Online buyers, UK only) % of Online Buyers Who Used Each Resource 70% 45% 37% 32% 17% 59% 42%

20. Bargain Shoppers Compare Shops, Products to Find Best Deal Percentage of Each Segment Question: Which of the following have you used when researching and purchasing products or services both online and offline? Please select all that apply Note : only select responses shown. Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=914 (All online shoppers); n=351 (Bargain shoppers); n=108 (Luxury shoppers), UK only

21. Luxury Shoppers Want to Hear About Others’ Experiences, Have Their Own Percentage of Each Segment Question: Which of the following have you used when researching and purchasing products or services both online and offline? Please select all that apply Note : only select responses shown. Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=914 (All online shoppers); n=351 (Bargain shoppers); n=108 (Luxury shoppers), UK only

22. Luxury Shoppers Much More Loyal to Brands and Retailers Percentage of Each Segment Question: Please indicate to what extent each statement describes your attitudes. (Select one for each) “ When I find a brand I like, I tend to stick to it and rarely try other brands” “ When I find a retailer I like, I tend to stick to it and rarely try other shops” Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=1000 (All Internet users); n=375 (Bargain shoppers); n=116 (Luxury shoppers), UK only

23. Rewards, Promotions Can Drive Loyalty from All Shoppers if Properly Targeted Question: How influential were each of the following in your decision to continue to purchase from an online seller from whom you have purchased in the past? (Select one for each) Note : only select responses shown. Percentage of Online Buyers in Each Segment Who Say Each Tool is Influential Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=788 (All online buyers); n=300 (Online buyers in the bargain shopper segment); n=104 (Online buyers in the luxury shopper segment), UK only

24. Percentage of Each Segment Question: Which of the following have you done on or with your mobile phone in the past 12 months? (Select all that apply) Note: Only select responses shown UK Consumers Are Increasingly Comfortable with Mobile Services Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=1000 (All Internet users); n=375 (Bargain shoppers); n=116 (Luxury shoppers), UK only

25. Question: Please indicate to what extent each statement describes your attitudes. (Select one for each) Percentage of Each Segment One-Third of Luxury Shoppers Say They’re Ready for Mobile Commerce “ I would like to be able to shop and make purchases on my mobile phone” Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=1000 (All Internet users); n=375 (Bargain shoppers); n=116 (Luxury shoppers), UK only

27. There Are Two Key Ways Customers Influence Each Others’ Purchases Source: JupiterResearch (9/08) New Influentials Classic Influentials Primarily exert active influence by proactively giving advice Primarily exert passive influence by responding to requests for advice ! ! ! ! ! ! ? ? ? ? ? ?

28. Luxury Shoppers Most Influential, but Others Can Be as Well Percentage of Each Segment Question: Please indicate to what extent each statement describes your attitudes. (Select one for each) New Influence I am the first person to tell people about a retail site or new product Classic Influence I am the first person people come to for recommendations about products to buy Source: JupiterResearch/ LinkShare Shopper Consumer Survey (8/08), n=1000 (All Internet users); n=375 (Bargain shoppers); n=116 (Luxury shoppers), UK only

29. Reviews Leverage Consumer Influence, Make Sites More Useful Percentage of Online Shoppers Who Have Employed User Reviews Question: How do you employ user-generated reviews while you research products online? (Select all that apply.) Source: JupiterResearch/Ipsos-Insight Retail Consumer Survey (4/06), n = 1,750 (online shoppers who have employed user-generated reviews, US only) To get a sense of product reliability To get a feeling for product quality To decide on what product to buy To narrow my options To see how the product might fit me or my needs To see if someone used the product same way I will To get ideas To get a sense of other, similar products

30. Electronics and Entertainment Buyers Most Interested in Consumer Reviews Percentage of Online Product Researchers Question: For what product categories do you find online consumer reviews most useful in making a purchase decision? Select up to five. Source: JupiterResearch Consumer Survey (12/07), n = 821 (online product researchers, UK)

31. Sites Must Build Depth and Context Into User Product Reviews Percentage of Online Product Researchers Question: Which of the following features help you trust online consumer reviews? Select up to three. Source: JupiterResearch Consumer Survey (12/07), n = 821 (online product researchers, UK) Votes from other shoppers on the helpfulness of the review Review offers a mix of positive and negative comments Review is comprehensive and well written Reviewers’ identification of where the product was purchased Numerical rating with the review Profile information that identifies reviewers Review includes pros and cons about the product Depth of reviews Context of reviews

34. Any Questions? Nate Elliott - Research Director, JupiterResearch Liane Dietrich – Managing Director, LinkShare [email_address]