American Purchase Decisions & Strategies For Maintaining Personal Control

  • 280 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • If you like scrapbooking, creating slideshow presentations, building teaching aids, telling stories or sharing images online, then you're gonna absolutely love this:
    http://www.slideshare.net/netbizguru/digital-scrapbook-artist

    And then, why not join the 'Digital Scrapbooking Group' while your at it. It's a great place to show-off and share your new, fantastic-looking creations:
    http://www.slideshare.net/group/digital-scrapbooking

    Take care & play nicely...
    Are you sure you want to
    Your message goes here
    Be the first to like this
No Downloads

Views

Total Views
280
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
8
Comments
1
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. American Purchase Decisions & Strategies For Maintaining Personal Control March, 2008 TrendShop
  • 2. Table of Contents I. Objectives……………………………………………………………………………………………………………………….. v II. Methodology…………………………………………………………………………………………………………………….vii III. Executive Summary……………………………………………………………………………………………………….. 9 IV. Detailed Findings…………………………………………………………………………………………………………….10 a. Maintaining Personal Control in Making Consumer Purchase Decisions………………….10 i. Purchasing By Channel & Product Type……………………………………………………………….10 1. Household Penetration In The Past Month……………………………………………………..11 2. Gender & Child Status of In-Person & Online Shoppers………………………………..12 ii. Researching A Product Or Service Prior To Purchase Online……………………………….13 1. Household Penetration In The Past Six Months……………………………………………..14 2. Age of Pre-Purchase Internet Researchers…………………………………………………….15 3. Income of Pre-Purchase Internet Researchers……………………………………………….16 iii. Using A Recommendation From A Friend To Make A Purchase Decision…………….17 1. Household Penetration In The Past Month………………………………………………………18 2. Age of Purchasers Using Recommendation Of Friend…………………………………….19 3. Income of Purchasers Using Recommendation of Friend……………………………….20 iv. Using Services Of A Clerk Or For-Hire Consultant in Making A Purchase Decision..……………………………………………………………………………………………………………….21 1. Household Penetration In The Past Year…………………………………………………………22 2. Most Popular Purchase Decision Services Sought………………………………………….22 TrendShop i
  • 3. Table of Contents v. Refusing To Purchase A Product Or Service As Form Of Activism……………………..23 1. Household Penetration In The Past Year……………………………………………………….23 2. Age of Purchasers Refusing Product Or Service……………………………………………24 3. Income of Purchasers Refusing Product Or Service………………………………………25 b. Other Consumer Strategies To Maximize Personal Control…………………………………….26 i. Researching A Medical Condition Or Diagnosis Using The Internet……………………26 1. Household Penetration In The Past Year……………………………………………………….27 2. Age of Consumers Researching A Medical Condition Or Diagnosis …………....28 3. Income of Consumers Researching A Medical Condition Or Diagnosis…………29 ii. Watching A Home Improvement Or Design Television Or Cable Program…………30 1. Household Penetration In The Past Month…………………………………………………….31 2. Age of Consumers Watching Home Improvement Or Design Programs………32 3. Income of Consumers Watching Home Improvement Or Design Programs..33 4. Frequency of Viewing Home Improvement Or Design Programs…………………34 TrendShop ii
  • 4. Table of Contents iii. Completing An Instructional Class Or How-To Book Or Video Or DVD To Do A Project Or Learn A New Skill………………………………………………………………………………………………………………………………….35 1. Household Penetration In The Past Year…………………………………………………………………………………….36 2. Age of Consumers Completing Instructional Class Or How-To Book Or Video Or DVD…………..37 3. Income of Consumers Completing An Instructional Class Or How-To Book Or Video Or DVD.38 iv. “Scrapbooking”…………………………………………………………………………………………………………………………………….39 1. Household Penetration In The Past Year…………………………………………………………………………………….40 2. Age of Consumers “Scrapbooking”……………………………………………………………………………………………..41 3. Income of Consumers “Scrapbooking”……………………………………………………………………………………….42 4. Incidence of Consumer “Scrapbooking” By Format……………………………………………………………………43 v. Organizing & Maximizing Household Storage Space…………………………………………………………………………..44 1. Removal of Extra/Unused “Stuff”………………………………………………………………………………………………..46 a. Household Penetration of Consumers “Purging” Extra/Unused “Stuff” From Home In The Past Year…………………………………………………………………………………………………46 b. Age of Consumers ”Purging” Extra/Unused “Stuff”………………………………………………………………47 c. Income of Consumers “Purging” Extra/Unused “Stuff”……………......................................48 2. Kitchen Storage Space………………………………………………………………………………………………………………….49 a. Household Penetration of Consumers Considering Adding Kitchen Storage Space In The Past Year…………………………………………………………………………………………….50 b. Age of Consumers Considering Adding Kitchen Storage Space……………..........................51 c. Income of Consumers Considering Adding Kitchen Storage Space…………………………………….52 d. Household Penetration of Consumers Adding Kitchen Storage Space In The Past Year……………………………………………………………………………………………………………………..53 TrendShop iii
  • 5. Table of Contents 3. Closet Storage & Organization………………………………………………………………………………………………………………………54 a. Household Penetration of Consumers Organizing Closet Professionally Or Do-It-Yourself In The Past Year………………………………………………………………………………………………………………54 4. Garage Storage & Organization…………………………………………………………………………………………………………………….55 a. Household Penetration of Consumers Organizing Garage Professionally Or Do-It-Yourself In The Past Year………………………………………………………………………………………………………..56 vi. Sustainable Living……………………………………………………………………………………………………………………………………………………57 1. How-To Book.………………………………………………………………………………………………………………...............................58 a. Household Penetration of Consumers Reading A How-To Book On Sustainable Living In The Past Year…………………………………………………………………………………………………………………………………………………….58 2. Building Sustainable Home……………………………………………………………………………………………………………………………..59 a. Household Penetration of Consumers Considering Building A Home That Allows Sustainable Living In The Past Year………………………………………………………………………………………………………………………………………..59 3. Sustainable Gardening………………………………………………………………………………………………………..........................60 a. Household Penetration of Consumers Reading A How-To Book On Sustainable Gardening In The Past Year…………………………………………………………………………………………………...................61 4. Growing Own Produce……………………………………………………………………………………………………………………...............62 a. Household Penetration of Consumers Considering Growing Own Produce & Relying Less on Grocery Stores In The Past Year…………………………………………………………………………………………………………..62 b. Age of Consumers Considering Growing Own Produce…………….......................................................63 c. Income of Consumers Considering Growing Own Produce………………………………………………………………………64 5. Growing & Harvesting Organic Vegetable Garden………………………………………………………………………………………..65 a. Household Penetration In The Past Year……………………………………………………………………………………............66 6. Community Supported Agriculture Program…………………………………………………………………………………………………67 a. Household Penetration of Consumers Joining & Using A Community Supported Agriculture Program In The Past Year…………………………………………………………………………………………………………………………67 V. Appendix……………………………………………………………………………………………………………………………………………………………………………..68 a. Questionnaire………………………………………………………………………………………………………………………………………………………………..68 TrendShop iv
  • 6. I. Objectives Americans buy over $8.3B of goods and services annually, or $46,409 on average per household.* Some of it is food, some of it is non-food, and there are now a multitude of choices available as to where and how to get these products, including the internet. Faced with a complicated marketplace and a risky and sometimes horrific world, consumers have become experienced in exerting control over the marketplace – and this feeling of control, excites and empowers the consumer like never before. Reaction to 9/11 fueled consumer need for control. However, it was the technological advancement that began much earlier in the 90’s with the advent of the internet as a new shopping channel option that has afforded instant availability of information directly to the consumer -- almost where ever they may be located when the need arises. A fast and always available internet has allowed people to acquire more information, plan ahead, develop an expertise in a wider array of topics and to become more confident in making decisions, leading to a strong sense of empowerment and control over their lives. At the same time, technological advancement has also added more demands and stress to consumers’ lives because of their inherent need to stay tuned in, forcing them to juggle more responsibility, maintain a faster-paced lifestyle and ultimately crave more control. This quest for control beckons consumers to actively shop for more unique and customized items, rather than passively shop among whatever offerings retailers choose to provide. It also fosters consumer creativity, conviction and determination to develop other strategies that are now possible to maintain control in making purchase decisions and other choices for the household. * Economic Report of the President, February 2008 and Consumer Expenditures in 2005, U.S. Department of Labor, February 2007 TrendShop v
  • 7. I. Objectives General Growth Properties, Inc.’s TrendShop has commissioned this study to determine where consumers buy what type of goods and services, the current impact of the internet as a channel option, and which strategies consumers use to reduce risk in making purchase decisions and ultimately maintain perceived control in today’s busy and complicated world. The following report summarizes the findings of “American Purchase Decisions & Strategies For Maintaining Personal Control.” TrendShop vi
  • 8. II. Methodology A nationally representative sample of 1084 online surveys was completed among adults 18+ January 8 - 11, 2008. Approximately one-half (567) of the qualified purchasing sample are women and one-half (470) are men. The following special notations were applied in the data tables. Bolded numbers indicate a statistically significant difference between groups at a 90% confidence level or above, and □’s indicate a dominant trend in the data across groups, which may or may not be supported by statistical significance relative to other groups. TrendShop vii
  • 9. IV. Detailed Findings a. Maintaining Personal Control In Making Consumer Purchase Decisions i. Purchasing By Channel & Product Type Prediction is that North American household penetration of “e-shopping,” or shopping online, will reach nearly 100% by 2020.* Furthermore, it is estimated that online shopping for groceries will reach 34% of total retail sales by 2010.* Currently however, just 29% of households claim to buy online, with just 3% of households buying food online. Almost two-thirds of consumer purchases are still done in-person (60%), with the majority of these purchases being for food (58% of all purchases or 97% of all in-person purchases). Just over half of all purchases are carried out by women, with slightly more making internet purchases (57%) than in-person (55%). Like the aging population, the largest proportion of adult purchases are made by childless households, with slightly more child-free adults (60%) buying in-person than online (57%). In fact, a significant number of Americans have used the internet and made a conscious decision to stop. As of 2003, approximately 15M people have been online at one time, but have discontinued the practice as a way to strike back against technology rudeness and protect themselves from the dishonest.** These consumers tend to be young, urban and employed.** • futureconsumer.com by Frank Feather, 2000 ** Pew Internet and American Life Project, The Ever-Shifting Internet Population, 2005 and U.S. Census, 2006 TrendShop 10
  • 10. i. Purchasing By Channel & Product Type 1. Household Penetration Past Month Almost two-thirds of consumer purchases are done in-person (60%), with the majority (58% of all purchases or 97% of all in-person purchases) of these purchases being for food. Household Penetration of In-Person Versus Online Shopping in the Past Month (Base: Total Sample) (1084) % Net Purchasers 89 Net In-Person 60 Food In-Person 58 Non-Food In-Person 39 Net Online 29 Non-Food Online 14 Food Online 3 Net Non-Purchasers/None 11 TrendShop Q1: In the past month, which of the following ways have you, yourself purchased products for yourself or your family? 11
  • 11. i. Purchasing By Channel & Product Type 2. Gender & Child Status of In-Person & Online Shoppers Just over half of all purchases are carried out by women, with slightly more making internet purchases (57%) than in-person (55%). Like the population, the largest proportion of adult purchases are made by childless households, with slightly more child-free adults (60%) buying in- person than online (57%). Gender & Child Status of In-Person Versus Online Shoppers In-Person Online (Base: Shopper Type) (1003) (515) % % Gender Female 55 57 Male 45 43 Child Status Without Children 60 57 With Children 40 43 TrendShop Q1: In the past month, which of the following ways have you, yourself purchased products for yourself or your family? 12
  • 12. IV. Detailed Findings b. Other Consumer Strategies To Maximize Personal Control (Con’t) iv. “Scrapbooking” In 2006, the number 1 craft or hobby category of scrapbooking generated $2,446M in sales.* Scrapbooking is also the fastest-growing sector of the $30B craft and hobby industry, with growth from 2002 to 2004 of 27%, and an estimated 4,000 independent scrapbook retail stores in the country as of 2003.** Approaching one-third (29%) of all consumers “scrapbooked” in the past year, which is consistent with and slightly higher than industry estimates of 24.5% in 2004.*** Scrapbookers are mainly women with children (20% of consumers, 69% of scrapbookers). Younger women -– almost half of consumers age 18 – 34 –- and consumers with moderately high household income ($70,000 - $99,999) scrapbook the most. The favorite format for scrapbooking is on paper (53%), however, two-thirds of scrapbookers also back up or their work electronically. Industry surveys estimate that the average scrapbooker owns nearly $2000 in tools and supplies and spends at least $25 per month buying new supplies; and, the vast majority (75%) of scrapbookers have a space in their home dedicated to the hobby.** * www.craftandhobby.org ** www.scrapbooking.lovetoknow.com *** www.simplescrapbooksmag.com TrendShop 39
  • 13. iv. “Scrapbooking” 1. Household Penetration Past Year Approaching one-third (29%) of consumers “scrapbooked” in the past year. Scrapbookers are mainly women with children (20% of consumers, 69% of scrapbookers), respectively. Household Penetration of Consumer Scrapbooking In The Past Year (Base: Total Sample) (1037) % Total 29 Gender Female 20 Male 9 Child Status With Children 20 Without Children 9 TrendShop Q8: In the past year, have you, yourself, “scrapbooked,” or collected, stored or displayed your own or a child’s accomplishments and activities, yes or no? 40
  • 14. iv. “Scrapbooking” 2. Age of Scrapbookers Younger women scrapbook the most – almost half of consumers age 18 - 34. Household Penetration of Consumer Scrapbooking in the Past Year By Age Total 18 - 34 35 - 44 45+ (Base) (1037) (290) (194) (551) % % % % Total 29 48 35 17 Gender Female 20 33 25 11 Male 9 15 10 6 TrendShop Q8: In the past year, have you, yourself, “scrapbooked,” or collected, stored or displayed your own or a child’s accomplishments and activities, yes or no? 41
  • 15. iv. “Scrapbooking” 3. Income of Scrapbookers Consumers with moderately high household income ($70,000 - $99,999) are more likely to scrapbook. Household Penetration of Consumer Scrapbooking in the Past Year By Income Less Than $30,000 - $70,000 - $100,000 Total $30,000 $69,999 $99,999 & Over (Base) (1037) (252) (454) (172) (145) % % % % % 29 21 30 38 29 TendShop Q8: In the past year, have you, yourself, “scrapbooked,” or collected, stored or displayed your own or a child’s accomplishments and activities, yes or no? 42
  • 16. iv. “Scrapbooking” 4. Incidence by Format The favorite format for scrapbooking is on paper (53%), however, two-thirds of scrapbookers also back up or their work electronically. Incidence of Consumer Scrapbooking In The Past Year By Format (Base: Scrapbookers) (300) % 100 Paper 53 Electronically on personal web site/computer/cell phone 12 Both 35 TrendShop Q8: In the past year, have you, yourself, “scrapbooked,” or collected, stored or displayed your own or a child’s accomplishments and activities, yes or no? 43
  • 17. IV. Detailed Findings b. Other Consumer Strategies To Maximize Personal Control (Con’t) vi. Sustainable Living (Con’t) One-fifth (21%) of consumers cite having grown and harvested an organic vegetable garden in the past year. The majority of these consumers are women (12% of sample, 57% of organic gardeners). Community Supported Agriculture (CSA) are a newer and growing alternative food source (up over 2800% to 1700 CSA’s since 60 CSA’s in 1990*) that reconnect people to the land and to their food. Instead of obtaining food from a large corporation that is far away, consumers can eat locally grown food that is free of chemical pesticides and fertilizers and know the farmer and the source of their produce, diary and meat products.** At this time, just 5% of consumers report having joined and used CSA in the past year. However, with 50% of Americans projected to be living closer to farms in ACNielsen C & D counties (most rural) by 2020,* and increased consumer demand to know their food source,** growth in CSA’s is expected to skyrocket. * Agricultural Marketing Resource Center, 2008 ** The Popcorn Report, Faith Popcorn, 2006 *** futureconsumer.com by Frank Feather, 2000 TrendShop 65
  • 18. vi. Sustainable Living 5. Growing & Harvesting Organic Vegetable Garden a. Household Penetration Past Year One-fifth (21%) of consumers cite having grown and harvested an organic vegetable garden in the past year. The majority of these consumers are women (12% of sample, 57% of organic gardeners). Household Penetration of Consumers Growing & Harvesting Organic Vegetable Garden In The Past Year (Base: Total Sample) (1037) % Total 21 Gender Female 12 Male 9 Child Status With Children 11 Without Children 10 TrendShop Q21: In the past year, did you, yourself, grow and harvest a vegetable garden for your own family’s food needs using no synthetic fertilizers or pesticides, plant growth regulators or genetically modified organisms, yes or no? 66
  • 19. vi. Sustainable Living 1. Community Supported Agriculture a. Household Penetration Past Year Just 5% of consumers report having joined and used community supported agriculture in the past year. Household Penetration of Consumers Joining & Using Community Supported Agriculture Program In The Past Year (Base: Total Sample) (1037) % 5 Q22: In the past year, did you or your family join and use a community supported agriculture program or produce co-op that TrendShop provides all natural organic produce for all or part of the year, yes or no? 67