Nielsen global connected commerce report january 2017
Newest Analysis of How Online Retailing has changed Holiday-1
1. Analysis of How Online
Retailing(Cyber Monday)
has changed Holiday
Shopping (Black Friday)
Presenters:
Young Park(parky17@mail.montclair.edu)
Grecy Jean(jeang2@mail.Montclair.edu)
Angela Onwuka(onwukkaa1@mail.Montclair.edu)
MKTG442_01FA13
Dr. Patrali Chatterjee
chatterjeep@mail.montclair.edu
School of Business
Department of Marketing
2. Rationale for Research
• Black Friday the day after Thanksgiving, noted as the first day of traditional
Christmas shopping, during which crowds of consumers are drawn to
special offers by retailers has experienced decrease in sales. The most
recent Black Friday experienced a 13.2% sales decrease compared with
last year sales despite many retail stores opening on Thanksgiving day. Web
Retailing is experiencing steady growth especially among the millennial
generation. This research report will analyze whether Cyber Monday the
Monday following Thanksgiving, promoted by online retailers as a day for
exceptional electronic bargains is deviating sales from Black Friday and
Why.
• The research is pertinent to retail firms because
It reveals new market trends
It reveals consumer buying patterns during the holiday season
The information can be leveraged to implement a holiday marketing
strategy
• Challenge: attain relevant data on consumers’ holiday shopping behavior
and preferences that will help in finding any relationship between Black
Friday and Cyber Monday
3. Hypothesis
H1: Inverse relationship between Black Friday
and Cyber Monday
H2: Cyber Monday preferred Over Black Friday
H3: respondents prefer online shopping over the
brick and mortar shopping
H4: Young respondents prefer online shopping
over the brick and mortar Black Friday sales
H5:Consumers do most of their shopping on
Cyber Monday
5. With holiday spending on clothes and toys
off to a chilly start, worried retailers are
plying shoppers with an early gift: Black
Friday-style bargains extended into the
first weeks of December.
7. While more people attended black
Friday this year, Black Friday sales
have dropped for the first time in
years.
Cyber Monday sales continue to rise
over the years.
9. Secondary Data
According to Marketwatch.com, shoppers
increased their 2013 spending but earlier visits to
retail outlets cut into Black Friday numbers.
Shoppertrack, the global leader in people
counter technology and foot traffic analysis,
showed Black Friday sales decreased 13.2%
compared with 2012.
10. Data Analysis The data rejects the research groups Hypothesis
that consumers do most of their shopping on
Cyber Monday
When Shop Frequencies
1. I shop throughout the year
2. Holiday clearance the year
before
3. 6 months before holiday
4. On Labor day
5. On Black Friday
6. On Cyber Monday
7. Beginning of December
8. The week of Xmas
9. On Xmas Eve
When do you do most of your
shopping?
11. Secondary Data
Bloomberg news reported Cyber Monday sales
surged. Cyber Monday reached a single-day
record as consumers spent less at brick mortar
Black Friday sales. Cyber Monday experienced
a 95 percent gain from a year earlier with
Amazon.com Inc. (AMZN) and EBay Inc. (EBAY)
experiencing the highest in gross sales.
12. Despite the recent growth in Cyber
Monday sales respondents preferred
shopping on Black Friday and 32% of
the respondents did not shop on Black
Friday/Cyber Monday
13. When asked which website do you shop from the most a
number of respondents filled in Amazon
According to Bloomberg News Amazon’s Cyber Monday
sales jumped 46 percent from last year
14. Secondary Data The secondary data supports our claim
respondents prefer online shopping
over the brick and mortar shopping
According to the Wall Street Journal Seventy percent of
more than 3,000 online shoppers surveyed in February
say they prefer to shop their favorite retailer online,
according to a study commissioned by United Parcel
Service Inc.
Online shopping continues to outpace growth in
traditional retail, the survey confirms. Last year, e-
commerce grew about 15% to $186 billion, seven times
the growth rate of total U.S. retail spending, according
to the study
15. H: Respondents prefer online shopping over the brick and mortar
Black Friday sales
Respondents prefer in store location shopping over Online shopping
16. Secondary Data
The article is contradictory to the research group’s
hypothesis young respondents prefer online shopping over the brick and
mortar Black Friday sales
In a Forbes article entitled Millennial Shoppers
set to dominate Black Friday crowds focused on
a Accenture survey which projected the
Millennial generation are much more likely to hit
the mall on November 29th
. The survey projected
80 percent of 18-24 year olds, 70% 25-34 year
olds plan to shop on Black Friday
17. Data Analysis
The research data supports The secondary data young consumers prefer in store location shopping
Frequency
Valid Online 13
Store
location 20
Total 33
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-
Square
.190a
2 .909
Likelihood
Ratio
.191 2 .909
Linear-by-
Linear
Association
.185 1 .667
N of Valid
Cases
33
a. 3 cells (50.0%) have expected count less than
5. The minimum expected count is 2.36.
Age * Do you prefer shopping online or at the
store location? Crosstabulation
Count
Do you prefer shopping
online or at the store
location?
TotalOnline
Store
location
Age 18-20 2 4 6
21-23 7 11 18
24+ 4 5 9
Total 13 20 33
18. There is no level of significance between the preferred methods of
shopping and Cyber Monday/Black Friday preference
19. Although 57% of consumers want to
avoid excessive crowds of shoppers,
63% of consumers still shop on Black
Friday
It is significantly related
≤ .05
20. 53% of respondents believe their Black Friday shopping has remained
stagnant
37% of respondents believe their Black Friday shopping increased
10% of respondents believe their shopping has decreased
22. Secondary
Data
According to a WashingtonPost article
entitled Cyber Monday Won’t Kill Black
Friday For A Very Long Time,
Online sales are still a tiny percentage
of overall volume -- only 6
percent, according to the Census
Bureau. That means that
despite prognostications of Black
Friday's death, it'll be a long time
before they actually overtake brick
and mortar sales. At the rate they're
growing now, about 4 percent market
share over a decade, it could even be
a century:
23. Limitations
Age range(younger generation)
Number of respondents because of modifying
questions
Too many skip logics in survey
Limited demographics questions
Cyber Monday is relatively new
24. Conclusions and Recommendations
Younger generation
would like to shop at store
location
Online sales are
increasing
People go shopping
throughout the year
Retail stores-Target
younger generation on
Black Friday
Expand categories of
items on online on Cyber
Monday
We found out pretty interesting data that people shop throughout the year account for most of the population of the sample.
This shows that not many people just prefer shopping on Cyber Monday. People would like to do shopping both days or not shopping at all.
You see no added value in Black Friday shopping no one chose the choice
The preference of shopping day and reason for not shopping on Black Friday has significant relationship.
Most people would like to buy electronics and clothes on Black Friday rather than other things regardless of gender.
First of all, age range is too limited because most of respondents are our friends who are our age so that we couldn’t get more older generation respondents.
Second, number of respondents are really small because we modified the survey questions during the data collection period so that we only analyzed data of 34 respondents.
Third, there are so many skip logics in the survey so that those made the data complicated to analyze.
Fourth, we only have 2 questions about demographics, we should have had more demographics such as income or employment status.
Finally, Cyber Monday concept is kind of new so that people would not be sure or noticed about it.
Younger generation prefers to go shopping at store location at Black Friday although online sales are increasing year by year.
People would go shopping throughout the year not just waiting for Black Friday and Cyber Monday because there are pretty good online sales.
Most people would like to buy electronics and clothes on Black Friday rather than other things regardless of gender.
Therefore, we would recommend that marketers can target younger generation for Black Friday deals at stores but also expand categories of items on online sales on Thanksgiving holiday( Cyber Monday). On Cyber Monday, most online websites have some deals with electronics. In addition, retail stores could expand more items on online so that people would choose while they are at home and take a rest.
