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Consumer Connect Q4 2017
The Evolving Role of E-commerce in CPG Today
January 2018

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 In the United States, consumer sentiment is steady, but one-third of
consumers are still struggling to afford needed groceries.
 Consumers are turning to the internet to find deals and low prices, and to
discover new and/or unique CPG options.
 The internet is also being used to enhance the brick-and-mortar shopping
experience.
 Social media is increasingly relied upon to learn about and communicate
product and shopping experiences.
 Forty percent of consumers—more than half of millennials—expect to
increase online shopping frequency in the coming year.
 CPG marketers must invest to understand diverse and evolving drivers of e-
commerce engagement.
Executive Summary
Tweet This: @iriworldwide’s #IRIConsumerConnect report looks at the
evolving role of e-commerce in CPG

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Copyright © 2018 Information Resources, Inc. (IRI). Confidential and Proprietary. 3
Tweet This: Consumer sentiment has changed little
since Q3, but is up nearly one full point versus Q4 2016.
Consumer Sentiment Index
Average = 100
Total U.S.
100.0
97.5 97.0
96.4
99.0 98.6
96.8 97.3
90
95
100
105
Q1
2016
Q4
2017
Q3
2017
Q2
2017
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Source: Consumer Connect™, Q4 2017

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Tweet This: Half of consumers feel that their household’s financial
situation is good; sentiment is most favorable among older and
wealthier households.
52.7%
55.2%
55.1%
54.2%
53.2%
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Source: Consumer Connect™, Q4 2017
31.3%
47.8%
60.1%
74.3%
Under $35K
$35K-
$54.9K
$55K-
$99.9K
$100K+
68.3%
51.1%
44.5%
47.3%
Seniors
Boomers
Gen Xers
Millennials
Households Indicating Good Financial Health
Total U.S.
IncomeGeneration

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Tweet This: Still, nearly one-third of households are having
difficulty affording needed groceries.
31%
of consumers
have difficulty affording
needed groceries
 33% of millennials
 43% of Generation Xers
 31% of boomers
 20% of seniors
Source: Consumer Connect™, Q4 2017

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11%
16%
18%
18%
25%
18%
20%
28%
27%
36%
26%
25%
42%
39%
52%
30%
28%
46%
44%
55%
20%
21%
32%
30%
40%
Buying online allows me to find
lower-priced food and beverage
options
Buying online allows me to find
lower-priced OTC medication
options
Buying online allows me to find
lower-priced beauty/personal
care options
Buying online allows me to find
lower-priced home care options
Online order/in-store pickup
(click-and-collect) allows me
convenience without the added
shipping fee
Total Millennials Gen Xers Boomers Seniors
Source: Consumer Connect™, Q4 2017
Online Shopping Value Perceptions, by Generation
Top-2 Box Responses
Tweet This: Many, especially younger shoppers, feel shopping
online saves money and offers convenience.

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46%
52%
55%
54%
51%
I am less likely to
make impulse
purchases when I
buy online
Total Millennials Gen Xers Boomers Seniors
Source: Consumer Connect™, Q4 2017
Tweet This: Across generations, about half of consumers feel that
they are less likely to make impulsive purchases online.
Propensity to Make Additional Purchases, by Generation
Top-2 Box Responses

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12%
16%
28%
32%
20%
Buying online makes
it easier to find
needed items
Total Millennials Gen Xers Boomers Seniors
Source: Consumer Connect™, Q4 2017
Tweet This: And many feel that online shopping makes it easier to
find needed items...
Benefits of Online Shopping, by Generation
Top-2 Box Responses

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…as well as money-saving opportunities and up-and-coming
delivery options.
6%
12%
22%
24%
51%
55%
Use online meal kit delivery
services
Use online subscription
services for some grocery
items
Order online and pick up in
store
Order online for home
delivery
Compare prices on retailer
websites to find the lowest
prices on needed items
Download coupons from
retailer/manufacturer
website
Purchase Behavior in the Coming Year
% of Respondents
Source: Consumer Connect™, Q4 2017

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Tweet This: Social media allows shoppers to share and learn before
investing their CPG dollars.
7%
30%
21%
40%
38%
61%
37%
63%
24%
46%
I like to share my
opinions about brands
on social media
I will switch to a new
brand if I've read a
good review online
Total Millennials Gen Xers Boomers Seniors
Social Media Influence on Brand Behavior, by Generation
Top-2 Box Responses
Source: Consumer Connect™, Q4 2017

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Tweet This: Many consumers indicate an intention to purchase
groceries online in the coming year.
Likelihood of Purchasing Groceries Online in the Coming Year
% of Respondents
21% 28%
18% 18% 22%
20%
27%
27%
17% 12%
29%
27%
35%
31%
21%
31%
18% 20%
34%
46%
Total U.S. Millennials Gen Xers Boomers Seniors
Very likely Somewhat likely Not very likely Not at all likely
Source: Consumer Connect™, Q4 2017

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Tweet This: CPG marketers must stay in lockstep with evolving
consumer needs and wants to encourage engagement and
purchase activity.
Capabilities That Drive Channel Selection
% of Respondents
11%
17%
22%
25%
39%
20%
24%
30%
34%
49%
30%
34%
43%
43%
57%
31%
42%
44%
45%
58%
22%
28%
33%
36%
50%
Subscription services for
frequently purchased items
Online purchasing of freshly
prepared items
Online purchasing with in-
store pickup
Online purchasing with fast
delivery
Online purchasing with free
delivery
Total Millennials Gen Xers Boomers Seniors
Source: Consumer Connect™, Q4 2017

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For more information:
Shelley Hughes
Shelley.Hughes@IRIworldwide.com
312.474.3675
Susan Viamari
Susan.Viamari@IRIworldwide.com
413.998.3266