The document discusses how the internet has come to significantly influence consumer purchasing decisions of durable goods. While friends and family remain an important source of product research, the internet provides an in-depth source of information from multiple sources to help consumers make informed choices. A survey found that over half of non-owners intending to purchase appliances like refrigerators and washing machines will use the internet to research options within the next 6-12 months before purchasing. The internet is also becoming one of the primary mediums for consumers to share their experiences with products after purchasing.

1. mint
www.livemint.com WEDNESDAY, NOVEMBER 3, 2010, DELHI13
Technology
VIRTUALINFLUENCEesearch shows Web portals, including company and consumer review websites, have come to
significantly influence purchasing decisions. While friends and family continue to be the most
popular sources for research on durable goods, the Internet helps make an informed choice with
indepth information available from multiple sources.
The consumer durables industry expanded 30% in the January-March quarter and continues to grow. Its
spend share in the overall ad pie is the second largest at R2,122 crore. The Internet, however, received only a
fraction of this ad spend: R54 crore. This is way too little, given the potential of the medium to influence
consumer choice. A report by digital marketing agency webchutney, based on a survey of people who intend
to buy various consumer products, indicates the extent to which the Internet is now being used for product
research vis-à-vis traditional sources.
Graphic by Uttam Sharma/Mint
R
55%
Non-owners
intending to buy
Break-up
of those
wanting to
purchase
37%
25%
12% 12%
30%
52%
9%
4%
25%
75% Owners
intending to buy
Owner intender
Non-owner intender
Owner intender
Non-owner intender
Owner intender
Non-owner intender
Duration
within which
a purchase
is intended
REFRIGERATOR WASHING MACHINE PERSONAL COMPUTERAIR CONDITIONERTELEVISION SET
Within 6
months
6-12
months
12-18
months
18-24
months
Break-up
of those
wanting to
purchase
Owner
intender
Non-owner intender
45%
Owner intender
Non-owner intender
Owner intender
Non-owner intender
39% 39%
11%
7%
40%
33%
22%
4%
Within 6
months
6-12
months
12-18
months
18-24
months
55%55%55%
Duration within which
a purchase is intended
32%
43%
11%
25%
50%
25%
4%
Within 6
months
6-12
months
12-18
months
18-24
months
Duration within
which a purchase
is intended
Break-up
of those
wanting to
purchase
97%
Non-owner
intender
3% Owner
intender
Break-up
of those
wanting to
purchase
Break-up
of those
wanting to
purchase
30%
41%
14%
7%
54%
4% 4%
35%
Within 6
months
6-12
months
12-18
months
18-24
months
27%
73% Non-owner
intender
Owner
intender
Duration
within which
a purchase is
intended
Duration within
which a purchase
is intended
33%
67%
Non-owner intender Owner
intender
48%
30%
9%
3%
30%
38%
20%
6%
Within 6
months
6-12
months
12-18
months
18-24
months
Magazines/
newspapers/
brochures
DEALER
Friends
and family DealersTelevision
DailyNEWS
Online households which
own consumer durables
Television set 96%
Personal computer 83%
Fridge 82%
Washing machine 61%
Air conditioner 35%
31%
29%
40%
More than 5 years
Using internet
for up to two
years
Between 2 and
5 years
Duration of use of the online medium
ONLINE DURABLE INTENDERS’ SOURCE FOR PRODUCT RESEARCH
Media usage (above 1 hour) trends
among online durable owners
73%
60%
38%
20%
14%
Internet
TV
Radio
Magazine
Newspaper
Owner-non intender
Purchase intention of
online durable owners
24%
76%
Monthly household income of those intending a purchase
LessthanR6,250
R6,250-12,500
R12,500-25,000
R25,000-40,000
R40,000-80,000
R80,000-100,000
Morethan100,000
16%
33%
29%
7%
7%
6%
2%
Medium and content of research Experience sharing and preferred online channels
BEFORE PURCHASE AFTER PURCHASE
Type of experience shared Preferred channel to share experience Type of experience shared Preferred channel to share experience
Item features Price Brand image Performance Visual appeal
Consumer magazines Newspapers TV shows and ads Dealer Friends and relatives Internet
31% 32% 24% 29% 28%
11%
23%
22%
8%
10%
5%
47%
9%
7%
4%
22%
8%
27%
12%
8%
17%
28%
9%
7%
6%
22%
19%
12%
10%
7%
Positive
experience
Haven’t
shared an
experience
Negative experience Negative experience
51%
45%
4%
Others
Consumer goods
review website
Company/
brand website
Social
platforms
43%
28%
21%
8%
Positive
experience
Haven’t
shared an
experience
48%46%
6%
Consumer
goods review
website
Company/
brand
website
Social platforms Other
39%
32%
23% 6%
Internet
Current owner
and intender
42%48%85% 45%57%
Source: webchutney