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4 Influence Of Social Media

4 Influence Of Social Media

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Consumer Electronics

Female



1.

2.

3.

4.

5.

6.

7.

8.

9.

10.



Male



Is a brand currently owned

Works well with what I own already

Has the features & benefits I want

Is growing in popularity

Offers real solutions for me

Offers good value for the money

Has a fashionable look

Is socially responsible

Is a brand I can trust

Has a broad selection



1.

2.

3.

4.

5.

6.

7.

8.

9.

10.



Is a brand currently owned

Is growing in popularity

Offers real solutions for me

Has the features & benefits I want

Offers product bundles or packages

Works well with what I already own

Has a lot of sales or special deals

Offers good value for the money

Has the latest trend

Is socially responsible



1.

2.

3.

4.

5.

6.

7.

8.

9.

10.



I collect this brand

I/my child is a fan of the character

Is growing in popularity

Is trendy or is “in” right now

Has a broad selection

Has the features/benefits I want

Has the latest trend

Has the latest technology

Has a lot of sales or special deals

A good gift idea



Toys

Female



1.

2.

3.

4.

5.

6.

7.

8.

9.

10.



Male



I/my child is a fan of the character

Is growing in popularity

I collect this brand

Has the features/benefits I want

Is trendy or is “in” right now

Has a broad selection

Has the latest trend

Has a lot of sales or special deals

Offers good value for the money

A good gift idea



39.6 Deals and Bargains

According to Time, 40% of items purchased by consumers are at some discount,

an increase from 10% of sales in 1990 that were discounted.

_________________________________________________________________



“There’s not a weekend where an average

specialty retailer in the mall is not offering some

kind of 30% to 40% off deal. It certainly feels

like the consumer is not shopping unless

there’s some kind of deal attached to it. And it’s

very hard to pull back when the consumer gets

used to buying things on sale.”

Bloomberg Businessweek

_________________________________________________________________



CONSUMER BEHAVIOR 2017-2018



• 236 •



In a survey of Millennials by IRI (www.iriworldwide.com), item price ranked as the

#1 influencer of brand selection, ahead of previous usage and trust of brands, shopper

loyalty cards, and advertising. Eighty-seven percent (87%) of survey respondents said

price was among the two top influencers.



39.7 Impulse Buying

Shapiro+Raj (www.shapiroraj.com) report that every week nearly one-third of all

consumers are involved in an impulse purchase. The urge to take advantage of

discounts or price promotions accounts for approximately 50% of impulse purchases.

Unity Marketing (www.unitymarketingonline.com) found buying on impulse is an

important factor in discretionary purchases for approximately 40% of consumers.

______________________________________________________________



“If shoppers bought only what they needed, few

retailers would remain in business. Fortunately,

impulse buying is a way of life for many

consumers.”

Chain Store Age

______________________________________________________________



A survey by Gallup (www.gallup.com) reported the following percentages of

consumers had made impulse purchases in the prior month:

• Millennials:

42%

• Generation Xers:

40%

• Baby Boomers:

39%

In a 2015 survey by Chase (www.chase.com), 83% of Millennials said they had

made an impulse purchase. This was especially likely on payday or when they were

cruising shopping websites online. In those instances, their urge to purchase items on

impulse alone exceeded that of other age groups.

Male Millennial shoppers make slightly fewer impulse purchases than females.

When they shop impulsively, 50% of men said they were likely to spend on electronics,

compared with only 27% of female shoppers. For female shoppers, 61% said their

impulse buys were mostly clothing, while only 43% of men said clothing lured them to

impulse shopping. Twenty percent (20%) of female shoppers cited “retail therapy” – the

comfort and relief that comes from purchasing something new after a particularly trying

day or event – as a primary reason for impulsive shopping, compared with 9% of males.

Seven in 10 women have made impulse purchases after seeing price promotions; 60%

of men have done so.



CONSUMER BEHAVIOR 2017-2018



• 237 •



_________________________________________________________________



“Just because Millennials make impulse

purchases doesn’t mean they feel good about it.

Chase found that Millennials were more likely to

express regret or dissatisfaction after an

impulse purchase. Others more attuned to their

impulsive spending habits tried to stay away

from shopping altogether when they were

emotional to avoid the risk of buying.”

eMarketer, 1/19/16

_________________________________________________________________



39.8 Checkout

According to a 2015 survey by CFI Group (www.cfigroup.com), the checkout

process is the No. 1 driver of customer satisfaction with retailers, at 28%, ahead of

price, at 26%. Sixty-five percent (65%) of adults report having used self-checkout

registers at the front of a retail store.

In a 2015 Harris Poll, 29% of adults cited slow checkout as a major source of

frustration when shopping at retail establishments; 21% find long lines problematic.

_________________________________________________________________



“Even when shoppers decide on a store, the

checkout process may make or break their

experience.”

eMarketer, 8/6/15

_________________________________________________________________



39.9 Brand Engagement

Brands face a major challenge when trying to increase customer engagement:

Consumers are busy and spend little time ‘engaging’ with brands while shopping.

According to a 2015 study by the Ehrenberg-Bass Institute of Marketing Science

(www.marketingscience.info), the average consumer spends 13 seconds purchasing a

brand in-store. Online, the average consumer spends 19 seconds purchasing, and the

majority spend less than 10 seconds.

CONSUMER BEHAVIOR 2017-2018



• 238 •



_________________________________________________________________



“The idea that consumers ‘engage’ with brands is

no doubt true for a small set of consumers and a

small set of high involvement categories and

brands, but for the vast majority of brands,

consumers are not engaged to or with brands.

They’re just buying them. The simple truth is this:

For most categories, consumers have a small

repertoire of brands that are acceptable, and they

spend little time thinking about purchase

decisions. Their lives are already full of spouses,

kids, events and other activities, and most people

simply don’t have the time or energy to engage

with brands in any meaningful way.”

Randall Beard, President

Nielsen North America

_________________________________________________________________



39.10 Buying Direct From Brands

The 2015 Consumer Preferences Survey, by BrandShop (www.brandshop.com),

found that 82% of online shoppers would prefer to have the option of buying direct from

brands or an online retailer. Given the option, 88% would buy direct from the brand.

_________________________________________________________________



“While most purchases take place over third

party channels, it is now understood that

consumers prefer to buy directly from a brand

if given the option. The confidence and

authenticity a consumer experiences from

transacting directly with a brand is not easily

replicated by third parties.”

Center for Media Research, 10/14/15

_________________________________________________________________



CONSUMER BEHAVIOR 2017-2018



• 239 •



40

RESPONSE TO ADVERTISING



40.1 Preferred Media For Ads

A Harris Poll (www.theharrispoll.com) found that consumers, by age, find the

following most useful in deciding what products and services to purchase:

18-to-34

















Television commercials:

Newspaper ads:

Internet search engine ads:

Radio ads:

Internet banner ads:

All media viewed equally:



50%

6%

10%

3%

4%

27%



35-to-44



38%

13%

15%

4%

1%

29%



45-to-55



35%

14%

16%

3%

1%

31%



55 & older



23%

31%

16%

2%

<1%

27%



Total



37%

17%

14%

3%

1%

28%



Harris also found that consumers, by age, find the following most helpful when

shopping for bargains:

18-to-34

















Newspaper/magazine ads:

Online ads:

Direct mail/catalogs:

TV commercials:

Radio ads:

All media viewed equally:



15%

22%

15%

17%

2%

31%



35-to-44



16%

26%

13%

12%

3%

31%



45-to-55



24%

17%

14%

8%

<1%

36%



55 & older



33%

12%

10%

7%

1%

36%



Total



23%

18%

12%

11%

2%

34%



CrossView (www.crossview.com) found shoppers’ preference for delivery of retail

promotions as follows:

• Email:

37%

• Mailer:

23%

• Text message:

18%

• In-store:

11%

• Social media:

9%

• Other:

3%



40.2 Positive Response To Ads

A survey by Truth Central, the thought leadership unit of McCann

(http://truthcentral.mccann.com/), found that 71% of consumers feel positive about the

advertising sector, 67% of consumers feel positive about the advertising they see



CONSUMER BEHAVIOR 2017-2018



• 240 •



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