marketplace insights - automotive digest

Marketplace Insights

m-Commerce and the New Shopping Landscape

2

Marketplace Insights is an ongoing series of

explorations into consumer beliefs, thoughts and

perceptions about products, services and trends

iModerate leverages our online one-on-one

conversations to provide candid and insightful

consumer responses that empower businesses to

better understand the consumer experience

On this Marketplace Insights we partnered with

uSamp™, a premier provider of technology and

survey respondents used to obtain consumer and

business insights

We share these findings with you in the hope that

you will gain value from them

Background Information

3

m-Commerce, or the usage of smartphones and tablets for

shopping and purchasing continues to dramatically impact the

consumer landscape. Seeking to understand how these new

technologies have affected the ways people shop, we conducted

a hybrid study including 50 one-on-one conversations and a

quantitative questionnaire

What we explored

Offering nearly 24/7 access, consumers confirmed that the

primary impetus for their mobile shopping is convenience.

However, while the motivation is not surprising—the

descriptions of how they shop and what they shop for

reveal key takeaways for marketers

What we discovered

The New Shopping Landscape:

An Overview

There’s little question that m-Commerce will

continue to dramatically impact the

shopping landscape. Smartphone and

tablet usage continues to increase offering

consumers’ unprecedented access to

browse and make purchases online.

Combining greater flexibility and efficiency,

these devices have fundamentally changed

how consumers shop and browse in their

daily lives

4


An Overview

5

Characteristics of the new shopping landscape

Increased accessibility:

Consumers can shop/browse wherever and whenever

the mood strikes them

Increased consumer awareness:

Consumers (even while at the brick–and–mortar stores)

can comparison shop for the best

value anywhere

Increased cross functionality/multiple channel uniformity:

Consumers can, for example, research on a laptop, comparison shop on their phone and purchase at the store—

expecting all components to work together seamlessly

Increased operational efficiency:

If functionality makes shopping on their device difficult, (i.e., image size too small), often shoppers simply pause their

shopping and revisit items later on their computers. However, the interruption leaves room for them to drop off from the

purchase process

Increased expectation of consumer confidence:

Purchase habits are gravitating towards companies with an established identity in both the online space and mobile

arenas (i.e., Amazon, iTunes and Ebay) because consumers trust them to deliver on their promise no matter the

technological device


Consumer Archetypes

6

m-Commerce consumers fall into three archetypes, based on their

primary motivation:

The “express

shopper” The “browser” The “researcher”

• Consumers that want to get

in, find what they need and

get out asap

• They utilize mobile devices

to evaluate items/get

relevant information to

quickly and easily make a

purchase on their device

• Consumers that leverage

the access their devices

provide during leisure

periods to research

products and services

• They utilize mobile devices

to review product details

and compare prices

• Consumers that use their

mobile device to research

and compare products with

the intention to go to the

store and make a purchase

• They utilize the information

to make a more informed

purchase


Tablet vs. Smartphones

7

Operational limitations of devices also

impact consumer behavior. For many

consumers, limitations in screen size and

keyboard functionality make tablet use

preferred over smartphones for browsing

and purchasing—letting them view images

and type more easily

However, while the tablet is portable, it isn’t

always as handy as a smartphone. Its

larger size and limits in connectivity mean

that it isn’t as much of an “anytime,

anywhere” solution

“It’s much easier to browse with a computer because you can have multiple tabs or windows

open at a time. However, it’s more convenient to pick up the iPad when you can sit on the

couch and do something else.”

Female

Tablet browser

25-34


Tablet vs. Smartphones

8

Device preference for purchasing and browsing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Browsing

Purchasing

1 – Strongly prefer Smartphone 2 3 4 5 – No preference 6 7 8 9 10 – Strongly prefer Tablet

Thinking about mobile browsing (without making a purchase), please indicate if you prefer browsing on your smartphone or on your tablet. Thinking about making a purchase on

your mobile device, please indicate if you prefer to purchase on your smartphone or on your tablet. N=152 Browsing, N=66 Purchasing.


Purchasing Trends

9

Oftentimes, how well a product translates to a particular device can

significantly impact consumer m-Commerce behavior

Which of the following categories have you ever made a purchase in

on the following devices? N=242.

Smartphone Tablet Computer

Movies, Music & Games 64% 62% 66%

Clothing, Shoes

& Accessories 45% 47% 71%

Electronics 41% 44% 73%

Books 35% 60% 55%

Travel

(Air, Lodging, etc.) 33% 32% 64%

Health & Beauty 32% 34% 52%

Toys 24% 30% 45%

Sports & Outdoor 19% 21% 41%

Groceries 26% 18% 36%

Home, Garden & Tools 18% 22% 40%

Insurance 20% 12% 35%

Stocks 16% 15% 33%

Automotive 12% 15% 35%

Other 14% 12% 20%

Ever purchased on each device For example, we found that certain media

and grocery purchases lend themselves to

particular types of m-Commerce including:

Music on your phone/books

on your tablet

Groceries on your smartphone –

because they are commodity items

easily purchased from a list

The New Landscape In Action:

Convenience

10

Regardless of consumer

archetype, device

preference, or product

trend category, many

consumers we spoke with

informed us that their m-

Commerce usage is

founded simply in

convenience—the ability

to review and purchase

products anytime,

anywhere

“If I think of something we need or am just browsing the app I have no problem with ordering

from my phone. My phone is usually within arms reach wherever I am.”

Female

Smartphone purchaser

25-34


Convenience

11

Benefits of Mobile Browsing/Purchasing

Which of the following are your top benefits for browsing on your 'Smartphone/Tablet'? You may select up to 3. Which of the following are your top benefits for making a purchase

on your 'Smartphone/Tablet'? You may select up to 3.

N=100 Browsing N=300 Purchasing

Browsing Purchasing

Convenience 76% 68%

Touch screen 39% 33%

Price comparisons 33% 35%

Speed 27% 38%

Able to use apps 21% 24%

It’s a way to fill time 30% 11%

User-friendly experience 17% 23%

One-click purchases 14% 23%

Works well with daily deal shopping 12% 13%


Accessibility

12

Others spoke to the

unprecedented access to

information at their

fingertips that enables

mobile shoppers to:

• Comparison shop: If a consumer sees

something they like in a store, they can

scan or search to find a better deal

• Be better informed: Access to websites

and apps provides relevant information

including product details, customer

reviews, discounts and deals

Female

Smartphone browser

25-34

“I use a smartphone to scan bar codes, [it gives me a] clear display of items, and compared

other products and ratings. I can move at my own pace and see product reviews without the

pressure of a salesperson.”

Challenges of The New Landscape:

Operational Efficiency

13

Unfortunately, current operational inefficiencies

limit the impact of m-Commerce for many

consumers including:

Smaller screens equal smaller pictures, inhibiting

consumers from viewing product details

• Limited browser capabilities often mean consumers can’t

use tabs (or open as many as they’d like)

for comparison purposes and can only drill down

into one product at a time

• Small, touchscreen keyboards are less than user friendly

when consumers have to enter information

in a search box or at checkout

• Wireless connections often mean slower page loads that

reduce the consumer experience enough

to sometimes end it

Female


25-34

“The biggest issue is small pictures or reduced descriptions on a mobile site. If I am unable

to see a decent picture, I will add the item to my wishlist or bookmark it and check it on my

computer.”


Security

14

Even those consumers most

comfortable with online shopping

that we spoke with remain

concerned about financial

information being transferred

over a cellular network or a wifi

signal; with some limiting the

amount of their transactions as a

result

Male

Tablet purchaser

35-44

“[Mobile shopping is] a fairly new experience. I am a bit hesitant, psychologically kind of

worried about wireless being easier to steal my info so I use my desktop.”


Security

15

Although 17% of browsers would

not make a purchase on their

mobile device, 41% of

purchasers say there isn’t a

maximum amount they’re

willing to spend

Male

Smartphone

purchaser

25-34

“There isn't a specific limit because of the

platform. My phone is probably at least as

secure as my computer. I can use it safely for

banking, so any amount I want to spend

should be fine.”

Female

Smartphone

purchaser

55-64

“I wouldn't give an exact amount, but probably

not much. I don't like to shop much online -

smartphone or computer.”

Security concerns can limit current “max spend” via mobile

Average “largest $ amount

you’re comfortable spending” on

a mobile device:

$349 for mobile

browsers

$491 for mobile

purchasers

What is the largest dollar amount comfortable spending when making a purchase on your 'Smartphone/Tablet'? N = 100 Browsers and 300 Purchasers.

Successfully Navigating the New Shopping Landscape:

Recommendations

16

Create a Seamless

Consumer Experience

• Shopping carts and wish lists should be consistent

• Consumers should be able to access their purchase

history and loyalty programs anywhere

• Consumers should be able to use the information from a

store’s site or app in the store

• Consumers should be able to scan a barcode or search

for an item that they see while out and about and find it

from their favorite retailer

Female


25-34

“I do a lot of shopping on Amazon, I like that I can access my account, including previous

purchases. My wish list is easy to locate and I don’t need to enter payment information every time I

place an order. I’d like a way to track purchases easier. Like the Lowes my home card. When the

card is scanned it keeps track of all the seeds I purchased so I don’t need to keep the packages for

next year.”


Recommendations

17

Prioritize Visibility

• Pictures should be clear and easy to

view. Consumers shouldn’t have to

“pinch” to zoom in and out

• Pages should be streamlined including

only relevant information; remove

superfluous information (i.e., sidebar,

floating menu, etc.) that increases load

time or crowds relevant images and

information

Male

Smartphone browser

25-34

“The screen is so small that for most purchases I would have to use my laptop to see the

product. Make pictures more interactive, fill my entire screen instead of having to zoom in

and back out.”


Recommendations

18

Address Security Concerns

Through Transparency

• Consumers concerned about wireless security

feel more secure using a computer because

they are used to seeing security assurances

on e-commerce websites. m-Commerce

websites and apps that provide “official,”

credible indication that the mobile connection

is secure significantly mitigate consumer

security concerns

Male

Tablet browser

35-44

“I’m sure most retailers do a good job of protecting their consumers from fraud or stolen

info but I don’t recall any visible disclaimers promising to be liable if my info is

compromised via their app.”


Recommendations

19

Ease of Use and Speed are the Keys

to Consumers Satisfaction

• Typing is a chore on most mobile devices – mobile

sites and apps should use minimal text boxes

• Information should be complete – not a truncated

version of what’s on the full site. Consumers need to

see the full description, including relevant information

and reviews in a way that doesn’t slow the load time

• Offer ways to compare items (save to a list, open in a

new tab, etc.) and show more than one item at a time

• Don’t slow down the purchase process with

unnecessary steps – let people check out quickly

Male


45-54

“Don't have too many steps to take, I don't want to sign up for a membership,

or become a preferred shopper, just let me select my items, and purchase.”


Recommendations

20

Information Integration is Key

• Take advantage of consumer history. Make it easy for

them to stay logged in and keep track of what they’ve

bought or browsed so they can access and replenish

an item they like quickly

• Consumers are less likely to use mobile devices to

purchase “serious” or big ticket items like electronics,

cars, insurance. Allow the transfer of product

information directly to a sales rep on the phone or in

person

• Consumers often need an item right away or don’t like

to make mobile purchases so they browse before they

go to the store – make it easy to see which locations

have an item from the product page

Male

Smartphone browser

35-44

“Portability is an advantage, to look up a certain product, for instance the laptop I was going

to buy, being able to take my smartphone to the store with the webpage on the exact model

and show it to a store employee. To get exactly what I came to buy for the exact price it

showed without being hassled into buying something else.”

21

Project Specifics

iModerate conducted a hybrid study utilizing an

online survey with 400 individuals and 50 online,

one-on-one conversations. Participants were at

least 18 years old, and have browsed or made

purchases utilizing mobile devices such as

smartphones and tablets (iPad, Kindle Fire, etc.).

These consumers were sourced from uSamp™

ThoughtPath™

Our qualitative research is based on a cognitive

approach called ThoughtPath. Drawing on three

select cognitive theories, ThoughtPath enables our

skilled moderators to get into each consumer’s

head and discover what’s most important to them,

what’s not, and why. In this study, it allowed us to

understand consumers’ thoughts and ideas about

how they use their mobile devices to shop

Let’s talk.

303-333-7880

720 S. Colorado Boulevard

Suite 500N

Denver, CO 80246

imoderate.com

marketplace insights - automotive digest

Documents