the buying experience in the age of digital consumers

A study on the buying experience of Romanian

consumers aged between 20-35 years

EY Romania Survey The buying experience in the age of digital consumers

The buying experience in the age of digital consumers About the survey

The survey analyzes the perceptions on the whole buying experience of 310 Romanian consumers aged between 20

and 35 years. We decided to on this demographic category because we consider it to be representative regarding

purchasing behavior. The survey includes 5 services and 4 products for analysis. The report also provides a selective

comparison of data from Romania with data in the global EY report "Consumers on board" launched in July 2014.

Analyzed

services

Mobile /Internet services

Bank loans (for consumption,

real estate, etc.)

Insurance (health, house,

car, etc.)

Healthcare

This study is based on a survey conducted between 31 March - 5 May 2014. The report analyzes responses from 310

consumers in Romania to 29 questions in order to determine the characteristics of their buying experience.

Public services

1

2

3

4

5

Analyzed

products

1

2

3

4

Cars

Clothing

Food and beverages

Electronics and household

appliances

The buying experience in the age of digital consumers Main conclusions

Top 5

conclusions

In Romania, 4 out of 10 customers are already digital consumers, compared to 6 out 10 globally. On the other hand, in

Romania out of 10 digital consumers, 6 inform themselves online only preferring to purchase in store, 3 purchase online

after also informing themselves in the store, and 1 is digital hypertasker, mainly interested in the technical features and

social and ethical attitudes of the company producing the goods/services they intend to purchase.

In Romania, 53% of respondents say they are loyal to the brand of the products analyzed and 42% to the

brand of the services analyzed. On the other hand, 7% say they are not at all loyal to the brands of products

analyzed and 15% are not at all loyal to brands of services analyzed. However, no less than 40% and

respectively 43% of respondents say they would change their suppliers of products and services, 12% and

respectively 16% of them even for a small additional benefit.

Consumers believe that company policies have the greatest importance for bank loans (18%). Technical features

matter most for purchasing cars (24%). Brand/company image has the greatest impact when buying clothing

(27%). Availability matters most for public services (24%) and quality comes with a share of 40% when considering

food and beverages. Insurances, as they are mostly among those mandatory, are under the major impact of low

price (23%) in the perception of respondents to this survey.

The number of Romanians who shop online has reached 1.2 million, representing 7% of the population aged over

18 years. Our results indicate online purchasing as the method preferred by 8% of respondents for the analyzed

products vs. 7% for services. No less than 70% of survey respondents - consumers aged between 20 and 35 years

- prefer to buy products and services, while 77% buy from the store. Percentages for each category of products and

services analyzed are shown on the next page.

Immediate availability proves to be the most important characteristic for which respondents are willing to pay extra (on all

products and services analyzed). Study results show very low percentages in the interest towards "Romanian products',

which still indicates Romanian consumers preferences for imported products. In the category "innovative features"

electronics and household appliances rank number one (23%), followed by mobile phones and cars (each with 20%).

1

2

3

4

5

Digital consumers

The buying experience in the age of digital consumers

Digital consumers "take" control

Romania vs. globally - all products and services analyzed

Globally, two-thirds of consumers are now digital consumers, meaning that they use the Internet in their purchasing process. In

Romania the percentage is at the moment only 41%, but as Generation Y gets access to higher income levels, this type of

consumer will also "take over" on the local market. Moreover, digital hypertaskers, considered the shoppers of the future are the

most sophisticated and challenging of digital shoppers.

62%

Digital consumers – Globally

► 63% Digital informers – Consumer which informs himself online

► 13% Digital buyers – Consumer which buys online

► 24% Digital hypertaskers – Digital hypertasker consumer

41%

Digital consumers – In Romania

► 62% Digital informers

► 26% Digital buyers

► 12% Digital hypertaskers Disparity = 21%

Source : EY “Consumers on board” surveys 2012 and 2014

(see definitions on the next page)

Digital consumers in Romania

Romania vs. globally - all products and services analyzed

In Romania, 4 out of 10 customers are already digital consumers, compared to 6 out 10 globally. On the other hand, in Romania

out of 10 digital consumers, 6 inform themselves online only preferring to purchase in store, 3 purchase online after also

informing themselves in the store, and 1 is digital hypertasker, mainly interested in the technical features and social and ethical

attitudes of the company producing the goods / services they intend to purchase.

► 62% Digital informers

► Online: main informing channel

► Store: main shopping channel

► 26% Digital buyers

► Online: main shopping channel

► Store: main informing channel

► 12% Digital hypertaskers

► Mixed use of the online and physical stores for both getting information and purchasing

High level of brand loyality

Lowest time spent online

Lower affinity for the use of tablets, smartphones

Not very open to engaging in co-creation

Heavily influenced by the price and availability of product

Weak influence of brand and social and ethical attitudes of

the producing company

Highest degree of accepting credit card payment

Open for use of tablets, smartphones

The greater time spent online for gathering information

Cea mai scăzută rată de loialitate față de brand

Low sensitivity to price, warranty terms

Are the most interested in the technical features, but also in

the social and ethical attitudes of the producing company

59% Traditional

consumers

41% Digital

consumers

1. Searching and gathering

information


Q1(a): Valori pentru România - toate produsele și serviciile analizate

Traditional methods of advertising (press, TV) continue to receive great attention from consumers aged between 20 and 35

years. On the other radio commercials have a very small percentage compared to traditional methods, of only 5% and

respectively 7%, while social media advertising also has little impact of only 10%, both for the products and services analyzed.

What type of advertising influences you in purchasing the product or service you want?

Total respondents: 290

Did not answer: 20

Q1(a): Average values for Romania - all products and services analyzed

24%

38%

5% 5%

18%

10%

15%

36%

7% 9%

23%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Magazines andprinted press

advertisements

TV advertisements Radioadvertisements

Movie teathreadvertisements

Showroom andstore displays

Social mediaadvertisements

Analyzed services Analyzed products

Q1(b): Values for Romania - all products and services analyzed

According to the responses to the survey, TV advertisements rank first with percentages between 26% and 44% to the products

and services analyzed. In second place are in-store advertisements with percentages between 13% and 36%, and in the third

place are printed press advertisements with percentages between 10% and 32%. Advertisements on social networks are only in

the fourth place, with percentages ranging between 5% and 15%, depending on the category of products and services analyzed.

What type of advertising influences you in purchasing the product or service you want? (multiple answers)

Products and services categories Movie theatre

advertisements

TV

advertisements

Radio

advertisements

Magazines and

printed press

advertisements

Showroom and

store displays

Social media

advertisements

• Mobile contracts/Internet services 10% 39% 5% 10% 21% 15%

• Bank loans 3% 34% 5% 29% 22% 7%

• Insurance (health, house, car, etc.) 5% 36% 6% 32% 16% 5%

• Healthcare 3% 43% 5% 25% 19% 5%

• Public services 4% 39% 5% 28% 13% 11%

• Cars 11% 26% 8% 13% 36% 6%

• Clothing 11% 27% 11% 18% 20% 13%

• Food and beverages 5% 52% 6% 17% 13% 7%

• Electronics and household appliances 4% 44% 5% 13% 25% 9%

Weighted average value for all categories 8% 39% 7% 22% 23% 10%


Did not respond: 20

(1) (2) (3) (4) (5) (6) Column

To what extent does the price, payment method and delivery of product or service influence your choice? (multiple answers)

Q2(a): Values globally - all products and services analyzed

In 2012 and 2014 EY conducted in over 30 countries the study "Consumers on board" with the participation of approximately

30,000 customers of all ages each time. According to these studies the modern consumer’s choice of products and services is

majorly influenced by aspects of price, payment method and delivery of all categories of products and services analyzed.

Source: EY “Consumers on board” surveys 2012 and 2014

86%

79%

82%

74%

83%

84%

78%

82%

89%

81%

84%

73%

85%

84%

81%

84%

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

Mobile contracts/Internet services

Bank loans

Insurance (health, house, car, etc.)

Healthcare

Cars

Clothing

Food and beverages

Electronics and household appliances

2012

2014

To what extent does the quality and guarantee of the product or service, and also the ratings provided by other users affect your choice? (multiple answers)

Q2(b): Values globally - all products and services analyzed

According to our global study consumers have become more cautious. They carefully asses all aspects related to the quality and

guarantee of the product or service. On the other hand, consumers are no longer forced to interact directly with providers to

access relevant information for the choice of the product or service desired, because they often can figure out what option best

fits their requirements based on online ratings provided by others users.


85%

66%

76%

84%

88%

86%

87%

88%

82%

56%

71%

84%

87%

85%

86%

88%

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


Bank loans


Healthcare

Cars

Clothing

Food and beverages


2012

2014


It is clear that the online environment is the most used source of information by consumers of 20-35 years in Romania to search

for the product or service they want (27% regarding the services and 32% regarding the products analyzed). Fallowing are

references from acquaintances (friends, family, etc.) and direct interaction with the consultant in store - both with an average of

21%. The main conclusion of the chart is that for both products and services, manufacturers and suppliers must have an

integrated strategy, omnichannel type, focusing on all interaction points with the costumer.

What sources of information do you use to search for the product/service you want?


Did not respond: 22

12%

27%

23% 21%

11%

6%

16%

32%

19% 21%

7% 5%

0%

5%

10%

15%

20%

25%

30%

35%

Press, TV Online Acquaintances(friends, family, etc.)

Consultant in store Specializedadvertisments

Others



The online environment is the first among the sources consumers access to search for information about electronics and

household appliances (38%), mobile contracts and Internet (36%), clothing (35%).

Another valuable source of information is the circle of acquaintances (friends, family, etc.); this channel is best to transmit

information about insurance policies (30%), bank loans (25%) and food and beverages (25%).

What sources of information do you use to search for the product/service you want? (multiple answer)

Products and services categories Press,

TV Online

Acquaintances

(friends, family,

etc.)

Consultant in

store

Specialized

advertisements Others


• Bank loans 8% 24% 25% 26% 11% 6%


• Healthcare 11% 18% 23% 26% 13% 9%

• Public services 17% 28% 21% 13% 14% 7%

• Cars 10% 30% 19% 26% 12% 3%

• Clothing 17% 35% 18% 20% 4% 6%





Did not answer: 20

(1) (2) (3) (4) (5) (6) Column

Classify the usefulness of the information available online for products/services.

Q4: Average values for Romania - all products and services analyzed

The vast majority of respondents consider that the online information is useful or very useful (61% for products and 52% for

services). On the other hand, the information available in the online environment is considered increasingly useless for services

compared to products, moving from column (3) to column (1).


Did not answer: 20

(1) (2) (3) (4) (5)

6%

13%

29% 30%

22%

2%

10%

27%

32%

29%

0%

5%

10%

15%

20%

25%

30%

35%

Useless Of little use Satisfying Usefull Very usefull

Services analyzed Products analyzed

Q4(a): Values for Romania - all products and services analyzed

In terms of the usefulness of the information, the online environment is perceived as very useful in searching for mobile and

Internet services (37%) and information about cars (34%), but rather useless when it comes to information about bank loans

(23%, the highest sum of values from column 1 and 2, at an analyzed category).

Classify the usefulness of the online information for products/services. (single answer)

Products and services categories Useless Of little use Satisfying Useful Very useful

• Mobile contracts/Internet services 5% 10% 20% 28% 37%

• Bank loans 9% 14% 30% 33% 14%

• Insurance (health, house, car, etc.) 6% 14% 34% 31% 15%

• Healthcare 5% 14% 30% 27% 24%

• Public services 4% 14% 31% 32% 19%

• Cars 1% 9% 24% 32% 34%

• Clothing 3% 10% 27% 31% 29%

• Food and beverages 5% 15% 32% 28% 20%

• Electronics and household appliances 1% 8% 25% 38% 28%

Weighted average value for all categories 6% 13% 29% 31% 27%


Did not answer: 20

(1) (2) (3) (4) (5) Column

2. Brand loyalty


Evaluate your brand loyalty for the following products and services. (1 – lowest level, 10 – maximum level of loyalty)

Q5: Values globally - all products and services analyzed

Globally, the lowest loyalty is manifested for bank loans, a situation which may be due to weakened confidence in banks, in

general, as a result of the years of financial crisis. In contrast, according to a responses to EY’s global study, mobile and Internet

services have the highest loyalty. As a general trend, brand loyalty increased in 2014 compared to 2012 in all products and

services analyzed.


7.0

6.1

5.2

6.6

6.6

6.3

6.9

6.7

6.8

5.8

4.8

6.3

6.2

5.9

6.6

6.3

- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0



Bank loans

Healthcare

Cars

Clothing

Food and beverages


2012

2014

Evaluate your brand loyalty.


In Romania, 53% of respondents say they are loyal to the brand of the products analyzed, while 42% are loyal to the brand of the

services analyzed (column 4 plus 5). On the other hand, 7% say they are not loyal at all towards the brands of products and 15% are

not loyal towards the brand of services, the difference between these two percentages is also the largest in the above chart columns.

The most interesting aspect, however, is that given by columns (2) and (3) since no less than 40% and respectively 43% of

respondents say they would change their suppliers of products and services, of which 12% and respectively 16 % even for a small

additional benefit.


Did not respond: 20

(1) (2) (3) (4) (5)

15% 16%

27% 25%

17%

7%

12%

28%

32%

21%

0%

5%

10%

15%

20%

25%

30%

35%

Would change theproduct/service anytime

Would change my optionfor a competitor for an

extra small benefit

Am loyal, but mightchange my option

Am loyal, would changemy option only for a

considerably better offer

Am very loyal, wouldnever change my option


Evaluate your brand loyalty. (single answer)


The most loyal consumers in Romania are those of mobile and internet services (30% in column 5). In the second place ranks

loyalty towards clothing brands (36% in column 4), and in the third place electronic products and appliances (36% in column 3).

In a less committed to brands area (the highest percentage) are public services (19% in column 2) and bank loans (34% in

column 1).


Did not answer: 20

Products and services categories

Would change

supplier

anytime.

Would change

supplier with its

competitor for the

slightest additional

benefit.

I am satisfied with

my supplies but

would change my

option.

I am loyal. I would

change my option

only for a

considerably

better offer.

I am very loyal.

I would never

change my supplier

with its competitor.


• Bank loans 34% 19% 18% 20% 9%


• Healthcare 6% 15% 28% 30% 21%

• Public services 12% 19% 36% 23% 10%

• Cars 10% 14% 24% 29% 23%

• Clothing 7% 8% 27% 36% 22%




(1) (2) (3) (4) (5) Column

If you’re not a brand, you’re a commodity…

► When brand loyalty disappears, many services and products are

differentiated only by price, but price-based competition has few

winners, especially when websites give consumers all the information they need to

make the best decision.

► Therefore, brands need to find a way to regain customer loyalty. Those

that have the best chance to differentiate are those that gives the consumer a positive

experience throughout the whole buying experience.

“If you are not a brand, you are a commodity. Then price is

everything and the low cost is the only way to be a winner.”

- Philip Kotler, Kellogg

3. Purchase decision


How much does brand loyalty influence your buying decision?

Q7: Values for Romania vs. globally - all products and services analyzed

Only 24% of Western Europeans and 25% of Americans say they are convinced by the of the product/ service brand reputation

when making a purchase decision. Globally, 28% of consumers say that the brand is an important factor in the purchasing

decision, compared with 40% in China, 31% in India and 28% in Brazil. In Romania, the brand counts only in a proportion of 17%

in the purchasing decision, indicating a greater sensitivity to market prices for the products and services analyzed.


23%

27%

28%

30%

31%

40%

24%

25%

28%

28%

17%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

South Africa

Eastern Europe

Brazil

Middle East

India

China

Western Europe

US

Australia

Globally

Romania

Which of the following factors influence your buying decision? (single answer)

Q8: Values for Romania vs. globally - all products and services analyzed

Respondents say they are mostly influenced by the quality and guarantee of product/service (32% in Romania, 27% globally).

Even though in Romania the most important factor is guarantee, whereas globally, respondents are mostly influenced by price

and delivery (29% globally). Unfortunately, the policies of the companies producing goods/services are not yet a decisive factor

in the purchasing decision nor in Romania (6%) or globally (5%).


29%

27%

16%

13%

10%

5%

20%

32%

13%

12%

17%

6%

0% 5% 10% 15% 20% 25% 30% 35%

Price and delivery terms

Quality and guarantee

Technical features

Availability

Brand, Company image

Producing company politics

Romania

Globally

Which of the following factors influence your buying decision? (multiple answers)

Q9. Values globally - all products and services analyzed

Our global survey showed that among the factors that most influence the purchase decision in the store are: availability (69%),

promotional offers (74%) and terms of delivery (78%). Extremely interesting is the lower prevalence of these factors in the online

environment, where only the delivery terms seem to be as important (78% vs 79%). Note that reviews by others matter far more to the

purchase in store (67%) than in the online purchase (56%).


64%

67%

69%

74%

78%

57%

56%

66%

70%

79%

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

Store layout and opening hours

Reviwes from others

Availability

Promotional offers

Delivery terms

Online

In store

Which of the following products/services have you purchased online in the last 12 months? (multiple answers)

Q10: Values globally - all products and services analyzed

39% of electronics and household appliances products and the same percentage of clothing are bought online, which are the

highest recorded values . Cars and bank loans have the lowest rates in online purchasing of 10% and respectively 14% in 2014.

Compared to 2012, the evolution is in general highly favorable for online trade, with an average rise of 5%.


32%

14%

24%

16%

10%

39%

21%

39%

25%

10%

18%

13%

7%

32%

15%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


bank loans


Healthcare

Cars

Clothing

Food and beverages


2012

2014

Which of the following products/services have you purchased in store in the last 12 months? (multiple answers)

Q11::Values globally - all products and services analyzed

In 3 of 4 categories of products, shopping in traditional stores decreased by 6-8%, while only for two of the four services

examined there has globally been a downward trend. Thus, compared to 2012, in 2014 the services are at about the same level,

whereas products register more poignant differences, the prevailing preference for purchasing online as the main explanation.


44%

19%

25%

72%

31%

79%

82%

57%

44%

18%

27%

77%

30%

85%

89%

65%

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


bank loans


Healthcare

Cars

Clothing

Food and beverages


2012

2014

Which of the following characteristics would influence your decision to buy the product/service?


According to the chart above, respondents in Romania say that price (20%), quality and guarantee of the product/service (31%

and respectively 32%) are key factors in the purchasing decision. Especially for products, also an important factor is the brand

(21%), due to the fact that a strong brand is a promise of value.


Did not respond: 20

20%

31%

16%

12% 11%

10%

20%

32%

9%

21%

15%

3%

0%

5%

10%

15%

20%

25%

30%

35%

Price and deliveryterms

Quality andguarantee

Availability Brand, Companyimagine

Technical features Producingcompany policies



Consumers believe that company policies have the greatest importance for bank loans (18%). Technical features matter most for

purchasing cars (24%). Brand/company image has the greatest impact when buying clothing (27%). Availability matters most for public

services (24%) and quality comes with a share of 40% when considering food and beverages. Insurances, as they are mostly among

those mandatory, are under the major impact of low price (23%) in the perception of respondents to this survey.

Which of the following characteristics would influence your decision to buy the product/service? (multiple answers)

Products and services categories Price and delivery

terms

Quality and

guarantee Disponibility

Brand,

Company

image

Technical

features

Producing

company

policies


• Bank loans 20% 26% 21% 9% 6% 18%


• Healthcare 21% 39% 15% 11% 8% 6%

• Public services 18% 30% 24% 9% 8% 11%

• Cars 18% 26% 8% 20% 24% 4%

• Clothing 22% 33% 8% 27% 7% 3%





Did not respond: 20

(1) (2) (3) (4) (5) (6) Column


When buying online, respondents say they are mostly influenced by the online information about the product/service they want

(50%), but also by promotional offers (49%). In the following rank is product availability (42%), followed by delivery conditions

(40%).

What influences your purchase decision when buying online? (single answer)

Total respondennts: 290

Did not answer: 20

11%

50%

42%

49%

40%

20%

25% 27% 27%

30% 31%

16% 18%

15% 18% 18%

7% 8% 6% 7%

20%

2% 5%

3% 5%

0%

10%

20%

30%

40%

50%

60%

Website design Information found Availability Promotional offers Delivery

(1) Very much (2) Much (3) Moderate (4) Little (5) Very little

What factors influence your buying decision when buying in the store? (single answer)


For Romanians, the key factors contributing to the decision to buy in the store are promotional offers (48%) and availability of

products or services (38%). Purchase and delivery assistance are also relevant factors (26% of respondents said they had a

strong impact on their purchasing decision) but store appearance is not considered a notable factor when deciding to purchase

the products and services analyzed in this study.


Did not answer: 20

when buying

15%

9%

3% 1%

13%

19%

13%

6% 6%

15%

32%

25%

21% 19%

21% 22%

27%

32%

26% 25%

12%

26%

38%

48%

26%

0%

10%

20%

30%

40%

50%

60%

Website design Information found Availability Promotional offers Delivery

(1) Very little (2) Little (3) Moderate (4) Strongly (5) Very strongly

4. Buying


Q15: Values for Romania - all products and services analyzed

First ranked with an excellent purchasing experience in respondents answers are purchases of clothing (27%), followed by

electronics and household appliances (23%) and food and cars (each with 20%). Among the most unsatisfying purchase

experiences are bank loans (18%), cars (13%), insurance (12%) and public services (11%).

How would you evaluate your personal experience when buying with suppliers of products/services analyzed? (single answer)

Categories of products and services Unsatisfying Satisfying Good Very good Excellent


• Bank loans 18% 20% 33% 19% 10%


• Healthcare 5% 19% 34% 24% 18%

• Public services 11% 18% 37% 25% 9%

• Cars 13% 12% 25% 30% 20%

• Clothing 6% 9% 30% 28% 27%





Did not answer: 20

(1) (2) (3) (4) (5) Column

Where do you usually buy products/services? (single answer)

Q16(a): Values for Romania - all products and services analyzed

The number of Romanians who shop online has reached 1.2 million, representing 7% of the population aged over 18 years. Our

results indicate online purchasing as the method preferred by 8% of respondents for the analyzed products vs. 7% for services.

No less than 70% of survey respondents - consumers aged between 20 and 35 years - prefer to buy products and services, while

77% buy from the store. Percentages for each category of products and services analyzed are shown on the next page.

Total respondenți: 289

Nu au răspuns: 21

7%

77%

16%

Preferred ways to purchase the analyzed services

Online

In store

Both

8%

70%

22%

Preferred ways to purchase the analyzed products

Online

In store

Both


Only electronics and household appliances products, from those included in our analysis, reach a double digit percentage (16%)

in terms of online shopping, all the others being in the range 4-6%. In the service sector the situation is similar, Internet and

mobile services with a share of 15%, all the other services positioning in the range 4-6%. Option to purchase in both ways (in

store and online) in the third column indicates the "transition zone", that in which the digital hypertasker is acting with increasingly

greater agility.

Where do you usually buy products/services? (single answer)

Categories of products and services Online In store Both

• Mobile contracts/Internet services 15% 68% 17%

• Bank loans 5% 84% 11%

• Insurance (health, house, car, etc.) 6% 78% 16%

• Healthcare 5% 80% 15%

• Public services 4% 73% 23%

• Cars 5% 76% 19%

• Clothing 6% 58% 36%

• Food and beverages 4% 84% 12%

• Electronics and household appliances 16% 62% 22%

Weighted average value for all categories 9% 72% 19%


Did not answer: 20

(1) (2) (3) Column

What payment methods do you prefer?

Q17(a):: Values for Romania - all products and services analyzed

The chart shows that, in Romania, the preferred method of payment is cash payment (on average 62% of responses) and only in

certain cases, for example when dealing with large sums of money, they use credit cards (average value: 28%) or bank transfer

(average value: 6%). Other methods such as paying by phone, Paypal are very little used (average 4%).


Did not answer: 33

73%

50%

57%

67%

74%

47%

67%

68%

56%

24%

35%

30%

23%

21%

29%

28%

25%

36%

1%

8%

9%

6%

3%

20%

2%

4%

5%

2%

7%

4%

4%

2%

4%

3%

3%

3%

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


Bank loans


Public services

Healthcare

Cars

Clothing

Food and beverages


Other methods

Bank transfer

Credit card

Cash

Which payment method do you prefer?

Q17(b):: Average values for Romania - all products and services analyzed

Both charts show that, in Romania, the preferred method of payment is cash payment (64% for services and 60% for products). There

are other studies, such as the one conducted by Daedalus, which indicates that the most common method of payment for goods

ordered online is cash payment on delivery (71%). The same study shows that 25% of online shoppers are opting for credit card

payment, while only 3% use PayPal. Our study also indicates similar percentages for credit card payments.


Did not answer: 33

64%

27%

5% 4%

0%

10%

20%

30%

40%

50%

60%

70%

Cash Credit card Bank transfer Othermethods

Preferred payment methods for services

60%

28%

8% 4%

0%

10%

20%

30%

40%

50%

60%

70%

Cash Credit card Bank transfer Other methods

Preferred payment methods for products

Which payment method do you prefer? (multiple answers)

Q17(c):: Values for Romania - all products and services analyzed

The highest values are again for cash payment at absolutely all types of products and services included in the analysis. It is

noted an interesting distribution in percentages related to credit card payment, in the top three positions electronics and

household appliances having 36%, bank loans 35% and insurance 30%. The lowest percentages are related to Healthcare (only

23% say they pay with credit card) and public services (only 21% pay by credit card).


Did not answer: 33

Categories of products and services Cash Credit card Bank transfer Other methods

• Mobile contracts/Internet services 73% 24% 1% 2%

• Bank loans 50% 35% 8% 7%

• Insurance (health, house, car, etc.) 57% 30% 9% 3%

• Healthcare 67% 23% 6% 4%

• Public services 74% 21% 3% 2%

• Cars 47% 29% 20% 5%

• Clothing 67% 28% 2% 2%

• Food and beverages 68% 25% 4% 3%

• Electronics and household appliances 56% 36% 5% 3%

Weighted average value for all categories 63% 29% 11% 4%

(1) (2) (3) (4) Column

Payment in cash depending on the country for the analyzed products and services.

Q17: Values for Romania vs. globally – all products and services analyzed

The preference for cash payment varies by region: globally it is preferred in 39% of cases, but this percentage rises to 51% in

Eastern Europe and to 60% in the Middle East and drops to 26% in Australia and Western Europe and respectively to 24% in the

US.

Sursa: EY “Consumers on board” surveys 2012 and 2014

27%

40%

48%

50%

51%

60%

24%

26%

26%

39%

60%

0% 10% 20% 30% 40% 50% 60% 70%

South Africa

China

Brazil

India

Eastern Europe

Middle East

US

Australia

Western Europe

Globally

Romania

Specify the characteristics for which you are willing to pay extra.

Q19:: Values for Romania vs. globally – all products and services analyzed

Both in Romania and globally, respondents say they are willing to pay extra for immediate availability (26% vs. 23%). Second

rank innovative technical features (15% vs. 12%), followed by premium services (13% vs. 11%) and personalized services (12%

vs. 9%), all other features having a small percentage in comparison.

Sursa: EY “Consumers on board” surveys 2012 and 2014

6%

12%

14%

9%

11%

12%

13%

23%

7%

9%

6%

12%

13%

15%

12%

26%

0% 5% 10% 15% 20% 25% 30%

Local products

Luxury products

Eco products

Personalized products

Premium services

Innovative caracteristics

Short time for delivery

Immediate availability

Romania

Globally

Specify the characteristics for which you are willing to pay extra.


In Romania, the main characteristics for which respondents would be willing to pay more when buying products are immediate

availability (20%), innovative features (16%), personalization and luxury goods (12%). For services, in the first three positions are

immediate availability (31%,) premium services (17%) and innovative features and personalization (13%). Characteristics such

as "eco" or “local" have a percentage of only 4-9%.


Did not answer: 38

31%

12% 13%

17%

13%

4% 5% 5%

20%

12%

16%

10% 12%

9% 9%

12%

0%

5%

10%

15%

20%

25%

30%

35%

Immediateavailability

Short deliverytime

Innovativefeatures

Premiumservices

Personalizedproducts

Eco products Local products Luxuryproducts


Specify the characteristics for which you are willing to pay extra. (multiple answers)

Q20(b): Values for Romania – all products and services analyzed

Immediate availability proves to be the most important characteristic for which respondents are willing to pay extra (on all products and

services analyzed). Study results show very low percentages in the interest towards "Romanian products', which still indicates

Romanian consumers preferences for imported products. In the category "innovative features" electronics and household appliances

rank number one (23%), followed by mobile phones and cars (each with 20%).


Did not answer: 38

Categories of products and services Immediate

availability

Short time

of delivery

Innovative

features

Premium

services

Personali

zation

Eco

products

Romanian

products

Luxury

products

• Mobile contracts/Internet services 21% 10% 20% 15% 16% 4% 4% 10%

• Bank loans 33% 17% 6% 23% 14% 3% 3% 1%

• Insurance (health, house, car, etc.) 31% 11% 13% 21% 15% 2% 4% 3%

• Healthcare 40% 8% 12% 11% 6% 8% 10% 5%

• Public services 35% 15% 10% 16% 11% 5% 4% 4%

• Cars 18% 12% 20% 10% 15% 5% 2% 18%

• Clothing 22% 13% 9% 8% 20% 6% 5% 17%

• Food and beverages 19% 8% 7% 8% 5% 23% 24% 6%

• Electronics and household appliances 21% 14% 23% 12% 10% 5% 5% 10%

Weighted average value for all categories 28% 12% 17% 15% 14% 12% 13% 12%

(1) (2) (3) (4) (5) (6) (7) (8) Column

5. Post-purchase experience


How would you rate the following aspects related to the post-purchase experience?


Regarding the post-purchase experience with products, first ranks the assistance received within the warranty period (31%),

followed by customer support (25%) and loyalty programs (17%). Regarding services, first ranks customer assistance (30%),

followed by support during the warranty period (26%) and loyalty programs (17%). Being open to feedback from buyers has only

9% for the services and 12% for the products analyzed in this study.


Did not respond: 38

16%

30%

26%

19%

9%

15%

25%

31%

17%

12%

0%

5%

10%

15%

20%

25%

30%

35%

Technical support Costumer support Warranty support Loyalty programs Open to feedback


How would you rate the following aspects related to the post-purchase experience? (multiple answers)

Loyalty programs are the most popular in the post-purchase experience in respect to Healthcare (22%), followed by bank loans

and insurance (21% each). Regarding openness to feedback from consumers, although the percentages are small, in the best

positions rank food and beverages (16%), clothing (15%) and healthcare (14%).



Did not respond: 38

Categories of products and services Technical support Costumer support Warranty period

assistance Loyalty programs Open to feedback


• Bank loans 13% 31% 23% 21% 12%


• Healthcare 12% 28% 24% 22% 14%

• Public services 14% 34% 23% 17% 12%

• Cars 20% 23% 30% 16% 11%

• Clothing 9% 33% 23% 20% 15%




(1) (2) (3) (4) (5) Column

How would you assess the impact of your feedback on companies that offer products/services?

If looking at the extreme values of the scale of analysis, it appears that feedback given by respondents has higher percentages of

unsatisfactory impact (21% for services and 14% for products) than excellent impact (12% for services and 16% for products).



Did not answer: 38

21% 21%

28%

18%

12% 14%

21%

26%

23%

16%

0%

5%

10%

15%

20%

25%

30%

Unsatisfying Satisfying Good Very good Excellent


How would you assess the impact of your feedback on companies that offer products/services? (single answer)

Respondents say the least impact their feedback has when purchasing clothing (10%), followed in equal percentage for food and

beverages, electronics and home appliances and mobile contracts/Internet services (each with 15%).



Did not answer: 38

Categories of products and services Unsatisfying Satisfying Good Very good Excellent


• Bank loans 25% 25% 27% 15% 8%


• Healthcare 18% 16% 29% 21% 16%

• Public services 22% 19% 24% 21% 14%

• Cars 17% 20% 24% 20% 19%

• Clothing 10% 24% 22% 27% 17%




(1) (2) (3) (4) (5) Column

Consumer feedback sent through social media. (multiple answers)

Q23: Global values - reff. to Facebook, Twitter and LinkedIn

According to the EY’s global study in 2012 and 2014, Consumers on board, consumers find that the feedback send to the selling

companies through social media can not replace direct interaction with their representatives (69%). However, 52% think it is a

good mechanism to discover and validate the information in an objective manner. On the other hand, 54% say they waste more

time using social media ..


69%

60%

54%

52%

65%

70%

57%

49%

51%

60%

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

Cannot replace direct interraction withconsumer

Is a new method for expressingcomplaints

Social media is often a waste of time

It's a good mechanism to discover andvalidate the information in an objective

manner

High risk of data insecurity

2012

2014

Demographics


Demographics

Age Gender Residence

99%

1%

20-35 36-60

Income Education

85%

12% 3%

0-500 EUR

500-1000 EUR

1000-2500 EUR

27%

73%

Male Female

55%

45%

Bucharest Other

26%

68%

4% 2%

Highschool

University

Master's degree

Doctor's degree

Project team


Project team

We thank for their contribution to the preparation of this study to our colleagues:

Valentin Răucescu, Marcel Vârlan, Tudor Ungureanu, Radu Morariu,

Robert Frunză and Andreea Amuza.

Constantin Măgdălina Market Enablement

EY Romania

[email protected]

Elena Badea Head of Market Enablement

EY Romania

[email protected]

Gabriela Streza e-Survey Technical Support

EY Romania

[email protected]

Thank you!


the buying experience in the age of digital consumers

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