Everywhere Commerce Consumer Study

RESOURCE INTERACTIVERESOURCE INTERACTIVERESOURCE INTERACTIVERESOURCE INTERACTIVE

Everywhere Commerce Consumer Study – Consumer Goods

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS

3 SUMMARY OF FINDINGS

6 RECOMMENDATION

7 DETAILED FINDINGS

24 ABOUT RESOURCE

©2011 Resource Interactive. All rights reserved. 2



SUMMARY OF FINDINGSSUMMARY OF FINDINGSSUMMARY OF FINDINGSSUMMARY OF FINDINGS

Everywhere Commerce is undergoing exponential growth and rapid transformation and is an empirically observable phenomenon. Yet, like so many macrotrends, the consumer motivations and attitudes for embracing it wholeheartedly are less knowable than the various technologies that make it feasible.

To learn more about the Everywhere Commerce consumer, Resource Interactive conducted a study from August 24 through September 9, 2011. We tested for consumers’ awareness and receptivity to shopping in new digital contexts, specifically via Facebook, video (YouTube) and display advertising. We also researched the specific inducements to shop in new formats, the obstacles to it, and whether early adopter attitudes about Everywhere Commerce—if enthusiastic—could be perceived as a bellwether for more mainstream consumer adoption of the trend.

OBJECTIVEOBJECTIVEOBJECTIVEOBJECTIVE

To test consumer awareness and receptivity to shopping via Facebook, video (YouTube) or display advertising, three relatively new “shopportunities” or digital shopping contexts beyond the ecommerce site that comprise “Everywhere Commerce.” Specifically, we wanted to learn:

– Amidst the growing instances of Everywhere Commerce in the marketplace, are consumers really ready for it?

– How aware of these new shopping contexts are they?

– What would induce consumers to embrace new shopportunities?

– What would prevent them from doing so?

– Do early adopters differ significantly from the general population in their awareness of and interest in Everywhere Commerce?

METHODOLOGYMETHODOLOGYMETHODOLOGYMETHODOLOGY

Following a secondary research review, we surveyed over 4465 4465 4465 4465 U.S. consumers:U.S. consumers:U.S. consumers:U.S. consumers: 3451 online consumers and 1014 “early adopters” ages 13-plus. All respondents must have at least shopped/browsed online within the past three months, but did not have to have purchased online to qualify. Early adopters met the following criteria:

– Owns a smartphone

– Had heard of Google+

– Regularly uses smartphone for at least 7 of 14 representative activities, e.g., use of location-based services, use of shopping and/or planning apps

– Had to at least ‘agree’ with 5 attitudinal statements, with at least 1 being ‘strongly agree’ (9 statements such as: “I frequently upload text, photos, videos or other things I want to share on social or sharing sites like Facebook, Twitter, YouTube” and “People often ask my advice about new websites, applications, or software”)




Respondents selfselfselfself----selected into a category of preferenceselected into a category of preferenceselected into a category of preferenceselected into a category of preference————Apparel, Consumer GoodsApparel, Consumer GoodsApparel, Consumer GoodsApparel, Consumer Goods or or or or Electronics. Electronics. Electronics. Electronics. When apparel and electronics had sufficient respondents, the remaining were assigned to Consumer Goods, provided they had shopped online in the category. Respondents were then randomly split into three groups and exposed to exposed to exposed to exposed to audiovisual commerce prototypesaudiovisual commerce prototypesaudiovisual commerce prototypesaudiovisual commerce prototypes within one of the following touch points: Social Social Social Social (Facebook), Video (YouTube), or Display Advertising. (Facebook), Video (YouTube), or Display Advertising. (Facebook), Video (YouTube), or Display Advertising. (Facebook), Video (YouTube), or Display Advertising.

KEY FINDINGSKEY FINDINGSKEY FINDINGSKEY FINDINGS

“Early adopters,” a concept defined in Everett M. Rogers’ seminal Diffusion of Innovations,are a very important consumer segment for Everywhere Commerce—the increasing variety of digital shopping contexts that include mobile phones and tablets, Facebook, video and display advertising. As bellwethers for eventual general population adoption of trends, their favorable responses indicate that a company or brand’s investment in Everywhere Commerce is highly advisable.

– Early adopters were twice as likely as general population participantsEarly adopters were twice as likely as general population participantsEarly adopters were twice as likely as general population participantsEarly adopters were twice as likely as general population participants to “realistically see” themselves “purchasing using a mobile phonepurchasing using a mobile phonepurchasing using a mobile phonepurchasing using a mobile phone” in 2012 for electronics, apparel or consumer goods.

– In terms of product categories, seven out of ten early adopters could see In terms of product categories, seven out of ten early adopters could see In terms of product categories, seven out of ten early adopters could see In terms of product categories, seven out of ten early adopters could see themselves buying electronics,themselves buying electronics,themselves buying electronics,themselves buying electronics, while 67% and 69% of the early adopters self-predict buying apparel and consumer goods via mobilevia mobilevia mobilevia mobile phonephonephonephone next year, respectively.

A minimum of 20% of general population consumers across the electronics, apparel and consumer goods categories reported that they are open to and believe they will buy via a non-traditional touch point including display advertising, video and Facebook over the next year.

– Close to 4 out of 10 general population consumersClose to 4 out of 10 general population consumersClose to 4 out of 10 general population consumersClose to 4 out of 10 general population consumers believe they’ll purchasepurchasepurchasepurchaseapparel via display advertisingapparel via display advertisingapparel via display advertisingapparel via display advertising next year—the highest score among the four shopping contexts—mobile, Facebook, display, video.

– Nearly 35% of general population consumers believe they’ll shop electronics electronics electronics electronics and consumer goods via mobileand consumer goods via mobileand consumer goods via mobileand consumer goods via mobile next year.

– Both mobile and display ad shoppingBoth mobile and display ad shoppingBoth mobile and display ad shoppingBoth mobile and display ad shopping outranked Facebook shopping in all outranked Facebook shopping in all outranked Facebook shopping in all outranked Facebook shopping in all three product categoriesthree product categoriesthree product categoriesthree product categories when general population consumers predicted where they’d purchase in 2012.




Consumer purchasing propensity was driven by several factors:

– The toptoptoptop----ranked reasonranked reasonranked reasonranked reason across product categories was receiving a discountdiscountdiscountdiscount the consumer could not find elsewhere.

– The ability to access ratings & reviewsratings & reviewsratings & reviewsratings & reviews for electronics and being offered a offered a offered a offered a product not available elsewhere product not available elsewhere product not available elsewhere product not available elsewhere for electronics was in the top four in the top four in the top four in the top four inducements to purchase.inducements to purchase.inducements to purchase.inducements to purchase.

– The contextual relevancecontextual relevancecontextual relevancecontextual relevance of a shopportunity specifically when reading about a product in a news article or blog is a strong inducement to buy for early a strong inducement to buy for early a strong inducement to buy for early a strong inducement to buy for early adopters.adopters.adopters.adopters. When shopping apparel or electronics, a fullWhen shopping apparel or electronics, a fullWhen shopping apparel or electronics, a fullWhen shopping apparel or electronics, a full 75% of early 75% of early 75% of early 75% of early adoptersadoptersadoptersadopters agree they’d be interested in purchasing when they read about it in when they read about it in when they read about it in when they read about it in an article or blogan article or blogan article or blogan article or blog relevant to what they were reading/viewing on the content page. The 75% was also statistically significantly more likely than other situations tested (e.g., when seen in an online ad, in a YouTube video, or on Facebook.)

– The social-related offers, such as the ability to post the product under consideration on Facebook to solicit feedback, were consistently rated lowest by both early adopters and general population participants for all touch points. These social incentives rated the lowest in display ads, likely because it is the least “social” of the touch points.

Barriers to adoption of Everywhere Commerce exist in the form of concerns over security and privacy.

– General population respondents were consistently more likely to indicate they would feel secure if the transaction were completed out of platform, meaning at the retailer’s site. At least directionally and often statistically significantly early adopters were more likely to feel secure across touch points, reaching as high as 81% for apparel display ads.

– FacebookFacebookFacebookFacebook, interestingly, was consistently least likely to be considered secure consistently least likely to be considered secure consistently least likely to be considered secure consistently least likely to be considered secure relative to video and display ad commerce.relative to video and display ad commerce.relative to video and display ad commerce.relative to video and display ad commerce.

– Privacy fared only slightly better than security. Across categories and touch points, respondents showed signs of concern about their ability to manage their privacy settings. Facebook scored lowest relative to the other touch points Facebook scored lowest relative to the other touch points Facebook scored lowest relative to the other touch points Facebook scored lowest relative to the other touch points for apparel and consumer goods shoppersfor apparel and consumer goods shoppersfor apparel and consumer goods shoppersfor apparel and consumer goods shoppers. For electronics shoppers, display ad shopping within the touch point received similar levels of agreement to Facebook in terms of privacy.

– All respondents acknowledged the potential convenienceconvenienceconvenienceconvenience factor of in-platform transactions. Interestingly, when asked about convenience immediately after seeing either in- or out-of touch point examples, consumers were fairly equal in their likelihood to agree that the option would be convenient – with a slight bias for in-touch point transactions in apparel and CG, and a similar bias for out of touch point in electronics.




RECOMMENDATIONSRECOMMENDATIONSRECOMMENDATIONSRECOMMENDATIONS

In order to take advantage of consumers’ receptivity to Everywhere Commerce—and the consequent new revenue possibilities, marketers need to do several things:

– They need to ensure and market security and privacy across touch pointsensure and market security and privacy across touch pointsensure and market security and privacy across touch pointsensure and market security and privacy across touch points as they do on ecommerce sites. Using a commerce application like Resource Interactive’s DCPSM, retailers can then create explicit messages assuring consumers that regardless of the touch point they are in, their transaction is being handled securely through the retailer’s website. Most consumers believed the VeriSignVeriSignVeriSignVeriSign was the element most assuring of a safe place to transactmost assuring of a safe place to transactmost assuring of a safe place to transactmost assuring of a safe place to transact, with https (Hypertext Transfer Protocol Secure) also faring fairly well as an element ensuring their purchase safety.

– They should raise awareness of Everywhere Commerce opportunities via raise awareness of Everywhere Commerce opportunities via raise awareness of Everywhere Commerce opportunities via raise awareness of Everywhere Commerce opportunities via advertising first and foremostadvertising first and foremostadvertising first and foremostadvertising first and foremost. When respondents were asked how brands could raise awareness of the ability to buy, advertising was the top response, though 21% of respondents cited a “shop now” a “shop now” a “shop now” a “shop now” call to action call to action call to action call to action for display ads. for display ads. for display ads. for display ads.

– They need to reconceive of their online ads as close-the-sale opportunities, rather than merely as brand equity building pre-commerce expenditures. According to eMarketer, online ad spending is expected to reach $31 billion in 2011 and continue high single digit growth through 2015. A good portion of this investment could be immediately recouped by making ads ecommerce-enabled.

– They need to show consumers how a complete commerce interaction works in each touch point. This is because all respondents were significantly more likely to indicate that they would try Facebook commerce or video commerce after being shown how an interaction would occur.

– Adopt a posture of launch-and-learn using dynamic, scalable solutions while presenting multiple experiences in the marketplace simultaneously. This provides the ability to gain traction quickly and allows for optimization of the experience that produces the best results in real time.

– They should focus on targeting early adopters through contextually relevant ads and with incentives to shop appropriate to the touch point and category.

We are fully engaged in leading our clients through the rapidly changing Everywhere Commerce landscape—from understanding consumer motivators to the strategy and execution of connected brand commerce experiences—and we are committed to pushing our clients ahead of the curve and in front of the next trend. This research along with the upcoming releases of detailed findings for the consumer electronics and apparel categories are part of an ongoing series that address Everywhere Commerce which can be found on our site, in our social streams and the weThink Blog. We are also looking at this topic by involving our clients, partners and other industry experts to see how they are approaching the challenges ahead. Watch the highlights reel from our iCitizen Everywhere Commerce: From Shareable to Shoppable Moments Symposium to learn more about they are thinking.




DETAILED FINDINGSDETAILED FINDINGSDETAILED FINDINGSDETAILED FINDINGS

Note on Methodology and Detailed FindingsNote on Methodology and Detailed FindingsNote on Methodology and Detailed FindingsNote on Methodology and Detailed Findings

Respondents were split into three (3) groups, based on self-selecting into a relevant category – Apparel, Consumer Goods, or Electronics. The following detailed findings includes responses to questions that were asked of the entire survey sample, where applicable, but focuses primarily on the responses of the subset that was exposed to Consumer Goods stimuli (970 Online Consumers + 243 “Early Adopters”).




DETAILED FINDINGSDETAILED FINDINGSDETAILED FINDINGSDETAILED FINDINGS

Awareness Awareness Awareness Awareness ---- Gauge ConsumersGauge ConsumersGauge ConsumersGauge Consumers’ ’ ’ ’ Awareness Awareness Awareness Awareness of of of of Purchasing Opportunities Purchasing Opportunities Purchasing Opportunities Purchasing Opportunities

The survey results indicate a surprising level of reported awareness overall, although qualitative research suggests that consumers consider a link from a distributed commerce touch point to a traditional ecommerce site to qualify as “making a purchase.”

Early Adopters reported significantly higher awareness than general Online Consumers did of distributed commerce across all touch points.

Generationally, there was statistically no difference in awareness, with the exception being Boomers who were significantly less likely to indicate awareness of commerce in Facebook, Online Video and Twitter.

Q. Before this survey, were you aware that it could be possible to make purchases from the following places online? (Asked post-exposure to commerce prototypes to all respondents)

aaaa bbbb cccc dddd

Gen ZGen ZGen ZGen Z MillennialsMillennialsMillennialsMillennials Gen XGen XGen XGen X BoomersBoomersBoomersBoomers

Online Advertising 67% 69% 68% 68%

Facebook 53% d 55% d 50% d 38% abc

Online Videos 38% d 35% d 30% 25% ab

Twitter 18% 20% d 19% d 12% bc

n=315 n=2072 n=1166 n=914

Numbers in red indicate statistically significant difference from comparison bar

Note: Letters indicate significant difference between that cell and the letter’s corresponding cell in the same row.


66%

46%

29%

16%

77%

63%

43%

27%

0%

20%

40%

60%

80%

100%

Online

Advertising

Facebook Video Twitter

Online Consumer (n=3451) EA (n=1014)



Awareness Awareness Awareness Awareness –––– How to Raise Awareness?How to Raise Awareness?How to Raise Awareness?How to Raise Awareness?

After respondents had been shown an example of being able to purchase from a non-traditional ecommerce experience, they were asked to weigh in on what methods would be effective in making them more aware of the option.

Respondents claimed that some of the most familiar methods of driving awareness—most notably advertising of various forms—would be an effective way of driving awareness of distributed commerce opportunities.

Q. How could the retailer make it more apparent to you that you could shop from [insert touch point]? (Asked post-exposure of all respondents relative to initial concept shown)

FacebookFacebookFacebookFacebookn=1527n=1527n=1527n=1527

VideoVideoVideoVideon=1467n=1467n=1467n=1467

Display AdsDisplay AdsDisplay AdsDisplay Adsn=1468n=1468n=1468n=1468

23% advertisement 17% notification 28% it’s apparent

21% FB ad 14% advertisement 23% webpage/style

17% website ad 11% intro/conclusion 21% “shop now”

16% layout 8% aesthetics 17% obvious messaging stating that you can shop

14% security 8% banner ad/pop-up 14% security

11% discount 8% descriptive title 10% webpage/banner, graphic, or pop-up

10% emails 7% incentives 7% price

7% more info 7% discount

7% advertisement

Note: Question was open-ended – not a Likert-scaled response. Results are based on text-analytic aggregation of similar responses/themes.

Facebook

n=1520




Trial Trial Trial Trial –––– PrePrePrePre----Exposure InterestExposure InterestExposure InterestExposure Interest

Many tactics are at the marketer’s fingertips for driving desired consumer behaviors – from offering discounts to consumers who ‘like’ your brand on Facebook to providing the convenience of instant gratification by providing a “buy it now” option.

In order to better understand how consumers feel about these various tactics, we asked for their agreement to a series of attitudinal statements, prior to being exposed to our prototype examples.

Tactics were not parallel across though points, but when we look at tactics in terms of general themes some patterns emerge.

– While it’s not surprising that consumers, both Early Adopters and Online Consumers are primarily motivated by discounts, exclusivity was also an appeal option.

– While options in display media were limited to convenience, all convenience offers received a majority of respondents’ agreement with nearly three-fourths of Early Adopters reporting agreement, suggesting the general appeal of the offers.

Facebook

n=1520




Trial Trial Trial Trial –––– PrePrePrePre----Exposure Interest in FacebookExposure Interest in FacebookExposure Interest in FacebookExposure Interest in Facebook

Early Adopters indicated an extremely high level of interest in ‘liking’ a brand for discounts or exclusive products. Three-quarters would purchase directly on Facebook instead of the store for special discounts. Although the general population of online shoppers reported significantly lower interest in all Facebook options, half would ‘like’ a brand for discounts or exclusive products. Interestingly, the social value of social media did not rise to the top of options that could be offered.

Q. Now we’d like to explore some of your attitudes toward different shopping options Q. Now we’d like to explore some of your attitudes toward different shopping options Q. Now we’d like to explore some of your attitudes toward different shopping options Q. Now we’d like to explore some of your attitudes toward different shopping options that could be made available to you online. For each of the following statements, please that could be made available to you online. For each of the following statements, please that could be made available to you online. For each of the following statements, please that could be made available to you online. For each of the following statements, please rate your level of agreement. rate your level of agreement. rate your level of agreement. rate your level of agreement.

Facebook

n=1520

CGCGCGCG CGCGCGCG

Online Online Online Online ConsumerConsumerConsumerConsumer

EAEAEAEA

ThemeThemeThemeTheme nnnn=318=318=318=318 nnnn=104=104=104=104

I would "like" a brand/company/retailer on Facebook in order to get discounts Discount 57% 91%

I would "like" a brand/company/retailer on Facebook in order to get access to exclusive products

Exclusivity 50% 82%

I would buy directly on Facebook in order to get special discounts Discount 40% 78%

If the brands I buy offered me deals for purchasing through Facebook, I'd purchase from there instead of going to the store

Discount 42% 73%

If a favorite product of mine was only available through that brand's Facebook page, I would buy it from there

Exclusivity 44% 72%

I would buy directly on Facebook in order to get access to exclusive products Exclusivity 34% 68%

I would buy directly on Facebook in order to have the ability to ask my friends for advice on products

Social 17% 45%

If I could, I would like to get my everyday shopping done while spending time on Facebook

Convenience 18% 44%

If I could shop while spending time on Facebook, my life would be better Convenience 17% 40%

Numbers in red indicate statistically significant difference from comparison column.




Trial Trial Trial Trial –––– PrePrePrePre----Exposure Interest in VideoExposure Interest in VideoExposure Interest in VideoExposure Interest in Video

Early Adopters were significantly more likely to agree to all video commerce options than their Online Consumer counterparts, although the 72% of Online Consumers that agreed that they would watch a video for discounts is not inconsequential.

Again, while discounts ruled, exclusivity was an important option with over 1/3 of Online Consumer and nearly 2/3 of Early Adopters showing interest. Convenience should also not be overlooked for Early Adopters with nearly ¾ indicating the would buy something in a video if they liked it and could do it right then and there. Although rated lowest among both groups, 51% of Early Adopters agreed that their lives would be better if they could shop while watching videos!


Facebook

n=1520


CGCGCGCG CGCGCGCG


EAEAEAEA


I would watch a video demonstration in order to get discounts Discount 72% 88%

If I saw something in a video that I really liked, I would buy it if I could do it right then and there

Convenience 33% 72%

If my favorite brand or retailer created videos of their products in use (such as a person modeling clothing, demonstrating cookware, using a tool, etc.) I would be interested in purchasing directly from the video

Convenience 31% 69%

If a favorite product of mine was only available in video demonstrations, I'd purchase from there

Exclusivity 39% 63%

If I could, I would like to get my everyday shopping done while watching videos that included those products

Convenience 21% 54%

If I could shop while spending time watching videos, my life would be better

Convenience 21% 51%

% AGREE/STRONGLY AGREE




Trial Trial Trial Trial –––– PrePrePrePre----Exposure Interest in Display AdsExposure Interest in Display AdsExposure Interest in Display AdsExposure Interest in Display Ads

Respondents reported relatively high attitudinal agreement with display options with all commerce options favored by more than ¾ of Early Adopters and over ½ of Online

Consumers.



CGCGCGCG CGCGCGCG


EAEAEAEA


If I saw something in an ad that I wanted to buy, I'd like to be able to add it to a digital list (online shopping or wish list, mobile list, etc.)

Convenience 60% 86%

If I saw something in an ad that I wanted/needed to buy, I'd like to be able to buy it right then and there

Convenience 53% 79%

I would like the ability to purchase directly from any experience that makes me aware of a product I need or want

Convenience 51% 74%





Trial Trial Trial Trial –––– PostPostPostPost----Exposure Interest and IntentExposure Interest and IntentExposure Interest and IntentExposure Interest and Intent

After being exposed to prototypes of purchasing from one of the distributed touch points—Facebook, video, display ad (within a relevant article/context)—we asked respondents about their interest in purchasing the category (in this case, consumer goods) via several options.

It is important to note that respondents were asked to respond not only to whether or not they would be interested in purchasing from the touch point they had seen, but also about their interest in purchasing from a variety of other touch points as well. Respondents were also asked about their purchase intent immediately after seeing each of the prototypes: transaction completely within the touch point, and transaction occurring upon redirect to a retailer’s site.

We also asked respondents to weigh in as to whether they could realistically see themselves purchasing the category within the next year via various touch points.

While difficult to statistically prove, there is some evidence that familiarity is correlated with respondents’ likelihood to agree to interest or future purchase intent.

– Online Consumers gravitated to display ads, blogs and Facebook in terms of their desire to make a purchase. They also indicated they were as likely to purchase from a display ad within the next year as they were to purchase via mobile.

– Respondents who saw a prototype of a touch point were statistically significantly more likely to indicate agreement that they could imagine purchasing with touch point within in the next year.

Facebook

n=1520




Trial Trial Trial Trial –––– PostPostPostPost----Exposure Interest and IntentExposure Interest and IntentExposure Interest and IntentExposure Interest and Intent

After seeing an example of distributed commerce, respondents indicated the most overall interest in purchasing directly from advertisements.

– Early Adopters remained highly interested in purchasing consumer goods via online ads and Facebook.

– Also promising is that 46% of Online Consumers would like to purchase goods when they see them in an online advertisement.

Results for this question were slightly lower for consumer goods than they were for electronics and apparel (to be reported separately)—although comparisons should only be considered directional, since different samples were surveyed. These results are consistent with current online shopping behavior (consumer goods purchasing lags behind other product types).

Q. Please rate your agreement with the following statements. “I would like to be able to Q. Please rate your agreement with the following statements. “I would like to be able to Q. Please rate your agreement with the following statements. “I would like to be able to Q. Please rate your agreement with the following statements. “I would like to be able to purchase consumer goods…”purchase consumer goods…”purchase consumer goods…”purchase consumer goods…”

OnlineOnlineOnlineOnline ConsumerConsumerConsumerConsumern=970n=970n=970n=970

Early AdopterEarly AdopterEarly AdopterEarly Adoptern=243n=243n=243n=243

...when I read about it in an article or blog. (ad) 42% 73%

...when I am interacting with a brand on Facebook 40% 68%

...when I see it in an online advertisement. 46% 66%

...when I see it in a YouTube video. 33% 55%

...when I see it in a picture on Facebook or Flickr. 31% 55%






Trial Trial Trial Trial –––– PostPostPostPost----Exposure Purchase IntentExposure Purchase IntentExposure Purchase IntentExposure Purchase Intent

After seeing prototypes of both in- and out-of-touch-point transactions, we asked about purchase intent overall.

– As seen throughout the survey, Early Adopters were far more likely to agree when predicting their future use of distributed commerce touch points within the next year than were Online Consumers.

– While the level of agreement with mobile purchasing within the next year may not be surprising given current mobile adoption levels overall, by comparison, emerging (and less familiar) touch points were not dramatically far behind, and the level of agreement is relatively high considering the category.

Q. Within the next year, I can realistically see myself buying consumer goods through…”Q. Within the next year, I can realistically see myself buying consumer goods through…”Q. Within the next year, I can realistically see myself buying consumer goods through…”Q. Within the next year, I can realistically see myself buying consumer goods through…”

69%

30%

58%30%

51%

23%

44%

21%

Mobile

Display Ads

Facebook

Video


Early Adopter, n= 243

Online Consumer, n=970





Trial Trial Trial Trial –––– PostPostPostPost----Exposure Convenience ImpressionExposure Convenience ImpressionExposure Convenience ImpressionExposure Convenience Impression

Immediately after seeing a prototype of a distributed commerce transaction—either completely within the transaction or upon redirect to a retailer’s site, respondents were asked if they thought purchasing this way would be convenient.

– Overall, convenience received very high agreement, regardless of whether the transaction shown was completely within the touch point or redirected to the retailer’s site.

– More than half of all respondents—and over 70% of Early Adopters—agreed that distributed commerce would be convenient, regardless of the touch point tested.

Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your agreement with the following statement […]: Purchasing like this is convenient. agreement with the following statement […]: Purchasing like this is convenient. agreement with the following statement […]: Purchasing like this is convenient. agreement with the following statement […]: Purchasing like this is convenient.

86%

66%

74%

51%

90%

65%

Display AdsDisplay AdsDisplay AdsDisplay Ads

FacebookFacebookFacebookFacebook

VideoVideoVideoVideo


Early Adopter

Online Consumer

71%

53%

81%

66%

In

Out

In

Out

In

Out86%

61%




Conversion Conversion Conversion Conversion –––– PostPostPostPost----Exposure Purchase HurdlesExposure Purchase HurdlesExposure Purchase HurdlesExposure Purchase Hurdles

After being exposed to prototypes of purchasing from one of the distributed touch points—Facebook, video, display ad (within a relevant article/context)—we asked respondents about potential hurdles to purchasing the category (in this case, consumer goods), from security to privacy and ease of use.

– Facebook was least likely to achieve respondents’ agreements for both privacy and security, while display ads, particularly among Early Adopters were most likely to be seen as secure and allowing for privacy maintenance.

– Transactions completed on the retailer’s website (as opposed to within the touch point) elicited slightly higher agreement for security and privacy, although results may only be directional.

– In-touch point transactions failed to receive 50% agreement among Online Consumers for security, suggestion that a significantly portion of consumers who would otherwise be willing to try distributed commerce might abandon due to security concerns.




Conversion Conversion Conversion Conversion –––– PostPostPostPost----Exposure Privacy ImpressionExposure Privacy ImpressionExposure Privacy ImpressionExposure Privacy Impression

Immediately after seeing a prototype of a distributed commerce transaction, either completely within the transaction or upon redirect to a retailer’s site, respondents were asked if they felt that they would be able to manage their privacy settings if they used this purchase method.

– Facebook was least likely to receive agreement from respondents regarding the ability to manage privacy settings, but especially among Early Adopters.

– Video privacy was one area that Early Adopters weren’t significantly more likely to agree relative to Online Consumers, perhaps due to lower familiarity with commerce in the medium.

Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your agreement with the following statement […]: I trust that I could manage the privacy agreement with the following statement […]: I trust that I could manage the privacy agreement with the following statement […]: I trust that I could manage the privacy agreement with the following statement […]: I trust that I could manage the privacy setting if I purchased this way. setting if I purchased this way. setting if I purchased this way. setting if I purchased this way.

71%

46%

58%

41%

63%

53%





Early Adopter

Online Consumer

61%

45%

83%

59%

In

Out

In

Out

In

Out62%

55%




Conversion Conversion Conversion Conversion –––– PostPostPostPost----Exposure Security Exposure Security Exposure Security Exposure Security ImpressionImpressionImpressionImpression

Immediately after seeing a prototype of a distributed commerce transaction, either completely within the transaction or upon redirect to a retailer’s site, respondents were asked if they felt that their transaction would be secure purchasing this way.

– In-touch-point transactions failed to receive 50% agreement among Online Consumers when it came to security, although out-of-touch-point transactions did not fare much better.

– Across all touch points, and all respondents, transactions that were handed off to the retailer’s site appeared to provide a greater sense of security.

Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your Q. Thinking about the shopping experience you were shown, please rate your agreement with the following statement […]: I feel that my transaction would be secure agreement with the following statement […]: I feel that my transaction would be secure agreement with the following statement […]: I feel that my transaction would be secure agreement with the following statement […]: I feel that my transaction would be secure purchasing this way. purchasing this way. purchasing this way. purchasing this way.

67%

48%

58%

38%

64%

49%





Early Adopter

Online Consumer

63%

43%

71%

55%

In

Out

In

Out

In

Out67%

53%




Overcoming Conversion BarriersOvercoming Conversion BarriersOvercoming Conversion BarriersOvercoming Conversion Barriers

Since security is often a critical barrier to conversion, we asked our respondents about various methods that can be used to reassure the purchaser that a transaction would be secure. Respondents were first asked to click on the element that most reassured them that the site was secure, and then were asked their level of agreement relative to several possible tactics that could be used to reassure the purchaser of security.

– A third party endorsement symbol (such as VeriSign) was the element most likely to reassure our respondents—regardless of segment or touch point—that their transaction would be secure.

– Third party endorsements, links to privacy policies, and pictures of padlocks received higher levels of agreement than the use of a secure address (https://); this, combined with the third-party endorsement suggests the potential importance of iconography (particularly if it is branded)

• Gender-wise, women were significantly more likely than men to strongly agree that a picture of a padlock provided security reassurance (result not specific to consumer goods).

• Millennials and Gen X (relative to Gen Z and Boomers) were more likely to strongly agree with most security elements, except the use of a padlock image, 3rd party endorsement, and banking security statement (result not specific to consumer goods).





Respondents were asked to click on the page to indicate the element that most reassured them that their transaction would be secure. The images below are “heat maps” that capture where respondents clicked, with red being the most-clicked areas, followed by yellow and green.

– While there is some evidence of respondents clicking on https in the URL as well as privacy statements and pictures of locks, the vast majority of respondents—regardless of touch point—clicked on the third-party endorsement (in this case, VeriSign).

Q. Please click on the element that most assures you that this is a safe place to make a Q. Please click on the element that most assures you that this is a safe place to make a Q. Please click on the element that most assures you that this is a safe place to make a Q. Please click on the element that most assures you that this is a safe place to make a purchase. purchase. purchase. purchase.

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Early Adopters were significantly more likely than the general Online Consumer to agree that each method of reassurance we queried would be an effective method of reassurance.

Typical security measures rose to the top (https and 3rd party endorsement), but interestingly, respondents rated the privacy statement (who’s seeing my info and how is it being used) as the second highest reassuring tactic.

A picture of a padlock received higher levels of agreement than the use of a secure address (https://).

Q. For each of the possible ways listed below that a website could reassure you about Q. For each of the possible ways listed below that a website could reassure you about Q. For each of the possible ways listed below that a website could reassure you about Q. For each of the possible ways listed below that a website could reassure you about making a purchase, please indicate your level of agreement as to how effective the making a purchase, please indicate your level of agreement as to how effective the making a purchase, please indicate your level of agreement as to how effective the making a purchase, please indicate your level of agreement as to how effective the method would be. method would be. method would be. method would be.

46%

48%

49%

50%

51%

54%

59%

63%

65%

73%

61%

67%

64%

63%

63%

66%

78%

81%

79%

85%

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

Seeing that the website is well-designed.

Knowing that a friend successfully made a…

A statement that the site uses such as "The same…

Hearing that a lot of people are doing it…

Knowing it's a brand that you buy from online or…

A familiar brand logo.

https:// in the URL.

Picture of locked padlock.

A link to an explanation of "who is accessing my…

Third-party endorsement (e.g. VeriSign, Digicert).

Numbers in red indicate statistically significant difference between Early Adopters/non-Early Adopters.

Early Adopter n=243

Online Consumer n=970




ABOUT RESOURCEABOUT RESOURCEABOUT RESOURCEABOUT RESOURCE

For more information on this study or the topic of Everywhere Commerce, contact:

Melissa Dorko

Director of Business Development

[email protected]

614.621.2888

About About About About Resource InteractiveResource InteractiveResource InteractiveResource Interactive

Resource Interactive is one of the nation’s top-rated independent digital marketing agencies –named No. 4 on Ad Age’s A-list of top agencies in 2010. With offices in Columbus, Cincinnati, Chicago and San Francisco, the firm leads Fortune 500 companies and helps them capitalize on today’s digital economy, creating consumer experiences that drive sales for reputable brands. Now in its 30th year, Resource is the largest women-owned agency in the nation. Clients include Procter & Gamble, Hewlett-Packard, Victoria’s Secret, Sherwin-Williams, and Nestlé. For more information, visit us at www.resource.com or on Facebook (www.facebook.com/resourceinteractive) or Twitter (@resource).


Everywhere Commerce Consumer Study

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