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| GartnerG2 Survey Reveals 79 Percent of Online Consumers Focus on Convenience When Buying on the Internet |
| Price Without Convenience Is Not a Formula for Success With the Vast Majority of Online Buyers |
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STAMFORD, CONN., October 31, 2001 - For today's Internet retailers to solidify their businesses in the current economy, they must concentrate on providing a quick and convenient shopping experience rather than maintaining the lowest prices possible. According to a report from GartnerG2, a research service from Gartner, Inc. (NYSE: IT and ITB) entitled, "Price Is Nice, but Convenience Comes First," 79 percent of online consumers value convenience when making a purchase online compared with 32 percent who value price savings.
"In a down economy, businesses might conclude that the emphasis on lower price would increase. We found exactly the opposite," said David Schehr, a GartnerG2 analyst and author of the report. "This is not to say that online merchants should begin to raise their prices, but alternatively, they should focus their energy on getting the customer in and out of the site as quickly and efficiently as possible." GartnerG2 projects worldwide online holiday shopping to surpass $25 billion this year, a 39 percent increase from the same period last year. It is the convenience factor the Internet offers to customers that will result in many shoppers deciding to purchase their gifts online rather than go out to the stores. According to the report, saving time is more important than saving money for today's online consumer. The report also found that:
According to the research, more than half of online buyers, 59 percent, limit their purchases to the handful of sites that they find familiar and comfortable. These online buyers save time in two ways: limiting the search time to find a retailer and speeding up the buying process through familiarity with the site structure and operation. "As companies transition into the Edge Economy*, they increasingly focus on relationships with customers by wrapping value around products," said Neil MacDonald, vice president and director of research for GartnerG2. "For online buyers, this 'value' manifests itself in the form of convenience. Buyers can get the same product at a low price from any number of sites. In the end, the primary factor in choosing your site will be convenience." Convenience for online consumers is achieved by saving them time and effort. To this end, GartnerG2 recommends that Internet retailers:
The findings represented in "Price Is Nice, but Convenience Comes First" are based on a GartnerG2 consumer survey of 4,400 adults, age 18 years and older. Results were balanced to match Census Bureau data on key demographic and socioeconomic factors and projected to be representative of both total households and total adult population. Survey data is from the second quarter of 2001, with supplemental data from earlier periods. GartnerG2 is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information on the report visit www.gartnerg2.com. About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.
*For more information about the Edge Economy, please refer to the May 2001 GartnerG2 report titled, "The Edge Economy: Give Up Control, Gain Revenue," which can be found at www.gartnerg2.com. |
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Contact: Mike McCabe Middleberg Euro 212-699-2752 mikem@middleberg.com |
Contact: Danielle Westling Gartner 203-316-6754 danielle.westling@gartner.com |
