Carat Study of Recession-Tested Shoppers Reveals Inner Workings of New Purchase Paradigm

Comprehensive Study Conducted with Microsoft Advertising Depicts Increasingly Complex Purchase Journey, Underscoring Marketers’ Need for Nimbleness, Digital Savvy and Greater Attention to Post-Sale

NEW YORK--(BUSINESS WIRE)-- Carat, the leading independent media communications agency, today announced the findings of its “2010 New Shopper Journeys Survey,” a comprehensive purchase process study of more than 2,000 U.S. shoppers fielded together with Microsoft Advertising. Details of the study will be discussed at the upcoming Advertising Week conference on September 28 in New York.

The study was commissioned in order to gain greater insight into the changing shopping landscape, which has been quickened and made more pronounced by the recession and the growing use of digital communications. Its findings offer the first definitive evidence of a new and far more complex purchase journey, and detail the strong influence of certain media at varying points of brand interaction.

“Brands and agencies have talked for years about the shift in the purchase journey, but this is the first study that shows us precisely how it works by segment and by shopper,” said Martin Cass, President of Carat. “By understanding consumers’ motivations and the journey they take to identify the best product for them, brands can do a much better job of matching their marketing behavior with consumers’ desires. It’s no longer about pushing to a purchase funnel – that model is dead; it’s about helping consumers within their own individual and varied shopping journeys.”

• Study Signals Opportunities for Marketers Adept at Navigating the Broader Media Ecosystem

The study of U.S. consumers across five major retail categories documents that shoppers no longer traverse linear paths to purchase, but instead take highly-dynamic journeys characterized by reiterations in product considerations, i.e., a dynamic cause-and-effect process rather than a funnel. The study shows that, as the purchase journey has grown more complex and multidirectional, so has the need for deeper segmentation and consumer insight to effectively plan advertising and marketing media spend.

Mike Hess, EVP Research, Marketing Science, and Consumer Insights at Carat added: “The older purchase paths treated all consumers as pretty much the same, regardless of what psychographic segment they might have been in. But this study shows that, as the purchase journey has grown more complex and multidirectional, so has the need for deeper segmentation and consumer insight to effectively plan advertising and marketing media spend. For example, in the QSR category, almost all of the pre-visit internet research is done by those who are highly engaged in that category. Very few of the less-engaged QSR consumers do any research before going to a QSR establishment.”

• The Influencing Power of Digital and Mobile

The findings in all market categories show digital solidly at the core of the new shopper journey. From trigger to purchase to post-purchase, digital forms of communication, such as online advertising, expert reviews and social networking, play a critical role in influencing the direction of a shopper’s journey.

“It’s clear that the emergence of digital has been the single largest driving force in reshaping today’s purchase journey,” said Carolyn Everson, Corporate Vice President, Global Advertising Sales for Microsoft Advertising. “The results of this study really demonstrate the importance of building engaging, informative and comprehensive brand campaigns to reach consumers when they go online, through whatever screen they might be using, to drive loyalty and purchase.”

The study also shows a high degree of receptiveness among shoppers to newer forms of digitally-driven channel engagement, most notably mobile, to aid their decision-making process and ultimate purchase, particularly during that last “arm’s reach” point just before final sale. For example, 38 percent of U.S. shoppers said they used their mobile devices to aid in their final decision to buy something new in-store.

• Social Turns Post-Sale into Critical Pre-Sale Weapon

Another significant finding of the study is the high impact of the Post Purchase phase on future sales. The sale no longer ends at the cash register as the research reveals a high degree of Post Purchase activity, most of which is enabled by digital media.

For example, in the Home Electronics category, many shoppers reported engaging in the following post-sale activity:

• 11% Blogged about the purchase/retail experience
• 11% Posted a comment about the purchase on a social networking site
• 11% Posted a review online

More significantly perhaps, 48 percent of these shoppers recommended the brand by name and 30 percent recommended the retailer by name.

Study Methodology

The study was conducted in two phases: 1) A qualitative study composed of interviews and shopper observations was fielded in five countries in late Fall 2009; 2) Its insights led to a 17-country online survey in March 2010 which queried shoppers about their last purchase occasion in each of the retail sectors covered

Fully 19,000 shoppers in 17 countries were asked about their most recent shopping occasions in four key retail categories: Apparel, Quick Service Restaurant, Groceries and Home Electronics. A fifth category, Home Improvement, was included in the US. Within the U.S. more than 2,000 shoppers were surveyed.

About Carat

Carat, an Aegis Media Group company, is a global independent media communications network, with over 100 offices in over 80 countries. Carat provides a full range of services, including media and market research; communications planning; media planning and buying; multicultural communications; corporate trade; branded entertainment; direct and digital marketing; experiential and sponsorship services; and marketing analytics and consulting. For more information, visit the company’s website at www.carat.com.

CONTACT:

Carat Press Contact:
Sue Parente, 781-642-7788
sparente@tieronepr.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Technology  Mobile/Wireless  Communications  Advertising  Marketing  Other Communications

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