The Internet and The Buying Decision

February 2012 GfK Romania

Violeta Bahaciu

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The Internet is a trendy Conquistador among all sources of information a conclusion of the newest GfK multi-client survey
2

The need

Searching/ Informing

Buying

Sources Internet Friends / Acquaintances Shop/ Sales staff Own experience

Content Products features Comparisons with products in the same category Prices

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The online payments by credit/ debit card are still blocked by the Romanians fear for fraud
3

Yes, I did shopping online

With cash on delivery (after receiving the product)

84

25
Online by banking card (I entered the data card in a form)

24

No, I didn't do shopping online

Online through bank transfer

75
With cash directly to supplier

Positive WOM & Own Experience can change the online behavior

Source: Omnibus survey, October 2011, national population +15 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

Online shopping is a growing trend and the drivers are the promotions websites and the small markets
4

The volume of e-commerce by banking card increased with 24% in 2011 compared to 2010. (according to Romcard, the official processor of financial transactions by banking cards in Romania)

The promotions websites were the driver of increasing on online shopping in 2011. The flowers, books, gifts are the products with the highest increase in 2011 on electronic shopping by banking card.

Source: Romcard quoted by BIZ, published edition from the 20th Jan 2012

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

Online buyers are: young people aged 18-34 y.o., from Bucharest, high education, daily Internet users, personal income +350 euro
5

She is interested in clothes and accessories, personal care products.

He is interested in technology, financial services.

15-17 y.o. 18-24 y.o.

5 9 20 18 22 11 14 4 1 2 30 32 26

700 lei or less 701 - 1.500 lei 1501 - 2.500 lei + 2.500 lei

14 17 30 37 5 4 3 38 39 14

Secondary education

12

25-34 y.o.
35-44 y.o. 45-54 y.o. 55-64 y.o. + 65 y.o.

Apprentice school
High education University

13

23
44 44

No income/ Refuse

20

37

online buyers
Source: Omnibus survey, October 2011, national population +15 y.o.

non-buyers

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The Internet has become the main information source for markets which: - engage the order only through a banking card - dont have a show room/ shop with a wide range of products - a specialist is not a must
Sources of information used before purchase

Financial products (N=234) Electronics & appliances (N=294) Touristic products (N=175) DIY (N=291) Auto repair & maintenance (N=261) Telecom & Internet services (N=298)

8 19 29

34 37 49

58 43 22 Only Internet Internet & Offline sources Offline sources, no Internet

5
8 16

23
30 36

72
62 48

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The consumers experience (information & facts) with the product establishes the level of planning the purchase
7

Telecom & Internet services

Touristic products

I knew for sure from where/ what I would like to buy

64

39

I had in mind some variants from where I would like to buy

I had no idea from where/ what I would like to buy

26

37

10

25

You can find out from GfK multi-client survey what is the planning level for the financial services/ products or for auto repair and maintenance sector.
Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The Cross-Consumption of information sources is specific to each market. Internet & WOM is the most common combination.
8

Internet cross with

Telecom & Internet services

Auto repair & maintenance

Friends/acquaintances Television

35 32 30 19 16 14 18 9 10

56

Specialized sales personnel

Leaflets/brochures/flyers My own experience Newspapers/magazines

46

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

Dont miss to drive your business on all Internet tools and take care of those sources that produce the best content
Electronics & appliances Touristic products
9

Producers/suppliers websites Search engines Products evaluations websites

53 43 31 28 58 23 8 15 15 21 18

42 50

Price comparison websites

Online stores sites Promotions websites Social networks Bloggers

31

7
Women mentioned them three times more than men.

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The content searched on Internet means mainly rational drivers - learning about the 4th elements of marketing mix - product, places, prices, promotions.
Financial products
10

DIY

Detailed features of the product Comparisons with products in the same category from other suppliers Product price Opinions about the product Places from where I can purchase it

72 59 53 41 39 33 40 43

73

There is room for emotional drivers.

Women are more sensitive to WOM than men. Women need to find the right information into the most visible places.

70

52 34

Product reviews specialists

made

by

the

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

Regardless the shopping place or the way in which the purchase is done, the Internet delivers good and useful content
11

Place of buying category products 4 3 56 91 89 84 63 From a shop From a private person 8 1 7 DIY 8 2 Auto repair Telecom & & Internet Maintenance services 19 Others 6 10

20

From the Internet

71

26
7 2 Financial Electronics Touristic products & products Appliances 6 4 14

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

The need to inform post-buying is higher for financial and telecom categories.
12

Financial products

Auto repair & Maintenance

Telecom & Internet services

32 No
More men than women

39 62

Post-buying information is done mainly - for confirming the choice - for finding out more details about the product

68 Yes 38

61

In post-buying, the Internet has an increased role as source of information - people search for opinions and evaluations about product.

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

At least 70% of the products buyers use to share their purchasing experience.
Talking face to face (mainly) or by phone
13

By Internet the experience sharing by Internet depends on the consumers experience with Internet for informing or buying products By Messenger is the common way By e-mail specific to financial sector Social Networks specific to tourism and auto Opinions/ Comments in the evaluation section specific to financial sector or electronic devices

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

Internet means information in a short time and freedom of choice WOM means credible information and influence in purchasing Sales personnel is a good source of details about the product for beginners
INTERNET Searching for cheaper products An easy access to information Nice way to search information
Credible information Persuasion for buying a product
14

social networks online stores product evaluation websites

FRIENDS

SHOP

Better understanding the features product Credible information More perspective about the products Easier decision provides confirmations

TV

Creates the image of the product Persuasion for buying a product Awakens the consumers interest for the product

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

GfK Romania

Internet & The buying decision

Violeta Bahaciu

February 2012

What do you get from GfK multi-client survey The Internet and The Buying Decision
We have investigated 6 markets and the results are presented in comparison Real measurements mentions related to the last purchase.
Pre-buying Information What is the information strategy before buying? How does the Internet complement other marketing channels when the consumer is informing? Buying Which are the products preferred for buying online vs. offline? Why do consumers buy online vs. offline? How do they pay for their online bought products? What are the barriers for paying online? Post-buying Information Is there a post-buying information phase?
15

Why do consumers look for information in post-buying?

What is the role of the Internet in post-buying word of mouth?

What does the consumer search on the internet when he wants to buy your product?
What online sources does he use?

Source: The Internet and the buying decision GfK multi-client survey, January 2012, urban Internet users 18 -54 y.o.

Thank you for your attention!

February 2012

GfK Romania
Violeta Bahaciu
GfK Romania BOC Building, 3 George Constantinescu St. 6th floor, District 2, 020339 Bucharest, Romania Phone: + 40 21-205.55.00 Fax:+4021-205.55.05 http://www.gfk-ro.com