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November 15 2007
Price v’s Reviews?
A new US survey has identified a new type of shopper, the Social Researcher. The Social Researcher uses peer review as a prime source of buying recommendations, and significantly given the choice between a site with reviews and one without, they will always choose the one with.
The "Social Shopping Study 2007" is a US retail study commissioned by PowerReviews and it makes very interesting reading, and although it’s a US survey the findings probably wouldn’t be too far different in the UK. The survey looked at 1,200 US consumers who shop online at least four times per year, spending $500 (£250) or more annually.
There were two key parts to this study - to understand how online shoppers use reviews today to make informed buying decisions, and to explore consumers' preferences and interests in 'Social Navigation'
A phrase coined to describe the ability to narrow product selections based on reviews from like-minded people with similar interests.
The first area of research uncovered a new breed of online shopper, the 'Social Researcher', who places increased significant emphasis on peer feedback in product reviews when making purchasing decisions.
Of the respondents in the study, 65 percent were identified as Social Researchers - consumers that actively seek out and read customer reviews prior to making a purchase decision always or most of the time. In addition, this group engaged in the use of reviews across all behavioural areas at a rate 20 percent higher than average online shoppers
In addition:
78 percent of these respondents indicated they spent more the 10 minutes of time in the review reading process
86 percent of Social Researchers find customer reviews extremely or very important
76 percent of Social Researchers find "top rated product" lists to be extremely or very important
64 percent of Social Researchers research products online more than half the time, no matter where they buy the product(store, Web, catalogue, etc.)
Additionally, nearly all respondents indicated that product reviews would be very helpful in shopping for products in a wider variety of online categories outside of electronics including toys and video games, sporting goods, gifts and specialty foods as well as health and beauty products.
The second part of the study focused on understanding how online shoppers, particularly Social Researchers, perceived Social Navigation and it’s here that things may differ between the UK and the US experience. The US shop assistant is as different to the UK assistant as chalk and cheese. But it’s also the most significant part of the story, as this is where things start to get interesting.
82 percent found reading reviews better than researching a product in-store with a knowledgeable sales assistant.
Social Researchers were 76 percent more likely to shop on a retailer's Website vs. their competitor site if it offers social navigation (Social Researchers were 76 percent more likely).
Study participants found it extremely or very helpful to narrow product selection based on feedback from people "just like them" - people with Like Interests (64 percent), with Similar Uses (59 percent) for the product such as "for travel" or "for home office" and who sought out the same product "Pros" (56 percent) such as durable, lightweight or easy to use.
The study also revealed that shoppers prefer to use customer reviews throughout the entire shopping process given the following:
Currently, 81 percent of consumers use customer reviews to decide between two or three products or to confirm that their final selection is the right one.
Only 40 percent of consumers, though, actually start the shopping process using reviews; meaning many shoppers leave retail sites during the shopping process seeking out reviews.
Lastly, the Social Shopping Study authenticated the growing importance of customer reviews in the online shopping decision-making process with 93 percent of consumers indicating they are likely to start their shopping process on a Website that offers Social Navigation.
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