The purpose of this study was to find out the patterns of consumer showrooming behavior and measure the effectiveness of suggestions made for retailers to take an advantage of this increasing trend. The survey consists of 13 questions that ask about demographic, showrooming behavior and ways to increase in-store sales and sales via mobile. There were 283 survey respondents with 141 males and 142 females. Teenagers, college students, and young adults make up about 70% of the respondents whereas older adults and baby boomers are roughly accountable for 30%.
Being accountable for 32% of 10 retail stores, the Wal-Mart was the retail store where most of the respondent shop followed by Target with 17%. The Macy’s represents about 9%. The rest of the retail stores such as Bloomingdales, Dillard’s, Kohl’s, Neiman Marcus, Nordstrom, J.C. Penney, Saks Fifth Avenue, and Sears have less than 7%. The retail apps that the respondents mostly use are Wal-Mart, Target, and Macy’s. The rest of the retail apps have fragmented share of 8% of less. About 60% of the respondents answered that they think those retail apps provide personalized shopping experience while 30% said they are neutral and only 10% provided negative feedback. Nearly 80% of the respondents stated that they compare prices when shopping at retail stores. As seen in existing studies, the survey results indicated that showrooming is common across all age groups. Amazon Price Check and Google Shopper are the most frequently used apps for the showrooming; these two apps account for about 73% while Flow represents 18% and RedLaser is accountable for 9%. The two questions of the next three questions were specific to Amazon. The Amazon has a patent on its “1-Click Ordering” payment process that contributes to increased sales. About 70% said that they use it once a month, once a week, or more than once a week. 30% stated that they use it once a year. Only 0.31% said they never use it. 75% stated that they would shop more on mobile if the checkout process is easy. The respondents were asked if they are willing to switch to the Amazon’s Fire for its optimal shopping feature. Surprisingly, about 45% answered yes. The last question asked why the respondents made a purchase at retail stores after comparing prices. All 4 answers to pick from have similar shares. The consumers are able to find good in-store mobile coupons, like customer service at retail stores, find loyalty program useful, did not want to pay and wait for shipping, return, and delivery. Brick and mortar stores also offer price matching.
The survey results indicate that the consumers mostly shop at Wal-Mart, Target, and Macy’s using these retailers’ apps that provides satisfying personalized shopping experience. Most consumers use Amazon Price Check and Google Shopper to compare prices. Consumers’ willingness to switch to the Amazon’s Fire phone for its shopping feature shows that mobile shopping has become prevalent. The easy payment process is one of factors to increase sales via mobile, as the consumers frequently use the Amazon’s 1-Click Ordering. In order to drive in-store sales, it is suggested that retail stores keep the loyalty program, offer price matching, maintain good customer relationships, and provide good in-store mobile coupons.
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Somi Kang – Market Research & Consumer Insights Intern, Pollfish