Washington, December 7, 2009 – Retailers will spend millions
of dollars on advertising this holiday season, but many shoppers won’t
commit to buying some gifts until hearing from people just like them that
it’s worth it. According to a Retail Advertising and Marketing Association
survey conducted by BIGresearch, word of mouth remains the biggest influence
in people’s electronics (43.7%) and apparel (33.6%) purchases, though
advertising inserts, articles and in-store promotions also sway buying
decisions.
“Hearing what other people have
to say about a product gives shoppers the satisfaction of knowing what they
purchased is peer-reviewed and worth their money,” said Mike Gatti,
Executive Director, RAMA. “Whether it is based on a conversation with a
friend or a customer review on a website, people put a lot of weight in
other shoppers’ opinions.”
When it comes to apparel
purchases, shoppers say in-store promotions (31.8%) are nearly as important
as word of mouth. Given the economy, it’s also not surprising that coupons
(31.2%) were ranked near the top of the list. Interestingly, shoppers said
that advertising inserts (28.0%), direct mail (24.2%) and email advertising
(22.4%) were more influential than television ads (21.8%).
Second to word of mouth when it
comes to buying new laptops, GPS systems, high definition televisions or any
other electronics, more than one-third (33.9%) of consumers say articles
written about the product influence their decision. Advertising inserts
(26.0%), in-store promotions (25.9%) and coupons (22.8%) also sway shoppers’
electronic purchases. In addition, technology plays an important role, with
4.7 percent saying they are influenced by blogs and 5.1 percent using online
video game advertisements as a factor in their final purchase decision.
The survey found people still
prefer traditional media to get their daily dose of news and information.
Nearly nine out of 10 (88.9%) people said they watch television throughout
the week, 77.9 percent read what arrives in the mail and 70.2 percent listen
to the radio. New media preferences include reading and sending emails
(86.5%), surfing the internet (82.0%), instant messaging (26.1%) and
blogging (9.6%).
“Traditional media still plays
a big role in consumers’ everyday lives, but technology has paved the way
for people to have instant access to sales events, promotions and even
customer reviews,” said Phil Rist, Executive Vice President, Strategic
Initiatives, BIGresearch.
Retailers eager to get consumers’ attention through
television or online ads should consider casting a wider net as well. When
asked what they simultaneously do while watching TV, nearly three in 10
(29.3%) go online, 12.2 percent read the newspaper and 21.3 percent
participate in other activities. While surfing the internet, 40.1 percent
said they simultaneously watch television and 22.5 percent read the mail.
BIGresearch is a consumer intelligence firm
providing analysis of behavior in areas of products and services, retail,
financial services, automotive, and media. BIGresearch’s syndicated
Simultaneous Media Survey (SIMM) is focused on consumers to gauge their
consumption across media, products and services. Marketers can use SIMM to
develop the types of consumer-centric marketing plans required to increase
advertisers’ ROI. The SIMM monitors more than 15,000 consumers twice each
year.
The Retail
Advertising & Marketing Association, a division of the National Retail
Federation, is a trade association of over 1500 retail marketing and
advertising executives, plus their supporting partners from the advertising
agency, media and service-provider areas. RAMA co-produces the Retail
Innovation and Marketing Conference, the largest single gathering of retail
marketing and advertising professionals in the industry today. RAMA also
produces the RACie Awards Competition, the most prestigious creative contest
in retail.
www.rama-nrf.org
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National Retail Federation