Technology User Profile
TUP Overview
TUP What's Covered
TUP Full Editions
TUP Profile Reports
TUP Selected Tables
TUP Highlights Report
TUP Enhanced Editions
TUP Database Marketing
____________________
Profile Reports
Profile Reports-Available Now
____________________
TUP Online Store
TUP Online Store
____________________
Custom Research
MetaFacts Custom Research
____________________
Contact MetaFacts
Request Form
____________________
Media & Press Area
Media Releases
About MetaFacts
____________________
Other Stuff
Jobs
   MetaFacts, Inc.  /  Subscribe  /  Back Issues  /  Sales
Online and Retail Shopping – Not
All Buyers Fit in the Same Big Box

By Dan Ness, Principal Analyst, MetaFacts, December 12, 2005

Many dot-com pundits spelled the death of brick-and-mortar retail years ago. Consumers of technology products were assumed to be tech-savvy enough to skip visiting their local Wal-Mart. However, many consumers enjoy the social aspect of shopping, while at the same time others have integrated the web into their shopping process.

Now that over half (50.1%) of Americans with home PCs agree that “My computer is a big part of my life,” it should be no surprise that it plays a big part in their shopping behavior. This is based on 7,958 households with Home PCs that were surveyed as part of the most recent MetaFacts Technology User Profile survey.

American consumers have been well-trained to wait for lower prices. Technology companies have further reinforced this through continued emphasis on “the next big thing.”

Nearly 8 times as many consumers agree than disagree with the statement “I hold off on buying technology products until their prices come down.” More than four in ten (41%) of home computer owners agreed with this statement, while one in twenty (5%) disagreed.

Best Buy customers aren’t as hesitant about shopping for technology products as are customers of other major retailers. Perhaps the “Geek Squad” has helped. Just over a third (36%) of Best Buy shoppers agree, much less than the 43% of Wal-Mart and Walgreens shoppers. Nearly ten times as many Wal-Mart and Walgreens shoppers agree than disagree with the above statement.

Further, retail consumers are strongly incorporating the web into their shopping, even while some shoppers strongly value the social interaction of shopping.

Why is this important?

As technology product shoppers transform what they value – low prices, brands, social interaction – as well as their sophistication with integrating the web into their buying processes – then this can split the market into pieces. This can leave some retailers following their customers, instead of the other way around.

There’s a sizable group that have integrated the Internet into their retail buying process. Over a third (35%) of American shoppers prefer to do their buying research online and then purchase in person. This is four times as high a rate as among those that don't. Among the major retailers, Best Buy has attracted most of these, with 41% that agree while 7% disagree.

Low prices resonate with many buyers. Nearly 3 in 10 (29%) agree with the statement "low prices are more important than brand names." Almost three times as many agree than disagree. 14% of Barnes & Noble online buyers disagree that low prices are more important than brand names, a small number, but the largest among the national online and retail outlets. The national rate is 11%.

Many buyers value in-person social interaction in their shopping process. 29% of shoppers with home PCs agree with the statement "I enjoy shopping in person because I can talk with and meet people," compared with 15% that disagree.

Dell or Amazon shoppers are less interested in the social value of shopping than most other consumers. More Dell & Amazon customers disagree than agree. One-fifth (21% of Dell and 20% of Amazon shoppers) disagree, higher than the 15% national rate.

 

Technology Product Shopping Attitudes
by Major Online & Retail Outlets Shopped

  Major Retail Outlets    
Attitudinal Question Agreement Wal-Mart - Retail Target - Retail Best Buy - Retail Walgreens - Retail Barnes & Noble - Retail Major Retail Outlets Shopped at Major Online or Retail Any Home PC
I hold off on buying technology products until their prices come down. Agree or Strongly Agree (6 or 7) 43% 41% 36% 43% 39% 42% 41% 41%
Middle (3, 4, 5) 53% 54% 57% 53% 55% 54% 54% 55%
Disagree or Strongly Disagree (1 or 2) 4% 5% 7% 5% 6% 4% 4% 5%
                 
I like to research products online and purchase them in person. Agree or Strongly Agree (6 or 7) 37% 38% 41% 39% 39% 37% 36% 35%
Middle (3, 4, 5) 56% 57% 53% 55% 55% 56% 56% 56%
Disagree or Strongly Disagree (1 or 2) 7% 6% 7% 6% 7% 7% 8% 9%
                 
Low prices are more important to me than brand names. Agree or Strongly Agree (6 or 7) 31% 28% 25% 30% 26% 29% 29% 29%
Middle (3, 4, 5) 59% 62% 62% 59% 64% 61% 61% 61%
Disagree or Strongly Disagree (1 or 2) 10% 11% 13% 10% 10% 10% 10% 11%
                 
I enjoy shopping in person because I can talk with and meet people. Agree or Strongly Agree (6 or 7) 27% 25% 25% 26% 27% 26% 25% 26%
Middle (3, 4, 5) 60% 61% 60% 61% 58% 59% 60% 59%
Disagree or Strongly Disagree (1 or 2) 14% 15% 14% 13% 15% 15% 15% 15%
Sample Size
       3,566        2,308       1,586       1,428       1,159        4,801        5,381        7,958
  Total U.S. Households (000)      30,810      20,172     14,215     12,815     10,244      42,307      47,534      71,000
                 
                 
  Major Online Outlets    
Attitudinal Question Agreement Amazon - Online eBay - Online Wal-Mart - Online Dell - Online Barnes & Noble - Online Major Online Outlets Shopped at Major Online or Retail Any Home PC
I hold off on buying technology products until their prices come down. Agree or Strongly Agree (6 or 7) 38% 42% 39% 36% 38% 40% 41% 41%
Middle (3, 4, 5) 57% 53% 56% 55% 55% 55% 54% 55%
Disagree or Strongly Disagree (1 or 2) 5% 5% 6% 9% 7% 5% 4% 5%
                 
I like to research products online and purchase them in person. Agree or Strongly Agree (6 or 7) 33% 35% 37% 38% 34% 35% 36% 35%
Middle (3, 4, 5) 59% 58% 55% 57% 58% 58% 56% 56%
Disagree or Strongly Disagree (1 or 2) 8% 7% 7% 5% 7% 7% 8% 9%
                 
Low prices are more important to me than brand names. Agree or Strongly Agree (6 or 7) 27% 30% 33% 23% 26% 28% 29% 29%
Middle (3, 4, 5) 63% 61% 57% 61% 61% 61% 61% 61%
Disagree or Strongly Disagree (1 or 2) 10% 9% 10% 16% 14% 10% 10% 11%
                 
I enjoy shopping in person because I can talk with and meet people. Agree or Strongly Agree (6 or 7) 15% 16% 21% 16% 17% 17% 25% 26%
Middle (3, 4, 5) 65% 65% 62% 63% 66% 65% 60% 59%
Disagree or Strongly Disagree (1 or 2) 20% 18% 17% 21% 17% 18% 15% 15%
Sample Size        1,634        1,454         558         499         525        2,875        5,381        7,958
  Total U.S. Households (000)      14,346      12,899       4,921       4,594       4,513      25,455      47,534      71,000
                 
Notably higher than national average          
Notably lower than national average          

Source: MetaFacts - Technology User Profile 2005 Annual Edition

 

We expect the market to further splinter as Americans continue to learn and evolve how they buy consumer electronics. As the Internet becomes more integral in certain American’s lives, they will be very different from who they are today. At the same time, shoppers who haven’t embraced the web or have pulled the plug will be taking completely different shopping approaches, further frustrating those retailers attempting to fit all buyers into the same big box.

 

PDF Document

For a PDF copy of this web page including the Table of Contents for the complete TUPdate, please follow this link.

 

Source Data

To obtain the complete 9-page TUPdate, including Special Analysis source data, current Technology User Profile subscribers may follow this link. If you are not a current subscriber, please visit our TUP Online Store.

 


TUPdate
Package

 

TUPdate
Individual Tables
Technology Product Shopping Attitudes by Major Online & Retail Outlets Shopped
Special Analysis - TUP 2005 Annual Edition (Excel)
Special Analysis TUP 2005 Annual Edition (pdf)

 
I Hold Off on Buying Products Until Prices Come (Household Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

I Like to Research Products Online and Purchase in Person  (Household Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Low Prices are More Important to Me than Brand Names  (Household Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

I Enjoy Shopping in Person Because I Can Talk with and Meet People  (Household Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

 

 

Other Resources

Current Technology User Profile subscribers may be interested in the following links with related, more detailed or updated information:
 
My Computer is a Big Part of My Life  (Household Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

How Home PCs were Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Outlet Where Home PC was Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

How Home Printer was Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Outlet Where Home Printer was Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

How Peripherals for Home PC were Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Outlet Where Home Peripherals/Equipment were Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

How Other Supplies for Home PC were Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Outlet Where Other Supplies for Home PC were Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

Outlet Where Home Software was Purchased (Home/Family)
TUP 2005 Annual Edition (Excel)
TUP 2005 Annual Edition (pdf)

 

 

Background & Methodology

Factual, decision-making information like this is only found in one place, the Technology User Profile from MetaFacts. The Technology User Profile market research information service is based on extensive primary research selected and balanced to represent the American population - including technology users and non-technology users. Drawn from more than 10,000 surveys per year reporting on over 250 questions, it is the longest-running, most comprehensive total market technology study available. TUPdates are brief summaries of information contained in the Technology User Profile.
 

Usage Guidelines

This TUPdate is provided as a service to subscribers of the MetaFacts Technology User Profile® service, technology marketers, the investment community and other interested parties. Current Technology User Profile subscribers may freely distribute this information within their firms. Further information about Technology User Profile can be obtained at the website www.metafacts.com or by contacting us at:




If you would like to unsubscribe, please complete the unsubscribe form. If you were forwarded this TUPdate and wish to get on the list for future articles, please complete a subscription request form
.

 

Home

Send mail to  Metafacts with questions or comments about this web site.
Copyright © 1998-2008 MetaFacts
Technology User Profile® is a registered trademark of MetaFacts, Inc.