ERA1 Jul, 2004 By: Response Contributor Response
What Motivates Consumers to Purchase Through Direct Response?
Every day it seems as if more and more information becomes available on the explosive growth of direct response. Each vein, whether it is DRTV, radio marketing or online commerce, frequently is acclaimed for its sustained success and development. However, many questions arise when trying to determine why a consumer chooses to make a purchase via direct response, as opposed to in a traditional retail store. Why are these channels so effective? What value does the consumer place on being able to make a purchase on TV, online or from radio? How can direct response professionals convince traditional "non-purchasers" to utilize this retailing medium? ERA sought to answer these questions and more during the course of this study.
Overall Rating of Shopping Experience (by purchasers)
In January 2004, ERA commissioned the services of Guideline New York, an independent research firm, to conduct a survey that measures consumer confidence and shopping habits in four distinct channels of electronic retailing: long-form spots, live shopping, radio and Internet commerce. This study, which commenced in May, not only measured the effectiveness of each shopping channel individually, but also compared each expenditure option to one another to determine overall consumer preferences. As few companies today market through one medium alone, it became apparent that ERA had to survey consumer preferences in multiple channels to make this survey timely and effective. Thusly, findings of interest emerged to help explain consumer differences and similarities as well as ways to improve the consumer's overall shopping experience across all venues.
In order to achieve its purposes, the study was performed in two parts: an online opt-in market research survey that featured a pre-screened group of purchasers and non-purchasers; and, to give the proper weight to the collected data, a demographic telephone survey of a statistically valid cross section of 1,000 respondents across the United States. Not surprisingly, the core groups of purchasers and non-purchasers held very different opinions of one another and the electronic retailing media surveyed. However, most notably, this study concluded that consumers who purchase via these retailing channels overwhelmingly prefer the experience to shopping in stores.
Radio Retailing - Impulsive, Repeat Customers
50- to 64-Year-Old Male
Married, Without Children
Educated But Not Employed
Overall, radio purchases have one of the highest approval ratings for quality with over 90 percent of respondents claiming expectations of "excellent or very good" were met by the product. This study also concluded that radio purchasers are more likely to make additional purchases through the other methods surveyed, whether that is through the television, home shopping or the Internet. Characteristically, radio purchases are impulsive, and purchasers see themselves as smart, value-conscious shoppers who are intelligent and careful about money. However, non-purchasers view radio shoppers as homebodies who are addicted to shopping. Interestingly, though radio purchasers are more likely to be disappointed with their product than those in the other three areas, two-thirds claim they will "definitely or probably" purchase via radio again. Lastly, non-purchasers cite security risks and the inability to examine the product as key reasons for not buying radio products. Thereby, the study concludes that educating non-purchasers, stressing convenience, safety, good value and ease of return, could help turn them into purchasers.
Likelihood of Purchasing Through Shopping Method in the Future (by purchasers)
Home Shopping - Content & Loyal
35- to 64-Year-Old Female
Without Children, Educated
Employed With a Higher Income