New Study Identifies "Recession Shoppers" Hunt for Value

Tue Aug 25, 2009 4:31pm EDT
 
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In tough economic times, "value" is the new black
NEW YORK--(Business Wire)--
With the economy slowing down over the past year, a shopping behavior that for
some consumers had been an occasional habit, has now become a routine - turning
to the Internet to find the best value. A recent study identified a new category
of online shoppers resulting from this trend - the "value hunter." The study,
conducted by Penn, Schoen & Berland Associates, Inc. (PSB), was commissioned in
partnership by LinkShare, a leading performance marketing network provider and
gsi interactiveSM, a GSI Commerce® company providing comprehensive digital
marketing and design solutions. 

Research by PSB conducted earlier this year identified the birth of the
"recession shopper." These consumers - often new to online shopping - claimed
that as economic situations worsened, they would look to the Internet to find
the best deals. Now, months later, even as the economy`s vital signs are
improving, online shopping behavior shows consumers are still heavily focused on
value - in quality, price, convenience and time - making "value" the new core
value among online consumers. 

The evolution from "recession shopper" to "value hunter" means that consumers
who were previously defined as "more likely to buy" online are now looking for
value to determine what, and where, they will make their online purchase.
Specifically, the research found that:

* 72 percent (72%) of "value hunters" look for the best value regardless of
brand 
* 51 percent (51%) of "value hunters" look for incentives when making online
purchases 
* 63 percent (63%) of "value hunters" have purchased something online they
wouldn`t have normally because of a special offer.

"More than ever before, consumers are searching online for products, services
and websites that provide value," said Yaz Iida, co-president, LinkShare. "In
order to be successful in this new `information-at-a-click` world, retailers
must broaden and diversify their affiliate marketing partnerships. These
partnerships provide retailers both big and small with a unique opportunity to
expand their customer base by differentiating themselves through value-based
products and promotions." 

In response to these findings, PSB outlined best practices every online retailer
should adopt to stay competitive. In brief, online retailers are advised to:

* Evaluate offerings to find ways in which value can be infused directly into
the brand; 
* Get passionate about identifying, creating and offering value; 
* Differentiate themselves from the competition through value offerings -
pricing, quality and experience; and 
* Create an online experience built on value - through the use of an
easy-to-navigate website, product placement and positioning and overall brand
consistency.

"gsi interactive is seeing a trend with our clients who are already adjusting to
the "value hunters" shopping behavior," said Nick Pahade, president, gsi
interactive. "Many of our clients are shifting their dollars from
awareness-focused, online marketing to more action-focused, online marketing.
This study helps to confirm and validate what gsi interactive has been observing
among many of our clients` consumers. There`s a shift in the way people are
shopping, and retailers would be wise to adjust their efforts to adapt to these
changes if they want to stay relevant." 

Additional survey results:

* 68 percent (68%) of online shoppers search for value in the form coupons and
special promotions 
* 45 percent (45%) of "value hunters" purchase something online once a week or
more 
* 47 percent (47%) of shoppers prefer shopping online to shopping in-store 
* 22 percent (22%) of shoppers plan to make more purchases online this year
compared to last year.

About LinkShare Corporation

LinkShare Corporation provides ecommerce businesses with a vast, high quality
pay per action marketing network, along with expert consultative services and
patented technology. LinkShare's cost-efficient pay per action (PPA) affiliate,
search and lead generation campaigns acquire new customers, increase revenue and
drive results. LinkShare clients are Fortune 500 and prominent companies doing
business online, including J.C. Penney, 1-800-Flowers.com, American Express and
Avon Products. LinkShare was founded in 1996 and is headquartered in New York
City, with offices in San Francisco, Chicago, London and Tokyo. For more
information, please visit: www.linkshare.com. 

About Rakuten

Headquartered in Tokyo, Rakuten is one of the world's largest and most
comprehensive Internet service companies, providing leading services in
e-commerce, portal & media, travel, financial services, and professional sports.
Rakuten focuses on new business development and increasing its scope in order to
improve and diversify service offerings. Rakuten is a publicly traded company in
Japan (JASDAQ: 4755). 

About gsi interactive

gsi interactiveSM is a full-service digital agency focused on creating
experiences that drive consumer actions. More than 50 of the world`s leading
brands and retailers rely on gsi interactive to deliver effective digital
solutions through a deep understanding of strategy, usability, design,
marketing, and photography. gsi interactive, with offices in New York; San Jose,
Calif.; and King of Prussia, Pa., is a GSI Commerce company. 

About GSI Commerce

GSI Commerce, Inc. (Nasdaq: GSIC) (www.gsicommerce.com) is a leading provider of
services that enable e-commerce, multichannel retailing and interactive
marketing for large, business-to-consumer (b2c) enterprises in the U.S. and
internationally. GSI Commerce, Inc. delivers customized e-commerce solutions
through an e-commerce platform, which is comprised of technology, fulfillment
and customer care. GSI Commerce, Inc. also offers each of the platform`s
components on a modular basis, or as part of an integrated, end-to-end solution.
Additionally, a full suite of interactive marketing services are offered through
two divisions, gsi interactivesm and e-Dialog (www.e-Dialog.com). 





Blanc & Otus Public Relations
Kristin Parran, 617-451-6070
kparran@blancandotus.com
or
GSI Commerce, Inc.
Kelly Henry, 610-491-7474
news@gsicommerce.com
or
LinkShare
Mark Kirschner, 646-943-8359
mkirschner@linkshare.com

Copyright Business Wire 2009

 

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