New Research From the Boston Consulting Group and Harris Interactive Shows Glitches in the 1999 Holiday Season are Unlikely to Deter This Year's Online Shopper.Business Editors BOSTON & ROCHESTER, N.Y.--(BUSINESS WIRE)--Nov. 13, 2000 Ninety-six percent of last year's holiday online shoppers intend to purchase gifts online again this year, even though more than half of them experienced a purchase failure in the last holiday season, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. new research from The Boston Consulting Group (BCG BCG bacille Calmette-Guérin. BCG abbr. 1. bacillus Calmette-Guérin 2. ballistocardiogram BCG, n.pr See bacille Calmette-Guórin. ) and Harris Interactive Harris Interactive (NASDAQ: HPOL) is an American market research company that specializes in public opinion research using both telephone and surveys on online panels. The company is the product of a 1996 merger between the Gordon S. Black Company and Louis Harris & Associates. . "In spite of a high incidence of out-of-stock items, system crashes, poor selection, and delivery problems, the vast majority of last year's online holiday shoppers said they are willing to give it another go. And they are also willing to spend more this time around," said Michael Silverstein Michael Silverstein is a professor of anthropology, linguistics, and psychology at the University of Chicago. He has studied Indigenous Australian languages and Indigenous American languages. , BCG Senior Vice President and Leader of the firm's Consumer Practice. "Many consumers aren't, however, prepared to go back to the sites where they experienced the purchase failure in the first place. They will go to different online retailers." "Despite the navigation and fulfillment issues, consumers see the online channel as a convenient, and accessible place for easy, no pressure shopping," he added. The research shows that online shoppers who purchased online last holiday season experienced a variety of failures: - 28 percent wanted to buy an item that was out of stock; - 22 percent gave up trying to buy an item because the Web pages took too long to load and another 17 percent gave up because the system crashed; - 17 percent experienced delivery problems - either the item was delivered late, damaged, never at all, or the wrong item was sent; and - 15 percent couldn't find what they wanted. Despite these failures, last year's online holiday shoppers remain enthusiastic about the upcoming holiday season. Eighty-eight percent intend to buy as many or more gifts online this year as they did last year, and they also expect to spend more. In 1999, the average online shopper spent $170 on holiday gifts, this year, those same consumers expect to spend $240. "This year, more consumers will be doing their holiday shopping online - with up to 70 percent of the online population in the U.S. indicating that they are considering buying gifts over the Internet this season," said Lori Iventosch-James, Director of e-Commerce Research for Harris Interactive. "Online retailers need to make the most of this enormous opportunity." While holiday online shoppers expect to spend 22 percent of their holiday budgets online, the Internet will also influence how they spend the rest. Two-thirds say they will use the Internet to compare prices before they buy an item from a store. Even among the online population who do not plan to purchase online, more than a quarter will use the Internet to compare prices, review product information, and generate gift ideas before they head out to the stores. "The impact of the Internet is reaching beyond the online channel and is weaving weaving, the art of forming a fabric by interlacing at right angles two or more sets of yarn or other material. It is one of the most ancient fundamental arts, as indicated by archaeological evidence. its way into the consumer's entire decision-making process," said Iventosch-James. "Having an online presence is becoming an absolute must for retailers - particularly for the holiday season - as it increases the likelihood that a consumer will purchase from any of a retailer's sales channels." The BCG/Harris Interactive research shows that this year's holiday online shoppers will more closely resemble the population at large as the education gap and the income disparity Income disparity or wage gap is a term used to describe inequities in average pay or salary between socio-economic groups within society, or the inequities in pay between individuals who produce the same work. between the two groups gradually disappears. The hottest online categories-books, music, toys, clothing-more closely reflect the leading off-line retail categories. Almost half of this year's holiday online shoppers have not bought holiday gifts over the Internet before, and another 10 percent will be completely new to online shopping. This first-time online shopper will be the most cautious of all. "Newbies" will spend only 7 percent of their holiday shopping budget online. Based on results from the 1999 holiday shopping season, first time buyers are almost twice as likely to be dissatisfied dis·sat·is·fied adj. Feeling or exhibiting a lack of contentment or satisfaction. dis·sat  is·fied with the shopping experience, and the
penalties for this can be high. A consumer who had a dissatisfying
consumer experience in the last holiday season will spend, in total, 40
percent less online in the upcoming holiday season than a satisfied
consumer will.According to the research, individual online retailers that provide poor purchasing experiences will be punished. Twenty-seven percent of consumers who experienced a purchase failure during last year's holiday season said that they would not return to the offending of·fend v. of·fend·ed, of·fend·ing, of·fends v.tr. 1. To cause displeasure, anger, resentment, or wounded feelings in. 2. Web site to buy a holiday gift this year; twenty-five percent said that they would never return to that site at all. The stakes are even higher for online retailers with off-line operations Noun 1. off-line operation - a operation performed by off-line equipment not under the control of the central processing unit auxiliary operation operation - (computer science) data processing in which the result is completely specified by a rule (especially . More than two-thirds of a multichannel Using two or more paths for transmission or processing. It can refer to a variety of architectures including (1) multiple I/O channels between the CPU and peripheral devices, (2) multiple wires in a cable, (3) multiple "logical" channels within a single wire or fiber or (4) multiple retailer's online customers also shop at that retailer's brick-and-mortar stores or order from its catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. . Customers who experience a dissatisfying online transaction may be deterred from shopping through the retailer's other channels as well. "High customer satisfaction over the holiday season will not be achieved by providing free gift wrapping, gift registries, and product recommendations," said BCG Vice President Peter Stanger. "Nor will it be driven by providing competitive pricing and online security - all retailers have to offer this just to be in the game. Holiday shoppers will be looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. retailers who provide fast, reliable delivery, offer flexible and easy returns, and never say that they won't be able to ship an item because it is out of stock." These findings were obtained from an online survey conducted by The Boston Consulting Group and Harris Interactive during October 2000. This quantitative survey was completed by 5,226 Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f over the age of 18 who live in the U.S., selected from Harris Interactive's panel of more than seven million respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. . Results were weighted to reflect the U.S. online population. About Harris Interactive Harris Interactive (Nasdaq: HPOL), the global leader in online market research, uses Internet-based and traditional methodologies to provide its clients with information about the views, experiences, behaviors and attitudes of people worldwide. Known for its Harris Poll, Harris Interactive has over 40 years experience in providing its clients with market research and polling services including custom, multi-client and service bureau research, as well as customer relationship management services. Through its US and Global Network offices, Harris Interactive conducts research in more than 80 different countries, in more than 30 different languages. Harris Interactive uses its proprietary technology to survey its database of more than 7 million online panelists. For more information about Harris Interactive, please visit our Web site at www.harrisinteractive.com. EOE EOE See: European Options Exchange M/F/D/V About The Boston Consulting Group The Boston Consulting Group (BCG) is a general management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects firm widely regarded as the global leader in business strategy. Since 1963, BCG has worked with companies in every major industry and global market to develop and implement strategies for competitive success. BCG has 47 offices in 32 countries around the world. Note to the media : A teleconference briefing -- for journalists only -- will take place at 12:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today, Monday, November 13, 2000. Please call Lucia Alexander at (416) 957-8024 for dial-in information or to receive information about listening to the recorded version of the teleconference at your convenience throughout the day. A brief PowerPoint presentation containing a summary of the survey findings is also available to journalists. If you would like to receive this document via email, please call Lucia Alexander at (416) 957-8024. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This media release includes statements that may constitute forward-looking information. We caution you that these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are subject to risks and uncertainties that could cause actual results to differ materially from those discussed. Additional detailed information concerning a number of factors that could cause actual results to differ is readily available in the "Risk Factors" section of the most recent Annual Report on form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. |
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