Is Online Shopping Affected by a Recession?
In the past few years, the economic down turn has caused many people to modify their spending habits. Many traditional retail stores have seen a large decline in sales. Massive lay offs and home foreclosures have also affected the retail sales industry. One area of retail that appears to be thriving during these tough economic tomes is online shopping sites.
A study by Penn, Schoen & Berland Associates, Inc. (PSB) and commissioned by LinkShare, a marketing network provider, found that consumers have become increasingly more cautious about their purchasing decisions. There is now a new group of shoppers flocking to internet shopping sites. This new group of online buyers have been labelled as 'Recession Shoppers.' They are going online to locate the best deals in an effort to curb their spending habits. They are being drawn to online sites that offer such deals as online product price comparisons, coupons and discounts such as free shipping, buy one get one free, product price slashing, and other special promotions.
The PSB study reported the following:
68 percent of "recession shoppers" (and 79 percent of "weekly shoppers") purchased something online they wouldn't have otherwise because of a coupon or discount. 64 percent of "recession shoppers" (and 70 percent of "weekly shoppers") said they purchased something from a particular online retailer they wouldn't have otherwise because of a coupon or discount.
The Internet is providing shoppers with the tools to compare similar products in order to find the best price. As well, shoppers do not have the fuel expenses associated with traveling to and from traditional retail stores. The results of the PBS study indicate that today's consumer is becoming less of an impulse buyer and more of a careful shopper.
An April study from Performics and ROI Research revealed that "Three-fifths of online consumers say they will spend equal (41%) or more (19%) money shopping online in the next 60 days than they did at this time last year." The first monthly '2009 Online Buyer Economic Trend Study' also found that "respondents are more likely to maintain or increase online spending than they are for purchases in general, especially because they have the ability to go online to research products, compare prices and search for discounts and coupons."
Other factors that influence consumers to shop online include:
Online consumers are now finding an extensive amount of online retailers that cater to one specific category. There are many retailers offering great deals that only exist online Most online shoppers are receiving e-mail alerts about discounted products and other specials. This is a great time for online retailers to acquire new customers and increase their profits. When attracting and maintaining a loyal customer base, these retailers should make sure that they maintain quality products and services, keep prices low, provide consumers with price-comparison engines, and provide easy and effective customer care contact.
The recession has sent a flood of shoppers to the internet. Consumers are spending and saving much differently during this current economic crisis. Low prices, convenience, and quick and easy access, have been the driving force behind the 'Recession Shopper' trend. The result will likely be a number of modifications and improvements in the way traditional retailers do business. Understanding consumer behaviour is a key aspect of maintaining a thriving business during a difficult recession period.
About the Author:
Collect rewards and points while online shopping. Buy dell computers, clothes, electronics, find something for the whole family.
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