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What Customers Want: Researchers Demystify E-Shopping Behavior What Customers Want: Researchers Demystify E-Shopping Behavior
By Kimberly Hill
November 7, 2001 6:20AM

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One research method has investigators observing customer responses as they interact with various technologies, such as speech recognition software and personalized online interfaces.
 
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Here is some information that CRM pros might find useful: Younger consumers are relatively accepting of e-commerce personalization strategies. Members of their parents" generation, on the other hand, prefer traditional advertising.

Women are interested in technology only if it makes their shopping experience more convenient. Men, however, tend to be interested in technology for technology's sake. Older people prefer information in verbal or written form. Younger people, by contrast, are more interested in visual information.

Are you curious to know more? Probably so, but this stuff does not come from any market research firm. This kind of data requires primary research -- with precise methodologies and sophisticated statistical analyses. It often requires collaboration between academic specialists and industry experts. That is why the Indiana University Center for Education and Research in Retailing is continuing its research into customer behavior.

Raymond Burke, director of the Center's Customer Interface Lab, told CRMDaily.com that the Center was established four years ago with funding from a collection of retailers, including Sears and Target Stores, and companies like KPMG.

Ideal Shopping Experience

In a recent survey conducted in conjunction with KPMG, the Center attempted to describe the "ideal shopping experience" from the point of view of various segments of the consumer audience. Researchers asked shoppers to evaluate 128 characteristics of the shopping experience, including 58 online and 70 in-store attributes.

When prompted to rate shopping elements on a five-level scale ranging from "must have" to "prefer not to have," consumers were adamant about several important customer service offerings of online shopping. For instance, a majority of respondents rated toll-free telephone access to a customer service representative and e-mail order confirmation as "must haves."

The researchers found that the ideal shopping experience varies by product category. Consumers shopping for appliances and electronic equipment require in-depth facts and figures as they consider purchases. More than 30 percent of furniture shoppers prefer a three-dimensional visual representation of the item on the Web site so they can view it from all angles.

Multichannel Customer Experience

When offered the option of obtaining information and service through various channels, the Center's study showed that customers will choose different channels for different purposes. For example, 90 percent of respondents said they prefer to use the Internet to research product information. Fewer than 10 percent, however, said they like to use a cell phone or mobile handheld device to do so.

The study also found that 59 percent of respondents prefer to receive a purchased product either through the mail or by picking it up at a store. If a product must be returned, 39 percent said they would like to have the choice of returning it through a store or through the mail.

This multichannel preference does not hold for frequently purchased items -- and in categories like groceries and health and beauty aids, the researchers found that consumers prefer one channel only.

Weeding Out Ideas

Burke told CRMDaily that his lab conducts four different kinds of research. The first, and least flashy, is background -- aka secondary -- research. In this stage, investigators look at what retailers are doing and how they are doing it.

Then, the Center might put together a survey like the one discussed above. This is a second layer of investigation, in which researchers might find promising trends to be explored further.

A third stage of research brings consumers directly into the laboratory. Investigators observe them interacting with various technologies, such as speech recognition software and personalized online interfaces. At this point, researchers also might record the reactions of focus groups.

Finally, the Center might partner with a retailer to do field research on a particular facet of the customer relationship. For instance, a company might wish to study the impact of its point-of-sale computer system. Since mistakes at this stage of the game can be costly both in dollars and in researchers" time, Burke noted that ideas are fairly well refined by this point.
 

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