Behavioral Differences Between Men and Women Influence Shopping

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DECEMBER 09, 2011 · BY MARCIA KAPLAN

 

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Retail is the dominion of women; they shop to purchase both essential and discretionary goods, to relax, and to socialize. So it's not surprising that women account for over 80 percent of consumer spending, or about $5 trillion dollars annually, according to the U.S. Census Bureau. Men, in contrast, are reluctant store shoppers and much more focused, shopping only if they intend to buy a specific item and wanting to get in and out quickly. A number of research studies show that much of this admittedly stereotypical behavior carries over to online shopping.

The early days of online shopping were actually quite male-oriented as the selection of products was limited to computers, software, music, and consumer electronics. As tools for product and price comparison (the ability to do this without having to visit physical stores is particularly attractive to men) became available, males became even more enthusiastic about ecommerce.

Then as the variety of online goods expanded to food, apparel, home goods, and toys, females took to online shopping. However, web shopping lacked the social aspects of retail shopping and apparel merchants (especially luxury brands) were slow to move online. However, the arrival of social media tools, combined with better visuals and video, made the online shopping environment more enticing. Females can now share more of the online shopping experience and decision-making with friends and family.

Different Approaches to Online Shopping

Men tend to stick to their mission when shopping online, while women expand the undertaking by wandering among products and categories, according to a survey by Empathica, a customer experience consultancy.

Other Empathica findings include:

• Males and females differ in how they utilize a product page. Males intensely research the page, viewing all the product details and pictures, while women quickly scan the product page and go to the next product they want.
• Males tend to search by product while females search by brand.
• Fifty-four percent of men browse the Web every few days for shopping research purposes compared to 47 percent of women.

Social Media Use

While both males and females use social networking sites, they use them for different purposes. Males predominantly look for information while females seek out sales and coupons. Empathica’s survey found that when browsing using social media, just finding information is a primary goal for 36 percent of men, but only 28 percent of women. Both genders have increased their use of social media for comparison-shopping purposes —37 percent of males and 36 percent of females. According to performance marketing firm Performics, 62 percent of males and 50 percent of females compare products using social media channels.

When looking for bargains, the gender split between males and females is marked – 47 percent of females are searching for coupons and promotion as their primary use of social media, compared with 33 percent of men. One third of female respondents have increased the amount of time they dedicate to searching for coupons through social media, compared with about 20 percent of men. However, it appears that males are more inclined to consult deal websites — 56 percent versus 41 percent for females according to the Performics Social Shopping Study.

Females are more likely to recommend a brand, product or service to their friends and family through a social network, with 35 percent doing so, compared with 28 percent of males.

Online activity while shopping in-store is also gaining popularity. Sixty-two percent of respondents on the Performics' Social Shopping Study, said they conduct competitive price searches while in a retail location and thirty percent use a barcode scanner on their mobile phone to shop for prices.

Younger Males' Habits Are Similar to Females

The Internet may be altering some hard-wired male behavior, particularly among men less than 25 years of age. Shoppercentric, a UK-based shopping research firm, found that 18-24 year old males defy most male shopping patterns by browsing — both in retail stores and online — shopping with friends, and rivaling women in the number of impulse purchases.

Opportunities for Ecommerce Merchants

By catering to the distinctive patterns of males and females, ecommerce merchants can increase conversion rates.

• If you are serving a mostly male audience, present detailed product descriptions, feature comparisons to other similar products, and provide customer reviews.
• If you are targeting females, offer an online chat feature, discussion forums, high-quality visuals, customer reviews, and, if you are selling apparel, provide video clips and slide shows. Also include a list of recently viewed products and make it easy to return to those products. Since females do more browsing, ensure that your website allows for easy switching between related categories. The objective is to make the shopping experience as social as possible.
• Promotions and sales attract women so ensure that you are keeping up with your competitors with your marketing offers.
• If your products appeal to younger shoppers of both genders, make sure that you provide social media tools so they can share their experiences with friends. While older males don't like to dither, younger ones enjoy browsing and interacting with others while shopping.

Read More

• Celebrity Curators Help Personalize Ecommerce
• Adult Internet Users Are Socialites, Study Finds
• 3 Ways Social Media Affects Brands

Travel plans now include the layaway route

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by Stefania Revelli
WHAT’S HAPPENING

• Layaway isn’t a new way to pay, but travel hasn’t traditionally been a category associated with the piecemeal-style payment plan.
• Sears has launched Sears Vacations, an online destination where customers can put hotel and travel packages, hotels, cruises and rental cars on hold and pay for them progressively.
• Layaway payment plans differ based on type of trip and package. A $1,499 cruise package, for instance, requires a $149 deposit and $75 monthly rate for 18 months (Sears Vacations, July 2012).
• The site also features 100 prepaid vacation packages under $400 that can be financed over time (MoneyLand.Time.com, 20 June 2012).

WHAT THIS MEANS TO BUSINESS

• Post-recessionary consumers are discovering savvy and creative ways to finance wish lists, without risking the bank. Long-term payment plans offer every consumer the flexibility and opportunity to make their ideal vacation a reality.
• Sears-style layaway plans are not for the whimsical traveler, but for the calculated consumer who can plan far in advance.
• Introducing vacations into a payment system typically associated with big-ticket household items (like furniture or electronics) shifts vacationing into a lifestyle improvement category.

RESOURCES

• Sears Vacations

Consumers Prefer to Get More Rather than Pay Less – Because They’re Bad at Math

By BRAD TUTTLE | @bradrtuttle | July 3, 2012 | 

Is it better to get more or pay less? If you think they’re basically the same, you’re like most consumers. And, like most consumers, you’re wrong.

When offered the possibility of 33% off a product or the same product with 33% more quantity, which would you choose?

The Economist sums up the results of a new study published in the Journal of Marketing, which reveals that most consumers view these options as essentially the same proposition. But they’re not. The discount is by far the better deal. As the Economist puts it, because most shoppers are “useless at fractions,” they don’t realize that, for instance, a “50% increase in quantity is the same as a 33% discount in price.”

(MORE: Apocalypse Marketing: Top 10 Products and Services for the End of the World)

In one part of the study, Akshay Rao, the General Mills Chair in Marketing at the University of Minnesota’s Carlson School of Management, asked undergraduate students to evaluate two deals on loose coffee beans — one with 33% more beans for free, the other at 33% off the price. The students viewed the offers as six of one, half a dozen of the other.

But let’s do the math, using some easy round numbers for the sake of simplicity. Say the initial price is $10 for 10 oz. of coffee beans. Hopefully, it’s obvious that the unit price is therefore $1 per oz. An extra 33% more “free” beans would bring the total up to 13.3 oz. for $10. That $10 divided by 13.3 oz. give us a unit price of $0.75 per oz. With a 33% discount off the initial offer, though, the proposition becomes $6.67 for 10 oz., for a unit price of $0.67 per oz.

Shoppers routinely bite on offers that are worse values because they do the math incorrectly, and also perhaps just because they’re infatuated with the idea of getting something extra for free. The prospect of receiving something for nothing has been demonstrated to make consumers do some pretty irrational things, including buying goods they otherwise wouldn’t have and being far more likely to order items online with free shipping, regardless of the overall expense.

It seems as if the psychology power of free may also make us worse at math. In another marketing experiment involving hand lotion in an actual store, researchers sold 73% more when it came in a bonus pack than when it was priced at a discount with the same exact unit price.

Researchers have a term for the phenomenon in which shoppers pay little attention to unit price. They call it “base-value neglect.” Neglect at your own peril.

Tuttle is a reporter at TIME. Find him on Twitter at @bradrtuttle. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.



Read more: http://moneyland.time.com/2012/07/03/consumers-prefer-to-get-more-rather-than-pay-less-because-theyre-bad-at-math/#ixzz20En68t6M

LobbyFriend Inc.

Get app LobbyFriend is a temporary social network that allows guests staying at a particular hotel to create profiles (with basic personal info like gender and profession) and interact with other guests while on site. Once a hotelier debuts the app, guests receive a PIN at check-in, which they can use to "enter" the virtual lobby at that hotel. From there, they can connect through the property’s “news feed” to chat with other guests, request info about the destination and receive notifications of special events or deals at the hotel (as well as deals from paying vendors). LobbyFriend is free, although upgrades like booking engines and brand customization cost hoteliers extra, said LobbyFriend’s co-founder, Mohit Kumar. Available In: App Store, Android Market, Blackberry (June 2012) Cost: Free

10 Online Shopping Personality Traits

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Aubrey Beck  |  March 7, 2012   


Retailers have typically approached marketing from a product-centric standpoint, but behavioral commerce technology now on the market enables retailers to take a more people-focused approach for giving shoppers an incentive to complete a purchase.

As online shopping gains momentum, shoppers are looking for online retailers to provide them with more personalized shopping experiences. Marketers can tailor these experiences to specifically defined target audiences by understanding the shopping personalities and buying behaviors of customers. Because when you've discovered what drives specific shoppers to buy, you're able to increase sales and margins.

Shopping behavior data derived from a behavioral commerce analytic platform used by several prominent online retailers was analyzed to determine the 10 most common shopping personality profiles.

1. The distracted shopper: "When I shop online, I often begin the check-out process but for one reason or another I don't always complete the purchase." 

Note: This type of shopper is frequently distracted and is prone to multitasking while shopping.
To close the deal: Offer 10 percent off the next order if she completes this one. You can also show her the types of products she was browsing to remind her to return and complete the purchase.

2. The premium shopper: "I only buy the best. I want premium name brands with the latest features and most advanced technology." 

Note: This shopper is a trendsetter who doesn't mind showing off or inciting a little jealousy in her friends.

To close the deal: Show this shopper the newest products that have just arrived. Increase the average order value by throwing in a small offer if she reaches a high order value threshold.

3. The determined shopper: "I always research before I buy. I'll view the exact item I want multiple times, looking for a drop in price, or a special offer." 

Note: This shopper wants to be absolutely certain she has made the right choice before buying.
To close the deal: Provide positive reinforcement during her shopping process. Let the shopper know that this is the right product by showing positive consumer feedback on the items she's browsing and, if necessary, provide an incentive like $10 off to write a product review .

4. The active shopper: "I'm always browsing but not always buying. I'm not looking for incentives, but they can help me convert when I'm window shopping." 

Note: Active shoppers like the positive psychological effects of browsing products online across different sites.

To close the deal: Try secret sales, daily deals, or flash sales to get these shoppers over the finish line. Try offering additional items that complement what they've been browsing.

5. The free shipping hunter: "I like to buy online, but if the retailer doesn't offer free shipping, I'll leave and find a website that does." 

Note: This shopper is turned off even if shipping costs are minimal.

To close the deal: Offer free shipping to these shoppers to ensure that they complete the purchase.

6. The thrifty shopper: "I like to buy used or refurbished items. If I can get the same product used for much less, I'll buy it." 

Note: For this shopper, the amount of savings can be more powerful than the product need itself.
To close the deal: Make used and returned items visible to them. Show her overstock and clearance items based on what she's been browsing. Those products might be just as attractive to her based on the savings.

7. The loyal shopper: "I only purchase if I can join a rewards club or special rewards program. This often leads to me purchasing at the same stores." 

Note: This shopper likes to build up and then cash in points from loyalty reward programs. This type of shopper will generally spend more than others in the pursuit of rewards points.

To close the deal: Remind her how many points she'll get for buying certain items. Provide extra points for items you're trying to clear out. Offer loyalty club deals so club members feel they're getting something in return for their loyalty.

8. The methodical shopper: "When I shop online, I like to browse for the exact product I'm looking for. I often use site navigation until I find that perfect match." 

Note: These shoppers are tenacious and don't like being distracted by marketing messages or product fluff. They follow site navigation and site maps to find the right product.

To close the deal: Present a message to these shoppers asking if they need help or have product questions if they seem to be getting lost within your site. Provide additional product suggestions combined with offers based on what they've been browsing to help generate sales.

9. The impatient shopper: "If I don't find what I want immediately, I look somewhere else."

Note: These shoppers are antsy to buy and be done with it. Making the navigation and checkout process fast will increase the likelihood of closing the sale.

To close the deal: Create a bold offer to grab their attention and maximize conversions. If they leave without purchasing, quickly present an offer combined with what they were browsing to try and win them back.

10. The wish list shopper: "I like to shop online, but I don't always purchase. I add everything I like to the shopping cart to see what the total price will be." 

Note: This shopper needs help moving from fantasizing about products to actually purchasing the products.

To close the deal: Daily deals, flash sales, and secret sales work well for these shoppers. Add to their shopping excitement by showing additional items that complement existing items in their cart. This completes the visual picture for these shoppers and can drive them to purchase everything.

When retailers factor shoppers' personalities and buying behaviors into their marketing decisions, everyone wins. Shoppers find products they're looking for and are rewarded with incentives that mean the most to them, and retailers don't waste money giving away huge discounts across the board.
By using a behavioral commerce platform, retailers can have a more thorough understanding of the shopping personalities of their site visitors and can maximize sales and margins by making strategic offers.

The Social Credit Card: AmEx Syncs With Twitter To Turn #Hashtags Into Savings

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BY Austin Carr | 03-06-2012 | 5:21 PM
 

Want $20 back from Whole Foods when you use your AmEx card? Tweet #AmExWholeFoods. Here's what's behind the new deals for the sharing generation.

Today, American Express unveiled a new program with Twitter to let cardmembers sync accounts with the social network, and earn savings from big brands such as Whole Foods, Best Buy, and Zappos--just by retweeting certain hashtags.


With the partnership, AmEx helps fortify its role as the credit card for the social media generation--and, apparently, following through on the whole Social Currency idea beyond offering membership points rewards. In addition to its partnership with Twitter, the company, which boasts more than 90 million cardholders worldwide, has already rolled out a national program with Foursquare for check-in deals and Facebook for rewards through Likes. AmEx aims to be the connective tissue between merchants and consumers on social media that will provide a mix of offers, data, and branding to its members.

As with Foursquare, the process of syncing your AmEx account to your Twitter account is a quick, one-time process. Once linked, U.S. cardholders have the opportunity to earn rewards by tweeting special offers from hashtags. "Tweet #AmExWholeFoods, get $20 back 1x on next $75 in-store purchase," Whole Foods might tweet. Once the consumer tweets the #AmExWholeFoods hashtag, the offer is automatically loaded into that member's account, ready to be redeemed effortlessly the next time he or she shops at Whole Foods.

"Twitter is already being used as a platform to connect buyers and sellers, but no one has really nailed it in terms of proving that Twitter conversations can drive directly to commerce, or that tweets can really be linked to transactions," says Dave Wolf, VP of global business and market development at AmEx. "That's what we're really excited about doing."


The benefit of the service is as much about the deal for the consumer as it is the data for the merchant. "We can go to Whole Foods or any merchant we work with and give them information and analytics," says AmEx vice chairman Ed Gilligan. "How many people used the offer? What was the size of the shopping cart when they checked out? Did that customer come a week later or a month later?"

In other words, AmEx has finally developed a way to demonstrate a tweet's ROI--and not just in terms of commerce. The deals will also have a benefit on Twitter, leading to "more trending topics, more followers, and more conversations," says Leslie Berland, SVP of digital partnerships and development at AmEx. "Are our followers growing? Are people talking about our business? Are people engaging with our content?"

It's a social strategy AmEx has used to take the friction out of the point of sale, and turn something as simple as a hashtag into a potential future transaction. It's also a social strategy we should expect AmEx to continue to pursue beyond Facebook, Foursquare, and Twitter.


 "We want to go where our cardmembers are," Berland says. "So when you talk about Instagram, if they presented an opportunity where it evolved into something that would be a natural fit for this, we would definitely look at it. We are looking at platforms that both have scale, and that we're able to put our technology in in a very authentic way. But yes, we can do this with a variety of different partners, and we, candidly, have many partners beating down our doors to do exactly that."