JUPITER RESEARCH RELEASES NEW RETAIL SURVEY THAT CHALLENGES COMMON ONLINE RETAIL ASSUMPTIONS
Active Multichannel Shoppers Drive Revenue, but not Necessarily Profit. NEW YORK, NY - August 8, 2002 (INB) -- Jupiter Research (a division of INT Media Group, Nasdaq: INTM), has released "Jupiter Consumer Survey Retail Report: Redefining the Online Retail Consumer," a controversial new report that challenges the long-held assumption that customers who shop across on- and off-line channels are inherently more valuable to retailers than other online buyers. While 52 percent of the U.S. online population (82 million consumers) has used the Internet both to purchase and to research purchases ultimately transacted off-line, only 10 percent (16 million consumers) have done so across channels of the same retailer. Based on the findings, retailers are encouraged to make customer segmentation the basis for allocating resources towards shoppers who purchase across their channels.
"The results uncover a surprising trend: these 'active multi-channel shoppers' are actually a liability. While they account for a disproportionately high share of Web-related purchasing volume overall, this group is more deal-driven, is more aware of price in every channel and consumes more in terms of costly site features such as live help," said Juliana Deeks, Associate Analyst, Jupiter Research. "Retailers are confronted with a difficult dilemma: how much do customers who shop across their channels merit attention and resources beyond those allocated to other online shoppers?"
The complete findings of this report are immediately available to Jupiter Research clients online. Other companies interested in purchasing this report can call toll-free 1-877-464-6627 or visit www.jupiterresearch.com
The core of Jupiter Research's products is the perspective and opinion of its research professionals. Jupiter Research analysts are immersed in the industries they cover through ongoing contact with corporate and technology leaders, daily study of trends and events in the online world, and their collective professional experience. Individual analyst perspectives are filtered through rigorous collective debate and deliberation, producing research that reflects the combined sensibilities of Jupiter Research's entire team. Analyst perspectives are enhanced and refined through Jupiter-designed market research.
Specialists with Jupiter's Data Research Group assist analysts in the technical development of these tools, such as survey design, sample building, data weighting, and data analysis. This report benefited from the specific market research projects described below.
Jupiter/The NPD Group, Inc. Consumer Survey
In March 2002, Jupiter Research designed and fielded a survey to online consumers selected randomly from NPD consumer panels. A total of 2,268 individuals responded to the survey. Respondents received an e-mail invitation to participate in the survey with an attached URL linked to the Web-based survey form. The samples were carefully balanced by a series of demographic and behavioral characteristics to ensure that they were representative of the online population. Demographic weighting variables included age, gender, household income, household education, household type, region and market size. Additionally, Jupiter Research took the unconventional step of weighting the data by AOL usage, online tenure, and connection speed (broadband versus dial-up)-three key determinants of online behavior. Balancing quotas were determined by an ongoing weekly random-digit-dialed (RDD) survey of almost 5,000 U.S. households. The survey data are fully applicable to the U.S. online population within a confidence interval of plus or minus three percent. In this survey effort, Jupiter worked with its research partner, The NPD Group, Inc. on he technical tasks of survey fielding, sample building, balancing, and data processing. The NPD Group, Inc., founded in 1953, is one of the largest market research companies in the US and maintains a general research panel of 400,000 households. The NPD Group, Inc. has also developed a panel of online individuals (750,000 Internet users), which offers Jupiter Research an easy way to target and survey current online users. Panel-based market research enables researchers to have baseline knowledge of each survey respondent, to increase survey participation rates, and to permit careful rationing of survey fielding to reduce survey burnout.
About Jupiter Research
Jupiter Research helps companies develop, extend and integrate business strategies across online and emerging channels. Backed by proprietary data, Jupiter's industry-specific analysis, competitive insight and strategic advice give businesses the tools they need to exploit new technologies and business processes. The company was recently acquired by INT Media Group, Inc. along with Jupiter Events (www.jupiterevents.com) and is headquartered in New York City. Visit www.jupiterresearch.com.
About INT Media Group
INT Media Group (Nasdaq: INTM), (www.intmediagroup.com) headquartered in Darien, CT, is a leading provider of global real-time news, information and media resources for Internet industry and information technology professionals, Web developers and experienced Internet users. INT Media Group includes the internet.com and EarthWeb.com Network of over 150 Web sites and 200 e-mail newsletters that generate over 200 million page views monthly. INT Media Group also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 17 business areas and 9 vertical markets. In addition, INT Media and Jupiter Events include nearly 40 offline conferences and trade shows on Internet and IT-specific topics that are aligned with our Network of Web sites and e-mail newsletters.
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