Nearly half of holiday shoppers are making first-ever purchases online

[December 11th 2000]

Many analysts, journalists, and other observers of the economy seem to have given up e-commerce for dead in recent months. But, according to a recent survey of 1135 online shoppers conducted by Active Research, Inc., a leading provider of Web-based customer analytic solutions, fully 45 percent of the shoppers making purchases on the Internet this holiday season will be doing so for the first time -- a tremendous growth opportunity for online retailers during this all-important time of the year.

According to this real-time "virtual snapshot" survey of online shopper behavior, this new business is an e-tailers' to win or lose. Roughly one third of shoppers rate "price" to be the most important criterion in selecting an online retailer this holiday season. A full one third of the "Newbies," first time holiday shoppers, are choosing e-tailers based on their brand name and whether or not they have a brick & mortar presence. Brand is less important for experienced holiday shoppers (14%) who are more concerned about a retailer's product availability (18%). One might surmise that experienced shoppers have learned from last year's delivery glitches, not wanting Santa to be left holding an empty bag again.

Defying the usual stereotypes about tech-phobic "geezers," the study also showed that older Americans -- those above age 55 -- are expected to lead the way in online holiday shopping by spending more per person than any other age group.

Other key findings include:

• E-commerce shoppers are expecting to spend an average of $388 online this holiday season, compared to $607 in brick and mortar stores.

• By gender, men are expected to outspend women by 28 percent overall, but only 20 percent online.

• 25-34 year olds will shop online more than any other age group; however, shoppers in the 55+ age group will spend more online than any other group -- an average of $521 per person.

• "Heavy" online holiday shoppers expect to spend $1,045 online this year, compared to $243 for medium spenders and $17 for light spenders.

• Heavy spenders are most concerned about price (34 percent), followed by product availability (18 percent) when choosing an online retailer.

• 34 percent of all e-commerce shoppers have increased their online holiday purchases from last year, whereas 15 percent expect to spend the same amount this year.

Links
Active Research		http://www.ActiveResearch.com