(04/22/2008)
iCongo survey finds free shipping, online-only pricing lead shoppers online; 45 percent plan to make retail purchases with their federal tax rebate
Portsmouth, NH and New York, NY – iCongo, Inc., a leading developer of e-business systems and software, today released the results of a consumer survey conducted by Harris Interactive® that reveals how the rising price of gasoline is reflected in American attitudes towards shopping.
One third (33 percent) of online U.S. adults indicated they are more likely to shop online rather than in-person at a store due to the high price of gasoline.
“Based on these results, it’s fair to say that consumers may be looking to fire up their computer more often than their car or truck when it comes to retail shopping,” said Irwin Kramer, founder and CEO of iCongo. “One in three adults said high gas prices are making them more likely to shop online instead of in a store - a clear indication that gas prices are having an effect on shopping attitudes.”
The iCongo survey also provides insight into consumer attitudes regarding the upcoming U.S. federal tax rebate. A full 45 percent of adults said they plan to make retail purchases with their rebate, if they receive one. By contrast, just 21 percent of respondents in a recent CCH survey said they intend to spend it. A survey commissioned by the National Retail Federation came close to the iCongo number with 41 percent of respondents indicating they plan to spend their rebate.
Added Kramer: “While there has been much speculation that consumers will seek to avoid making retail purchases, our survey found a healthy number do plan to do so. Whether purchases are made online or in a store, these rebate checks are going to have an effect on the overall economy.”
Kramer pointed out that shoppers who choose to spend their rebate checks online will find a range of compelling reasons to do so. The results from the iCongo survey reflect this view.
For example:
• 57 percent of online adults said free shipping is a reason they are more likely to shop online as opposed to in a physical store;
• 55 percent said lower prices lead them to shop online over in a store; and,
• 61 percent cited the ability to shop at any time as a reason they are more likely to shop online instead of in a store.
Free or discounted shipping and online-only pricing are widely available from e-retailers and are powerful factors that drive consumer interest in online shopping.
In a data point of interest to multi-channel marketers, the iCongo survey found that six percent of online adults would complete their purchase in store and have the merchandise shipped to them if the merchandise were out of stock at that store. This number may be considered rather large as only a small percentage of shoppers entering a store actually end up completing a purchase.
About iCongo, Inc.
iCongo, Inc. is a leading developer of e-business systems and software that enable companies to effectively and efficiently transact business over the Internet. iCongo’s solutions include B2C and B2B e-commerce systems, retail cross-channel systems and a comprehensive suite of Internet marketing applications. iCongo’s clients include many world-renowned retailers and brands. Please visit us at www.icongo.com.
About Harris Interactive
Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research, powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms.
