Presentation on online shopping

Date: December, 2008 Prepared for: D-Link Magyarorszg Kft. Client Service Team: Imre Kiss, Senior Research Executive Project number: 60104199

Methodology

Methodology
What?
Online shopping questionnaire provided by D-Link

Where?

Among internet users

Who?

Total sample size: N= 500 Representative for internet users amond the 14-69 age-group, by TGI data

How?

CAWI (Computer Aided Web Interview)

When?

December 2008

Definitions of phrases used

Active workers: Owners of enterprise State employees, public servants, civil servants Employees at a private company Inactive: Students Housewives People who do not work temporarily (being on maternity leave, unemployed) Pensioners Other inactives Lower education: Less than elementary school Elementary school Unfinished vocational school Finished vocational school Unfinished technical school Unfinished grammar school Middle education: Finished technical school Finished grammar school Vocational training after grammar school Advanced level course after grammar school Higher education: Unfinished college College degree Unfinished university University degree University degree + academic level

Definitions of phrases used

Central Hungary: Budapest Pest County Eastern Hungary: North Hungary (Borsod-Abaj County, Heves County, Ngrd Count North Lowland (Hajd-Bihar County, Szabolcs-Szatmr County, Szolnok County) South Lowland (Csongrd County, Bks County, Bcs-Kiskun County Western Hungary: West - Transdanubium (Gyr-Sopron County, Vas County, Zala County) North - Transdanubium (Veszprm County, Komrom County, Fejr County) South-Transdanubium (Baranya County, Somogy County, Tolna County)

Active workers: 56% Inactives: 24%

Callouts show significant differences in-between the demographic segments.

Results

Vast majority of the interviewed internet users has purchased something via internet in the last year. There are significantly more internet users who purchased online within the following groups: people live in Central Hungary, especially in Budapest; people with higher education; between 25-34 years; and men. These overrepresented groups are in line with the expectations. (Q1) Purchased online
Base: 500

Total

71%

29%

Central Hungary

76%

24%

157

Higher education

79%

21%

228

25-34 years

83%

17%

134

Budapest

80%

20%

108

Male

76% Yes No

24%

250

Q1. Have you made online shopping during last year? ?

The main reason for shopping online are the lower prices and the fact that one doesnt need to go outside (during the hectic Christmas period it may be even more relevant). These advantages may be useful to be communicated.
(Q2) Reason for purchase online

It is cheaper then In traditional shops I don't have to go outsider the home

Male: 65%

56%

42%

Male: 36%

Online shops are well-equipped

31%

I have too less time for visits In tradittional shops

23%

Active workers: 30% Central-Hungary: 29% 25-34: 26% Budapest: 30%

Other

18%

Base: 355
Q2. Why you do online shopping?

There are two main groups of the barriers that may limit the potential of online shopping. One can not be solved so easily: it is about the lack of real-life interaction between consumer and seller: - cant touch the goods; - cant get advice. The other group of reasons is about being afraid: - loosing money; - not getting the goods in time. It can be solved with fair trade, secure transactions and with honest communication.

(Q10) Reason of non-purchase

I can't touch/watch the product before the purchase I am afraid of online payment/money transfer I am afraid of fraudulent traders I don't know enough about online trading I can't get advice from a trader I am afraid that I won't get purchased product on time Other
Base: 145
Q10. Why you do not buy online?

62%

37%

23%

16%

13%

10%

14%

Two thirds of the online shoppers use price comparison sites, and this ration is even higher among men. It shows that these sites are liked, and combined with the comment of other users, gives a real help before purchasing anything. (Q3) Usage of price comparison

Base:

Total

66%

34%

355

Male

75%

25%

189

Yes

No

Q3. Do you use shopping comparison sites before do the online shopping?

10

Almost everyone checks the comments of other users. It is a kind of word of mouth, which is turned out to be the most reliable source of information many times.
(Q4) Comment of other users
Base:

Total

90%

10%

355

25-34 years

96%

4%

73

35-44 years

96%

4%

44

Yes

No

Too low base!

Q4. Do you take into consideration comments of other users before you buy a product?

11

Probably because of being afraid of paying online, and partly because of the low penetration of credit cards the most wide-spread way of payment is still by cash on delivery. Some use bank transfer, but the usage of cards and the special payment methods (internet cards and Pay-Pal) are marginal. There is still some space for development, especially in case of credit cards. (Q5) Method of payment

by cash on delivery

Women: 87%

81%

by bank transfer

43%

Higher education: 48% 25-34: 47% Men: 51%

by classic credit or debit card

16%

Central Hungary: 22% Budapest: 28%

by special card only for internet transactions through the third-part service (like PayPal)

5%

5%

Base: 355
Q5. How do you pay for online shopping ?

12

Besides price, the most important factors are the reliability of shops and the guarantee terms, which indicates that people still have doubts, and want to be 100% sure that they will receive the chosen item(s).
(Q6) Most important factor, besides price

Active workers: 41% Central Hungary: 42%

shop reliability

37%
Inactive workers: 29% Lower education: 34% 14-24: 27%

guarantee terms

22%

25-34: 20%

payment terms

15%

nothing else, price only price is less important for me

11%

2%

other
Base: 355

14%

Q6. Besides price, what is the second most important factor when you order online?

13

Two third of the shoppers check the warranty terms always. 25-34 year old shoppers and men check it to a greater extent, it indicates that there is space for education among the younger segments and among women (e.g. pr-article in Joy, Cosmopolitan, Maxima may be worthful). (Q7) Warranty
Base:

Total

69%

17%

14%

355

14-24 years

63%

20%

17%

115

25-34 years

78%

14%

8%

111

35-44 years

76%

16%

8%

62

45-54 years

68%

16%

16%

44 Too low base!

55-69 years

39%

30%

30%

23

Male

75%

17%

8%

189

Female

63%

18%

19%

166

Yes, always No, I accept there is only a shop guarantee No, I didn't know that the guarantee is different
Q7. Do you check the guarantee terms before purchasing online?

14

There is only a small minority who has ever faced any problem during the process of online shopping, and it is mostly related to the purchased good (most probably it was damaged, or not the ordered one). Thus fraud seems to happen less frequent as it is perceived. (Q8) Negative experience
Base:

(Q9) Reason of negative experience

Problem with the purchased good

Total

19%

81%

355

78%

Active workers

15%

85%

216

Way of delivery

17%

Inactives

27%

73%

139

Payment

10%

Yes

No

Guarantee issue

6%

Base: 69
Q8. Have you ever had a negative experience, when purchasing online?

15