Technology Altering Purchase Behavior

A new study by Yahoo and OMD reveals how profoundly the Internet and other digital technologies have changed the way people shop for products and ultimately make purchases. The study titled, “The Long and Winding Road: The Route to the Cash Register” found that while two-thirds of people make most of their purchases at a retail store, 62 percent have done prior research online before they buy. Most of this online research is to compare prices, review options, or see what others have said about the product or company.

The study also highlighted four distinct paths consumers travel on their way to a purchase:

1)  QUICK: This is the path for most low-involvement, consumer packaged goods with little consideration before buying.
2) WINDING: This path involves comparison-shopping between different channels such as online and offline retailers.
3) LONG: Higher end technology purchases often follow the long path. This path can involve extensive research over an extended period of time.
4) LONG AND WINDING: This path requires a large amount of time to research options across several channels. Automobiles, expensive equipment, and financial services often follow a long and winding path.

According to the study, the Internet is the first place most consumers go to research options. It even beat out recommendations by family and friends as the most valuable purchase decision tool. The Web was also the most trusted source of product information based on the study results. This confirms other sources that reveal a growing trust in Web information at the expensive or more traditional media options.

The research also found that decisions regarding which brand to buy could be affected and changed late into the purchase decision process. The study attributes this fact to the enormous amount of information that is available online, and the ability of that information to sway purchase decisions at all stages of the process.

The study surveyed over 4000 adults aged 18 or older in March of this year.