data snapshot: what influences consumer purchases

7/27/2019 Data Snapshot: What Influences Consumer Purchases

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Temkin Group Data Snapshot

What Influences Consumer Purchases?Study of 10,000 U.S. consumers shows that social media has

gained ground since last year, but is still not a top influencer

Temkin GroupOctober 2012

By Bruce Temkin

Customer Experience Transformist

& Managing Partner


2/18

Copyright 2012 Temkin Group. All rights reserved.


Description

We surveyed 10,000 U.S. consumers to find out what information sources they use to purchase autos, cell

phones, computers, credit cards, health plans, insurance policies, and televisions. The analysis looks at

sources such as Facebook and Twitter, discussions with friends and employees, discussions with company

employees, and information on various websites. Our analysis examines differences across age groups and

analyzes changes over the last year.

What Influences Consumer Purchases?Study of 10,000 U.S. consumers shows that social media has gained

ground since last year, but is still not a top influencer

How to use this report:

Understand which information sources are

influencing your customers and how that is

changing

Learn how social media is affecting purchasing

decisions

Adjust your strategy based on how consumers are

making their purchase decisions

Data Charts:

1. Social Influences on Purchases

2. Social Influences on Purchases, Changes since 2011

3. Information Influences on Computer Purchases

4. Computer Purchases, Changes from 2011 to 2012

5. Information Influences on Cell Phone Purchases

6. Cell Phone Purchases, Changes from 2011 to 2012

7. Information Influences on Credit Card Decisions

8. Credit Card Decisions, Changes from 2011 to 20129. Information Influences on Insurance Purchases

10. Insurance Purchases, Changes from 2011 to 2012

11. Information Influences on Television Purchases

12. Television Purchases, Changes from 2011 to 2012

13. Information Influences on Health Plan Selections

14. Health Plan Selections, Changes from 2011 to 2012

15. Information Influences on Automobile Purchases

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1) Social Influences on Purchases

In January 2012, we surveyed 10,000 U.S. consumers about

the information sources they used to purchase autos, cell

phones, computers, televisions, insurance policies, health

plans, and credit cards. When we examined the socialinformation sources, we found that:

Friends and online reviews are the most influential.

Across all purchases we examined, conversations with

friends and family as well as online ratings and reviews

were much more important than Facebook and Twitter.

Auto buyers rely the most on social advice. When it

comes to their car purchases, consumers are the most likely

to discuss those decisions with friends and family and readreviews and ratings sites.

Facebook and twitter influence cell phones, but not

health plans. Forty-one percent of respondents reported

that social media comments from Facebook and Twitter

were helpful or very helpful during their cell phone buying

process. At the other end of the spectrum, only 25% of

consumers use these sites to choose their health plans.


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2) Social Influences on Purchases, Changes

since 2011

We compared social media influence in this years study with a

similar analysis we conducted last year and found that:

Facebook and Twit ter have become more influential.

Across all purchases, consumers have increased their

reliance on on Facebook and Twitter more than with any

other information source. The largest jump is with cell

phones and insurance policies.

Health plan buying is becoming more social. All types of

social influence gained considerably over 2011 in the health

plans category. This purchase decision saw the largest gain

in the use of discussions with friends and family the use ofrating and review sites.


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3) Information Influences on Computer

Purchases

We examined the information sources that consumers use to

purchase computers and found that:

Consumers rely on many sources. Except for Facebook

and Twitter, all the information sources we asked about

were described as helpful or very helpful by at least 50% of

our respondents.

Older buyers gravitate toward company-provided

information. Those aged 35 and older are more likely to

look at the websites of the computer manufacturer and

retailer to inform themselves during the computer-buying

process.

Younger buyers rely on discussions and ratings. The

top two sources used by consumers under 35 are

discussions with friends and family and information on

ratings and review websites.

Retail store employees beat out Facebook friends.

Across all age groups, consumers rely more on discussions

with store employees than on information from Facebook or

Twitter users.


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4) Information Influences on Computer

Purchases, Changes from 2011 to 2012

We compared the information sources that consumers used to

purchase computers in 2012 with those that they used in 2011

and found that:

Consumers use more information. No information source

lost influence from 2011 to 2012. One source, however, the

information on computer manufacturers websites, stayed at

57%.

Social media gained the most. While still the least

influential source we studied, social media sites like

Facebook and Twitter gained seven percentage points over

last year. Thats a gain of more than one-fifth of the originaldegree of influence and is most pronounced with

consumers between 25 and 34 years old.

Some sources lost influence among seniors. Those

aged 55 and up this year reported less use of information

on computer manufacturer websites, discussions with

friends and family, and comments on social media sites

when it comes to buying a computer.


7/18Copyright 2012 Temkin Group. All rights reserved.


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5) Information Influences on Cell Phone

Purchases


purchase cell phones and found that:

Retail stores employees have a lot of influence. Fifty-

nine percent of those surveyed said they find discussions

with employees at wireless retail stores to be helpful or very

helpful when making decisions about a cell phone

purchase. This preference holds strong among almost all

age groups.

Online reviews are most influential on the young. Sixty-

three percent of those customers aged 18 to 24 report

reading reviews and ratings online when looking for a newcell phone. Online reviews are not among the top three

sources for the other age groups.

Social media like Facebook has less influence. While

about more than half of consumers younger than 35 were

influenced by comments on social media sites when looking

for a new cell phone, the influence of those social media

sites drop off at older groups.




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6) Information Influences on Cell Phone



purchase cell phones in 2012 with those that they used in 2011

and found that:

Al l sources are increasing. No source of information

declined in popularity from 2011 to 2012. Comments seen

on social media sites gained the highest percentage12

percentage points out of an original measure of 29%.

Older users are putting less stock in company sites.

Though respondents aged 44 and younger look at wireless

company websites more than last years respondents, those

aged 45 and up report that company sites have lessinfluence on their purchasing decisions.

Discussions with employees remain most influential.

Last year as well as this year, interactions with employees

are at the top of the list. This is becoming even more

important for consumers younger than 35.




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7) Information Influences on Credit Card

Decisions


select credit cards and found that:

The credit card companys s ite is most popu lar. On

average, respondents use information on the credit card

website more than they use any other source. The youngest

consumers, however, are an exception to this rule.

Younger consumers prefer a more personal

connection. While most people prefer looking at the credit

card companys site, the youngest consumers in our study

prefer talking to friends and family as well as employees at

the credit card company when making a purchase decision.




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8) Information Influences on Credit Card

Decisions, Changes from 2011 to 2012


select credit cards in 2012 with those that they used in 2011

and found that:

Each source made small gains. No source stagnated or

declined from 2011 to 2012 and each source of information

gained users over the past year.

Social media gained the most, proportionally. The

percentage of respondents who report being influenced by

sites like Facebook and Twitter when purchasing a new

credit card increased from 25%, in 2011, to 34% this year.

Thats an increase of more than one-third.

Company websites are gaining and losing ground.

Consumers between 25 and 44 are using credit card

websites more frequently, but younger consumers are

moving to reviews and ratings along with Facebook and

Twitter.




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9) Information Influences on Insurance

Purchases


purchase insurance policies and found that:

Agents are the most important in formation source.

Almost two-thirds of those surveyed said that discussing

options with insurance agents is helpful. Agents are

particularly influential for consumers who are 25 and older.

Insurance company employees are also important. Over

half of consumers found discussions with insurance

company employees to be helpful. The youngest

consumers find this to be the most most useful information

source.

Social media attracts only one-third. Just one-third of

respondents say they find social media sites like Facebook

to be helpful or very helpful when in the market for a new

insurance plan. It is the least-used information source

across all age groups.




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10) Information Influences on Insurance



purchase insurance policies in 2012 with those that they used

in 2011 and found that:

Social media make a huge jump. Those who report

finding social media sites like Facebook to be helpful or

very helpful when choosing an insurance plan increased by

more than half from 2011 to 2012.

Forty year olds are craving more information. For all

information sources, consumers between 35 and 44 have

seen the largest increase in usage. The largest gains are in

discussions with employees of the insurance company andthe use of Facebook and Twitter.




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11) Information Influences on Television

Purchases


purchase televisions and found that:

Reviews and ratings are most popular. Fifty-six percent

of respondents said that reviews and ratings on sites other

than the retailers or the manufacturers are helpful. This is

the most useful information source for consumers who are

younger than 45.

Facebook and Twitter attract fewer purchasers. While at

least half of all respondents report using at least one of the

other sources of information, only 35% said that reading

comments on social media sites like Facebook helps themmake decisions about television purchases.

Older consumers prefer official content. In contrast to

younger consumers, those aged 55 and older are most

likely to find information on the manufacturers site as well

as discussions with retail store employees to be helpful or

very helpful when buying a new television.




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12) Information Influences on Television



purchase televisions in 2012 with those that they used in 2011

and found that:

Each source gained year over year. Each source of

information made a modest gain from 2011 to 2012. Social

media sites made the largest jump, from 25% of

respondents in 2011 to 35% in 2012.

Most sources lost audience among seniors. The only

serious losses from 2011 to 2012 were among consumers

aged 55 and up. Those consumers show much less interest

in online reviews, social media, and in-person discussionswith retail store employees compared to last years

respondents of the same age.




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13) Information Influences on Health Plan

Selections


select health plans and found that:

No source attracts a majority. Though some sources of

information are more popular than others, none of the

information sources is used by even half of the

respondents.

Health plans directly inf luence the decisions.Across all

age groups, the most used source of information is either

discussions with health plan employees or information on

the health plan websites.

Younger consumers turn to fri ends and family. For

consumers under the age of 35, discussions with friends

and family is one of their top two information sources.

Social media is not a major factor. Just 25% of those

surveyed rely on social media sites such as Facebook and

Twitter. Even younger consumers arent focusing on these

channels.




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14) Information Influences on Health Plan

Selections, Changes from 2011 to 2012


select health plans in 2012 with those that they used in 2011

and found that:

Health plan research is on the rise. Though no source

attained a majority in 2012, all sources increased

significantly. Social media increased by two-thirds, and

online reviews increased by one-third.

Discussions with family and friends lost prominence. In

2011, discussions with family and friends were almost as

popular as the two top sources. In 2012, though it did gain

users, it fell behind the others in total popularity.




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15) Information Influences on Automobile

Purchases


purchase automobiles. This is the first year that we examined

automobile purchases so we do not have comparison data withlast year. Heres what we found:

Dealership employees are c ritical. More than two-thirds of

consumers rely on their discussions with employees at the

dealership. While this source is one of the top two across

age groups, its particularly important for consumers who

are 45 and older.

Friends and family are also very inf luential. Six out of ten

consumers rely on discussions with friends and family, andthat is the most important influencer for consumers under

the age of 45.

Facebook and Twitter are not just for the youngsters.

The largest users of Facebook and Twitter in their car

buying process are consumers between the ages of 25 and

44, who use it even more than the youngest group.


18/18Copyright 2012 Temkin Group All rights reserved


About Temkin Group

Temkin Group is a research and consulting firm that helps companies increase customer loyalty by improving

their customer experience. We combine thought leadership with a deep understanding of organizational

dynamics to accelerate the path towards customer-centricity and avoid many of the pitfalls along the way.

Building the capabilities to consistently delight customers doesnt happen overnight and it doesnt come fromdiscrete projects or one-off improvements. Building and sustaining great customer experience requires a

multi-year journey. We help clients build four customer experience core competencies.

We work collaboratively with our clients to identify programs that meet their needs. Our services include:

Interactive workshops to instill a common mindset, vocabulary, and approach across an

organization.

Strategic reviews of customer experience plans and objectives to identify opportunities for

accelerating efforts and avoiding missteps.

Assessments of customer experience competencies to identify and close critical gaps.

Senior executive sessions to ensure appropriate levels of alignment and commitment.

Executive coaching to help executives leading the journey.

Speeches and webinars to bring customer experience ideas to life and to energize groups around

the concepts.

Temkin Ratings to see how consumers feel about large companies.

When experience

matters

contact us

[email protected]

www.temkingroup.com

(617) 916-2075

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data snapshot: what influences consumer purchases

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