Analysis of How Online Retailing(Cyber Monday) has changed Holiday Shopping (Black Friday)

Presenters:

Young Park(parky17@mail.montclair.edu)

Grecy Jean(jeang2@mail.Montclair.edu)

Angela Onwuka(onwukkaa1@mail.Montclair.edu)

MKTG442_01FA13

Dr. Patrali Chatterjeechatterjeep@mail.montclair.edu

School of BusinessDepartment of Marketing

Rationale for Research• Black Friday the day after Thanksgiving, noted as the first day of

traditional Christmas shopping, during which crowds of consumers are drawn to special offers by retailers has experienced decrease in sales. The most recent Black Friday experienced a 13.2% sales decrease compared with last year sales despite many retail stores opening on Thanksgiving day. Web Retailing is experiencing steady growth especially among the millennial generation. This research report will analyze whether Cyber Monday the Monday following Thanksgiving, promoted by online retailers as a day for exceptional electronic bargains is deviating sales from Black Friday and Why.

• The research is pertinent to retail firms because

It reveals new market trends

It reveals consumer buying patterns during the holiday season

The information can be leveraged to implement a holiday marketing strategy

• Challenge: attain relevant data on consumers’ holiday shopping behavior and preferences that will help in finding any relationship between Black Friday and Cyber Monday

Hypothesis

H1: Inverse relationship between Black Friday and Cyber Monday

H2: Cyber Monday preferred Over Black Friday H3: respondents prefer online shopping over

the brick and mortar shopping H4: Young respondents prefer online shopping

over the brick and mortar Black Friday sales H5:Consumers do most of their shopping on

Cyber Monday

Cyber Monday Sales

With holiday spending on clothes and toys off to a chilly start, worried retailers are plying shoppers with an early gift: Black Friday-style bargains extended into the first weeks of December.

Black Friday Sales

While more people attended black Friday this year, Black Friday sales have dropped for the first time in years.

Cyber Monday sales continue to rise over the years.

Data Analysis

Demographics

Gender Age

Secondary Data

According to Marketwatch.com, shoppers increased their 2013 spending but earlier visits to retail outlets cut into Black Friday numbers. Shoppertrack, the global leader in people counter technology and foot traffic analysis, showed Black Friday sales decreased 13.2% compared with 2012.

Data Analysis The data rejects the research groups

Hypothesis that consumers do most of their shopping on Cyber MondayWhen Shop Frequencies

1. I shop throughout the year2. Holiday clearance the year

before3. 6 months before holiday4. On Labor day5. On Black Friday6. On Cyber Monday7. Beginning of December8. The week of Xmas9. On Xmas Eve

When do you do most of your shopping?

Secondary Data

Bloomberg news reported Cyber Monday sales surged. Cyber Monday reached a single-day record as consumers spent less at brick mortar Black Friday sales. Cyber Monday experienced a 95 percent gain from a year earlier with Amazon.com Inc. (AMZN) and EBay Inc. (EBAY) experiencing the highest in gross sales.

Despite the recent growth in Cyber Monday sales respondents preferred shopping on Black Friday and 32% of the respondents did not shop on Black Friday/Cyber Monday

When asked which website do you shop from the most a number of respondents filled in Amazon

According to Bloomberg News Amazon’s Cyber Monday sales jumped 46 percent from last year

Secondary Data The secondary data supports our claim

respondents prefer online shopping over the brick and mortar

shopping

According to the Wall Street Journal Seventy percent of more than 3,000 online shoppers surveyed in February say they prefer to shop their favorite retailer online, according to a study commissioned by United Parcel Service Inc.

Online shopping continues to outpace growth in traditional retail, the survey confirms. Last year, e-commerce grew about 15% to $186 billion, seven times the growth rate of total U.S. retail spending, according to the study

H: Respondents prefer online shopping over the brick and mortar Black Friday sales

Respondents prefer in store location shopping over Online shopping

Secondary Data The article is contradictory to the research group’s hypothesis young respondents prefer online shopping over the brick and mortar Black Friday sales

In a Forbes article entitled Millennial Shoppers set to dominate Black Friday crowds focused on a Accenture survey which projected the Millennial generation are much more likely to hit the mall on November 29th. The survey projected 80 percent of 18-24 year olds, 70% 25-34 year olds plan to shop on Black Friday

Data Analysis The research data supports The secondary data young consumers prefer in store location shopping

  FrequencyValid Online 13

Store location 20

Total 33

There is no level of significance between the preferred

methods of shopping and Cyber Monday/Black Friday preference

Although 57% of consumers want to avoid excessive crowds of shoppers, 63% of consumers still shop on Black Friday

It is significantly related≤ .05

53% of respondents believe their Black Friday shopping has remained stagnant37% of respondents believe their Black Friday shopping increased10% of respondents believe their shopping has decreased

Data analysis What products people would buy on Black Friday based on gender

Secondary Data

According to a WashingtonPost article entitled Cyber Monday Won’t Kill Black Friday For A Very Long Time,

Online sales are still a tiny percentage of overall volume -- only 6 percent, according to the Census Bureau. That means that despite prognostications of Black Friday's death, it'll be a long time before they actually overtake brick and mortar sales. At the rate they're growing now, about 4 percent market share over a decade, it could even be a century:

 

Limitations

Age range(younger generation) Number of respondents because of modifying

questions Too many skip logics in survey Limited demographics questions Cyber Monday is relatively new

Conclusions and Recommendations

Younger generation would like to shop at store location

Online sales are increasing

People go shopping throughout the year

Retail stores-Target younger generation on Black Friday

Expand categories of items on online on Cyber Monday

References http://www.businessweek.com/news/2013-12-01/black-friday-e-com

merce-spending-reached-record-1-dot-2-billion

http://www.businessweek.com/ap/2013-12-01/record-crowds-over-weekend-but-spending-declined

http://www.businessweek.com/ap/2013-11-29/black-friday-turns-into-marathon-of-night-shopping

http://www.businessweek.com/articles/2013-12-02/the-black-friday-hoax-part-2

http://www.businessweek.com/ap/2013-12-02/americans-click-for-deals-on-cyber-monday

http://www.bloomberg.com/news/2013-12-02/cyber-monday-sales-increase-19-percent-aided-by-mobile-ibm-says.html

http://www.forbes.com/sites/jmaureenhenderson/2013/11/27/millennial-shoppers-set-to-dominate-black-friday-crowds/

http://www.marketwatch.com/story/holiday-shopping-up-but-black-friday-down-report-2013-11-30

References http://www.reuters.com/article/2013/12/03/us-usa-retail-shoppertrak-

idUSBRE9B000020131203

http://www.usatoday.com/story/tech/2013/12/03/cyber-monday-sales-record/3855391/

http://www.usnews.com/news/articles/2013/11/29/cyber-monday-obsolete-as-mobile-use-grows

http://www.usnews.com/news/articles/2013/12/02/black-friday-weekend-sales-slide-on-cautious-consumers

http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/29/cyber-monday-sales-have-more-than-tripled-in-less-than-a-decade/

http://www.reuters.com/article/2013/12/02/us-usa-retail-cybermonday-idUSBRE9B10OV20131202

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/03/cyber-monday-wont-kill-black-friday-for-a-long-time/

http://www.latimes.com/business/la-fi-retail-sales-november-20131213,0,2861795.story#ixzz2nbkQHuXg