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Internet's Influence on In-Store Purchasing Behavior Is Rising, According to CMO Council/Yahoo! Survey

21 October 2005

A new study that explores the impact of the
Internet on in-store purchasing reveals a shifting landscape of media
influence on consumers: The Web's power in shaping in-store sales is
growing rapidly.

The CMO Council's Summer RetailFluency Report shows that more than half of
the 322 post-purchase shoppers polled consulted the Internet before
purchasing at an offline location. Half of this group reported spending 1-3
hours conducting their online research.

The exit poll, commissioned by Yahoo! and fielded in partnership with The
ConsumerEdge Research Group, polled retail shoppers exiting BestBuy,
CompUSA and Circuit City stores during Dads and Grads season in 2005.
Shoppers were asked about the products they purchased, how their purchase
was influenced by various information sources, how much time they spent
researching their purchase on the Web, and whether or not their purchase
decision was changed after they entered the store. The full RetailFluency
report can be downloaded at:
http://www.cmocouncil.org/Reports_Password_Protected/BITPIPE/RetailFluency.pdf

The study suggests that Internet research helps solidify brand awareness,
increases product influence, and can drive in-store traffic. As a source of
influence, brand reputation appears prominently in the mix for Internet
researchers, while much less so for those who don't research on Web before
they enter the store. This suggests that Web research could reduce the
chance of users being swayed to a different brand by in-store selling
techniques.

Among the Key Findings:

-- In-store sales associates (49 percent), in-store demonstrations (36
percent), family and friends (33 percent), newspapers (25 percent) and the
Internet (21 percent) were the top five most influential information
sources. Magazines, TV and radio were at the bottom of list, all with less
than 5 percent.

the only traditional media
channel figuring prominently in driving buyer behavior -- exert influence
primarily via coupon offers, retail location listings and editorial
reviews.

-- Of those purchasers who researched first on the Web, the top online
influencers were the product/company Web site (47 percent), search listings
(41 percent) and retail store sites (39 percent).

-- Differences between heavy (one to three hours usage) and light (one
hour or less) Internet users show that heavy Web users utilize more third-
party online resources, such as chat, blogs and user sites. Banner ads also
showed relatively high influence among heavy Web users.

"It's clear from this study that while in-store activities have the most
influence in buying decisions, the Internet has a significant impact on
building brand awareness and pre-purchase intent," said Donovan Neale-May,
executive director of the CMO Council.

"This data clearly highlights the Internet as a key tool for raising brand
awareness and improving product knowledge," said Elizabeth Harz, category
development officer for technology at Yahoo!. "Marketers who understand
this and take advantage of sites like Yahoo! that offer product reviews,
comparisons and third-party validation will be in a position to influence a
valuable set of customers who are ready to buy."

About the CMO Council

The CMO Council is an influential global affinity group dedicated to high-
level knowledge exchange, thought leadership and personal relationship
building among senior marketing and brand decision-makers. More than 1,500
technology companies are represented on the CMO Council, controlling more
than $45 billion in annual marketing expenditures. For more information,
please visit our web site at www.cmocouncil.org.

The CMO Council convenes under the auspices and administration of
GlobalFluency, a Silicon Valley-based marketing and public relations
network comprising 114 offices, 650 professionals and 41 agency partners in
72 countries. More information is available at www.globalfluency.com.

About Yahoo!

Yahoo! Inc. is a leading provider of comprehensive online products and
services to consumers and businesses worldwide. Yahoo! is the No. 1
Internet brand globally and the most trafficked Internet destination
worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network
includes 25 world properties and is available in 13 languages.
www.yahoo.com

About The ConsumerEdge Research Group

The ConsumerEdge is a partnership formed by ChannelForce and NewEdge to
create a resource in the industry with the ability to gain strategic
insight from customers at the point-of-purchase in over 5,000 consumer
electronics retail stores in over 80 markets, and for every consumer
electronics product. For details on each company, visit
www.channelforce.com and www.new-edgeinc.com.

MEDIA CONTACT:
Matt Farrell
CMO Council
212-213-5400 x217
Email Contact
SOURCE: CMO Council