New research highlights key role of mobile phones in how younger consumers browse and buy
New research highlights key role of mobile phones in how younger consumers browse and buy
New research from MasterCard announced at the World Retail Congress event in Berlin, shows how mobile phones and social media are playing an increasingly important role in shaping how younger consumers shop and select retail brands.
The study, carried out by InSites Consulting for MasterCard, looked at the shopping habits of around 1,200 young people aged 18-30 in the UK and Germany during August 2011. The research examined their use of technology and social media when shopping in two categories: grocery and fashion.
It found that young people in the UK were very active in using their mobile phones to access the internet, with 62% regularly doing so. Figures were lower in Germany, with just 34% regularly using mobile to go online. Similarly, purchasing items over the internet is far more common in the UK: for grocery retailers, 30% regularly shop online in this sector versus just 15% in Germany. However, online purchases in fashion were similar for both countries, with 20% in Germany and 28% in the UK saying that they regularly buy from fashion retailers online.
UK youth more socially driven
During the grocery shopping experience in Germany, the most common reasons for using a mobile phone was to compare prices, make a shopping list and look for discounts and deals. While, in the UK, the most common reasons for using a mobile while shopping for groceries was to compare prices, search for product information and to check in via social media such as Facebook or Foursquare.
For fashion shopping, the three most common reasons in Germany to use a mobile were making a shopping list, finding a store location and comparing prices. While in the UK it was to find a store, compare prices and make a shopping list, in order of preference.
Elizabeth Wolgemuth, global merchant marketing group head at MasterCard Worldwide, said: “This demographic group has grown up with mobile phones and is inseparable from these devices. The mobile phone is their key tool to interact with the world, whether that is keeping in touch with friends, organising their lives or shopping and finding out information.
“This research will help retailers understand how this group uses mobile phones – not only to shop, but to build a relationship with a brand, build loyalty and source information from retailers, as well as from their wider online social network and independent influencers,” she added.
Location savvy and price conscious
The research also asked what information they would like to receive on their mobile when shopping. German grocery consumers cited the ability to get product information by scanning barcodes in store, discounts via location based social media such as Facebook and Foursquare and special deals for smartphone users. UK grocery shoppers would most like to see more discounts via location based social media, special deals for smartphone users and instore information via barcodes.
Confidence levels in buying online were higher in the UK, with 38% feeling it was safe to make purchases with a smartphone, versus 17% feeling comfortable with this method of purchase in Germany.
The survey also revealed that for young German consumers, email was their favoured way to be contacted by retailers, whereas in the UK consumers preferred to interact with a retailer via the website.
Mobile phone-centric demographic
For both nationalities, text messages from retailers were the least popular way of receiving information. These findings applied equally to both grocery and fashion retailers.
Joeri Van den Bergh, managing partner of InSites Consulting and the research report’s author, added: “Retailers need to understand the technology they can develop with companies such as MasterCard, which will allow them to connect with this group and the mobile phone-centric world in which they live.
“By understanding the preferences for interaction and the mobile usage habits of this group, retailers can engage more fully. They can build sales, loyalty and most importantly, a strong affection for their brands through this channel, if used properly,” he added.
