Retailers Improve Online Presence to Combat Falling Sales on the High Street
Following recent reports that high street retailers are experiencing a sharp fall in sales, a recent survey from PriceRunner (www.pricerunner.co.uk), the price comparison website, shows that online retailers are improving their presence on the web.
A retail study of brand awareness and trust of online retailers has revealed that Argos has the highest brand awareness among UK consumers shopping online but Amazon scores best in the overall ratings. With online sales continuing to grow, it is vital for retailers to understand how their brand is perceived by consumers and which factors are important for consumers when they select an online retailer.
PriceRunner studied a total of 59 retailers selling home electronics and white goods in the UK through an online survey to which 4918 consumers responded to specific questions in relation to brand awareness, overall rating, strengths and weaknesses, retailer preference, recommendation and loyalty. The objective of the study, conducted bi-annually by PriceRunner, is to research consumer attitudes towards different internet retailers.
A summary of the study results is included below.
Brand Awareness
In relation to brand awareness, the study reveals that the top 10 leading online retailers selling home electronics and white goods in the UK are Argos (99%), Amazon (95%), Tesco (89%), Currys (87%), Comet (87%), Dixons (87%), Jessops (87%), PC World (86%), Phones4U (76%) and Carphonewarehouse (73%). Since the last survey conducted in September 2004, Argos has increased its awareness by 10% but across all the retailers surveyed, The Link has increased its awareness the most by 14% since September 2004.
Overall Rating
When asked to rate retailers on a scale of one to five (five being highest and one being lowest), consumers voted Amazon the best among internet retailers (the mean value of the score was 4.12). The remaining top 5 retailers who scored high in relation to overall rating were A J Electronics (4.0), InternetCamerasDirect (3.93) 7dayshop.com (3.75) and BE-Direct (3.70).
Recommendations
Asked which retailer consumers would most recommend to a friend, the response shows that Amazon is the most trusted brand (66%), followed by Argos (44%), Jessops (37%) Tesco (43%) and dabs.com (35%).
Important Factors when Buying Online
Price continues to be the most important factor for consumers when selecting an internet retailer. Secure payment options and reliability are the second and third most important factors, followed by product information, product selection/availability, return policy, ease of using the website, shipping and handling options, delivery time and contact alternatives. Compared to the last study in September 2004, secure payment options and reliability have increased in priority and delivery time has become less important.
About the Study
The Retailer Image study measures various e-retailers including awareness, overall rating, strengths and weaknesses. Retailer preference, recommendation and loyalty were also included. 59 retailers were surveyed. 4918 consumers in the UK responded to specific questions via an online questionnaire on www.pricerunner.co.uk between 10 January and 20 March 2005.
The objective of the study is to research consumer attitudes towards different internet retailers. These consumers are mature in the buying process as they actively seek out product and pricing information before their purchase. The sample consists of UK-based consumers who actively seek information about products at www.pricerunner.co.uk. PriceRunner currently has approximately 2 million visits per month in the UK.
This is the fourth survey on Internet retailers which PriceRunner has conducted on the UK market. The first study was carried out in June 2003, the second study was March 2004 and the third in September 2004. This survey will be carried out bi- annually in order to give companies an opportunity to follow up their brand development.
About PriceRunner
PriceRunner, a division of ValueClick, Inc. (Nasdaq: VCLK), offers product and price comparisons in the categories of personal care, books, computers, films, finance, games and consoles, golf, home appliances, home cinema, household bills, insurance, music, phones, photography, software and sound and vision. Pricerunner.com was the first site in the UK to compare information from both online and high street stores and is the only one that lists non-paying retailers to give users a better overview of the market. By giving the consumer an objective and informative overview, PriceRunner makes it easier for the consumer to make a smarter purchase more quickly.
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