‘Green Quotient’ Impacted Holiday Shopping

Environmental_leader_jpegsOriginally posted Jan. 2, 2008
Environmental Leader

The planet’s wellbeing and global manufacturing issues increasingly
figured into consumers’ spending decisions during the holiday season, according  to the 2007 Annual National Shopping Behavior Survey by audit, tax and  advisory firm KPMG LLC, Marketing Charts reports.

Green_quotient_1_jpeg
Most holiday shoppers surveyed expressed a willingness to pay more
for eco-friendly gifts and said they took note of the country where
items were made, KPMG said.

Moreover, money was tighter this year: Whereas an average of 36% of
shoppers reported spending more each year during similar surveys from
2003 to 2006, just 30% of respondents in 2007 said they spent more than
the preceding holiday season on gifts.

Among the findings of the report:

  • Some 88% of the survey respondents said they were very concerned
    about the environment, and 74% said they buy environmentally friendly
    products.
  • Some 60% said they were willing to pay more for environmentally
    friendly items, and 55% said they make a special effort to patronize
    retailers with a “green” reputation.
  • In addition, 40% of consumers said they checked the country of
    origin on potential gifts, with 31% using such information to decide
    against a purchase.
  • Some 79% of those decisions not to buy an item involved products
    from China, and toys were involved more than half (52%) of the time.

Green_quotient_2_jpeg

Other influences on purchase decisions, according to the report:

  • Well-stocked retailers with a customer-friendly return policy continued to  attract business:
    • 76% of shoppers said their spending decisions were influenced most when a  store had the item they expected.
    • 58% cited a store’s return policy as influential.
  • Some 47% said newspaper ads affected where they shopped.
  • 43% said a coupon figured into the decision where to shop.

Where consumers shop, according to the survey:

  • Some 28% of respondents who shopped in stores said they spent the
    most at mass retailers (Wal-Mart, Target and other similar stores).
  • 14% said they spent more at power retailers (Toys R Us and Best Buy, etc.).
  • 12% said specialty stores (such as Gap and Radio Shack).
  • 10% said midline stores (such as Kohls, JC Penney and Sears).
  • 8% said department stores (such as Macy’s and Dillard’s).

Wallet share* ups and downs, according to KPMG:

  • The internet and power retailers grabbed more of “wallet share” – 4 points  and 7 points, respectively.
  • Specialty stores, catalogs (such as Gap, Disney) and warehouse retailers  (such as Costco, BJ’s) gained 1 point each.
  • Mass merchants dropped 2 points, and department stores and
    off-price (TJX, Old Navy and other similar stores) retailers each lost
    1 point of wallet share.

In addition, retailers’ well-documented rush to jump start the
holiday season by advertising heavily and lowering prices – even before
Thanksgiving – had little influence over when consumers began their
shopping, the survey found.

“The KPMG survey respondents said they shopped basically at the same
time they do every year, and sales or early promotions did little to
change their patterns,” said John Rittenhouse, a KPMG retail partner
and its “national leader” for Operations Risk Management.

* Wallet share denotes whether consumers are spending a larger or
smaller portion of their holiday shopping budgets, where they are
making purchases, and why.

About the study: The survey,` designed and managed by The Gordman  Group, was conducted randomly by telephone with 815 shoppers.

No comments yet... Be the first to leave a reply!

Leave a Reply