In this briefing we look into which recommendation source - online or offline - is more efficient in driving purchase decisions and how brands can measure both online and offline influence. The briefing answers the following key questions: 1. What is the number one source of recommendation that influences the US consumer's purchase decision? 2. Why do US consumers trust people in real life over online connections 3. What is the most trusted source of recommendation among millennial US consumers? 4. What recommendation source do Hispanic US consumers trust over everything else? 5. What is the most recommended category among global consumers? 6. What are the most recommended brands among US consumers? 7. Why is influence not a driving factor in the grocery category? 8. What is digital influence and how does it vary across categories? 9. Why is mobile the future of digital influence? 10. How can brands measure offline and online influence? Charts included: 1. US Consumers' Biggest Purchase Influencers 2. Value of Excellent Recommendation, by Method 3. Millennials Trust in Various Forms of Media 4. Most Trusted Source of Shopping Information among Hispanics 5. Brand Advocacy Rankings 6. Influencers of CPG Brand Decisions by Age Group 7. Digital's Influence on In-store Sales, by Store Type 8. Mobile Shopper's Purchase Decision Influencers

1. Online vs Offline Word of Mouth
What drives consumer purchase decisions?
An analysis of offline and online influence on US
consumer’s purchase decision and how to measure it

2. • 44% of US consumers said that recommendation from friends, family members and known
acquaintances highly influenced their buying decisions with 42% saying it had a medium impact
on their buying decision.
!
• Only 22% of US consumers said that online reviews and recommendations highly influenced their
buying decision with 46% saying it had a medium impact on their purchase decision.
!
• The US consumer's average lift in purchase incidence from a strong positive in-person
recommendation was found to be 10.6%. In other words, an excellent in-person recommendation
increases the consumer's perceived value of products by an average of 10.6% over a neutral in-
person recommendation.
!
• The lift in purchase incidence from in-person recommendation is well over the lift from online
consumer ratings (6.3%), online consumer reviews (7.3%) and online shares via email or social
media (9.5%).
!
• 74% of US millennials trust in face-to-face conversations about products and brands with their
friends and family compared to 56% who trust in conversation with friends/family via email, text &
g-chat.
!
• 83.2% of US Hispanic consumers trust real life friends & family for information on shopping
needs. In comparison, only 55.7% of US Hispanic consumers trust their Facebook friends for
information on shopping needs and 43.1% trust online ratings.
Key Findings

3. • Globally, consumers recommend non-luxury cars above all other categories. Non-luxury cars
scored 50% points in the Brand Advocacy Index (BAI). In the US market, the three most
recommended car brands were Kia, Honda and Hyundai (63% each).
!
• Smartphones come in second behind cars with a score of 46% points in the Brand Advocacy
Index. In the US market, Apple’s iPhone is the most recommended smartphone brand with 54%
points. Samsung, coming in at second place, scores 43% points - just below the industry average
score.
!
• When it comes to purchasing basic everyday goods such as groceries and pet food, US
consumers do not care much for either online of offline word of mouth, but look for brands that
deliver value in terms of savings. 48% of US consumers say coupons influence them, and 44% say
loyalty card discounts influence them when making CPG brand decisions.
!
• Digital technology influences 36% of in-store sales on average. Electronics and Appliances is the
most influenced category where digital impacts 58% of all final purchases.
!
• The biggest driver of digital influence is mobile which influences 19% of in-store sales on
average. Mobile’s influence on in-store purchase decisions increased by almost 4 times within one
year – from 5% in 2012 to 19% in 2013.
!
• 50% of mobile shoppers said search results via smartphones influenced their purchases, followed
by 42% who said they were influenced by ratings & reviews.
Key Findings

4. Click to read the full briefing
Online vs Offline Word of Mouth
What drives consumer purchase decisions?

5. 75%
70%
66%
58%
57%
57%
52%
49%
46%
45%
43%
43%
40%
29%
32%
14%
19%
22%
27%
36%
33%
37%
38%
41%
42%
43%
47%
44%
46%
51%
46%
42%
6%
8%
7%
6%
10%
6%
10%
10%
12%
12%
10%
13%
14%
20%
22%
44%
High Medium Low
US Consumers’ Biggest Purchase Influencers
% US consumers aged 14 and above, asked to what degree the following influence their buying decisions
Source: Deloitte, Digital Democracy Survey, April 2014
Recommendations from a friend/family/known
acquaintance
Online review and recommendation from
someone within your social media circle
Television ads
Online review by someone you do not know in
real life
A reseller or channel partner website
Magazine ads
Products or services mentioned/featured in a TV
show or movie
Manufacturer or vendor website
Newspaper ads
An email from a company/brand
Radio ads
In-theater advertising (pre-movie)
Billboards and posters
Ads delivered through social media platforms
Video game advertising
SMS/text message ad

6. 10.6%
10.2%
9.5%
7.3%
6.3%
9.3%
10.0%
9.2%
8.1%
5.7%
9.3%
10.5%
8.1%
7.6%
7.1%
13.2%
11.2%
6.2%6.0%
Supermarket Mini-Tablets Automotive Overall
Source: ShareThis and Paley center for Media, April 2014
Consumer Ratings Consumer Reviews Online Shares Professional Reviews In-person
recommendations
Value of Excellent Recommendations, by Method
% increased perceived value of product from an excellent recommendation vs a neutral recommendation

7. Millennials Trust in Various Forms of Media
% online millennials
Source: Crowdtap & Ipsos Media CT, Social Influence: Marketing’s New Frontier, Jan 2014
19%
28%
34%
37%
40%
44%
48%
49%
50%
56%
64%
68%
74%Product/brand conversations with friends/family
Peer review (e.g. e-pinions)
Professional/Industry reviews (CNET, etc.)
E-mail, text, gChat with friends/family
Social networking & content (FB, Instagram, LinkedIn)
Product info/buy products from a co. website
Blogs, bulletin boards, forums etc
Print magazines or newspapers
Online magazine or newspapers
Radio
On TV
At the movies
Banner ads

8. Most Trusted Source of Shopping Information among Hispanics
% US Hispanic Consumers
Source: BIA/Kelsey, Consumer Commerce Monitor: Hispanic Consumers Buy into Digital for Local Shopping, Feb 25, 2014
26.4%
28.2%
38.3%
38.9%
41.3%
43.1%
55.7%
83.2%Friend/family
Facebook friend
Rating
Social friend
Third party
Google+
Business blog
Stranger’s comments

9. 10%
20%
24%
46%
50%
Source: Boston Consulting Group, The Most Recommended Brands 2013, December 2013
Automobiles
(non-luxury)
Smartphones Grocery Mobile telecom Retail banking
Brand Advocacy Rankings
Brand Advocacy Index based on survey of 32K+ consumers across US, UK, France, Germany and Spain
63%
63%
63%Kia
Honda
Hyundai 38%
43%
54%iPhone
Samsung
Motorola 42%
48%
49%Trader
Joe’s
Wegman’s
Publix 27%
35%
43%Virgin
TracFone
Verizon 23%
24%
44%USAA
Ally
American
Express

10. Influencers of CPG Brand Decisions by Age Group
% of US consumers
Source: IRI, May 2014
8%
28%
42%
48%
44%
15%
37%
46%
53%
54%
Millennials (18-34) Total Population
Shopper loyalty card
discounts
Coupons from home
In-store circular
Sings or displays
in the store
Online advertising

11. Digital’s Influence on In-Store Sales, by Store Type
% of digitally influenced conversions
Source: Deloitte, April 2014
2012 Mobile !
Influence Factor
2013 Mobile !
Influence Factor
2013 Digital !
Influence Factor
Electronics / Appliances 8% 31% 58%
Furniture / Home Furnishings 4% 26% 56%
Sporting Goods / Toys / Games / Hobby 5% 27% 50%
Clothing / Footwear / Accessories 6% 24% 47%
Home Improvement / Gardening Supply 5% 22% 42%
Miscellaneous 3% 19% 38%
health / Personal Care / Drug 4% 19% 35%
Convenience Store or Gasoline Station 3% 18% 34%
Grocery 6% 16% 29%
General Merchandise / Department / Warehouse
Club Store 7% 14% 23%
Average 5% 19% 36%

12. Mobile Shopper’s Purchase Decision Influencers
% of smartphone owners
Source: Local Corporation, Unlocking today’s mobile shopper: What drives them to buy, March 2014
9%
19%
30%
31%
42%
50%Search results listings
Ratings and reviews
Mobile search results with local availability
Emails from retailers where you have opted in
Group buying/coupon codes
Mobile apps

13. Click to read the full briefing
Online vs Offline Word of Mouth
What drives consumer purchase decisions?

14. contact@data-charts.com
Contact if you have any questions
Freddie Benjamin