More than half of consumers utilized mobile phones for in-store holiday shopping activities. The usage and impact of mobile shopping technologies exploded in 2009 as shoppers turned to their mobile phones for activities spanning multi-channel comparison shopping, peer feedback, product info and couponing.
2. O V E R V IE W
An international research study sponsored by Motorola measured retail shoppers’ satisfaction
and behavior in 11 countries during the 2009 holiday shopping season. The Retail Shopper
Study also examined current and emerging technologies in the retail industry and their impact
on shopper satisfaction and spending behavior. This study provides some key insights into
customer dissatisfaction, abandonment behaviors, and attitudes related to the use of
technology in the shopping experience. A number of regional and retail segment trends were
discovered.
The study reflected the tough economic conditions in 2009 with 7 in 10 surveyed shoppers
reported planning to spend either the same or less than in the previous year. Major sources of
dissatisfaction uncovered were: lack of availability of coupons and in-store help and slow
checkouts. Surveyed shoppers sought more coupons and discounts in 2009 and a large
number were willing to abandon purchases if coupons and discounts were unavailable. The
impact of purchase abandonment was most notable in North America, where the percentage
of respondents who were dissatisfied and decided not to buy an item doubled from 2008
figures to just over 40%.
The use of mobile technologies in the shopping experience seemed to be increasingly
relevant. The majority of respondents reported a better experience when store associates
were equipped with mobile devices. Nearly two-thirds of Gen Y shoppers reported utilizing
their mobile phones to assist their shopping while in the store. This percentage decreased
slightly with each age bracket. All age segments cited interest in next-generation retail
technologies, demonstrating the growing consumer demand for real-time information as a
means of making better informed shopping decisions.
B AC K G R OUND : R E T AIL S HOP P E R S T UDY
This year’s annual study covered a larger geographic area than the previous year’s study and
explored attitudes and behaviors related to shopping technologies.
More than 4,530 shoppers throughout the US, Canada, UK, Germany, France, Italy, Spain,
Mexico, Brazil, India and China completed the survey from November 25 to December 20,
2009. Thus study was conducted through Motorola research partners e-Rewards (the largest
invitation-only online research panel) and global market information and insight group TNS
(which sourced consumers from Ciao-Greenfield online panels). All respondents were
between the ages of 18 and 65 and were categorized into three generational groups. Women
comprised 53% of the sample and men, 47%. Respondents were not aware of Motorola’s
sponsorship of this research.
Retail Shopper Study 1
3. Exhibit 1. Key Shopper Demographics
The survey was designed to probe shopper behavior and measure shopper satisfaction
across various retail segments. Key metrics used to gauge satisfaction included appearance
of displays, availability of coupons and discounts, ease of finding correct prices, merchandise
availability, level of store associate assistance and duration of checkout. The study also
examined attitudes related to shopping technologies including price checkers/information
kiosk, handheld mobile computers, smart carts, interactive dress assistance, mobile loyalty
programs, mobile payment and mobile location-based comparison shopping.
Retail Shopper Study 2
4. S P E NDING A T T IT UDE S
Over 70% of the international shoppers surveyed declared a flat or declining 2009 holiday
budget. Nearly 36% planned to spend approximately the same amount as they did during last
year’s holiday shopping season; 34% planned to spend less in 2009 than in 2008.
Alternatively, 30% planned to spend more than last year.
Q: “How does your spending plan this holiday season compare with your spending during the holiday
season last year?”
Exhibit 2. 2009 YoY Retail Holiday Season Spend Plans
Although, it appears that spending attitudes have stabilized as compared to 2008 in the
United States, Canada and the United Kingdom. The study showed less of a downturn in
spending from 2008 to 2009 than there had been between 2007 and 2008. There was an
11.2% drop in the number of those planning to spend less than the previous year, as
compared to the 2008 survey, while 9.4% more planned to spend about the same as the
previous year.
Q: “How does your spending plan this holiday season compare with your spending during the
holiday season last year?”
Exhibit 3. Holiday Shopping Season Spend – North America & United Kingdom
Retail Shopper Study 3
5. With over 80% of those surveyed planning to spend 38.7% more than in 2008, the most
positive outlook was clearly in the Asia Pacific region. Latin American shoppers also expressed
a more liberal budget than their North American and European counterparts, with nearly 47%
planning to spend more. Latin American and Asia Pacific respondents were, on average,
younger than North American and European respondents.
Q: “How does your spending plan this holiday season compare with your spending during the holiday
season last year?”
Exhibit 4. 2009 Holiday Shopping Season Spend by Region
North American shoppers held back more than any other region, with 43.4% planning to spend
less than in the prior year; though 46.3% planned to spend about the same. The number of
shoppers planning to decrease spending was still fairly significant in Latin America (32.9%)
and Europe (28.7%). Conversely, only 7.0% of the Asia Pacific respondents figured to spend
less in 2009 than in 2008.
Q: “How does your spending plan this holiday season compare with your spending during the holiday
season last year?”
Exhibit 5. 2009 Holiday Shopping Season Spend by Region
Retail Shopper Study 4
6. S HOP P E R S AT IS F AC T ION
Based on combined ratings of “coupons/discount availability,” “in-store help,” “time spent
waiting,” “availability of in-stock items,” “ease of finding correct prices,” and “appearance of
the displays,” the most satisfied shoppers were those from North America and the Asia Pacific
region — both with 67% measuring “somewhat satisfied” to “very satisfied” with their in-store
shopping experiences. Europeans and Latin Americans reported the lowest levels of
satisfaction, measuring 59% and 60% respectively. In fact, more than twice the percentage of
Europeans measured “very dissatisfied” (7% as compared to 3% and 2%).
Q: “Please rate your overall satisfaction with each of the following aspects of your shopping experience
over the past four weeks.”
Very dissatisfied Somewhat dissatisfied
In between Does not apply / Does not matter to me
Somewhat satisfied Very satisfied
GLOBAL 3% 10% 21% 2.4% 37% 27%
North America 3% 9% 19% 2.6% 36% 31%
Latin America 3% 10% 24% 2.7% 40% 20%
Europe 7% 12% 21% 1.6% 33% 26%
APAC 2% 9% 20% 0.9% 41% 26%
Exhibit 6. Shopper Satisfaction Overall – by Region
Shoppers expressed the lowest satisfaction levels with discounts and coupons: with only 49%
reportedly satisfied. Satisfaction levels were also below par for availability of help in the stores
(57%), and time spent waiting in line to pay or check out (60%).
Q: “Please rate your overall satisfaction with each of the following aspects of your shopping experience
over the past four weeks.”
Very dissatisfied Somewhat dissatisfied
In between Does not apply / Does not matter to me
Somewhat satisfied Very satisfied
Availability of coupons
and discounts
6% 13% 24% 8% 29% 20%
Availability of help in the
stores
4% 12% 25% 3% 34% 23%
Time spent waiting in line
and pay/check out
5% 13% 21% 2% 36% 24%
Exhibit 7. Shopper Satisfaction Levels – Key Aspects
Retail Shopper Study 5
7. Conversely, shoppers were most satisfied with the appearance of displays (76%) and the ease
of finding correct pricing (76%).
Q: “Please rate your overall satisfaction with each of the following aspects of your shopping experience
over the past four weeks.”
Very dissatisfied Somewhat dissatisfied
In between Does not apply / Does not matter to me
Somewhat satisfied Very satisfied
Availability of the items I
2% 9% 19% 1% 41% 28%
wanted in stock
Ease of finding correct
2%6% 18% 0% 42% 32%
prices
Appearance (neatness) of
1%
5% 17% 1% 42% 34%
the displays
Exhibit 8. Shopper Satisfaction Levels – Key Aspects
When satisfaction levels on these shopping experience aspects are broken down by retail type
some interesting insights can be gained. Levels of dissatisfaction with availability of
coupons/discounts were highest across all retail types, except grocery stores. Another
particularly low level of satisfaction seems to exist in regards to clubs and mass
merchandisers: less than 50% of respondents were satisfied with the availability of help in
those retail storefronts. Toy stores faired poorly overall, with less than 70% of shoppers
satisfied across all aspects.
Q: “Please rate your overall satisfaction with each of the following aspects of your shopping experience over the
past four weeks.”
Exhibit 9. Shopper Satisfaction Levels – by Retail Type
Retail Shopper Study 6
8. A B ANDONME NT OF P UR C HAS E S
A shopper who is not satisfied at a store is likely to abandon that purchase. Just over
70% of surveyed shoppers left a store without purchasing everything they intended to
buy. This resulted in an average loss of US$109 per abandoned purchase as measured
in local currency equivalents. Worldwide, shoppers abandoned clothing store purchases
more than any other, with department and electronics stores — and to a slightly lesser
degree, grocery and book/music stores — ranking lower. Levels of unfulfilled purchases
were highest in Asia Pacific and Latin America, where the study sample was younger.
Q: “Did you leave without buying everything that you were looking for or wanted from any of the stores
where you shopped in the past two weeks?”
Exhibit 10. Abandonment Rationale – by Retail Type
Retail Shopper Study 7
9. Of the six reasons posed for abandonment of purchase, stock outages rated the most likely
with high price following. Unlike the other regions in which these two reasons were much more
likely than the others to account for abandonment, shoppers in Latin America and Asia Pacific
cited a similarly high likelihood of abandoning a purchase for all reasons posed.
Q: “What were the primary reason(s) for leaving the store without the item(s) that you wanted?”
Exhibit 11. Abandonment Rationale – by Region
The most common reasons for purchase abandonment, across all retail types, were price and
availability. In Exhibit 10, the rate of abandonment reported was highest for clothing store
purchases, with department and electronics coming in second. Focusing in on those three
retail types in Exhibit 12, the most likely reason (often twice as likely) for abandonment was the
high price and lack of coupons and discounts, and to a slightly lesser degree lack of stock. The
most striking finding was that just over 50% of those who reported leaving a consumer
electronics/computer store with unfulfilled purchases did so because of a lack of coupons or
discounts.
Q: “What were the primary reason(s) for leaving the store without the item(s) that you wanted?”
Exhibit 12. Abandonment Rationale – by Retail Type
Retail Shopper Study 8
10. In general, after a respondent shopper abandoned a purchase the most likely action was to
buy the same item at another store (33.7%). This was even more likely with Latin American
respondents (45.8%) and Asia Pacific respondents (43.5%).One striking finding was that
40.8% of North American shoppers who abandoned a purchase decided not to buy the item
altogether, instead of selecting an alternative channel.
Q: “What did you do to find and finish purchasing these items?”
Exhibit 13. Abandonment Rate Impact – by Region
Shoppers left an average US$109 in unfulfilled or abandoned purchases due to dissatisfaction,
out of stocks, or lack of discounts or coupons. In all but two countries, India and Mexico, the
value was over $100 per shopper.
Q: “Approximately what was the total value of the item(s) that you abandoned at each of the stores where this
happened?”
Exhibit 14. Abandonment Rate Impact – by Region
Retail Shopper Study 9
11. E ME R G ING T E C HNOL OG IE S U S E D F OR S HOP P ING
On average, worldwide, more than half of the responding shoppers used mobile phones for in-
store holiday shopping activities. Gen Y shoppers were nearly twice as likely (64%) as more
mature shoppers (33%) to utilize their mobile phones for in-store shopping-related activities.
Q: “Did you use your mobile phone for any shopping activities during the past two weeks?”
64.0%
50.1% 51.4%
33.2%
Gen Y Gen X Boomers Global Average
Exhibit 15. Mobile Phone Shopping Activity – by Age Group
Of Internet-related activities, shoppers were most likely to use their phones to compare prices
or features and reviews. The most significant difference between how the generations used
their mobile phones for shopping was that Gen Y shoppers were 6.5 times more likely than
Baby Boomers to use their mobile phone to acquire coupons and other special offers.
Q: “Did you use your mobile phone to do any of the following shopping activities during the past two weeks?”
Exhibit 16. Mobile Phone Shopping Activity – by Age Group
Retail Shopper Study 10
12. When reviewing the same activities by region, the highest occurrence of shopping-related
mobile phone use was reported by shoppers in Asia Pacific and Latin America.
Q: “Did you use your mobile phone to do any of the following shopping activities during the past two weeks?”
Exhibit 17. Mobile Phone Shopping Activity – by Region
Showcasing the gap between generations in regards to their attitudes towards technology is
the disparity between Gen Y and more mature Gen X and Boomer shoppers in the acceptance
of emerging technologies. This was evident when it came to intelligent changing rooms,
comparison-shopping and loyalty account access via mobile phone, and self-activated
shopping agents.
Q: “Which of the new technologies listed below do you think would improve your shopping experience?”
Exhibit 18. Emerging Technologies Impact – by Age Group
Retail Shopper Study 11
13. Regionally, respondents in Asia Pacific were most receptive to more futuristic in-store retail
concepts such as self-activated shopping agents and holographic sales assistants.
Q: “Which of the new technologies listed below do you think would improve your shopping experience?”
Exhibit 18. Emerging Technologies Impact – by Region
When in-store associates were equipped with mobile retail technologies, such as two-way
radios and handheld mobile computers, surveyed shoppers reported a better experience due
to the impact of these devices (59% and 56% respectively).
Q: “How did the device(s) used by the store associates affect your satisfaction with your shopping experience?”
% of shoppers reporting improved experience
62.3% with staff using devices
60.8%
59.1% 58.8%
57.3%
56.0% 56.6%
55.9%
54.8% 54.6% 55.0%
52.1%
Walkie-talkie/ 2-way radio Handheld mobile computer Tablet computer
Gen Y (Millenials) Gen X Boomer Generation Total
Exhibit 18. Customer Experience Impact – by Age Group
Retail Shopper Study 12
14. K E Y T AK E AW AY S
Retailers worldwide are recognizing the increased demand and benefits of mobility within their
enterprises. Using mobile technologies to enhance the shopping experience and increase
associate effectiveness offers multiple benefits that contribute to increased customer
satisfaction and thus sales. The Retail Shopper Study gathered feedback from shoppers in 11
countries and the key takeaways from this research study include:
• While spending attitudes have stabilized compared to 2008, 7 in 10 surveyed
shoppers still planned for flat or declining holiday budgets in 2009. Nearly 4 in 10
shoppers surveyed planned to spend the same in 2009 as they did during the holiday
shopping season a year ago; 34.4% planned to spend less this year.
• Reflective of the tight economic climate, shoppers were dissatisfied with the
availability of coupons. Only one-half reported satisfaction with the availability of
coupons and discounts. Satisfaction levels were also below par for availability of help in
the stores (57%) and time spent waiting in line to pay or check out (60%).
• More than half of consumers utilized mobile phones for in-store holiday
shopping activities. The usage and impact of mobile shopping technologies exploded
in 2009 as shoppers turned to their mobile phones for activities spanning multi-channel
comparison shopping, peer feedback, product info and couponing.
• In-store associates equipped with mobile in-store retail technologies provide a
better customer experience. Surveyed shoppers reported a better customer
experience due to the impact of two-way radios (59%) and handheld mobile computers
(56 %).
C ONT AC T F OR M OR E I NF OR MAT ION
Motorola’s Enterprise Mobility business connects people to information when and where they
need it – helping to transform businesses and improve the customer shopping experience.
Motorola provides an unrivaled technology platform and application partner network, enabling
seamless enterprise mobility inside and outside the four walls of a retail environment from the
loading dock to the warehouse to the store floor. The company’s end-to-end solution portfolio
offers retailers a comprehensive infrastructure comprised of wireless networks, two-way
radios, mobile computers, self-service kiosks, bar code scanners and RFID technology.
Retailers worldwide continue to turn to Motorola to improve associate productivity, maximize
supply chain efficiency and enhance the customer shopping experience. By leveraging
Motorola’s enterprise mobility solutions, retailers can offer self-service shopping assistance,
item-level product tracking for greater inventory visibility and quicker checkout times. More
importantly, the technology helps retailers increase associate productivity and streamline sales
processes, improving a store’s ability to increase sales.
For more information about the Retail Shopper Study or Motorola products and services,
please visit www.motorola.com.
A B OUT M OT OR OL A
Motorola is known around the world for innovation in communications and is focused on
advancing the way the world connects. From broadband communications infrastructure,
enterprise mobility and public safety solutions to high-definition video and mobile devices,
Retail Shopper Study 13