a ttitude – the new “it” element in the retail path-to-purchase · 2019-09-19 · a ttitude...

A ttitude – the New “It” Element in the Retail Path-to-PurchaseAn Acxiom Consumer Dynamics Research Report

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A ttitude – the New “It” Element in the Retail Path-to-Purchase

An Acxiom Consumer Dynamics Research Report – Retail

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Conventional wisdom argued for decades that there were three elements to retail success: location, location, location. Today, we know that to be wrong, wrong, wrong. We know that location is just one of dozens of elements for success. Retail commerce is much more complex. In recent years, marketers have focused on a matrix of transactional purchase history, demographics, motivations and preferences as the keys to understanding retail path-to-purchase.

Our research shows that another element, attitude, may add critical insight into predicting shopping behavior. So much so, that retailers who are not segmenting their audience through an attitude microscope may be missing the most critical element in the path-to-purchase.

For retailers interested in the critical topic of path-to-purchase, this research provides insights regarding attitudinal mapping to: •Optimizedchannelandmediaspenddecisions •Effectivepricingstrategies •Onlineandin-storepreferences •Point-of-purchasepropensities.


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MethodologyWe conducted this study in collaboration with GfK Research-New York through a 20-minute online survey targeted to a random sample of 1,000 female consumers age 18 and older who purchased women’s apparel in the past six months.

he philosophers of ancient Greece, in their linen chitons and leather sandals, believed thattheuniversewascomposedoffourelements:earth,wind,fireandwater.Sciencehasprogressed considerably. The millenniums-long search for new chemical elements (and

a more conservative lab coat) has transformed our understanding of the universe and proven thattherefinementofknowledgeisnevercomplete.Soitiswithourunderstandingoftheretailconsumer.

Technology and culture have unquestionably transformed the retail marketplace through the advent of easy, universal credit- and debit-based purchase, the expansive availability of online access and information, the explosion of media outlets, and to a large degree, the acceptance ofbrandsintoconsumers’virtuallivingroomstounderstandthelatter’sneedsanddesires1,2. In each case, however, the individual has gained more control while brands struggle for relevance in a sea of uncertainty.

What is certain is that the retail path-to-purchase process is exponentially more complex today than ever before. Regarding this research, our hypothesis is that during a typical path-to-purchase—forexampleforwomen’sapparel—shoppersbehaveinavarietyofways,usingand responding differently to a range ofmedia and information sources that influence theirjourney based on their attitudes and, to a lesser degree, their preferences, motivations and demographics.Indeed,thisexperiencetaughtusthatconsumers’attitudesinparticularareveryrevealing about their chosen shopping and purchase behaviors.

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From fashionista to disinterested and all attitudes in between

Throughouranalysis,wemappedfivedominantshopper-attitudeclusters.Thoseshoppersmostactively engaged in apparel shopping, who love clothes, are fashion mavericks and are willing to pay more for designer brands, we labeled (with a touch of understatement) the Fashionistas. The Style-Sophisticates group is more interested in staying in tune with current trends and styles but enjoys shopping and bargains just the same. Our third category is the Centsibles. They prioritize comfort, value and price ahead of making a fashion statement. The Different-Drummersdon’tmindshoppingforthemselvesbutshopbasedonneedratherthandesire.Andthefifthcategory,theDisinteresteds, consider clothing to be a necessity and shopping for it a chore—butdon’tdismissthemcompletely.

Centsibles

Different-Drummers

Disinteresteds

Fashionistas

Style-Sophisticates

•Thinkofapparelasbeingsomethingtheyneed•Prioritizecomfort,valueandprice•Notinclinedtobefashion-forward•SearchforlowestpriceandembraceusingtheInternettogatherinfoandsavetimeandmoney•Enjoyshoppinglocalstoresandplantheirtripstobenefitfromefficiency•Seeingmerchandiseinpersonandtryingagarmentonhelpsthemstriketherightbalance

•Mostbasicapparelshoppers•Don’tmindshoppingforthemselvesbutshopbasedonneedratherthandesire•Plantheirwardrobecarefullyandshoplocallytominimizetheoveralleffort•Lookforcomfort,valueandpricewhentheyshop,wanttoseetheiroptionsandtry

things on

•Considerclothinganecessityandshoppingforitachore•Shopforthebasicsofcomfort,valueandprice•Fashionisjustnotimportant•Wanttogetthroughtheshoppingprocesswithminimumfussandeffort

•Younger,hipper…themostactivelyengagedapparelshoppers•Likeclothes,aremorefashion-forwardthanmostandlovetoshop–often!•Takeadvantageofonlinesourcesofinformationforinspiration•Mostlikelyofallclusterstousesocialmedia–bothtogatherinputfromothersaswell as to express their opinions (i.e., shopper reviews, blogs, microblogs, etc.)•Plantheirwardrobecarefullyandarewillingtopaymorefordesignerbrandstoensurecomfortbutarefashion-confidentenoughtoalsoshopinthriftorcharityshopsfor

vintage clothing

•Seekniceapparel,placingfashionaheadofmorepracticalconsiderations•Niceclothesequateto“thegoodlife,”sotheyplantheirwardrobecarefully•Enjoytheprocessofshoppingforthemselvesthoughtheyareonthelookoutfor basics like comfort and value and like email/direct mail about sales •Moreinterestedincurrenttrendsandstyles


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64%75%

60%

53%49%

90%69%

64%34%34%

FASHIONISTASSTYLE-SOPHISTICATES

CENTSIBLESDIFFERENT-DRUMMERS

DISINTERESTEDS

1%9%

14%33%

40%

*Digital/NewMedia (Net)

**TraditionalMedia (Net)

I don’t look for apparel information

*Digital media includes: shopper reviews, online recommendation from friend/family member, retailer website, Google search, fashion related websites, coupon websites, magazine website ads or articles, ecommerce sites, blogs, Facebook posts, Twitter comments **Traditional media includes: store circular/flyer, retailer newspaper advertisement or insert, direct mail catalog, magazine ads or articles, retailer TV advertisement



DISINTERESTEDS



DISINTERESTEDS

Side-by-side comparisons

Inadditiontotheinsightsthatdistinguishthesefiveattitudinalclustersindividually,therewereanumber of opportunities for side-by-side comparisons; for example: Where do they prefer to go for information? Where and how do they buy?

Where they go for information

Digitalmediaisaparticularlystrongchannelforreachingandinfluencinghigher-valueaudiencessuch as Fashionistas, who access it for 90% of their information. However, half or more of all apparel shoppers are still connecting with traditional media as a source of information for plannedpurchases.Andsignificantsharesofless-engagedaudiencesmaynotbelookingforany information.

While the Fashionistas may not be looking at Sunday newspaper inserts or traditional print catalogues,thevastmajorityofshoppersstillwidelyembracetraditionalmedia.Don’tcutyourspendlevelsuntilyouhaveidentifiedyourcustomerbaseagainsttheseattitudinalmaps.


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46%

FASHIONISTAS STYLE-SOPHISTICATES

CENTSIBLES DIFFERENT-DRUMMERS

DISINTERESTEDS

IN-STORE

ONLINE

CATALOGUE11%

73% 64%84%

24%3%

31% 12%

5%

23%

4%3%

42%72%

Charity – Vintage Discount Stores Middle-Market Stores Premium Stores Upscale Stores

27%20% 9%18%26%FASHIONISTAS8% 7%23%34%28%STYLE-SOPHISTICATES 10% 5%15%36%34%CENTSIBLES

4%16%35%36%9%DIFFERENT-DRUMMERS11% 44% 2%10%33%DISINTERESTEDS

(Salvation Army, Goodwill, vintage, consignment,

second-hand)

(Wal-Mart, Kmart,Target, Old Navy,

Dress Barn, Express)

(Sears, J.C. Penney,Kohl’s, Gap, Limited,

LOFT)

(Macy’s, Dillard’s, J. Jill,Lord & Taylor, BananaRepublic, Ann Taylor)

(Saks Fifth Avenue,Neiman Marcus, Ralph Lauren,

J. Crew, Brooks Brothers)

Where they go to buy

Overall, discount and middle-market stores are the most popular destinations for many, but there are interesting patterns within and across the clusters.

What channels they prefer

Asnotedbefore,asignificantnumberofFashionistas prefer to purchase online, but what about the other clusters? Different-Drummers, Style-Sophisticates and Disinteresteds are much more inclinedtopurchasein-store.Thesefindingsindicatethatin-storeshoppingforapparel isnotgoing away and is still the largest component of shopping activity for all segments.


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Individual cluster traits

Before drilling down into the traits of the individual clusters, we want to be clear: to understand retail path-to-purchase, marketers must focus on a matrix of transactional purchase history, demographics, motivations, preferences and much more. There are no silver bullets.

However, our research shows that another element, attitude, may add critical insight into predicting shopping behavior. So much so, retailers who are not segmenting their audience through attitude may be missing one of the most critical elements in the path-to-purchase.

For an assortment of reasons, each attitudinal cluster represents market opportunity for different types of womens’ apparel retailers. For example, due to their shopping frequency, marketbasket size and their use of multi-channels for shopping information, three (Fashionistas, Style-Sophisticates and Centsibles) are of greatest interest to the middle-market and upscale retailers and demonstrate the most distinct attitudinal and behavioral differences in their path-to-purchase andpoint-of-purchase(POP)value.

Of the consumers we surveyed, the Fashionistas represent 13% of the sample population. They made purchases most often and indicated a willingness to buy up-sell and add-on products at point-of-purchase a prodigious 78% of the time.

Fashionistas also favor online purchasing more than any other group (spending 42% of purchase time online) and are more than twice as likely as the next group to engage with a mobile device. The data also shows that Fashionistas are much more broadly engaged in fashion and shopping as part of an overall lifestyle experience compared to the somewhat more pragmatic considerations of the four other groups.

The Fashionistas are also more interested in participating in online recommendations and reviews than the others,which likelymakes them social influencerswith a large network offriends and family. Also of special note is the Fashionistas’ taste for charity and vintage shops. While they may only be the core base for a limited number of retailers, they are clearly desirable targets for many others. Find a way to inform and serve a Fashionistas appropriately and you may have a loyal booster for some time.


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80706050403020100

90

AlwaysUsually

Combined Total%

How Often Other Fashion Items Are Purchased Along With “Women’s Apparel”

FASHIONISTAS STYLE-SOPHISTICATES

CENTSIBLES

Those in the Style-Sophisticates cluster represent 26% of consumers we surveyed with the highest income, the second highest purchase incidence and willingness to buy more at point-of-purchase 40% of the time. Unlike Fashionistas though, Style-Sophisticates spend 75% of their purchase time in-store and are the most likely to be interested in designer brands since they also prefer being in vogue with current fashion. The differences between the two groups are important, especially given that those in the Style-Sophisticates cluster shop 64% of the time in middle-markettoupscalestores—thehighestpercentageamongthefivegroups.

The Centsibles were also a large portion of those we surveyed, representing just fewer than 25%.Theyarethesecondoldestgroupandshopforapparel,onaverage,aboutfivetimesovera six-month period (only the Disinteresteds shopped less frequently). The key drivers for their inspiration to shop for apparel are magazines and retailer websites. They are bargain hunters who use the web to hunt for sales and promotions and to make purchases (the second largest online purchasing cluster). But unlike their Fashionistas peers, they are not likely to use mobile or smartphone devices to do so. And, as you might have guessed, they are not as likely to add other items to their shopping cart at point-of-purchase. In comparison to those in the previous two clusters, they shop for what they need and tend not to shop impulsively for add-on merchandise items.


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And our Different-Drummers? They were 19% of those we surveyed. They actually like to shop, butnotonlineandoverallsignificantlylessoftenthantheFashionistas, Style-Sophisticates and Centsibles. They are independent shoppers, not persuaded by peers, advertisements, reviews, etc.Theymaketheirowndeterminationofaproduct’squalityatthetimeofshopping,soitwillnotsurpriseyouthat theyshopsignificantlymore in-store(78%)thanthetotalsample.Theytypically shop at discount stores and will sometimes shop for other apparel items as an add-on.

Then there are the Disinteresteds (17% of the survey sample.) Those in this cluster have the oldestaverageageofthefiveclustersat56.Infact,38%ofthoseinthisclusterare65orolder.They do not look for any information or other sources to help plan a purchase, spend very littletimeshoppingonlineandshoptheleast.Youcannotinspirethemtoshopwithcelebrities,fashion shows, blogs, magazines, TV, online ads — not even window displays. Style is the last thing on their minds. The Disinteresteds shop in-store, second only to the Different-Drummers, andtheyareprimarilybrandnostic.It’snotsurprisingthattheyrarelypurchaseadd-ons.Buttheydo have their requirements, and therefore, their motivations. The stores in which they make their purchases (primarily discount stores) must be convenient to get to, easy and fast to shop in, and have the sizes they need in stock.

Turning the attitude element into gold (for buyer and seller)

In summary, consumers behave very differently in their path-to-purchase and at point-of-purchase asevidencedinthefindingsofthisresearch.Wecreatedanattitudinalmappingschemawithfiveclusterstocaptureanddescribethesetrendsbasedonconsumers’personalapproachandattitude toward shopping. While demographics, motivations and preferences play key roles in path-to-purchaseandspendatpoint-of-purchase,thefindingsofthisresearchindicateattitudeis a critical ingredient for more insight.

Today’s customersare clearly in charge, collecting informationwhen theywant and throughthe media outlets they are most comfortable accessing. Although there are many facets to the purchase decision process, it is very clear that the consumer controls the levers that ultimately drive purchases, whether in-store, online or both.


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Media Usage in Path-to-Purchase

Centsibles

Style-Sophisticates

Fashionistas

Di�erent-Drummers

Disinteresteds

Strong

Low• Don’t look for information • Direct mail catalog

• Don’t look for information• Retailer TV ad• Retailer newspaper ad• Store circular• Direct mail catalog

• Coupon websites• E-commerce website• Twitter• Retailer website• Blogs• Store circular

• Magazine ads• Retailer website• Fashion website• Store circular• Shopper reviews• Direct mail catalog

• Facebook• Twitter• Blogs• Google search• Online recommendations• Fashion websites

Level of Engagementin Shopping

Process

HighlyDisengaged

HighlyEngaged

Retail marketers must accept and recognize this challenge and at the same time understand and respond to the inherent differences among these shopper attitudinal groups.Marketersmustbeabletoeffectivelyinform,influenceandstimulatepurchasedecisionsatvarioustouchpoints in the path-to-purchase.

A crucial dynamic for the retailer is to recognize and segment its customer base through this attitudinalmappingschema.Marketersmustaddresseachoftheseattitudinalgroupsdifferently— understanding how they uniquely seek and gather information — and align their media decisions to optimize the consumer engagement process and, of course, marketing ROI.

Ashighlightedinthechartbelow,attitudinalmappingreflectstheimpactofmediainfluenceonthe path-to-purchase and the level of engagement that is expected in the shopping process.


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Do you know the attitudes of your customers and best prospects? Are you investing accordingly?

In addition, these insights can lead to a more relevant level of product information and pre-sales service,fasteracquisition,highercustomerretention,highersalesandlargerprofits.Thecriticalquestionsare,“Doyouknowtheattitudesofyourcustomersandbestprospects?”and“Areyouinvestingaccordingly?”

IfyouhavecustomerswhofittheFashionistas description, are you treating them according to their potential value by investing in their most frequented channels with content that is edgy, unique and new? How are you making it easier for Fashionistas and the Style-Sophisticates to buy more at the point-of-purchase? Have you empowered your Centsibles with access to the most up-to-date information on best values? If your business typically serves a large percentage of Different-Drummers and Disinteresteds, what merchandising choices in your brick-and-mortar ease their path?

Understandingyourcustomerbaseusingattitudinalmappingwillenableyoutoinfluenceyourcustomers through their preferred media channel and foster their enthusiasm during the shopping process, adding value for both you and the customer. If your customer base skews toward Different-Drummers and Disinteresteds, trying to engage them through digital and electronic media is likely to fail. In contrast, Fashionistas are likely to be especially responsive to digital messaging,whichtheymagnifyfurtherthroughtheirsocialinfluencingactivities.Theirinfluence,stimulated by the right media, becomes disproportionate to their size. If you are serving a high percentage of Style-Sophisticates,theirin-storeenthusiasmcoupledwithyouroptimizedPOPis likely to end positively for all.


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Acxiom can help you map your customer base to the five attitudinal path-to-purchase cluster groups, giving you additional tools for: media spend and mix decisions, pricing strategies, optimizing campaigns, merchandizing, and more. Go to www.acxiom.com/pathtopurchase to find out how!

There is a new way to look at customers and prospects, perhaps a more telling guide to channel and media spend decisions and perhaps a more accurate predictor for point-of-purchase importance. The philosophers of ancient Greece may have dressed, well, differently from those in our attitude clusters. They may have been limited in their understanding of the elements in our universe. But even back then, they must have noticed that different people were attracted to differentcolorsanddesignsintheirlinenandwool,preferreddifferentsandalconfigurationsandshoppedwithdifferentmerchants.Maybe,justmaybe,theyevencalledthedecidingelement“attitude.”

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Acxiom Consumer Dynamics Research Reports — RetailThe retail focus for Acxiom Consumer Dynamic Research Reports provides a consumer-centric snapshot of the U.S. retail market. In addition to these studies, Acxiom provides media, market, brand and geo-based analyses that can be integrated with internal or external sources of product or consumer data. Use the results to empower intelligent, actionable and dynamic marketing decisions.

a ttitude – the new “it” element in the retail path-to-purchase · 2019-09-19 · a ttitude...

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