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A Summary of Key Points from the 'Brand New World' Research Report Published by AOL and the Henley Centre
How the internet is changing User attitudes to brands
Research context
- Forrester, Jupiter
- AOL/NOP e-commerce study
- Academic Research
- American Interactive Consumer Survey
- 40 million US consumers changed their minds about brands as a result of online information.
- 60% of those consumers then switched brand at purchase, whether that purchase had been made online or offline.
Hypothesis
“Information obtained on the web and personal online experience is modifying brand opinions and purchasing behaviour, regardless of whether the final purchase is made online or offline.”
Users Researching and Purchasing Behaviour on the Internet
A highly valued research tool
- 74% of online users have “personally researched and looked for information about a product or service before making a purchase”.
- 76% of users feel that the internet helps them make more informed purchase decisions
A highly valued research tool
- 77% of users have personally bought a product or service over the internet in the past (ever).
The internet is used at every stage of the purchase process. As a result, the purchase process is more considered.
- 73% of online consumers agree that "I spend more time researching products now that I have access to the internet"
...and even brand embracers “test” their decisions.
% agreeing ‘I spend more time researching products now that I have access to internet’
Consumers are price-sensitised
% agreeing, as a result of using the internet ‘I am more aware of the cost of products and services’
Online experience and information also translates into offline purchase
% (by category) who bought offline after researching online
The “Information” Effect
Online information alters behaviour
- 77% of online consumers agree that if they ‘saw a negative review on the internet about a product or brand I would think twice about buying it’
% who consider the following to be important sources of information when researching/considering a product or service
Information sources ranked by “honest and fair”
% who trust the following information sources as honest and fair
Online information is trusted
“If there was a hundred reviews out there on a product, they're not all going to be nutcases and they're not all going to be murderers... if a hundred people are saying ‘This product is crap’ it's going to be pretty bad and enough people are saying ‘This product is really good’ it's got to be pretty good”
Users actively seek out information about brands.
The “Information” Effect
- Online information alters purchasing behaviour
- Certain Online sources of information are regarded as being more important and are trusted more than Offline sources
- Consumers are not just passive recipients of information, they are actively seeking it out and communicating it
Brand Switching
What is happening to consumer's brand perceptions & behaviour?
% who agree that as a result of using the internet:
The Internet is influencing Brand Perceptions and Behaviour across the spectrum. Consumers are changing their minds.
As a result of using the internet:
- 42% of online consumers have changed their mind about a brand they were going to buy and switched to a different brand
- 43% of online consumers decided not to purchase a certain brand
Some categories are more at risk:
% consumers who bought ‘a different brand from the one you had intended to before you went on the internet’
Brand switching
- As a result of using the internet significant numbers of users change their minds and switch brands
- Brand Switchers are information sensitive, and that includes receptivity to marketing and advertising information
- Some categories are more at risk than others
Consumers are actively switching their brand decisions because of the internet, and this is happening for those whom you would expect to be brand loyal.
Trust is the key: If you are not trusted, you are not in the ballpark… the need for trust goes for information sources too…
- 51% of users pay more attention to ads on sites that they trust
“Oh here we are, Top Gear Magazine. Because it's Top Gear and it's What Car and what I mean is it's another decent make, it's another decent brand rather than Joe Bloggs' reviews on cars.”
Conclusions
- The internet is having a fundamental influence on the way your customers see your brand
- Easily accessible, comparative information online is a primary driver of change
- Online influences are making your customers less brand loyal, more open to try new brands, more willing to experiment
- Some online influences are considered more important information sources and are trusted more than offline information sources
- Your customers’ offline brand attitudes are not a predictor of their online brand behaviour
- You cannot ring-fence your offline sales from these online influences
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