Just 11 per cent of consumers have a favourite brand or model in mind when it comes to purchasing new electrical goods, with 44 per cent saying their ultimate purchase decision was directly influenced by news media, a new report released today by NewsMediaWorks revealed.
The Electrical Goods: Path to Purchase report found that the purchase journey takes an average of three months. Advertising plays an important role during this process, with 64 per cent saying they recalled seeing or hearing a specific electrical appliance ad in the early stages of the buying process.
To understand how to engage consumers looking to buy electrical goods on their path to purchase, NewsMediaWorks collaborated with Research Now to develop one of Australia’s largest path to purchase projects*.
Unlike similar studies, which retrospectively look at consumer behaviour, this study gathered information from buyers in real time at four distinct stages of their purchase journey:
1. recognising that they need to buy;
2. researching options;
3. forming a shortlist and
4. making the purchase.
New televisions were the most popular electrical appliance consumers were in the market to purchase, followed by refrigerators/freezers, washing machines, dishwashers, vacuum cleaners and air conditioners.
Price was the most important factor in the ‘researching options’ phase of the path to purchase journey at 58 per cent, followed by product specifications (49 per cent), where to buy (44 per cent), inspiration (28 per cent), recommendations (26 per cent) and reviews (25 per cent).
Catalogues were the most influential paid media, followed by news media and television, in the path to purchase. Overall, consumers turned to organic search (60 per cent) as their preferred means to research products to buy. While one in three (36 per cent) consumers used news media for ideas of what to buy, this increased to one in two (54 per cent) buyers turning to news media to read reviews and look for recommendations.
Warranties and guarantees influenced the final purchase decision for one in three buyers, 52 per cent purchased electrical goods based on the reputation of the brand and the in-store experience influenced some 40 per cent of buyers.
“Buyers of electrical goods see news media as a ‘one-stop shop’ for the key pieces of information they require throughout the path to purchase. Alongside catalogues, news media consistently outperforms other paid media. And three million consumers say the last catalogue they read was found in a newspaper^,” NewsMediaWorks CEO Mark Hollands said.
“When they are ready to purchase, news media comes into its own for credible and independent advice, reviews and recommendations. News media delivers at every stage of the path to purchase and enables electronical goods advertisers to connect with buyers when they are actively seeking information and making purchase decisions.”
The Electrical Goods report is the third of four Path to Purchase studies NewsMediaWorks will release and will be followed by Health Insurance. The Automotive and Travel reports were released last month.
*The study surveyed 609 consumers looking to purchase electrical goods captured at different stages of the purchase journey in July 2016.
^emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending June 2016.