This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Value Of In-Store Customer Service: Kellogg Shopper Index Finds More Than Price Driving 'Showrooming' Behavior This Holiday Season

EVANSTON, Ill., Nov. 21, 2012 /PRNewswire/ -- Results from the annual holiday shopping report by the Kellogg School of Management at Northwestern University sheds new light on the "showrooming" phenomenon that has been in the news this holiday season. According to the 2012 Kellogg Shopper Index issued today, many consumers who visit a store but then buy online are not driven there by price alone, but rather by a less-than-satisfactory in-store experience

The survey found that 59 percent of shoppers sampled said they received poor or average service in the stores they recently shopped. And, among shoppers who said they engaged in showrooming, 40 percent reported that they actually never intended to buy online, but they were driven there after experiencing poor customer service and support in stores.  

"The relationship between in-store service quality and shoppers' propensity to engage in showrooming, especially when they had not intended to, is consistent with our knowledge on the psychology of the consumer and about where, how and when they shop," said Associate Professor of Marketing Derek Rucker.

"The showrooming conversation typically focuses on price as the impetus to purchase online," continued Eric Anderson, Hartmarx Professor of Marketing at Kellogg. "While the growth in online shoppers is clear, our data shows that there is still a robust segment of consumers who prefer to shop bricks-and-mortar stores. For retailers, this reinforces that how consumers want to shop is as strategically important as the price they are offered, and underscores the importance of face-to-face customer service."

Other findings from the Kellogg Shopper Index include:

  • Shoppers are more optimistic this season; 59 percent of respondents report that their household financial situation will be better in the next year. More than a quarter said they were planning on spending more on holiday gifts for others compared to last year.
  • Black Friday store shoppers are more likely to be young (under 24 years of age), educated females who are married and earn between $25,000 - $100,000.
  • Female shoppers are more loyal to their favorite stores, but are being lured into low-touch online channels because of poor or frustrating in-store experience.
  • Men with higher education levels and higher incomes are more likely to seek discounts by showrooming and engaging in mobile buying than women.

"As consumers continue to migrate into online and mobile channels, there is evidence that retailers are digging a hole that will be harder to get out of, as word-of-mouth about poor in-store experiences drives away more of their core shopping loyalists," said Clinical Associate Professor of Marketing Richard Wilson. "These shopper insights confirm that top product brands and their retail partners are likely at a major crossroads in the evolution of multi-channel routes to market."

About the survey

Supported by the Kellogg Center for Global Marketing Practice, the Kellogg Shopper Index is a national survey that collects data from an online panel of more than 1,900 participants. The purpose of the index is to develop a 360-degree perspective of consumer spending habits that explores what and how people plan to purchase items or services, as well as the underlying psychological and financial drivers of their spending behavior. Based on key findings, the index offers fresh insights and practical applications for businesses and marketing practitioners. The Kellogg Shopper Index is compliant with the Institutional Review Board (IRB) standards. For more information, visit the  Kellogg Center for Global Marketing Practice.  

To learn more about the Kellogg School of Management at Northwestern University, visit www.kellogg.northwestern.edu.

MEDIA CONTACT: Betsy Berger Kellogg School of Management Office: 847-467-3108 Cell: 847-308-1762 b-berger@kellogg.northwestern.edu

SOURCE Kellogg School of Management at Northwestern University

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs