Mobile Commerce Creates More Dealer Opportunities
Learn to embrace new shopping habitsJune 6, 2012 By Sean Murphy, Senior Analyst, CEA
Not too long ago online shopping was a novel concept, equal parts liberating and intimidating. Financial transactions done electronically? From mail-order catalogs to one-click purchases, we have witnessed the evolution of an entirely new way to shop.
Naturally, innovation ensures that this process continues to develop. CEA’s new study Mobile Commerce: Reinventing the Way Consumers Shop provides an opportunity for better understanding consumer behavior and motivations as they relate to mobile commerce.
We already know the modern consumer prefers devices that are mobile and connected, which means people can access the Internet anytime, anywhere. And when it comes to shopping, CEA market research clearly shows consumers consistently list price and convenience as primary purchase motivators. Mobile commerce provides a sweet spot for the savvy shopper who wants to be fully informed and incentivized by ads, coupons and competitive pricing.
It is impossible to overstate how ubiquitous mobile devices have become, but a quick look at the numbers illustrates the point. Nine out of ten consumers own a tablet, smartphone or cell phone, which translates to 216 million mobile device owners.
More than one-third of these device owners are engaging in some form of mobile commerce, while those aged 25-34 and those with a household income of more than $75,000 are more heavily engaged than their respective age and income counterparts. Increasingly, engaged mobile consumers are using their mobile devices while shopping or purchasing either online or while shopping in-store. So what is the motivation here?
Mobile devices are all about empowerment, giving consumers the freedom to shop anytime and anywhere. In general, obtaining more information about a product is the primary purpose of performing in-store shopping assist activities.
Product availability and special offers are also key motivators for shopping with mobile devices. But not all mobile device users make purchases from their device and the reasons vary. Security is a major issue. Aesthetic and practical considerations, such as the smaller screen sizes and keyboards, also factor in. As consumers become more comfortable with mobile devices and online commerce becomes more commonplace, many of those issues will be mitigated.
Looking ahead, research suggests positive prospects for mobile commerce.
Two-thirds of mobile device owners indicate they intend make mobile purchases over the next 12 months. One-third (34%) of those intending to use their mobile devices for online shopping in the next year expect to buy consumer electronics. Here is clear signal for dealers to be prepared for mobile shoppers browsing the aisles.