Shoppers Are Using Mobile Phones To Compare Prices, Find Information, And Make Purchases

Shopping through mobile phones is still an emerging retail channel, but it’s growing quickly. Three in 10 owners of smartphones (30%) have used the devices to make purchases in the past year, according to Deloitte.

A separate study by Abode finds a much higher proportion (62%), but this is due to a survey sample that skews younger than the overall population and includes above-average ownership of smartphones. Although samples in several of the studies presented here are not representative of the general population, the results provide insights into the behaviors and attitudes of early adopters of mobile shopping.

A third (33%) of online shoppers used mobile phones or smartphones to access retailers’ websites or mobile apps in 2010, up from 24% in 2009, according to ForeseeResults. Another 26% plan to do so in future.

Among those who have used to their phones to access retail sites or apps, more than half have used them for price comparisons.

How Shoppers Use Mobiles

Owners of smartphones believe the devices make in-store shopping faster (67%) and more enjoyable (61%), according to Accenture. More than half (57%) would shop more frequently at stores optimized for smartphone use.

Smartphone users prefer using their phones over asking store personnel for some types of information, such as finding the closest store that has a specific item in stock (71% prefer smartphone; 17% prefer employee) and being notified when an item comes into the store (73% vs. 15%). For advice on apparel or instructions on how to use home improvement products, more than half prefer the human touch.

Smartphone owners are receptive to coupon offers — 79% find it useful to download coupons to their phones, and 73% like to get instant coupons for items they’re passing by in-store.

Mobiles Helped Holiday Shoppers

Mobile devices are often used as research tools while shopping in stores: 69% of mobile shoppers used their phones to visit a retailer’s website while in-store during the 2010 holiday season (up from 52% in 2009), and 46% used them to visit competitors’ sites (up from 25%).

More than one in 10 (11%) used their phones to make online purchases during the 2010 holiday season, up from 2% in 2009.

An even higher proportion of smartphone shoppers use their phones to make purchases: 26% of those who shopped with a smartphone during the 2010 holiday season used their phones to make purchases, according to BIGresearch.

Gender & Age Differences

Among mobile users with browser-enabled phones, nearly half (48%) have made at least one purchase via their mobiles, finds Lightspeed Research. Men (52%) are more likely than women (47%) to have done so.

More than half of 18-24-year-olds (52%) and 25-34-year-olds (51%) have bought items via their mobile phones, compared to 40% of those ages 45-54 and 38% of those ages 55-84.

Men in the two youngest groups are especially likely to make purchases on their mobiles: 59% of men ages 18-24 and 57% of men ages 25-34 have done so.

When asked why they haven’t used their phones to make purchases, respondents’ top reason is preferring to shop on a computer (47%). About one in 10 are concerned about payment security, prefer to shop in a store, or say their connection is too slow.

Mobile shoppers are more likely to make mobile purchases through websites than through apps; men outbuy women in both cases, according to JiWire. Among users of public WiFi hotspots, 28% of men and 18% of women have made purchases through mobile websites, and 21% of men and 14% of women have purchased through mobile apps.

Among consumers who have made purchases with their mobiles in the past year, 61% of men and 44% of women made at least six separate purchases during that time, finds Adobe.

Nearly two thirds (64%) of iPhone owners who use their phones to shop have made at least six purchases in the past year. Men and iPhone users are more likely than women and users of other devices to have spent $250 or more shopping from their mobile phones.

What Mobile Shoppers Are Buying

Mobile shoppers are most likely to buy games, apps, music, or ringtones for their phones, according to Lightspeed. Entertainment, prepared meals, and travel are other popular categories. Men are more likely than women to have bought consumer goods via mobile in the past six months, according to Adobe.

More than half (54%) of mobile shoppers prefer to make purchases through retailers’ mobile websites, while 41% would rather use mobile apps, according to Lightspeed. Men and adults ages 25-34 are more likely than women and adults of other ages to prefer shopping through apps.

Credit cards are the most popular way to pay for purchases made through mobile phones (48%), followed by PayPal or similar payment systems (32%), and direct billing on a mobile phone bill. Men (52%) are more likely than women (46%) to prefer credit cards, while women (19%) are more likely than men (12%) to prefer direct billing. Consumers ages 55-84 express a marked preference for payment via credit card (61%).

In addition to expanding shoppers’ options for making purchases and finding the information they need to make informed buying decisions, mobile shopping is beginning to influence consumers’ views of retailers.

Shoppers who are highly satisfied with their mobile shopping experience with a particular retailer are 30% more likely to buy from that retailer online and/or offline and say they’re more likely to recommend the company to friends. [Telecommunications, Retail/Service Sector, Consumer Spending & Attitudes]

Sources: “State of the Media Democracy,” Deloitte, Phil Asmundson, Vice Chairman and Technology, Media, and Telecommunications Industry Leader, 1633 Broadway, New York, NY 10019; 212-489-1600; tmt@deloitte.com; www.deloitte.com. Price: Contact for information.

“Adobe Mobile Experience Survey,” Adobe Systems Inc., Brad Rencher, VP & GM Omniture Business Unit, 345 Park Ave., San Jose, CA 95110; 415-506-6000; s7marketing@adobe.com; www.scene7.com or www.omniture.com. Price: Contact for information.

“ForeSee Results Report on Mobile Shopping, U.S. Edition 2010,” ForeSee Results, Kevin Ertell, VP, Retail Strategy, 2500 Green Rd., #400, Ann Arbor, MI 48105; 800-621-2850; kevin.ertell@foreseeresults.com; www.foreseeresults.com. Price: Free download.

“Retailing in an Era of Mobility, July 2010,” Accenture, Janet Hoffman, Managing Director, Retail Practice, 161 N. Clark, Chicago, IL 60601; 312-842-5012; janet.hoffman@accenture.com; www.accenture.com/mobileretail. Price: Free download.

“Consumer Intentions & Actions Survey, December 2010,” BIGresearch, Phil Rist, EVP Strategic Initiatives, 450 West Wilson Bridge, #370, Worthington OH 43085; 614-846-0146; phil@bigresearch.com; www.bigresearch.com. Price: Contact for information.

“Mobile eCommerce, October 2010,” Lightspeed Research, Naor Chazan, Marketing Director Americas, 3 Mountain View Rd., 3rd Fl., Warren, NJ 07059; 908-630-3443; www.lightspeedresearch.com. Price: Contact for information.

“JiWire Mobile Audience Insights Report, Q4 2010,” JiWire, 150 Post St., Ste. 500, San Francisco, CA 94108; 415-877-4711; insights@jiwire.com; www.jiwire.com. Price: Free download.

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