Comparison Shopping Is a Way of Life Onsite Comparative Pricing (OCP) Paves the Way for Convenient and Confident Shopping

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Comparison ShoppingIs a Way of LifeOnsite
Comparative Pricing (OCP) Paves the Wayfor
Convenient and Confident Shopping
Webinar Presented by the e-tailing group
WinBuyer October 14, 2009
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- Welcome - Win Consumer Confidence with OCP

• Disconnected? Dial 773-945-1011
• Access Code 616-115-012
• Webinar ID 320-775-889

• Questions? Ask us through chat.
• Get the study. Comparison Shopping Is a Way of
  Life

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Speakers
Eyal Keren VP Marketing WinBuyer
Inc. eyal_at_winbuyer.com (408)-849-4763 www.winbuy
ercorp.com
Lauren Freedman President the e-tailing
group LF_at_e-tailing.com (773)-975-7280 www.e-tail
ing.com
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About WinBuyer

• The leading provider of Onsite Comparative
  Pricing (OCP) solutions that accelerate consumer
  purchasing behavior at the point of sale.
• Serving the US, Canada and the UK Markets
• Currently over 200 retailers live are reaping the
  benefits of Increased lift in sales, improved
  site stickiness, and an incremental revenue
  stream.

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About the e-tailing group

• 15 years e-commerce consulting
• Author, Its Just Shopping
• 50 years traditional retail and catalog
  experience
• Fortune 500 client projects ranging from
  strategic planning, merchandising, marketing, to
  technology development and messaging for both b2c
  and b2b clients
• Proprietary research studies on mystery shopping
  and merchandising, egeg Index, marketing and
  multi-channel customer mindset, In-Store Pickup
  and Gift Registry
• E-commerce expert and frequent speaker at
  industry events, trade associations

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Agenda

• Comparison Shopping Is a Way of Life Research
  Findings
• The Evolution of Comparison Shopping
• Q/A To Size Up Comparison Shopping Needs

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Survey IntroductionThis webinar highlights
results of an e-tailing group/WinBuyer study
Comparison Shopping Is a Way of Life, completed
in August 09it examines three critical
components of comparison shopping
1) how invested consumers are in shopping
around prior to purchase, including time spent
and sites visited as part of their typical online
shopping behavior 2) how valuable an Onsite
Comparative Pricing tool would be and its impact
on merchant selection 3) loyalty based on
making such an application part of ones everyday
shopping behavior
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1,025 adults (51 female/49 male) who shopped
online4 or more times during the past year
spending over 400 completed this online survey
per these demographics
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Topline Findings

• Consumers are invested in finding the lowest
  price
• Shoppers invest time to find the lowest price for
  commodity products
• Efficiency of price comparison and the ability to
  merely Google it, check Amazons prices or visit
  a few competitors is core to current consumer
  shopping behavior
• Time and money-savings drive consumer interest in
  Onsite Comparative Pricing
• The convenience of having the comparative pricing
  information on the product page is powerful
• Expectations for most consumers is that all
  retailers of commodity products would
  incorporate this kind of tool into their shopping
  experience
• Merchant credibility and loyalty grows with
  Onsite Comparative Pricing usage
• Shoppers are more likely to return to a retailer
  that shows competitors prices on their website
• Consumers find competitive prices on a retailer's
  site to be credible and no longer feel compelled
  to comparison shop elsewhere

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Consumers are conditioned to check Google,
Amazon, and top competitors before choosing a
retailer
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36 of online shoppers spend more than½ hour
comparison shoppingto find the best price on
commodity items65 spend 16 minutes
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95 of those shopping for commodities online
typically visit at least two websites before
finalizing a purchase51 check out at least 4 or
more sites
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TCO and product price are the two most important
influencersfor online purchase decisions
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63 rate comparing competitive prices without
leavinga retailers website 8 out of 10 on the
consumer value scale 1 in 3 shoppers give this
capability a 10 Very Valuable
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Convenience, confidence, and money/time-savingsar
e core to the consumer value propositionfor
on-site competitive price comparison tools
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Shoppers positively perceive a retailer that
shows competitors prices on their website - as
convenience, complete information, and time
savings are important to their online experience
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Over ½ would be less compelled to comparison shop
elsewhere if they could access competitors
pricingfrom a retailers site
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Even when competitive prices shown are lower,
39 further trust and are motivated to buy from
that retailer again4 in 10 shoppers would weigh
other intrinsic elements beyond price
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Factoring variables beyond price into their final
decision,84 would check out other sitesand
then consider returning to the original
retailerJust 9 would abandon a site that showed
lower competitive prices
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52 would find competitive pricingon an
individual site credible41 remained neutral and
only 7 doubt credibility
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78 would be more likely to return to a retailer
that shows competitors prices on their
website36 are much more likely to be loyal to
that retailer
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58 would expect all retailers of commodity
productsto incorporate this kind of competitive
comparison tool into their shopping experience
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  The findings speak for themselves - consumer
inclination is to compare products and prices in
hopes of finding the right item at the right
price. The Webs valued role, as a time and
money-saving tool, can now be extended even
further with WinBuyers Onsite Comparative
Pricing (OCP). Such comparison capabilities are
ripe for many retailers that areembracing
consumer demands for comprehensive informationin
support of a confident buying decision.
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The Evolution of Comparison Shopping Merchant
Showcase
The following showcase will help visualize the
continuum of options for comparison shopping.
Examples range from portal-based comparison
shopping engines to both build and buy models,
plus their corresponding onsite locations as
shown via product page execution.
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Customers Want to Pay the Right Price

• Customers have haggled in marketplaces since
  the beginning of time
• The Internet put price comparison in the hands
  of the consumers with
• the click of a mouse
• Initially consumers embraced comparison
  shopping engines (CSEs)
• The barrier to entry has shifted once again as
  a result of Google now
• offering comparison functionality through
  Google Products where
• merchants send product feeds making it more
  difficult for CSEs to compete
• in todays comparison climate and cost per
  clicks are higher for them as well
• Industry leaders including Amazon and Buy.com
  are providing this customer
• convenience on their product pages
• Technology solutions companies like WinBuyer
  are enabling Onsite
• Comparative Pricing (OCP) so that other
  e-commerce sites to also
• experience the benefits through their own
  proprietary technology engine
• offering a cost-effective alternative to
  building ones own solution

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Shopping.com Digital Camera Comparison and Sort
ResultsShoppers utilize a comparison shopping
engine (CSE) to find product offsite, taking
advantage of filtering and sort functionality
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Buy.com Viewsonic Monitor Product PageShoppers
can immediately compare prices of any given
product at a series of competitors directly from
the product page.
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GameQuestDirect Spiderman Video Product
PageShoppers can immediately compare prices of
any given product at a series of competitors
directly from the product page.
Of note, although in the example shown the
comparative pricing was all lower than
GameQuests featured price, this merchant gained
customer trust and experienced a lift in sales
from shoppers who appreciated seeing the options
yet preferred to shop here.
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Boatersworld.com Garmin Product PageWhen
product is out of stock or a search returns null
results, retailer suggests merchants with
availability - providing a service to shoppers
and in return the sending merchant receives an
affiliate fee.
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Q/A to Size Up Comparison Shopping Needs

• Do you compete mainly on price or do you have
  other values that are important to the customer
  such as brand, service, and warranty that
  customers evaluate when comparing your site to
  others?
• Are the products you sell frequently price
  shopped by consumers?
• Do you have significant competitors for the
  products that you sell?
• Do your customers research your
  products/categories prior to making purchase
  decisions?
• Would your customers benefit from seeing
  competitor pricing on your website?
• Are you looking to avoid customers leaving your
  site because theyre hunting around for better
  prices?
• Are your customers abandoning your site because
  you dont offer Onsite Comparative Pricing?

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WinBuyer OCP ApplicationInspire Confidence,
Drive Sales

• Boosts conversion rates and cart size
• Extends length of visits on your product pages
• Maximizes brand influence with price
  discriminating shoppers
• Monetizes unconverted traffic through referral
  revenues

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WinBuyer OCP ApplicationIncrease Revenue Lift,
Conversion and Average Order Size

• Merchants impact study
• A/B test
• Multiple customers stores
• Range of categories
• Full pricing transparency
• Study reveals
• Evidence for correlation between product coverage
  and revenue, average order size as well as
  conversion.
• Full openness of pricing generates lift

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Winbuyer OCP Application

• Comprehensive product coverage
• Sophisticated yield optimization technology
• Highly accurate matching technology
• Very quick easy integration
• Customizable to fit the merchant needs
• Revenue model with no-out-of-pocket
  costs for basic implementation.

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Over 200 Retailers are Reaping the
Benefits www.winbuyercorp.com
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Q A
Eyal Keren VP Marketing WinBuyer
Inc. eyal_at_winbuyer.com (408)-849-4763 www.winbuy
ercorp.com
Lauren Freedman President the e-tailing
group LF_at_e-tailing.com (773)-975-7280 www.e-tail
ing.com
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