Internet provides 'perfect' product and price information

We all know you can get a good deal on goods and services on the internet. But information available online appears to be changing the way consumers are researching their purchases – and has implications for ‘bricks and mortar’ retailers.

“Car makers in the US find that eight out of ten buyers have used the internet to research not just the exact vehicle they want, but also the price they are going to pay. The situation with consumer electronics is similar. Nowadays, if someone wants to work out which flat-screen TV to buy, they start their research online, even though the majority will not complete the transaction there.”

That’s according to Paul Markillie, marketing editor of The Economist’s writing in the Intelligent Life magazine (Summer 2005 – p33).
America’s Online Publishers Association says that research indicates more than 90% of people aged 18-54 say they would turn to the internet first for product information. And in Europe the latest research indicates the growth in internet use - with the Internet and less time with so-called "traditional" media like TV, radio, magazines or newspapers. The research published on OPA Europe, asked consumers about their media consumption habits over the past year, 61 percent of the respondents said they spend more time on the Internet today than a year ago, with 32 percent saying they spend "much more time," and 29 percent claiming to spend "somewhat more time" online.
So where are people going for their online information? There are commercially run shopping comparison sites search engines provided by Google, Yahoo! maor MSN.
There are also sites where consumers find out information on products and services from each other – www.moneysavingexpert.com is one of the largest in the UK – the bulletin boards are full of tips and reviews, all generated by the users of the site.
And there is other consumer generated media – campaigning sites, and blogs where people proffer their opinions on goods and services.
The internet is moving the world closer to perfect product and price information. When armed with such information it makes consumer more confident and bold enough to walk into a car dealership and refuse to haggle. But as to which information has greater influence, and what consumers believe in what they read appears to have been researched little.

Matt

Comments

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Ban on women driving should be considered world wide... :-) I would never allow my wife driving my car.. :-)