The effects of retail disruption have transformed the cost of products, culture of stores, customer and channels of distribution. Just check out our experiential tag ShopTillWeDisrupt to see the breakdown of how each of these 4 C’s have transformed from the past to present. You can also see the implementation of retail disruption today by checking out our findings tag RetailDisruption.
After exploring the research the Retail Team has collected, we challenge you to take the Total Retail Shopping Quiz created by PWC. PWC asked “over 19,000 online shoppers from 19 different territories about their purchasing preferences, use of different shopping channels and expectations of retailers”. This quiz amplifies our research findings by introducing the global impact of retail disruption to create awareness on new shopping behaviors around the world. Go ahead and quiz yourself by taking the PWC Total Retail Shopping Quiz before continuing to read.
Just as all members of the Retail Team did, you probably got at least one if not more questions wrong. However, you still have a chance at being a retail disruption guru by reading the explanations for each correct answer. We have researched each answer in order to provide you with an explanation, so that you can be prepared for the quiz of retail disruption that’s approaching with a quicker deadline and shorter time constraint than any other quiz.
Note: The questions and answers listed below are all provided by the PWC Total Retail Shopping Quiz. Any and all explanations are provided based on citations which are hyperlinked under Resources.
- Question: The country which shoppers are most likely to have purchased items directly using social media
Explanation: Chile statistically has proven to be the number one country for social media activity surpassing the United States.
However, it important to determine what platforms Chilean shoppers are using, what products are they buying, and why they prefer online opposed to the store experience. Chilean shoppers are using the following platforms listed in order of popularity based on most popular to least popular: Facebook, Twitter, Tumblr, Pinterest, Reddit, StumbleUpon, GooglePlus, LinkedIn, YouTube, VKontakte, Digg or Other. Chilean shoppers also use sites such as Lan.com, Falabella and Mercado Libre to make three major purchases online, electronics, tickets to events and plane tickets. A few reasons why shoppers, including but not limited to Chilean shoppers, use social media for shopping are: price comparison, finding ideas, researching gifts, seeking deals, sharing purchases, finding recommendations, and getting validation of purchases from peers.
Resources: Graphics, Information on popular social media, Information on major purchases, Information on shoppers using social media
- Question: The number one reason shoppers don’t use their mobile, smartphone, tablet or PC for shopping
Answer: Small screen size
Explanation: Shoppers have started to integrate almost everything on to devices, including mobile baking. However, consumers still seem resistant to make purchases straight from their devices. Below is a graphic highlighting the main reasons why consumers have this resistance. However, from the quality of the image it might be difficult to read. This is a coincidental example of why consumers do not make purchases from their devices, images are never large enough, clear enough and of sufficient quality to guarantee a purchase.
A few ways companies can overcome a shopper not being able to determine the quality of a product from his or her device is to adjust: size, zoom functionality, alignment and margins, shadows, backgrounds and more.
Resources: Information and graphic on why consumers do not use their devices to shop
- Question: The first step shoppers taken when researching a purchase
Answer: Go to a search engine
Explanation: Instead of visiting a physical store, visiting a companies website or reading reviews for a product on social media, a shoppers first step is to go a search engine. Shoppers go straight to the search engine to read product reviews before making a purchase, sales, warranty information, shipping information, availability, payment information, model information, and more. The top shopping search engines are: Google Shopping, Shopzilla, PriceGrabber, Amazon Product Ads, eBay Commerce Network, Become, Nextag, Pronto, and more.
Resources: Information on why shoppers use search engines, Information on top shopping search engines
- Question: The in-store technology that would make a shopping experience even better
Answer: Ability to use your mobile phone to pay
Explanation: Mobile payment options like Apple Pay, Samsung Pay, and Android Pay have been available for shoppers to make purchases. However, these mobile payment applications like LoopPay, Venmo, Square Cash, Google Wallet, Tilt, Dwolla, LevelUp and more, have not been entirely successful. Some of the risks associated to each application that may be causing its downfall are fear of fraud, the fear of the unknown, the fear of doing something wrong, and the fear of identity theft.
Resources: Information on mobile payment applications, Information on mobile payment fears
- Question: The percentage of shoppers that said it did not matter to them whether they purchased items from a retailer or a product manufacturer
Explanation: The explanation for this question determines why shoppers do not have a major preference from purchased items from a retailer versus purchase items from a product manager. Perhaps their is not a preference because pricing is the same, thus there is no incentive for a shopper to chose the retailer over a product manufacturer or vice versa.
- Question: The category of products that shoppers make the most purchases online for in the last 12 months
Answer: Books, music and video games
Explanation: The explanation to why shoppers purchase books, music and video games more than groceries, clothing and toys, is pricing differences from purchasing online then a store. Also, shoppers like how websites can make recommendations or suggestions for their next good read, favorite playlist or new video game. This makes the shopping experience easier.
- Question: The preferred payment method for 18-24 year olds
Answer: Debit card
Explanation: The reason why shoppers (not only 18-24 year olds) prefer to use debit cards as opposed to cash, credit cards and mobile phone pay is the debit cards association to electronic cash. Cash can be removed from a checking account instantaneously. This adds to the 18-24 year old demand for simplicity and efficiency.
Resources: Information on why shoppers prefer debit cars
Now that you have all the explanations to pass the retail disruption quiz, we encourage you to think about a major shopping holiday that’s fast approaching. It has been called Black Friday for years, but retail disruption has given it a new name. So we want to ask you is it, Black Friday or Cyber Friday?