by John B. Horrigan, Associate Director, Pew Internet & American Life Project

A new study by the Pew Internet & American Life Project finds that the online mall helps people sort through product choices, but it is not the only method they use to assess products and not a place where people often close the deal. The internet is a valuable research tool for online shoppers and at times provides information that is critically important in purchase decisions. Yet, more often than not, purchases are consummated offline and post-purchase online commentary is only a small part of a typical shopper’s activities.

The study tracks the decision-making processes for three types of purchases: buying music, purchasing a cell phone, and buying or renting a home. It finds that online Americans use different search and purchase strategies for these different goods. In general:

• The internet helps music buyers connect with artists and learn more about music, but it doesn’t strongly influence what or how they buy
• The internet is an influential source of information and options for those purchasing feature-rich items such as cell phones
• The internet is an efficiency-enhancer in searching for new housing
• Few internet users bother to rate or comment on their purchase, even for a digital good such as music

Additionally, the internet is generally not the source people are most likely to use in the pre-purchase information gathering for these three products.

Among music buyers:

• 83% find out about music from the radio, TV, or in a movie;
• 64% find out about music from family, friends, or co-workers.

For cell phone purchasers:

• 59% ask an expert of salesperson for advice;
• 46% go to one or more cell phone stores.

For people looking for a place to live:

• 49% look at ads in the newspaper;
• 47% ask a real estate agent for advice.

In this report, respondents were asked whether they had bought any of the three goods listed above in the past year, and then directed to one of three question modules that probed their decision-making process. This enables analysis of consumer choice for the three products along four dimensions:

• Search: How much people rely on the internet in product research and to what extent online information smoothes the path to a purchase decision.
• Influence: Where the internet’s influence is great (or not) in consumer’s decisions.
• Participation: Whether internet users get involved in online chatter or take other steps after purchase to engage with what they bought.
• Disintermediation: Whether the internet serves as a way to go around traditional means (e.g., going to retail stores) to buy products.

Even though many buyers use the internet in product research, relatively few say online information had a major impact on the product choice they eventually made. Only 7% of music buyers, 10% of cell phone buyers, and 11% of those who bought or rented a home in the prior year say that online information had a major impact on their decision.

Among online Americans who use the internet for product research, online resources make shopping more efficient by helping them explore options and compare features. And while sizable numbers say it helps them get better deals, few execute the purchase online.

For music buyers who used the internet to find out about music:

• 68% said it helped them learn more about bands or artists they were interested in.
• 42% said online information helped them save money in buying music.
• 37% said it led them to buy more music than they otherwise would have.

Nonetheless, just 22% of all music buyers say their most recent purchase was online (either a digital download or ordering a compact disc), while 74% said their most recent purchase was at a store. Among smaller set of music buyers using the internet to find out about music, one-third (33%) said their most recent purchase was online.

Among cell phone buyers who used the internet for product research:

• 48% said it changed the model or brand of the cell phone they bought.
• 43% said online information led them to get a phone with more features than they otherwise would have.
• 41% said online information helped them spend less on their phone.

Just 12% of all cell buyers say they bought their cell phone online; among the smaller set of music buyers using the internet to find out about music, 26% said they purchased it online.

Among those who bought or rented a home in the prior year:

• 57% say it reduced the number of places they looked at.
• 54% say they took a video tour of the house, apartment, or neighborhood in which were interested.
• 29% say they thought online information helped them save money on the house they bought or apartment they rented.

Read the full report at pewresearch.org/pewresearch-org/internet