Tag Archives: insight

The Most Wonderful Time of the Year? Black Friday Shopping Is Near

The day after Thanksgiving first became popular among shoppers in the late 1920s, when Macy’s department store advertised holiday sales during their annual Thanksgiving Day parade in New York City. This signaled the start of the holiday shopping season in the United States. Since then, it has evolved into huge sales in retailers across the country. It is an opportunity for retailers to create a sense of urgency by offering ridiculously low prices on certain items, offer special sales for limited hours during the day, or limiting the number of items available for purchase at the special price. Due to the high demand for hot “doorbuster” items, it is not uncommon for shoppers to camp out in front of their favorite stores in hopes of grabbing the coveted items.

Retailers capitalized on the increased popularity of online shopping and started marketing “Cyber Monday” deals. Cyber Monday has only been around since 2005, and legend has it, got its name because the average consumer had dial-up internet at home, and would wait to do their online shopping at work, where the internet connection was faster. While the deals on Cyber Monday might not be quite as good as those of Black Friday, more and more shoppers are taking advantage of the opportunity to stay in the comfort of their home the day after Thanksgiving. Last year, Cyber Monday surpassed Black Friday in terms of revenue—Cyber Monday sales reached $3.45 billion, up 10.2% from 2015, and just ahead of Black Friday’s $3.34 billion. This year, mobile sales are expected to make up 54% (45% smartphones and 9% tablets) of online sales, beating desktop for the first time.

Small Business Saturday, a recent addition to the holiday weekend line-up, was founded in 2010 by American Express in an attempt to support small businesses and communities around the country. While it has not yet grown into a mega success like Cyber Monday, 2.1 million small businesses and 112 million consumers participated in the event in 2016.

QuestionPro Audience conducted a study with its shopper panel to understand how consumers plan to shop over Thanksgiving weekend. Our research indicates that shoppers are looking forward to a vigorous holiday shopping season. Black Friday spending is always a good gauge on the state of the economy, and 37% of survey respondents indicated that they plan to spend between $250 and $750 this year on their Black Friday shopping. A whopping 61% are going to spend the same amount or more than they did last year, but only 19% of those surveyed plan to pay for their purchases with cash. As evidenced by recent Kmart and Sears store closings, e-commerce is taking away market share from brick and mortar stores. Online sites such as Amazon are where the majority of our respondents plan to shop. Although there have been predictions that mobile sales will be huge this year, only 11% of respondents plan to shop via mobile phone or tablet. 21% of those surveyed are looking to purchase clothing/apparel, followed by computers, TVs and cameras. Cyber Monday popularity is still going strong, with 47% of our audience planning to shop those sales as well, but only 32% plan to support Small Business Saturday. All in all, it looks like it will be a prosperous weekend for consumers and retailers alike.

 

iPhone X – Are Consumers Willing to Pay?

Unless you’ve been living under a rock for the past decade, you’ve heard of, used, and/or own an Apple product. When Apple first debuted the iPhone in 2007, it revolutionized smartphones and changed the industry. The touchscreen was unlike anything else on the market, and with a price of $399, took some getting used to for the average consumer. However, over the past ten years, we have become accustomed to and grown to expect a higher price point for the sort of innovation Apple produces. There are now more than 700 million iPhones currently in use worldwide, and that number is expected to grow 13% over the next year.

On November 3rd, their most anticipated product was released, the iPhone X. iPhone release day has become something of a national holiday for Apple fans, and the iPhone X release was no different. In cities all over the world, eager customers camped out in hopes of purchasing the $999 phone. According to Apple’s website, the phones were sold out in Apple stores by day end in New York, Boston, Chicago, Denver, Houston, Dallas, Minneapolis, Milwaukee, San Antonio, Austin, Los Angeles, Phoenix, Philadelphia, San Diego, San Francisco, Salt Lake City, Washington, DC, Las Vegas, Charlotte and Raleigh, North Carolina.

Apple has earned a reputation as an industry innovator, and the iPhone X doesn’t disappoint. The iPhone X has facial recognition so you can bypass the fingerprint entry. Also, the home button has been removed, allowing for the high-resolution screen to cover almost all of the device, and Apple promises an additional two hours of battery life. Now for what all the cool kids are already talking about: Animojis. You can create animated emoji animals that mirror more than 50 different muscle movements of your face.

These features sound very cool, but we wanted to know—does any of that really matter to the average consumer when they are deciding which new phone to buy? We polled over 300 people across the United States to see if features such as the newest technology and brand name outweigh a steep price tag to the average mobile phone consumer. We found that an overwhelming 80% of respondents are most interested in a moderate price point. The newest technology is a selling point for 50% of our respondents, but only 29% feel features such as a megapixel camera are extremely important. 24% are interested in the brand name, and 84% of our audience is looking for a phone with a long battery life.

Apple has assembled a cult of followers, and they are always eager to purchase the newest model. Reception across the board for the iPhone X has been mostly positive, with many users saying this changes what we’ll look for in a phone from now on. Every few years, Apple has come up with a new product that turns the market upside down, and it sounds like the Apple X is no different. But if you’re not interested in the newest technology and features, there are many other great, conservatively-priced options on the market.