ONLINE OR

IN-STORE?
Exploring the shift
in shopping behavior
 Grab a seat and enjoy.
Read Time: 5 minutes.

ONLINE OR IN-STORE?
Exploring the Shift in Shopping Behavior


When it comes to dictating the shopping

experience, consumers today play a larger role Retailers must
than ever before. Fail to listen them and you risk strike a blance
losing their loyalty and their business. between
convenience and
With consumer expectations on the rise, it’s crucial that retailers value.
strike a balance between convenience and value – especially
now that consumers demand both. Of course, the tools are all
there to favor shoppers. They now use multiple channels to
shop, including online shopping websites, mobile, social media
and in-store – and they dip in and out of these channels at will.
With near-limitless options, it’s imperative to understand what
is motivating their shopping behavior, and how you can stay
relevant and competitive in this consumer-driven world.
To learn more about these changing trends in online versus
in-store shopping behaviors, we conducted a survey of
1,000 US consumers. Much of our analysis focuses on three
demographics – millennials (ages 18-34), Gen Xers (ages 35-
54) and baby boomers (ages 55 and above). We also grouped
respondents into mutually exclusive categories based on their
shopping frequency:

• Frequent Both: Shops online and in-store at least once

per week. (Excludes grocery and convenience stores)
• Frequent Online: Shops online but not in-store at least
once per week.
• Frequent In-Store: Shops in-store but not online
at least once per week.
• Frequent Neither: Shops neither online nor in-store
on a weekly basis.Oracle Bronto arms high-growth retailers
with sophisticated marketing automation to maximise
revenue opportunities. The Bronto Marketing Platform

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CHANNEL PREFERENCE

24%
43%

17%

16%

Frequent Both

Frequent Online

Frequent In-Store

Frequent Neither

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 HOW US CONSUMERS
PREFER TO SHOP
The National Retail Federation predicts ecommerce will grow
8-12% every year, with online annual consumer spend predicted to
reach $632 billion by 2020. So it wasn’t a surprise when we asked
respondents about their frequent shopping behavior that many are
shopping online.

Twenty-four percent shop both online and in-store on a weekly basis,

17% prefer online and 16% prefer in-store. Forty-three percent say they
don’t frequent either channel.

Why are the same number of shoppers choosing to shop in-store as

online? Even though online shopping has never been easier, brick-and-
mortar stores offer consumers experiences they simply can’t get from a
device.

According to Retail Dive’s Consumer Survey, customers still enjoy

the tactile experience of seeing, trying or touching something before
buying it, as well as the instant satisfaction of taking items home after
purchase.
It’s also important to remember that some consumers may not have
access to the internet or credit cards. And they might live in areas
where shipping is both financially and geographically prohibitive.

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 HOW US CONSUMERS
PREFER TO SHOP

When we looked closer, we also found clear differences in

behavior based on age. Millennials tend to shop more often – 70%
are shopping in-store, online or via both channels at least once a 70% of millennials
week. They also prefer using both channels more than any other are shopping at
group, while Gen Xers are more likely to visit a store (20%) and least once a week.
baby boomers tend to favor online shopping (21%). However, the
majority of baby boomers don’t frequently shop either channel!

F R E Q U E N CY O F S H O P P I N G BY AG E
Millennials Gen Xers Baby Boomers

Both 41% 24% 12%

Online 14% 15% 21%

In-Store 15% 20% 15%

Neither 30% 40% 54%

Convenience is an important consideration for consumers, leading

many shoppers to go multichannel – moving from one to another
to research and make purchases.
For example, some prefer to do their research online yet purchase
in the store, or they may be introduced to a new product on social
media and then follow the product to the brand’s website, where
they ultimately buy it.

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OTHER FACTORS THAT AFFECT
SHOPPING BEHAVIOR
Having children under the age of 18 in the household increases
the likelihood that consumers will shop on a weekly basis – 71%
of parents say they do so compared to just 52% of those without
children.

This group is also more likely to frequent both online and in-
store. Forty percent of those with children in the home shop
both channels each week, while just 18% of those without
children do so.

THE EFFECT OF CHILDREN

O N S H O P P I N G B E H AV I O R

40% 18% 16% 17% 15% 17% 29% 48%

Both Online In-Store Neither

With Children Without Children

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 OTHER FACTORS THAT AFFECT
SHOPPING BEHAVIOR

The higher the income, the more likely one is to shop frequently
and to use both channels weekly. Sixty-five percent of those in
households earning over $100,000 shop every week, far more
65% of the top
than any other income group. earners shop on
The highest earners also tend to trade a visit to the store for a weekly basis.
an online shopping session – just 10% say they only frequent
stores and 21% frequently shop solely online. The same goes for
consumers in the second highest bracket. Fifteen percent shop in-
store weekly, while 18% prefer to go online.
The lowest income group ($25,000 and below) says they most
frequently shop in-store (20%) or not at all (54%), but 44% of those
reporting incomes between $25,000 and $49,999 also responded
they don’t frequently shop either channel.

C H A N N E L P R E F E R E N C E BY I N C O M E
$25,000 - $50,000 -
<$25,000 >$100,000
$49,999 $99,999

Both 14% 19% 28% 34%

Online 12% 16% 18% 21%

In-Store 20% 22% 15% 10%

Neither 54% 44% 39% 35%

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IT’S ALL ABOUT MOTIVATION
It’s easy to assume that many Americans shop out of need, but that’s
not always the case. While in-store and infrequent shoppers are more
likely to do so, 26% of consumers who frequently shop both channels
and 29% of those who frequently shop online say they usually shop for
fun, even if they don’t buy anything. However, need-based shopping
was the second most popular response for these groups.

NEED-BASED
SHOPPING

21% 23% 42% 54%

Frequent Both Frequent Online

Frequent In-Store Frequent Neither

With the information we shared earlier on the correlation between

income and channel preference, these numbers aren’t surprising.
Higher earners tend to shop online more often and are likely able
to be less cautious about shopping for non-essential items. In order
to reach other shoppers, though, retailers should create motivating
factors based on the perception of need surrounding the brand.
One tactic is to implement replenishment campaigns for relevant
products. Estimate the buying cycle based on a customer’s past
purchase behavior or the average lifecycle of a product, and remind
them to restock. Or offer the option of automatic restocking before
they have the chance to purchase elsewhere. You might even offer a
discount for customers who sign up for that service.

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 IT’S ALL ABOUT
MOTIVATION

We also wondered how often shoppers make a purchase on the

spot, without doing any research in advance. It’s no real surprise
that those who frequent both channels – and likely enjoy shopping
more in general – are most open to making impulse buys, with
over half (56%) reporting that they do so always or most of the
time. Frequent in-store shoppers came in second with 34%.

F R E Q U E N CY O F
I M P U L S E B U YS

Frequent Both

Frequent Online

Frequent In-Store

56% 22% 34% 27% Frequent Neither

This makes sense: Those visiting the store are more likely
converting due to the immediacy of buying in person and the
absence of an option to save and purchase later.
Impulse buying also has less to do with the product itself and
more to do with unconscious behavior. According to Psychology
Today, consumers receive a boost in mood when they shop; they
are afraid of missing out on something that has perceived value –
and, of course, they love a good deal.

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THE IMPORTANCE OF
TECHNOLOGY
Shoppers who frequently use both channels also use the most
devices – an average of 4.35 devices daily. Frequent online shoppers 62% of shoppers
use an average of 3.55 devices daily, frequent in-store shoppers
use 2.75 and those who frequent neither channel report using 2.46 who frequent
devices on a daily basis. both channels
The average number of sources shoppers rely on to discover new rely on TV to find
product information also falls along the digital divide, ranging from new products.
4.72 for shoppers who frequent both channels to 3.35 for shoppers
who frequent neither channel.
While the sources for each group vary greatly, all groups still rely on TV –
even digital natives. This may seem surprising at first, but remember that
TV includes streaming services, which are more popular than ever. Twenty-
eight percent of those surveyed used streaming services as their primary
way of watching television. And that number is only expected to rise as
more Americans of all ages cut the cord.
Sixty-two percent of shoppers who frequent both channels said they rely on
TV to find new products – second only to online shopping websites (65%).
For the other groups, television was the top source with 72% of frequent
in-store shoppers, 64% of frequent online shoppers and even 69% of
infrequent shoppers relying on it for new product information.
While television was the most popular source across the board, responses
varied quite a bit from there. Frequent in-store shoppers and infrequent
shoppers are more dependent on family referrals (46% and 47%,
respectively), while those who more frequently shop both channels refer
more to shopping websites, social media and online reviews.

S O U R C E S F O R N E W P R O D U C T I N F O R M AT I O N

62% 64% 72% 69% 65% 56% 38% 34% 59% 46% 48% 42% 55% 47% 32% 25% 50% 45% 46% 47%

Television Shopping Websites Social Media Online Reviews Family Referrals

Frequent Both Frequent Online Frequent In-Store Frequent Neither

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THE PATH TO SUCCESS
Consumer shopping behavior is changing. And with so many resources
at their disposal, it’s not difficult to see why.
Retailers who want to successfully navigate this exciting period need
to better understand the channels their customers are shopping on,
how they are using technology to shop and the factors that they can
influence to help increase conversions – all while providing the most
convenient shopping experience possible, whether that be in-store,
online or a combination of the two.
That also means turning to technology solutions that help personalize
marketing messages and intelligently engage customers, helping them
see the value in the brand and your products, all while nudging them
back on the path to purchase.

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Methodology
We partnered with Imperium and Precision Sample to conduct a 39-question
online survey in April 2017 and received 1,001 responses from US consumers
with an overall margin of error of 3.02% at a 95% confidence interval.

Oracle Bronto arms high-growth retailers with sophisticated marketing automation

to maximize revenue opportunities. The Bronto Marketing Platform powers
personalized multichannel content that generates the higher engagement needed
for retail success. Keenly focused on the commerce marketer, Bronto continues its
longstanding tradition as a leading email marketing provider to the global Internet
Retailer Top 1000 and boasts a client roster of leading brands, including Rebecca
Minkoff, Timex, Lucky Brand, Theory, Brooks Sports, Ashley Homestore and
Christopher & Banks. For more information, visit bronto.com.

bronto.com
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