Presentation on online shopping

1. Presentation on online shopping Date:December, 2008 Prepared for: D-Link Magyarország Kft. Client Service Team: Imre Kiss, Senior Research Executive Project number: 60104199

2. Methodology

3. Methodology What? Online shopping questionnaire provided by D-Link Where? Among internet users Who? Total sample size: N= 500 Representative for internet users amond the 14-69 age-group, by TGI data How? CAWI (Computer Aided Web Interview) When? December 2008

4. Definitions of phrases used • Active workers: • Owners of enterprise • State employees, public servants, civil servants • Employees at a private company • Inactive: • Students • Housewives • People who do not work temporarily (being on maternity leave, unemployed) • Pensioners • Other inactives • Lower education: • Less than elementary school • Elementary school • Unfinished vocational school • Finished vocational school • Unfinished technical school • Unfinished grammar school • Middle education: • Finished technical school • Finished grammar school • Vocational training after grammar school • Advanced level course after grammar school • Higher education: • Unfinished college • College degree • Unfinished university • University degree • University degree + academic level

5. Definitions of phrases used • Central Hungary: • Budapest • Pest County • Eastern Hungary: • North Hungary (Borsod-Abaúj County, Heves County, Nógrád Count • North Lowland (Hajdú-Bihar County, Szabolcs-Szatmár County, Szolnok County) • South Lowland (Csongrád County, Békés County, Bács-Kiskun County • Western Hungary: • West - Transdanubium (Győr-Sopron County, Vas County, Zala County) • North - Transdanubium (Veszprém County, Komárom County, Fejér County) • South-Transdanubium (Baranya County, Somogy County, Tolna County) Active workers: 56% Inactives: 24% Callouts show significant differences in-between the demographic segments.

6. Results

7. Vast majority of the interviewed internet users has purchased something via internet in the last year. There are significantly more internet users who purchased online within the following groups: people live in Central Hungary, especially in Budapest; people with higher education; between 25-34 years; and men. These overrepresented groups are in line with the expectations. (Q1) Purchased online Base: 500 157 228 134 108 250 Q1. Have you made online shopping during last year??

8. The main reason for shopping online are the lower prices and the fact that one doesn’t need to go outside (during the hectic Christmas period it may be even more relevant). These advantages may be useful to be communicated. (Q2) Reason for purchase online Male: 65% Male: 36% Active workers: 30% Central-Hungary: 29% 25-34: 26% Budapest: 30% Base: 355 Q2. Why you do online shopping?

9. There are two main groups of the barriers that may limit the potential of online shopping. One can not be solved so easily: it is about the lack of real-life interaction between consumer and seller: - can’t touch the goods; - can’t get advice. The other group of reasons is about being afraid: - loosing money; - not getting the goods in time. It can be solved with fair trade, secure transactions and with honest communication. (Q10) Reason of non-purchase Base: 145 Q10. Why you do not buy online?

10. Two thirds of the online shoppers use price comparison sites, and this ration is even higher among men. It shows that these sites are liked, and combined with the comment of other users, gives a real help before purchasing anything. (Q3) Usage of price comparison Base: 355 189 Q3. Do you use shopping comparison sites before do the online shopping?

11. Almost everyone checks the comments of other users. It is a kind of word of mouth, which is turned out to be the most reliable source of information many times. (Q4) Comment of other users Base: 355 73 44 Too low base! Q4. Do you take into consideration comments of other users before you buy a product?

12. Probably because of being afraid of paying online, and partly because of the low penetration of credit cards the most wide-spread way of payment is still by cash on delivery. Some use bank transfer, but the usage of cards and the special payment methods (internet cards and Pay-Pal) are marginal. There is still some space for development, especially in case of credit cards. (Q5) Method of payment Women: 87% Higher education: 48% 25-34: 47% Men: 51% Central Hungary: 22% Budapest: 28% Base: 355 Q5. How do you pay for online shopping?

13. Besides price, the most important factors are the reliability of shops and the guarantee terms, which indicates that people still have doubts, and want to be 100% sure that they will receive the chosen item(s). (Q6) Most important factor, besides price Active workers: 41% Central Hungary: 42% Inactive workers: 29%Lower education: 34% 14-24: 27% 25-34: 20% Base: 355 Q6. Besides price, what is the second most important factor when you order online?

14. Two third of the shoppers check the warranty terms always. 25-34 year old shoppers and men check it to a greater extent, it indicates that there is space for education among the younger segments and among women (e.g. pr-article in Joy, Cosmopolitan, Maxima may be worthful). (Q7) Warranty Base: 355 115 111 62 44 23 189 166 Too low base! Q7. Do you check the guarantee terms before purchasing online?

15. There is only a small minority who has ever faced any problem during the process of online shopping, and it is mostly related to the purchased good (most probably it was damaged, or not the ordered one). Thus fraud seems to happen less frequent as it is perceived. (Q9) Reason of negative experience (Q8) Negative experience Base: 355 216 139 Base: 69 Q8. Have you ever had a negative experience, when purchasing online?