Price-Insensitive Consumers Spend More Online Than Average Shopper
Price-insensitive consumers represent less than one-third of online shoppers but spend disproportionately more than the average online shopper, according to a recent Forrester Research report, “Online Shopping Habits of the Price Insensitive.”
Convenience-driven consumers — those who valued convenience over price — make up about 31 percent of all online shoppers and represent nearly 35 percent of all online spending, about $60 billion in 2005, Forrester found. Luxury shoppers, who account for two percent of all online buyers, represent nearly seven percent of online retail sales — about $12 billion in 2005.
Both types of price-insensitive consumers — convenience-driven and luxury shoppers — were not materially different in age or gender from the average online shopper, according to Forrester. However, they did have higher median net worth — $58,690 for convenience users and $193,613 for luxury shoppers — than general online shoppers’ $47,779. Their average annual online spend also was higher — $1,320 and $3,188, respectively — compared to the $1,113 for general online shoppers.
Forrester also found that while price-sensitive consumers spend more, they don’t favor one type of store over another, spreading their wealth from online store to malls to shopping channels. They also are more likely to purchase both online and offline than the average online shopper.
Source: Internet Retailer
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