Consumer credit icon GE Capital Retail Bank (GECRB) has released its second annual Major Purchase Shopper Study. The results are promising for music retailers that sell online, and they give hope to those with brick-and-mortar stores. The study shows a growing number of consumers extensively research and compare prices and financing offers online before making major purchases.
More than 3,200 consumers who had recently made purchases of $500 or more were surveyed and interviewed by Rothstein Tauber, a marketing research company based in Stamford CT. Purchased items came from 12 product verticals, including appliances, electronics, flooring, home furnishings and bedding, home improvements, jewelry, eyewear, power sports products, and lawn and garden equipment. Additionally, more than 2,200 of the participating consumers were GECRB account holders, and one-third of respondents were random shoppers.
According to the study, 81 percent of consumers spend time researching their purchases online before heading out to a store. This number is up 20 percent from last year. Consumers spend an average of 79 days gathering information before making a major purchase (more than $500). Additionally, signs that consumers are becoming more willing to make larger purchases are validated by the findings that 41 percent of random major-purchase shoppers say they are more open to making a large purchase than they were a year ago.
Another interesting finding from the survey states the following: “The propensity for using the credit program again was also high, with 79 percent of cardholders stating they are likely to use their card again. So, cultivating loyalty and high customer satisfaction can lead to reuse, referrals and favorable reviews.” As the economy continues on its recovery, this is especially good news for high-ticket music product purchases. Consumers are using credit to make major purchases, and many reuse this tool to make follow-up purchases.
“We took a deeper look at how consumers use digital tools to approach a major purchase, including the role of mobile devices and preferred…