In this research study, we explored today’s omni-channel path-to-purchase. Across 11 different retail categories, we asked consumers how they research and identify the best deals. Our research revealed: • exactly how short the path-to-purchase is today • the best offers that disrupt the omni-channel • how to create a sense of urgency that triggers more sales • product propensity to be purchased in the omni-channel • preferred omni-channel research resources by product

1. PLUS
11 category-specific insights
best offers to disrupt
the omni-channel
how to fight showrooming
need for speeddisrupting the omni-channel

2. ALSO INSIDE
methodology6
categories and products 8
smartphones = showrooming 12
product research 14
by the numbers 18
NEED FOR SPEED
PAGE 4
A NEW ERA IN RETAIL
dynamic-price strategies
that preserve margins
PAGE 10
KEY FINDINGS
always-connected devices
change shopper behavior
PAGE 16
ONLINE V. IN-STORE
See the parago
omni-channel index™
scores
With consumers embracing the omni-channel,
the path to purchase is accelerating.
Today’s retailers need faster ways to compete for
customers who are making decisions in shorter
timeframes. The key to closing more sales as
deal-seeking speeds up? Limited-time dynamic
discounts that create a sense of urgency.
disrupting the omni-channel | 3

3. the need for speed in retail
Rodney Mason
CMO
rodney.mason@parago.com
972.538.7336
twitter.com/rodmoose
INTRODUCTION
“Retailers have a lot to contend with in this new era of shopping:
highly competitive prices from e-tailers like Amazon, rising
smartphone adoption, the showrooming boom and incredibly
price-sensitive consumers. For retailers to thrive, they need to
disruptthepath-to-purchase with a dynamic, real-time pricing
model. Not just online, but in brick-and-mortar stores, too.”
— Rodney Mason
parago CMO
IN EVERY MAJOR CATEGORY, consumers are using multiple devices
to research and shop faster than ever. Price sensitivity continues to be
at an all-time high, which is driving the desire to find the best deals. The
path to purchase has accelerated, both online and in-store.
This new parago omni-channel study reveals that price, features and
availability are the most important factors in purchasing decisions for
products and services.Brand is still a consideration,but a limited one for
most income groups. Now, a new factor is coming into play: the need for
speed to close more sales.
the path-to-purchase
is shorter than ever
Online comparison-shopping is condensing the path-to-purchase.
Across 11 different retail categories, the average purchase time is less
than 2.25 days. Today’s consumers know they can research quickly to
identify the best deals.This very narrow window of opportunity requires
fast, nimble promotional strategies.
disrupt the path and sell more
Dynamic pricing — the ability to remain competitive with real-time,
best-in-marketprices—isquicklybecominganecessity.Butmaintaining
healthymarginsisstillamust,too.Theanswer?Dynamic-price™
rebates
that can create urgency with limited-time deep discounts.
To get additional detailed findings and key insights for your industry,
contact me.
Good selling!
Rodney Mason
disrupting the omni-channel | 54 | need for speed

4. To identify emerging omni-channel path-to-purchase shopping trends, we conducted this
research during the 2013 peak holiday shopping season through an original online survey.
METHODOLOGY
REGION
EDUCATION
less than high school 3%
high school diploma 20%
some college 28%
vocational/technical degree 5%
college graduate 29%
graduate school 15%
EMPLOYMENT
employed full time 40%
employed part time 12%
unemployed 9%
homemaker 9%
student 7%
retired 18%
disabled,not able to work 5%
INCOME
≤$19,999 16%
$20,000 to $49,999 30%
$50,000 to $99,999 25%
$100,000 to $199,999 20%
≥$200,000 3%
prefer to not disclose 6%
AGE
18–29 21%
30-48 34%
49–67 35%
67+ 10%
GENDER OWN VS. RENT
MARITAL STATUS
widowed/divorced/separated
10%
in a relationship
or living with partner
13%
never married
24%
married
50%
Pacific 12%
Mountain 7%
West North Central 8%
West South Central 9%
East North Central 17%
East South Central 6%
New England 5%
Middle Atlantic 19%
South Atlantic 18%
Over 1,900 people
who represent the US
consumer population
responded to this survey.
51% 66%49% 34%
6 | need for speed disrupting the omni-channel | 7

5. CATEGORIES
auto parts
clothing
electronics
furniture
groceries
home improvement/
building supplies
office supplies
pet products
sporting goods
subscription services
(broadband, cable, utilities)
toys
CATEGORIES PRODUCTS
Our extensive study includes 11 retail categories and 16 specific product groups with
an overview of today’s omni-channel shopping trends.
The parago
omni-channelindex™
scores identify product-
specific propensity for
purchase in the omni-
channel.See page 16 for
scores by product.
lawn garden supplies
dog food
printer paper
stand mixers
televisions
tires
video games
washing machines
athletic shoes
beer
Blu-ray DVDs
cable packages
car batteries
cosmetics/
personal care
jeans
laundry detergent
PRODUCTS
8 | need for speed disrupting the omni-channel | 9

6. PRICE-SENSITIVITY = DEAL SEEKING
a new era in retailing: the path to purchase can now be interrupted at any time
of shoppers
reported being
more sensitive
to price
65% 4outof518- to 48-year-olds
own smartphones
88%of consumers
look for
deals, rebates
and best
prices before
shopping
95%of people
shop on their
computers
99%of people with
$50,000+
incomes shop
on computers
2of5people shop on
their tablets
average
time-to-purchase
in 11 retail
categories is
≤2.25DAYS
10 | need for speed disrupting the omni-channel | 11

7. SMARTPHONES = BUY ONLINE IN-STORE
HIGHEST IN-STORE SMARTPHONE PURCHASES
ages 18–29 45%
ages 30–48 40%
all adults 29%
income
$50,000–$99,999 32%
income
$100,000–$199,999 39%
income
$200,000+ 46%
70%ofshoppersbetween18-and
48-years-oldactivelyshowroom
ages 18–29 73%
ages 30–48 60%
all adults 48%
income
$100,000–$199,999 64%
income
$200,000+ 63%
HIGHEST SHOWROOMING ACTIVITY
HIGHEST SMARTPHONE OWNERSHIP
ages 18–29 85%
ages 30–48 74%
all adults 62%
income
$50,000–$99,999 63%
income
$100,000+ 75%
12 | need for speed disrupting the omni-channel | 13

8. PRODUCT RESEARCH
DIGITAL RULES
Google, Amazon and retail
websites beat all other
sources for finding deals
92%94%97%
look for deals,
rebates
best advertised prices
review circulars
and
print ads
check online
for
best prices
before shopping, people research a lot
Most shoppers’ research is
completed within two days with
two retailers in consideration.
14 | need for speed disrupting the omni-channel | 15

9. PRODUCT would consider purchase in omni-channel v. in-store
TV 72%
stand mixer 72%
DVD Blu-Ray Ultra Violet 69%
video game 64%
washing machine 59%
printer paper (case) 57%
athletic shoes 52%
jeans 49%
cosmetics/personal care 41%
lawn garden supplies 39%
tires 38%
car battery 37%
laundry detergent (100 oz.) 29%
dog food 27%
beer (case) 15%
triple-play cable package* 100%
OMNI-CHANNEL INDEX™
OMNI-CHANNEL TRUMPS IN-STORE
propensity to buy in the omni-channel v. in-store
*would consider purchase in omni-channel v. provider phone bank
CATEGORY
Google
in-storedisplays
retailwebsites
Amazon
newspaper/magazine
TV
socialmedia
mobileapps
auto parts 1 2 3 5 4 6 7 8
electronics 1 4 3 2 5 7 6 8
furniture/housewares 1 3 4 2 5 6
(tie)
6
(tie)
6
(tie)
office supplies 1 4 3 2 5 6
(tie)
6
(tie)
7
sporting goods 1 3 2 4 5 6
(tie)
7 6
(tie)
toys 1 4 3 2 5 6 7
(tie)
7
(tie)
groceries 4 1 3 5 2 6
(tie)
7 6
(tie)
home improvement/building supplies 2 1 3 4 5 6 7
(tie)
7
(tie)
pet supplies 2 1 3 5 4 6 7 8
clothing 3 2 1 4 5 6
(tie)
6
(tie)
6
(tie)
subscription services 2 3 1 5 4 7
(tie)
6 7
(tie)
preferred omni-channel comparison sources
16 | need for speed disrupting the omni-channel | 17

10. BY THE NUMBERS
Most shoppers’ research is completed within two days with two retailers in consideration.
We asked what type of limited-time offer would disrupt shoppers’ paths-to-purchase and cause them to
act immediately. Time-sensitive dynamic-price™
rebates were more effective than instant discounts in 11
different retail categories. Time sensitivity was included to determine propensity to buy now.
PRODUCT days to buy stores/website visited
athletic shoes 1-2 69% 1-2 54%
beer (case) 1-2 82% 1-2 86%
car battery 1-2 79% 1-2 66%
cosmetics/personal care 1-2 82% 1-2 74%
dog food 1-2 87% 1-2 80%
DVD Blu-Ray Ultra Violet 1-2 70% 1-2 55%
jeans 1-2 76% 1-2 62%
laundry detergent (100 oz.) 1-2 88% 1-2 81%
lawn garden supplies 1-2 73% 1-2 65%
printer paper (case) 1-2 82% 1-2 69%
stand mixer 3-6 77% 3-4 80%
tires 1-2 68% 1-2 57%
triple-play cable package 3-6 75% 1-2 50%
TV 3-6 68% 3-4 77%
video game 1-2 73% 1-2 61%
washing machine 3-6 66% 3-4 67%
PRODUCT rebate instant neither
athletic shoes 43% 21% 35%
beer (case) 43% 22% 36%
car battery 49% 20% 31%
cosmetics/personal care 48% 22% 31%
dog food 44% 20% 36%
DVD Blu-Ray Ultra Violet 39% 21% 40%
jeans 46% 20% 34%
laundry detergent (100 oz.) 47% 24% 30%
lawn garden supplies 48% 18% 34%
printer paper (case) 46% 20% 34%
stand mixer 39% 21% 40%
tires 43% 22% 35%
triple-play cable package 41% 24% 36%
TV 35% 24% 42%
video game 44% 24% 31%
washing machine 47% 19% 34%
A portion of savings realized by retailer was included in rebate value to provide best offer.
LIMITED-TIME REBATES = BEST DISRUPTION
18 | need for speed disrupting the omni-channel | 19

11. We are the world’s most comprehensive, single-source provider of incentives and engagement.
Many of the largest brands in the world consider parago a trusted partner. We offer:
consumer rebates
promotions
prepaid rewards
incentives
sales channel
management
energy rebates
incentives
we create engaging solutions
that inspire action impact results
© 2014 Parago, Inc. All rights reserved.
IN DEPTH: To view a complete category or product path-to-
purchase — including media,purchase place,and other preferences
— schedule a brief meeting with us. We will walk you though
additional detailed findings and provide key industry opportunities.
RodneyMason
CMO
rodney.mason@parago.com
972.538.7336
twitter.com/rodmoose