This research collaboration between Carat and Microsoft sought to define consumers' shopping journeys and how different touchpoints influence purchase decisions. They analyzed data from 19,000 shoppers in 17 countries across 5 retail categories. The study identified 5 drivers that shape shopping journeys: category, culture, contacts/channels, context/need states, and consumer attitudes. It also found 3 common journey types: impulse, habitual, and research. The influence of different touchpoints varies depending on the journey type and retail category. Understanding shoppers' behaviors and attitudes through segmentation allows for a more nuanced view of purchase paths. Both online and offline channels play important roles across the different stages of shopping journeys.

1. New Shopper
Journeys
The Important New Role of Digital Media

2. This research collaboration between Carat
and Microsoft sought to define the structure
of consumers’ paths to purchase and how
different touchpoints play a role in shaping
decisions as to where and what to purchase.
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3. NEW SHOPPER JOURNEYS:
How Touchpoints Lead to Purchase
This research collaboration between Carat and The study was done in two phases by UK-based
Microsoft sought to define the structure of consumers’ Essential Research. A qualitative study composed of
paths to purchase and how different touchpoints play interviews and shopper observations was fielded in
a role in shaping decisions as to where and what to five countries in late Fall 2009. Its insights led to a
purchase. 19,000 shoppers in 17 countries were queried 17-country online survey in March 2010 which queried
on their most recent shopping occasions in four key shoppers about their last purchase occasion in each
retail categories: apparel, quick service restaurants, of the retail sectors covered. This quantitative phase
groceries and home electronics. A fifth category, Home was done just as economic recovery began to be felt
Improvement Centers, was done in the US. in some of countries we surveyed. Thus the study
uncovers new behaviors shoppers have adopted in
This study is unique in the comprehensiveness of its
reaction to tighter budgets. Further analyses reveal that
data which address these business questions:
many of these new behaviors will continue as shoppers
• What shapes people’s buying decisions?
have discovered the ease in which essential information
• How are shoppers influenced by both offline,
can be accessed through the Internet. Here is a
online and in-store media across key verticals?
summary of these enduring value-seeking behaviors
• What is the relative influence of owned, bought,
we found.
and earned media?
• What innovative forms of advertising might
shoppers be open to?
HierarcHy of SHopperS’ New BeHaviorS
Hierarchy of tactics for coping with the recession
» Discount coupons used more often
Seeking Better Value » Price more important than brand/quality
» More time looking for special promotions
» Visiting a number of retailers to find the best deal
More Advance » Reading online forums/ consumer websites
Purchase Research
» Discount stores
» More online shopping
» More online auctions
Using Different Channels
» Mobile
» Fewer visits to retailers
Reduced Volume
» Peer reviews - 1:1 and through social media
Word-of-Mouth
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4. wHat SHapeS people’S BuyiNg deciSioNS
The process that shoppers go through has forever We identified five general drivers shaping shopper
changed, becoming more complex and multifaceted. journeys, or Five C’s: the retail category, the culture of
No longer do shoppers traverse a linear path; rather the market, the contact points or channels, the context
we see a highly dynamic journey to purchase, one or need states for buying, and the consumer’s attitude
characterized by reiterations in product considerations, within the category.
i.e., a tumbler effect rather than a funnel.
Contacts
Consumer
driverS of purcHaSe
» Category » Product/Brand
Contacts
Contacts
Category Context » Culture » Country/Region
» Contacts » Touchpoints
» Context » Need states
Culture
» Consumer » Attitudes
Contacts
The study revealed three basic patterns in shoppers’ • Research: The shopper did some research
paths to purchase across all the retail sectors and prior to buying
countries we examined:
The distribution of these types of journeys varies
• Impulse: Purchase was unplanned or the shopper
by retail sector. Not surprisingly, the more involved
did not have enough time to research product or
categories like home electronics and apparel tend to
shop around before purchasing
have more research journeys while lower involvement
• Habitual: The item is one the shopper
sectors like groceries and quick service restaurants
normally buys
(QSR) invite more habitual journeys.
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5. tHe diStriButioN of SHopper jourNey type By retail Sector
14% Habitual
18% 39%
52%
66%
Impulse
40%
42% 68% Research
22%
12% 21%
6%
Grocery QSR Home Electronics Apparel
But eveN witHiN a category, tHe Specific coNtext or
Need State caN alSo iNflueNce tHe jourNey type aS
tHe followiNg taBle SHowS:
Most Common % of all Shopping Journeys
Category Need State Habitual Impulse Research
(% of all journeys)
Groceries Ran out (48%) 76% 14% 10%
Home Electronics Replacement (27%) 13% 16% 70%
Apparel Treat (38%) 37% 44% 19%
aNd tHe diStriButioN caN alSo differ acroSS couNtrieS
aS tHe data oN QSr tripS reveal Below:
QSR JOURNEYS BY CONTEXT
TREAT HUNGER
ITALY Habitual 54% 60%
Impulse 40% 37%
Research 6% 3%
FRANCE Habitual 48% 46%
Impulse 45% 47%
Research 7% 7%
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6. If we understand the interplay across these drivers we can determine the shopper journey type which in turn can
guide more effective creative and media strategies. Indeed, when we break up a journey into stages, we can get a
broad view of how different touchpoints influence shopper decisions.
tHe New Structure of SHoppiNg jourNeyS
WOM Feedback Loop
Need State Research Purchase Post Purchase
In-store Research
‘Pre-tailing’ Retailing ‘Post-tailing’
What is noteworthy is the significance of the post- key enablers. So the new schematic in shopper journeys
purchase stage which can influence future shopping is one where post-purchase activity, typically word-of-
especially in highly-researched categories like home mouth, loops back to influence succeeding purchases.
electronics. It is also at this stage where digital media are
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7. WiSdOm fROm PSYCHOgRaPHiCS
For new shopper journeys, one of the most useful segmented shoppers according to their relationship
approaches to determining the proper media mix is with technology: 1) Cutting Edge, 2) Early Adopter,
through segmentation analyses which layer attitudinal 3) Judicious Timer and 4) After-Jones. We then looked
variables over behavior. To understand how attitudes at these segments’ shopping journeys by type:
may further impact touchpoints’ influence, we
Home electroNicS SHopper jourNeyS By tecH pSycHograpHic
Cutting Edge Early Adopter Judicious Timer After-Jones
All Category Shoppers 19% 23% 32% 25%
Impulse 28% 16% 18% 22%
Research 49% 64% 69% 63%
Q: Thinking about the last time you bought home electronics, which statements best describe your actions?
From this analysis, we found that Cutting Edge following table reports. The large differences in media
shoppers were receptive to a wider array of channels consumption by segment have clear implications for
while Early Adopters were more likely to be influenced media strategists.
by word of mouth particularly from experts as the
toucHpoiNtS raNked By iNflueNce at trigger Stage
u.S. Home electroNicS SHopperS
100=All US Cutting Edge Early Adopter Judicious Timer After-Jones
Home Electronic Shoppers
Advertising 145 119 83 68
Word of Mouth 100 132 100 71
Something seen while shopping 151 99 90 75
Newsletter/Email 162 108 97 49
TV ads 182 111 65 72
Internet ads 150 131 70 70
Newspaper ads 144 130 96 43
Expert reviews online 108 149 114 30
Seeing someone w/item 157 156 60 55
Past experience 129 122 78 85
Promotion seen while shopping 165 94 96 61
Something read/seen online 125 105 113 60
Q: What influenced you to start thinking about your purchase?
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8. When we combine behavioral and attitudinal variables drivers (the Five C’s) lead to the final purchase decision.
in segmentation analyses we get a more comprehensive It better accounts for all influencing factors within the
and granular view of the entire purchase path. The new shopper paths than do classic models like AIDA
following model depicts in greater detail how the (Attention >Interest >Desire >Action >Satisfaction).
tHe New dyNamic framework for
uNderStaNdiNg tHe purcHaSe patH
Consumer Behavioral Differentiation Attitudinal Fine-Tuning by Vertical
Thinking about the last time you bought . . . Multivariate segmentation based upon
which statement best describes your category-specific psychographics
actions?
Example: Example:
Three types of journeys: Home Electronics: Apparel:
• Habit • Expert • Fashionista
• Impulse • Novice • Clueless
• Research • Trend-Chaser • Quick & Easy
Extensive, granular touchpoints including online, social media,
Contacts
WOM, situational settings, traditional media & advertising
Consideration Touchpoints Purchase Venue
Initial Media Impetus for Purchase Process Various Retail Outlets Online & Offline
Research Source Mobilization Post-Purchase Behavior
For Information & Inspiration Feedback & WOM through Social
Media & Interpersonal Channels
Factors on Final Decision
Price, Location, Availability, etc.
Context Need States
Category Retail Sectors
Culture Regions/Markets
THE ROLES Of OffLiNE
aNd ONLiNE TOUCHPOiNTS
Now that we have a framework that helps us differentiated roles. This underscores the need for both
understand how purchase decisions are made, we can in order to drive purchase.
begin to map the appropriate touchpoints along the
Here is an illustration of how channels serve different
shopper’s journey. The type of journey will indicate
points along the three types of journeys in the
which ones hold sway at specific points along the path.
purchase of computers/laptops:
We found that offline and online media serve truly
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9. Home electroNicS – HaBitual jourNey iN tHe uS
Print media are most influential in pre-purchase while mobile phones do well at the point of purchase.
Habitual purchases are fueled by loyalty. So it makes sense that such journeys spur more active recommendation
and online postings post-purchase.
Need State purcHaSe poSt-purcHaSe
advertising:
Online: 17% recommended:
TV: 17% Brand: 48%
Newspaper: 24% Retailer: 30%
Magazine: 17% Used mobile phone: 54%
Newsletter: 19% Compared prices: 30% wom online:
Searched for info: 20% Blogged online: 11%
in-store: Posted on
Flyers: 13% Social Network: 11%
News story on TV: 11% Posted on a review: 11%
wom:
Expert reviews online: 7%
From friends: 15%
Home electroNicS – impulSe jourNey iN tHe uS
Advertising is least likely to trigger intentions to shop; rather it is coupons or a store’s sales personnel that can
move shoppers to purchase.
Need State purcHaSe poSt-purcHaSe
advertising:
Online: 6% recommended:
TV: 12% Brand: 37%
Newspaper: 12% Used mobile phone: 41% Retailer: 25%
Compared prices: 18% wom online:
Coupons: 18%
Searched for info: 14% Blogged online: 8%
Talked to
Sales Assistant: 18% Posted on
Social Network: 0%
wom: Posted on a review: 8%
From friends: 20%
Home electroNicS – reSearcH jourNey iN tHe uS
The Internet and word of mouth dominate across all phases of the journey. Moreover nearly 2/3 of research
journeys depend on the Internet for information. Interestingly, having done a lot of research prior to visiting a store,
this journey type is least likely to be influenced by in-store channels.
Need State reSearcH purcHaSe poSt-purcHaSe
advertising: Used Internet 64%
Online: 16% recommended:
TV: 15% advertising: Used mobile Brand: 36%
Newspaper: 13% Online: 10% phone: 26% Retailer: 19%
TV: 14% Compared
Coupons: 11% Newspaper: 15% wom online:
prices: 18% Posted on
wom: In-store promo: 15% Social Network: 8%
Expert reviews
online: 12% wom:
From friends: 28% To friends: 35%
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10. TOUCHPOiNTS fOR LOW vERSUS
HigH iNTEREST CaTEgORiES
In a highly engaging category like home electronics explain it. Using our purchase path framework we can
where research accounts for 68% of the journeys, the identify specific channels’ roles at each point of the
usefulness of online media is readily apparent. It is path. Here is an example from the US for a typical
harder to understand online’s role in low involvement FMCG brand:
categories like groceries unless we have the data to
u.S. womeN grocery SHopperS
Shopping Patterns
Pre-purchase Purchase After-Purchase
by Shopper Types
Factors decided before Habitual buyers (72% of total): Factors that influenced After-purchase Behaviors
research or shopping choice of store
What inspired you to try What did you do
Which items to buy 63% different products or brands? Proximity 66% after purchase?
How much to spend 39% Price 63%
Location of the store 28% Coupons 47% Quality of Products 44% Discussed the purchase
Payment methods 23% Speaking to Familiarity with with friends/family 19%
Number of items to buy 22% friends/family 41% the retailer 40%
Promotion seen Recommended
Past positive experience 34% the brand/product
while shopping 40% Deals & Promotions 35%
TV ads 37% to friends/family 17%
Need state touchpoints Variety of Products
In-store coupons 35% Available 32% Recommended
focused on new product trial Samples/product demo 28% the retailer to
Factors that influenced you to Impulse buyers (17% of total): friends/family 8%
purchase items that are new
or different arom what you What made you
normally buy to make a purchase?
Speaking to friends/family 46% TV ads 40%
Coupons 45% Promotion seen
Television Ads 44% while shopping 35%
Promotion seen Speaking to
while shopping 36% friends/family 33%
Samples/Product Demo 34% Coupons 31%
Sign/display etc. In-store coupons 20%
seen while shopping 31% Sign/display seen
In-store coupons 27% while shopping 18%
In-store flyers 16%
Researchers (11% of total):
Sources mobilized
for research
Newsletter/leaflets/
coupons 60%
Ads/sponsorship 49%
Discount coupon 46%
Internet 31%
WOM 31%
Newspaper Ads 5%
As this analysis shows we can account for the relative enabling global strategies to be more easily localized.
influence of various media channels, offline, online and The following chart shows how the same type of
in-store. With similar information for multiple countries, journey can yield different media influences by region
we can define how touchpoints’ influence vary thus and retail category.
8

11. reacH of major toucHpoiNtS By Sector
aNd regioN BaSe: reSearcH jourNeyS
Reach within last Home
Purchase Occasion electronics apparel fast food groceries
USA The Internet The Internet The Internet Discount coupons
65% 50% 43% 51%
AMERICAS The Internet Advice from Advice from TV ads
58% friends 37% friends 45% 38%
ASIA The Internet The Internet TV ads TV ads
61% 49% 52% 57%
EUROPE The Internet Internet Advice from Internet
64% 43% friends 37% 37%
Home electronics Online Researchers. Unduplicated reach of the top channel.
Another interesting finding was online channels’ ability to influence the purchase of new brands. Indeed, one of the
most fascinating discoveries is the influence of mobile touchpoints at the moment of truth particularly in Asia.
iNflueNce of oNliNe cHaNNelS iN
New grocery product iNtroductioNS
uSa americaS aSia europe
54%
52%
45%
40% 38%
34% 35%
31% 30% 30% 30%
24% 26% 26%
24%
21%
14% 14% 13%
10% 11%
7% 6%
2%
a B c a B c a B c a B c
A Used cell phone in-store
Bought new items
B Used the Internet during research
Didn’t buy any new items
C Exposed to online advertising during research
Q: Thinking about the last time you bought groceries and personal care products,
did you buy anything that was new or different from the items you normally buy?
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12. iNfLUENCE Of OWNEd, bOUgHT,
aNd EaRNEd mEdia COmPaREd
A frequent conundrum for marketers is determining the right mix of channel types. To simplify the analysis we
grouped all the channels by type to see how and where they play within a journey as the following table illustrates.
claSSificatioN of variouS oNliNe media cHaNNelS
Owned Bought Earned
Retailer Websites Search engines Reading customer reviews
on website
Brand websites Magazine websites Experts reviews or comments
E-mail newsletter from Online shopping websites Reviews from trusted blogger
a retailer or brand (for example Amazon)
Coupons I received online Auctions websites Posting messages on online blogs
(for example eBay) or forum websites
Video demonstration of Price comparison website Reading messages on online blogs
how to use the product or forum websites
Online circulars (these tell you Portal websites Seeking opinions of someone
the items on promotion this week) such as MSN, Yahoo, AOL I don’t know using a social
networking site
Sponsor links on a website
Among research journeys in the Home Electronics The following table compares these three types of
category, we found that Bought media actually have a touchpoints in their ability to shift shopper choices
slightly heavier influence than Owned or Earned media across the four regions. It shows that Bought media
when it comes to choosing brands or stores. Contrary channels were best at influencing choices on brands and
to conventional wisdom, this study documents the retailers. The one exception is in the US where it was the
value of Bought media advertising beyond the usual retailer-owned media which can shift store choice.
considerations of audience reach.
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13. Home electroNicS: reSearcH jourNeyS
USA Americas Asia Europe
% of those who changed their mind about the brand after research
owNed 56% 54% 48% 54%
BougHt 62% 58% 61% 66%
earNed 47% 36% 51% 52%
% of those who changed their mind about the retailer after research
owNed 64% 52% 51% 54%
BougHt 60% 55% 61% 59%
earNed 47% 33% 51% 41%
SOCiaL mEdia CHaNNELS COmPaREd
Social networks attract considerable attention among Below lists the top three social media forms for each retail
marketers because of the large audiences they draw category by region. Only in the US do social networks rank
and their perceived lower cost. Our study found that among top 3 and only for groceries and QSR categories.
when it comes to influence it is actually personal 1:1
conversations via phones, email and instant messaging
which are more heavily relied upon in purchase
journeys than comments or reviews in social networks.
raNkiNg of Social media typeS By uSage
witHiN reSearcH jourNeyS
GROCERIES Europe Asia Americas USA
1 Mobile (59%) Mobile (76%) Home Phone (43%) Home Phone (47%)
2 Home Phone (59%) IM (56%) Email (41%) Social Net (39%)
3 Email (54%) Email (52%) Mobile (39%) Mobile (31%)
QSR Europe Asia Americas USA
1 Mobile (44%) Mobile (74%) Mobile (47%) Mobile (67%)
2 Email (42%) IM (55%) Home Phone (44%) Emails (58%)
3 IM (36%) Email (49%) Email (41%) Social Net (43%)
Apparel Europe Asia Americas USA
1 Mobile (54%) Mobile (71%) Home Phone (41%) Mobile (42%)
2 Home Phone (48%) IM (53%) Email (40%) Home Phone (38%)
3 Email (46%) Home Phone (47%) IM (35%) Email (32%)
Home Electronics Europe Asia Americas USA
1 Mobile (40%) Mobile (71%) Home Phone (42%) Email (42%)
2 Home Phone (40%) IM (53%) Email (41%) Mobile (39%)
3 Email (39%) Home Phone (47%) IM (31%) Home Phone (31%)
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14. Social networks get the greatest usage in Asia where at the start of the journey, content read in a social network site
may trigger intent to purchase a product or service. The incidence of this is quite low (4% or less) in other regions.
% of all jourNeyS iNflueNced By aN oNliNe Blog poSt,
forum commeNt or SometHiNg read oN a Social Network
20%
Grocery
16%
Fast Food
12%
Home Electronics
8% Clothing, Shoes, Accesories
4%
0%
aSia uSa americaS europe
RECEPTiviTY TO EmERgiNg fORmS
Of CHaNNEL ENgagEmENT
We asked what newer forms of brand/store engagements shoppers would be most open to. We posed different
possibilities to respondents and we found a greater acceptance of e-commerce followed by payments via mobile
phones. This was consistent across all regions.
% wHo would Be moSt williNg to do iN tHe future
(top Box meNtioNS)
80%
60%
40%
20%
0%
uSa americaS aSia europe
Shoppers are most interested in Make purchases online Use a mobile phone to interact
online purchasing. The next ranked Send pictures/videos with a billboards/displays
applications in desirability involve of a potential purchase Ask for views from people
mobile communications suggesting to friends or family you don’t personally know online
new opportunities to impact
Use a mobile phone Make purchases from a mobile phone
shopper decisions closer to the
to research information I would be interested in making
point of purchase.
whilst at a store payments using mobile phone
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15. fiNaL WORd
The old Purchase Path based on an AIDA “funnel” New Shopper Journeys contains an exhaustive database
is gone. Study results have clearly established the of media behavior and the purchasing that results from
existence of a new, more dynamic Purchase Path that it. While there are many patterns and similarities across
is driven by the power of differentiated touchpoints the globe in our findings, cultural differences also
along a shopper’s journey. Further, the type of journey appear. As such, researchers at Microsoft Advertising,
depends on the segment that a consumer is in, so Carat, and their clients can mine these data to
media must be planned accordingly. determine effective channel mixes for offline, online,
and in-store media on both global and local levels.
Only by fully taking into account the dynamics of the
new Path, can today’s marketers attain the best ROI for
their offline and digital investments.
For more information about this study, please contact:
Beth Uyenco, Global Research Director, Microsoft Advertising bethu@microsoft.com
Mike Hess, EVP for Insights & Analytics, Carat US Mike.Hess@carat.com
Caroline Vogt, Head of Insight, Aegis Global, caroline.vogt@aemedia.com
detailS oN metHodology
• Qualitative Study: Fifteen in-depth shopper interviews and shopping observations were conducted in the US,
United Kingdom, Mexico, France, Japan and China covering the five retail sectors. In addition, respondents
completed shopping diaries.
• Quantitative Study: Online surveys among those aged 16 or older were completed in 17 countries.
Sample sizes are as follows:
USA 2,680 Taiwan 1,073 Italy 1,118
Canada 1,089 China 1,546 Germany 1,012
Brazil 1,023 Japan 1,015 Spain 1,031
Mexico 1,006 India 1,065 United Kingdom 1,141
Argentina* 581 Hong Kong 1,032 France 1,063
Colombia* 493 Singapore 1,034
* Combined as one market
The original intent was to include a South American composite of markets: Argentina, Chile and Colombia. Chile
was dropped following a devastating earthquake that paralyzed communications making contact with prospective
respondents extremely difficult.
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