Penetration of the shopping list is fairly substantial, with 43% of general market shoppers reporting that they “always” rely on a shopping list. Still, more than half of consumers (57%) are shopping-list-free at least some of the time making impulse buying and in-store promotion a larger part of the buying decision. Though it’s good for shoppers, list usage can potentially have negative effects on retailers and brands by limiting time in store, reducing exposure to in-store marketing materials, the number of items in the basket per trip, and the number of shopping trips–especially the one-bag or impulse-trip types. However, some retailers, such as Whole Foods, have responded in clever ways by supporting shoppers’ use of lists via digital applications that provide recipe-driven ingredient lists, in-store specials, and coupon support, which serve to guide shoppers through the store and extend the amount of time they spend there.

1. inside the in-store experience
ISSUE 4.10 | SHOPPING LISTS
IN THIS ISSUE
Shopping lists: How shoppers are using
traditional tools in the new economy
• Two out of three shoppers regularly shop without a
list
• The person making the shopping list and the shopper
are not always one and the same
• Shoppers have significantly disparate levels of
receptivity when it comes to media influence on the
shopping list
• Having a shopping list doesn’t prevent most shoppers
from making impulse purchases
Continued recessionary conditions have prompted
shoppers to develop various coping mechanisms to
stretch the family budget. These new behaviors af-
fect the way they become aware, research, plan, and
ultimately shop for groceries and CPG products. Not
surprisingly, these changes in behavior are largely
focused in the Pre-TailTM phase of the shopping pro-
cess.
This issue of The Checkout examines the shopping
list and its role in guiding the shopper throughout the
Shopper ContinuumTM (page 8). As a shopping aid, lists
have been traditionally used to rein in impulse purchas-
es, navigate the store, and keep household spending
under control. But, given the increased pressure of a
prolonged recession, are modern shoppers still using
shopping lists the same way?
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2. 2
page
The focal point of product decision-making is
gradually shifting from store to home
Despite a slight uptick in leading economic indicators, residual economic pressures on house-
hold budgets and discretionary spending will most likely affect the wallets and psyches of the
American shopping public for the near-term.
!
On the tail of the worst recession in the last 15 years, beleaguered shoppers
have dramatically altered the way they consume, plan, and shop for grocer-
ITS NO SURPRISE THAT THE ECONOMY HAS
ies and basic household goods. A prominent effect of prolonged recessionary
CHANGED THE WAY PEOPLE SHOP
pressures has been a shift to a home-centric and self-sufficient lifestyle, trading
3
page
PEOPLE ARE DEVELOPING MONEY-SAVING
BEHAVIORS TO STRETCH THEIR BUDGETS
nights at the movies for DVD rentals, restaurants for home cooked meals, and
MOST OF WHICH INVOLVE PREPLANNING
specialty treatments for home remedies. From the kitchen and the living room
ENTER THE
to the garage and closet, brands and retailers alike are challenged with bringing
THE SHOPPING LIST consumer-driven solutions to micro-economic realities. The prevailing shopper
mind-set has shifted to one of conservation and retrenchment, exemplified by
a greater emphasis on premeditated shopping behaviors and increased in-
volvement in channel, retail, and at-shelf decision-making. The most significant
change is that households are making more shopping decisions at home. For
retailers and brands, the question is: Where is the critical point where the consumer becomes a
shopper and is most receptive to a marketing message?
The First Moment of Truth (FMOT), Graphic 1: Segment Definitions
a term originally coined by Procter
& Gamble, is defined as the critical Demographic Translation
three-second decision interval where Attached Couples Married; Living together; other
shoppers are exposed to brand
Female Shoppers Gender: Female
messaging and can potentially be
converted from a shopper to a buyer. Anglo America Ethnicity: Caucasian
It is at this moment that shoppers Focused Boomers Age: 46 - 64
consciously and unconsciously as-
Generation X Age: 39 - 49
semble a mental consideration set of
competitive and substitute products; Hispanic Thrivers Ethnicity: Hispanic/Latino
weigh pros and cons; and suc- Unattached Singles Status: Single, divorced, widowed
cumb to emotional reactions, which Networked Millennials Age: 18 - 24
ultimately lead to one brand being
selected over another. Given the vast
Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,203 www.shopperculture.com
amount of information available to
the general public, the lines between
Pre-TailTM and Retail are blurring.
This, coupled with economic pressures placed on most American households, has caused a
shift in aspects of decision-making from store to home. Many marketers have dubbed this shift
the emerging “Zero Moment of Truth.” As the decision-making process evolves, brands and
retailers that decipher the emerging Zero Moment of Truth will be best positioned to reap the
rewards now and, more important, when the economy recovers.
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3. 3
page
For one out of four men, shopping and list-
making duties are split
In-store marketing takes the lead Graphic 2: How Often Shoppers Use Shopping Lists [% of all shoppers]
Penetration of the shopping list is
fairly substantial, with 43% of general Attached Couples 52 %
market shoppers reporting that they
Female Shoppers 46 %
“always” rely on a shopping list. Still,
more than half of consumers (57%) Anglo America 46 %
are shopping-list-free at least some
Focused Boomers 44 %
of the time making impulse buy-
ing and in-store promotion a larger Gen X 38 %
part of the buying decision. Though
37 %
it’s good for shoppers, list usage
Hispanic Thrivers
can potentially have negative effects Unattached Singles 35 %
on retailers and brands by limiting
time in store, reducing exposure to 32
Networked Millenials %
in-store marketing materials, the Source: The Integer Group | M/A/R/C Research 2010 March Checkout Study N = 1,203 www.shopperculture.com
1 in 4
number of items in the basket per * Statistical significance indicated by outline
trip, and the number of shopping
trips– especially the one-bag or impulse-trip types. However, some retailers, such as Whole
Foods, have responded in clever ways by supporting shoppers’ use of lists via digital applica-
The number of men tions that provide recipe-driven ingredient lists, in-store specials, and coupon support, which
who shop off a list serve to guide shoppers through the store and extend the amount of time they spend there.
made by someone
else
Men “flying blind” more often Graphic 3: Mens’ Weekly Chores
Though in many instances, the shop-
per and list-maker are one and the
same, when it comes to attached
male shoppers, there is a slight dis-
parity. Nearly one out of four (23%)
male shoppers report that while they
are the primary grocery shopper, they
are not the primary grocery shop-
ping list maker as shown in graphic 3
(right). For retailers and brand manu-
facturers alike, this highlights one of
the main tenets of shopper market-
ing–having a clear understanding of
the differences between the shopper
and the consumer–indicating that Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,203
* Note: Due to rounding, percentages may not add up to 100%
www.shopperculture.com
male
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4. 4
page
The Zero Moment of Truth?
grocery shoppers may present a greater opportunity to be influenced by in-store marketing ma-
terials. Because two-thirds of list-makers (66%) do not record specific brands on their shopping
lists, marketers can use this opportunity to provide assistance to male shoppers facing at-shelf
confusion due to vague shopping lists written by someone else.
It is clear that lists are a popular shopping aid and that shoppers are using them to guide their
predetermined purchases in store. However, to what extent are they using their lists to make
brand-level decisions?
Product buy planned–brand not so much
When creating a shopping list, more shoppers (81%) include the type of product, and not the
brand, leaving the door open for brands and retailers to drive brand switching in-store via com-
pelling marketing materials at-shelf. Respondents also report that their shopping lists also typi-
cally include the quantity needed (67%), but not details like the size of an item or its price. This
may indicate that most price-based decisions (price and/or price-per-unit valuations) are being
made at shelf. Because the majority of brand (66%) and unit size (73%) decisions are being
made at shelf, there is a substantial opportunity for shopper marketing programs to persuade
value-concerned shoppers to reconsider brand-name products and entice unit size trade-up
in that location. This can be especially potent when considering that most name brands will be
compared to their private-label counterpart a few inches away.
Brand inertia carries from home Graphic 4: Details Shoppers Write on Their Lists [% of list makers]
to store
When building their shopping lists, Product types 81%
most shoppers (74%) are influenced
primarily by the brand of the product Number of items 67%
currently in use. However, one in four
list makers is not brand-driven and
Brand names 34%
makes the decision of what goes on
their shopping list based on other
factors such as price, advertisement, Size of package 27%
or word-of-mouth recommenda-
tion. While it is not surprising that Store names 27%
discounting plays a significant role in
list development, roughly a third of Prices 22%
all list-making shoppers are influ-
Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,122 www.shopperculture.com
enced by recipes (34%) and product
recommendations (31%) from friends
and family.
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5. 5
page
When it comes to list-making, shoppers are
creatures of habit
This finding presents retailers and brand manufacturers with yet another opportunity to en-
gage shoppers with more experiential shopper marketing tools built around meal solutions and
occasion-based product assortments – other than margin-eroding price promotions.
TV and Internet ads not making “the list”
While the influence on list-making from the Internet and mobile phones is relatively small (11%)
when compared to other factors, the explosive growth in shopping-list Web sites and mobile
applications will have a sizeable impact on shoppers’ list-making habits in the near-term. The
proliferation of mobile devices and technologies will only serve to redefine shopping-list making
and usage as brands and retailers begin coordinating their marketing campaigns both in and
out of the store–aisle-based shopping lists, anyone? Some retailers have already been making
substantial headway into the list-making space, Whole Foods, Kroger, Safeway, King Soopers.
Not to mention the proliferation of shopping-list Web sites like grocerywiz.com and grocerylists.
org and applications such as Ziplist, GroceryIQ, and Epicurious.
Graphic 5: Influence on Making the Shopping List [% of list makers]
80%
Brands
in use
70%
60%
ons
Coup
50%
40%
30%
20%
Mobil
e/Int
ernet
10%
0%
Female New Focused Anglo Attached Gen X Unattached Hispanic General
Shoppers Millenials Boomers America Couples Singles Thrivers Market
Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,122 www.shopperculture.com
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6. 6
pag e
Shopping basket bulk-up still common
Despite pre-planning, most shoppers Graphic 6: Number of “Off-List” Purchases [% of list makers, per trip]
still make “off-list” purchases
It is no surprise that when properly de-
signed and executed, in-store marketing
is an effective way to communicate with 10 or more items;
3
None; 10
%
%
the shopper and drive incremental pur-
chase. Nine out of ten shoppers routinely
7-9 items; 5 %
make impulse purchases with nearly a 1-3 items; 61 %
third (30%) adding four or more items to
their basket per trip. The magnitude of 4-6 items; 21 %
the implication is tremendous, consider-
ing that the average shopper makes 6.9
grocery-shopping trips per month and
that most large-format grocers only real-
ize meaningful economic benefit when Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,122 www.shopperculture.com
consumers make three or more addi-
tional purchases. For a leading retailer
like Safeway, getting an additional 10% of existing shoppers to add three more items could amount
to more than $1.5 billion in banner sales a year.
The shopping list is not a barrier to impulse purchases
Shoppers were most often (78%) driven to make “off-list” purchases by sales, indicating that the old
adage of “priced too low to resist” is even more relevant in today’s economic environment. However,
even the staunchest of penny pinchers were receptive to in-store marketing efforts with nearly a
fourth of all shoppers citing that their purchase was driven by something they saw or read at-shelf.
The visual appeal for 17% of shoppers was rooted in fun and/or attractive packaging and signage. In
terms of effective messaging platforms,
communications playing to entitlement
Graphic 7: Primary Reasons for “off list” Purchases [% of list makers]
and pampering drove three out of ten
Was on sale or special promotion 78
shoppers to make an impulse purchase. %
Interestingly, the strongest factors linked
Found a good coupon for it 33 to off-list purchases–sales information,
%
promotion messaging, and coupons–can
Wanted to pamper myself 28 %
be specially tailored to each shopper
Something on shelf convinced me 24 and delivered to digital shopping lists
%
on mobile devices. This provides retail-
Looked fun and attractive 17 %
ers using branded shopping lists with a
Thought someone else would like it
way to encourage impulse shopping by
16 %
(gift)
promoting smarter shopping. Ultimately,
Didn't buy anything not on the list 7 % the shopping list is not a barrier but an in-
cremental touchpoint to promote further
Other 6 %
engagement among the retailer, brand,
and shopper.
Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,122 www.shopperculture.com
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7. 7
page
Shopper summary tables
Graphic 8: Data Summary by Shopper Segment
Lower income Millennials
>$25k personal income/annum 18-24 years of age
DATA SHOPPER BEHAVIOR DATA SHOPPER BEHAVIOR
Increased preplanning, Much higher incidence of
Shopping-list Shopping-list usage Shopping-list usage
price-watching, and preplanning and shopping
usage slightly above average greatly below average
shopping involvement involvement
While much more brand
Higher emphasis on Retrenchment into basics- loyal, will remain
List Slightly higher emphasis
package size and prices, only mode with package experimental but within
components on brand
and less on brands downsizing existing brand tiering
Social shopping and group
Higher influence exerted
decision-making will be
Refocus on value brands by existing brand, word-
Influences Less brand loyal
and private-label offerings of-mouth, mobile/Internet,
bolstered by in-store
usage of digital shopping
and TV commercials.
aids
Significantly higher
Stringent adherence to
Significantly less impulse frequency of impulse Emphasis on fun, and
shopping list and meal
Off-list purchases; purchases purchasing, but less items instant gratification, with
planning with increased
shopping driven by coupons with per trip; driven largely by higher emphasis on self-
receptivity to in-store
less “indulgences” attractive packaging and identification with brand
marketing vehicles
at-shelf messaging
Lower shopping
frequency but higher
Higher incidence of cross- Lower shopping
Shopping spend* at:
channel substitution and frequency and spend
frequency Walmart: +$25.64
stock-up trip types across all channels
Grocery: +$22.48
C-store: +$19.12
*Per trip spend differential compared to sample average Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,203 www.shopperculture.com
Graphic 9: Data Summary by Shopper Segment
Hispanic Boomer
46-64 years of age
DATA SHOPPER BEHAVIOR DATA SHOPPER BEHAVIOR
Shopping-list usage Increased in-store Casual usage of the
Shopping-list Shopping-list usage on
significantly below shopping involvement shopping list with slightly
usage par with average
average with less preplanning higher preplanning
Higher brand loyalty and
Retrenchment into basics- Slightly higher emphasis
List overall shopping inertia will
On par with average only mode with package on brand, price, and
components downsizing retailer
keep this segment stable
Greatly influenced by TV
Slight refocus on value
commercials, word-of- Slightly higher influence Stick with familiar brands
Influences mouth, and existing
brands and private-label
from store ad or circular but will seek the best price
offerings
brands
Longer time spent in store
Average impulse purchase and more frequent Disciplined shopper with Accustomed to fluctuating
Off-list frequency; significantly shopping trips will slightly less impulse economic conditions less
shopping driven by at-shelf translate into even greater purchasing – except when likely to trade down and
messaging shopper marketing coupons are involved more likely to buy bulk
receptivity
Average shopping
Higher shopping While slightly more prone
More frequent fill-in trips frequency but higher
frequency and greater to channel switching, bulk
Shopping to mass and C-stores spend* at:
spend* at: buying will keep much of
frequency with much of the stock-up Walmart: +$45.86
Club: +$53.04 their spending at usual
done at club stores Grocery: +$27.39
Drug: -$9.86 retailers
Drug: +$32.71
*Per trip spend differential compared to sample average Source: The Integer Group | M/A/R/C Research 2010 February Checkout Study N = 1,203 www.shopperculture.com
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8. 8
page
Shopper mind-sets and behaviors
change along the path to purchase
The shopping process has changed dramatically in the last decade. Our sources of product and
brand information have multiplied exponentially. We trust the opinions of complete strangers,
shop online with our social network, and even become “fans” of brands. We watch commercials
on YouTube®, then skip over them with TiVo® and satellite radio. We read reviews on Amazon®,
then go and play with the products in-store, check in on FourSquareTM, take a vote of Face-
book® friends, buy them with our mobile phones, and then Tweet about our experiences with
our friends. Where, then, is the First Moment of Truth?
The Shopper ContinuumTM is Illustration 1.0 The Shopper ContinuumTM
a proprietary Integer framework Pre-Tail™
that helps us understand and Entering a store or
Web site
articulate the role of communi-
cation and marketing actions
during three distinct phases of
shopping behavior. Browsing,
Retail
comparing,
researching
and selecting
Pre-Tail™ includes all the
items
actions people take when
preparing to shop and se-
lecting a retailer, including
how we respond to all the
things brands and retailers = points of action, behaviors
Post-Tail™ Using the
ing t
g th
product
Purchase
rch
h
moment
do to influence us.
Copyright © 2010 The Integer Group
Retail is all the activities
that take place in a real
or virtual retail environment. This includes the behavior of the shopper and the actions of
the retailer and brands on the shelves (real or virtual).
Post-Tail™ encompasses what happens after a purchase. It includes what retailers
and brands can do to reinforce and celebrate the purchase and encourage shoppers to
repeat their behavior.
The Shopper ContinuumTM framework is one of the tools employed by The Integer Group
to identify the questions we need to ask about our shoppers, how we go about getting those
answers (the data), and then what we do to improve our strategy (the analytics).
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9. 9
page
The Integer Group® is one of America’s M/A/R/C® Research is a brand develop-
largest promotional and retail marketing ment firm dedicated to helping clients create,
agencies and a key member of the TBWA evaluate, and strengthen their brands. Our
Marketing Services portfolio. The Integer teams design and execute qualitative and
Group resides At the Intersection of Branding quantitative, traditional, and online solutions
and Selling® and creates strategic marketing while adhering to a client-service ethic built
solutions for clients in categories that include on being easy to work with and delivering
beverage, packaged goods, telecommunica- what is promised. Our core competency is
tions, fast food, home and shelter, and power measuring attitudes and behaviors to accu-
sports. Join Integer® in a conversation on rately explain and predict market share,
shopping culture and brand strategy: revenue, and bottom-line impact of a client’s
actions. We help our clients address con-
The Integer Group sumer, channel, and B2B marketing issues to
Craig Elston launch better products and services attract
Sr. VP, Insight & Strategy and retain valuable customers, and build
celston@integer.com stronger brands. Our proven, marketing-is-
7245 West Alaska Drive sue-focused solutions support clients’ brand-
Lakewood, CO 80226 building efforts.
tel +1.303.393.3474
M/A/R/C Research
Randy Wahl
EVP, Advanced Analytics
Visit us at www.shopperculture.com Randy.Wahl@MARCresearch.com
1660 North Westridge Circle
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The Checkout is based on a nationally representative survey of
1,200 U.S. adults conducted monthly by M/A/R/C Research. Please
contact us to learn more about the data we collect or additional
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©2010 by The Integer Group® and M/A/R/C® Research. All rights reserved.
The data contained in this report may be reproduced in any form as long as the data is cited from The Integer Group and M/A/R/C Research.
www.ShopperCulture.com.
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