Business Services Industry

IntelliQuest Releases Zona Research Holiday Internet Shopping Report; Numbers Show Internet Gift Shopping More Popular Than Catalogs

Business Wire, Jan 21, 1999

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 21, 1999--Zona Research, Inc., a subsidiary of IntelliQuest Information Group (Nasdaq:IQST), announces the release of its in-depth 75 page report titled, 1998 Holiday Shopping: Is Web-Based Buying Reaching Critical Mass?

Analyzing consumers' online shopping experience during this past holiday season, this report delves beyond simply stating buying patterns and preferences to examine the potential impact online shopping will have on retailers in 1999.

Results from the Zona/IntelliQuest 1998 holiday shopping survey of over 1,000 Web users show that the Internet shopping (53%) was the third most popular method among respondents for holiday gift purchases, behind brand-name stores (88%) and discount retailers (70%). In fact, more respondents purchased gifts online than shopped via paper catalogs (40%).

Surprisingly, when consumers were not able to find the products they wanted online, 34% simply chose not to purchase the item(s) rather than looking to traditional retail channels.

"The fact that an unsuccessful Web purchase did not automatically result in a traditional retail sale, represents a significant lost opportunity for all sellers," explains Jack Staff, director and chief economist, Zona Research, Inc. "Money is being left on the table."

Zona's report reveals that 27% of the survey sample had their merchandise delivered within 3 days and that 79% received their goods within a week of placing their order. Fifty five percent of the respondents chose the United Parcel Service as their primary shipper and 32% chose the United States Postal Service.

In addition, the report states that online shopping is not likely to be impacted by the typical post-holiday shopping slump as 61% indicated they would shop more online throughout 1999. In fact, 10% indicated they will shop less in retail stores during 1999.

"As more consumers become comfortable with purchasing products online, the challenge to traditional brick and mortar retailers will intensify," states Clay Ryder, vice president and chief analyst, Zona Research, Inc.

"With this report we explore the significance behind the numbers and provide a forward looking analysis of online shopping and the fundamental change this new buying medium will have on the existing retail marketplace."

1998 Holiday Shopping: Is Web-Based Buying Reaching Critical Mass? is a 75 page report, comprising 20 pages of analysis, 11 illustrative figures, and 27 cross tabulations. A complete report profile is available by visiting Zona's Web site at http://www.zonaresearch.com/promotion/holiday.> The Zona/Intelliquest survey sampled 1,022 Internet users from IntelliQuest's Consumer Web Panel. The IntelliQuest Consumer Web Panel is a pre-recruited sample of individuals who use the Internet and have completed an extensive profiling survey that details their Web usage and general demographic information. The panel was recruited from a variety of Web sites and includes an entire spectrum of Internet users from novice to computer experts.

Zona Research, Inc. provides superior market analysis and strategic consulting to the Internet industry. The company is a wholly owned subsidiary of IntelliQuest Information Group, Inc. (Nasdaq:IQST). Zona Research delivers qualitative and quantitative information on market trends via subscription services and reports, and offers a variety of custom consulting services.

For more information on Zona Research or the company's products and services, please contact Steve Oldenbourg, at Zona Research Inc., 900 Veterans Blvd., Suite 500, Redwood City, CA 94063, (ph) 650/568-5700, (fax) 650/306-2420, E-mail: info@zonaresearch.com. More information about Zona Research is available on its Web page at http://www.zonaresearch.com/.>