Brick & Mortar vs. Cyberbrands

What makes Amazon.com and other cyberbrands so popular? How do consumers shop for items online? What makes some cyberbrands so successful while others fail? What are the 23 most important factors in the success of an e- commerce site?

These and many other questions are answered in a sophisticated study just completed by BrandForward, Inc. of Kansas City titled "Cyberbranding 2000 Study." The objective of the study was to understand the branding dynamics in cyberspace versus the traditional "brick & mortar" or "dirt" world. The 1,548 Internet users in the U.S. surveyed answered the questions business people most often ask about building brands and commerce on the Internet ( or minus 2.5% at 95% confidence level).

"This information will be of great interest to any organization that builds brands or sells products online," says Brad VanAuken, president of BrandForward, Inc. a brand management consulting firm whose clients include Xerox Corporation, AAA, Hallmark, Kaiser Permanente, Nationwide Insurance and The Nature Conservancy."The information we uncovered is a 'must-read' for anyone even thinking about doing business in cyberspace."

The study explored three top e-commerce categories: books, toys & games and clothes/apparel and identified patterns that are applicable to all product categories. It examined brick & mortar brands in cyberspace to pure Internet brands and also 12 different dimensions of brand equity including awareness, accessibility, quality, value, emotional connection, personality, vitality and loyalty.

A few key insights from the study include: brand awareness is surprisingly high for a few cyberbrands, there is still a great need to build awareness and encourage trial for most cyberbrands. Brick & mortar brands received the highest unaided mention in the toys and games and clothing categories by a huge margin, however, Amazon.com was a very close second to Barnes & Noble (36% to 29%) and far ahead of other competitors. & mortar brands with e-commerce capability are perceived to be more accessible than cyberbrands. The ability to return goods purchased on the Internet to a "brick & mortar" store provides a huge advantage. Cyberbrands are perceived to be more "innovative/leading edge" and less "old fashioned/traditional" and "boring," they are also looked on as less "friendly, dependable and trustworthy."

Some characteristics of an Internet site that are important to consumers in deciding to make a purchase include prices clearly marked, secure payment methods, inexpensive shipping, no hassle return policies, detailed item descriptions and pictures of items.

"Outside of Amazon, awareness of Internet brands is very low and these companies need to build their brand," says VanAuken, a graduate of Rensselaer Polytechnic Institute and Harvard Business School. "Companies like Hallmark that already have a strong brand name have a big advantage in the e-commerce arena, if they handle it correctly."

Copies of the study are available by contacting BrandForward, Inc. at (816) 333-7978 or via e-mail at vanauken@brandforward.com.

BrandForward, Inc. partners and affiliates have more than 100 years experience managing brands, marketing to consumers and conducting brand research.