european consumer attitudes to mobile commerce

7/31/2019 European Consumer Attitudes to Mobile Commerce

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ATG Research Report | October, 2009

UK, France and BeNeLux

A consumer research study commissioned by ATG

Key barriers and opportunitiesEuropean consumer attitudes to mobile commerce


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Survey Background

ATG sponsored an independent research in three key European markets to find out how and why customersshop with their mobile devices (m-commerce). Participants were asked about current habits and attitudestowards m-commerce, likely purchases and factors that would encourage them to use m-commerce in thefuture. The research surveyed 2,103 consumers in the UK, France, and Belgium, Netherlands and Luxemburg(BeNeLux) in September 2009.


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Todays consumers are increasingly using their mobile phones when making buying decisions, researching products,sharing information with friends and making purchases. But what makes them buy? And, likewise, what puts them off?For companies looking to tap into this emerging market, this research should help define how to best include mobile aspart of an integrated commerce strategy.

The research shows that while m-commerce is still in its infancy, interest in m-commerce is rising. As more consumers

upgrade to smartphones, they want to do more while they are on the move. There is clear potential now for certain goodsand services to be sold via m-commerce. However, for this potential to be realised a variety of barriers must be addressedby mobile operators, handset manufacturers and retailers alike. Consumers say clearer pricing for mobile browsing andmore affordable smartphones with larger screens would boost usage rates. Respondents also think secure and easypayment services should be a key priority for retailers.,

Below is an outline of the key findings.

Adoption rates are steady:

37% of consumers surveyed have tried m-commerce 33% of the market in France called m-commerce an enjoyable and easy way to shop compared with 23% in the UK

and just 3% in BeNeLux

11%of respondents have tried m-commerce but find it a difficult way to shopCertain goods and services appeal to mobile shoppers:

31%of purchases in the UK are for cinema and theatre tickets 30% of purchases in France go towards train and plane tickets 45% of purchases in BeNeLux are used towards takeaways 28% of those surveyed would buy music or DVDs while on the move

Research Highlights

2

Research showsthat interest

in m-commerceis rising.

As moreconsumersupgrade to

smartphones,there is

clear potentialfor certaingoods and

servicesto be sold via

m-commerce.


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Unclear pricing is the biggest barrier to adoption:

37% of consumers surveyed say unclear pricing guidelines for accessing the mobile internet is most preventing themfrom using it

24% say low network service is another key concern

10% say inflexible data bundles are a major worryWi-Fi, affordable handsets and bigger screens would boost take-up:

31%of respondents say handset manufacturers should offer more Wi-Fi enabled phones so its possible to connect toa phone internet connection at no additional cost to make them more likely to shop using their mobile devices

31%of consumers in BeNeLux say more 3G phones will encourage adoption, compared with just 18% in France and the UK 27% of those surveyed think more affordable smartphones would boost uptake 26% of consumers say handset manufacturers should offer phones with bigger screens to enable easier browsing of

the mobile Internet

Secure and easy payment services most important for retailers:

37% of consumers say providing secure easy payment services would make them more likely to shop using theirmobile device

25% say mobile-only offers and incentives would encourage them to use m- commerce 22% think retailers should optimise sites for mobile viewing on smaller screens

Mobile applications are least likely to convert consumers, with just 15%believing specific applications would makethem more likely to shop from their device3

Research Highlights


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Mobile commerce is growing in Europe

The mobile Internet presents new opportunities for retailers and operators to extend their reach and grow sales forparticular products and services. According to Google, there are 490 million mobile Internet users globally, with thatnumber set to increase to 1 billion by 2011. The growing popularity of smartphones such as the BlackBerry and iPhone isalso contributing to the rise of m-commerce. In fact, Googles statistics show iPhone users are 50 times more likely tosearch the Web than those on traditional mobile devices. Consumers increasingly rely on their mobile phones and alwayslooking for new ways to use them while on the move.

Mobile is not for everyone

With more consumers upgrading to smartphones, the mobile Internet is becoming easier to use. The introductionof 3G makes speeds much faster. However, m-commerce is not a critical channel for everyone. This study shows that

m-commerce is most suited to convenience products and services such as travel tickets, music, cinema ticketsand takeaways.

Mobile should be part of one commerce strategy

There is no doubt purchasing patterns are changing and m-commerce will become more common in the future. Theopportunity for retailers and the Telco industry is immense but much work is still needed to deliver an enjoyable mobile

shopping experience. Retailers need to carve out mobile channels now if they want to stay ahead of the competition. Atthe same time, operators and handset manufacturers need to work together to offer customers more clarity on pricingand services. What is most important is that customers receive a seamless experience from anywhere, regardless of whatchannel they choose to shop with. M-commerce is best managed from one platform that delivers the same seamlessexperience in-store, online, by phone or even via the mobile Internet. A centralised approach ensures control and providesthe tools to add new channels all within the same framework. Personalising services and channels for customers based ontheir changing lifestyles, tastes and nuances will ultimately deliver the type of shopping experience they want.

Insights and Recommendations

4

m-Commerce isbest managed

from oneplatform that

delivers thesame seamlessexperience

in-store, online,by phone oreven via the

mobile Internet.


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1. What is your gender?

5

UKFranceBeNeLux

Male52%

Female48% Male

31%

Female69% Male

37%

Female63%

Survey Results: Profile of Survey Respondents


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2. How would you describe your experience of shopping using the mobile Internet?

6

2.97%

33.40%

23.32%

10.89%

7.71%

13.58%

86.14%

58.89%

63.09%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

BeNeLux

France

UK

Enjoyable and easyway to shop

Tried it but difficultway to shop

Never shopped usingthe mobile internet

Survey Results: Mobile Internet Shopping Experience


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3. What types of goods are you/would you be most prepared to buy using the mobile Internet?

7

0% 10% 20% 30% 40% 50%

BeNeLux

France

UK

Music and DVDs

Plane or train tickets

Cinema or theatre tickets

Takeaway f ood

Survey Results: Mobile Internet Shopping Experience


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4. What, if anything, is most preventing you from shopping using the mobile Internet?

8

11.96%21.05%

44.66%

22.33%

0.00%10.00%20.00%

30.00%40.00%50.00%

Inflexibledata bundles

Slownetwork service

Unclear pricingguidelines foraccessing the

mobile internet

Nothing, I'mcompletely happy

28.71% 26.73%31.68%

12.87%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

Inflexibledata bundles Slownetwork service Unclear pricingguidelines foraccessing the

mobile internet


7.42%

27.35%33.96% 31.28%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

Inflexibledata bundles

Slownetwork service

Unclear pricingguidelines foraccessing the

mobile internet


BeNeLux

France

UK

Survey Results: Importance/Usefulness of Mobile Internet Commerce Service Features


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5. What could handset manufacturers do to make you more likely to shop using you mobile device?

9

0% 20% 40% 60% 80% 100%

BeNeLux

France

UKPhones wit h bigger scr eens

More affordable smart phones

Offer Wi-Fi enabled phones

Offer phones with 3G capabili t y



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6. What could retailers do to make you more likely to shop using your mobile device?

20.39%17.48%

35.92%

26.21%

0.00%

5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%

Develop specificapplications formobile phones

Offer mobile internetonly special offers

and incentives

Optimise sites forviewing in a smaller

screen

Provide secure,easy payment

services

14.92%

27.67%21.15%

36.26%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%



and incentives


screen


services

14.92%

23.95% 22.34%

38.78%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%



and incentives


screen


services

BeNeLux

France

UK



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Methodology

Responses to the European Mobile Commerce Consumer Survey were generated from 2,103 consumers inSeptember 2009. 1,000 consumers in the United Kingdom and 1,000 in France were surveyed using TolunaQuick Surveys. A further 103 consumers were surveyed in person in Amsterdam as representative of theBelgium, the Netherlands and Luxembourg (BeNeLux) region.

About ATG

A trusted, global specialist in e-commerce, ATG (Art Technology Group, Inc., NASDAQ: ARTG) has spent thelast decade focused on helping the world's premier brands maximise the success of their online businesses.ATG Commerce is the commerce platform and business user application solution top-rated by industryanalysts for powering highly personalised, efficient and effective e-commerce sites. ATG's platform-neutraloptimisation services can be easily added to any Web site to increase conversions and reduce abandonment.These services include ATG Recommendations and ATGs eStara Click to Call and Click to Chat services. Thecompany is headquartered in Cambridge, Massachusetts, with additional locations throughout NorthAmerica and Europe. For more information, please visit http://www.atg.com.


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Worldwide HeadquartersArt Technology Group, Inc.One Main StreetCambridge, MA 02142 USATel: +1 617 386 1000Fax: +1 617 386 1111

2009 Art Technology Group, Inc.ATG, Art Technology Group and the ATG logo are

registered trademarks of Ar t Technology Group.All other trademarks are the property of theirrespective holders.

European Headquarters

Art Technology Group (Europe), Ltd.Apex Plaza, Forbury RoadReading RG1 1AX UKTel: +44 (0) 118 956 5000Fax: +44 (0) 118 956 5001

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