A new study from Y&R’s BAVLab breaks consumers down into six “shopperstates” based on buying habits and technological tendencies. After surveying 14,000 U.S. consumers, BAVLab broke shoppers into the following categories: bargain hunters, knowledge seekers, practical players, store reassurers, brand desirers and mobile warriors.
2. 1. The New Retail Landscape
2. The New North American Shopper
3. Introducing the Six Shopperstates
4. How Shopperstates Shift by Category
5. Using the Data to Drive Shopper Insights
SHOPPERSTATES: SIX DIMENSIONS
OF THE NEW AMERICAN SHOPPER
A BAV Shopper Report Summary from Labstore and
BAV Lab, the creators of BrandAsset® Valuator - the
world’s largest database and model on brands
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ABOUT LABSTORE ABOUT BAV SHOPPER
Labstore is WPP’s newest worldwide retail
and shopper marketing network. We bring
a global perspective and presence to our
work with Labstores in 23 markets. We
believe in the fusion of digital and shopper.
And we have a process for creating
Shopper Chemistry™ – igniting a reaction
that results in a purchase – that starts with
shopper insights.
BAV Shopper is the latest research study
from BAV Lab, the creators of BrandAsset®
Valuator – the world’s largest database and
model on brands. In the USA, BrandAsset®
Valuator measures the health and imagery
dimensions of 3,000+ brands in over 200
categories. BAV Shopper adds a new lens to
the data, quizzing shoppers on their attitudes
and behaviors, and linking the responses to
the primary study.
This report summary is based on two waves
of BAV Shopper research. Wave #1 surveyed
9,170 shoppers in the first quarter of 2015.
Wave #2 surveyed 8,891 shoppers in the third
quarter of 2015.
3. GLOBALIZATION
Retailers are rushing
to expand across the
globe – physically
and digitally – and
shoppers are
more globally
aware than
ever.
CPG brands
are looking for global
shopper marketing
solutions.
DIGITIZATION
Retail continues
to be transformed
into bits and bytes:
not just online, but
also incorporating
technology into
physical stores.
Products and services
are also digitizing –
Spotify and Uber are
great examples.
Digital is more and
more mobile, and
shoppers expect
retail to be
“on-demand”.
POLARIZATION
The middle of the
market is disappearing
– in both
consumer
and retail
terms.
Retail is polarizing
from extreme value to
ultra specialty.
PERSONALIZATION
Data is driving
personalized
communications -
we are in
the era of
“me-tail”.
Shoppers
are demanding
customized products
and services.
*Source: Time Magazine, May 14, 2015. According to a 2014 Canadian research study
from Microsoft, people now generally lose concentration after eight seconds, about one
second less than goldfish, highlighting the affects of an increasingly digital lifestyle on
the brain.
Still…if you zoom out a little from the blurred image it is possible to discern an overall
picture. Here are four trends defined by Labstore that help provide a framework for
understanding the upheaval in retail:
Retail right now is one big blur.
On the one hand it’s a blur of
speed, as the pace of change
continues to ramp up and
customer attention spans shorten.
(Fun fact: humans now have
shorter attention spans than
goldfish*.) On the other hand it’s
a blurring of the lines between
old and new retail. Digital has
bled into physical retail (and vice
versa), the wallet has merged
into the smartphone, global
retailers have moved into local
markets, manufacturers have
become retailers (and retailers,
manufacturers)… and on it goes.
The nice, neat dividing lines of
times past have been obliterated
forever. The result is an incredibly
dynamic retail landscape. Our
WPP partners, Kantar Retail, call it
“the great Retail Reconfiguration”.
/ 5 // 4 /
ACCORDING TO RECENT
RESEARCH, HUMANS NOW
HAVE SHORTER ATTENTION
SPANS THAN GOLDFISH.*
1
THE NEW
RETAIL
LANDSCAPE
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
4. A new American shopper has
emerged on the new retail
landscape. They are empowered
by technology, enabled by
availability and transparency of
information and enlightened with
a global perspective.
Their shopping attitudes and
behaviors have been permanently
altered by the Great Recession
and by interaction with two key
retailers – Amazon and Costco.
2
THE NEW
AMERICAN
SHOPPER
So how do you get inside the
head of this new shopper?
Our BAV Shopper research has identified six
Shopperstates – statistically valid clusters of
prevailing shopper mindstates and associated
behaviors. These break down as: Bargain
Hunter, Knowledge Seeker, Practical Player,
Store Reassurer, Brand Desirer and
Mobile Warrior.
We’ve categorized the overall American
population according to these Shopperstates
and then looked at how individual
Shopperstates change depending upon the
category and brand being shopped.
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THE KEY IS TO UNDERSTAND
HOW THE SHOPPERSTATES
OPERATE FOR YOUR BRAND,
YOUR RETAIL PARTNER
AND YOUR CATEGORY…AND
HOW THAT INFLUENCES THE
PRODUCT OR SERVICE YOU
PRESENT, AND THE STORY
YOU TELL SHOPPERS.
In terms of Amazon, our BAV Shopper
research shows that over 20% of all US
households are now Amazon Prime members
– which fundamentally changes shopping
behavior on a mass scale. And when it
comes to Costco, their sales grew $50 billion
annually from 2000 to 2013 to become the
nation’s third-largest retailer. Because these
two retailers’ business models are based on
membership/subscription, our new shopper
is actually paying for the privilege of shopping
with them. And as those retail relationships
have developed, our shopper has been trained
to expect free, fast on-line delivery and close
to wholesale prices on big brands.
Bargain Hunters
Knowledge Seekers
Practical Players
Store Reassurers
Brand Desirers
Mobile Warriors
21.50%
8.84%
20.96%
15.71%
16.11%
16.88%
WHAT KIND OF SHOPPER ARE YOU?
of all U.S. households are
Amazon Prime
Members
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
Percentage of Shopperstates in US population 18+
5. 3
INTRODUCING
THE SIX
SHOPPERSTATES
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BRAND DESIRER
To this shopper type, quality is
a priority over price and brands
matter. They choose brands that
reflect their status and values,
and like to buy the very latest,
often being the first to discover
and try new things. 15.71% of
shoppers bias to Brand Desirers.
BARGAIN HUNTER
A “precision shopper”, the Bargain
Hunter sticks to a strict budget
and loves a bargain, getting a deal
and saving money…often putting
their family’s needs ahead of their
own. 21.5% of the adult population
biases to Bargain Hunters.
PRACTICAL PLAYER
A no-nonsense shopper, the
Practical Player tends to buy
the basics, keeps within their
means, and wants a fast, easy,
convenient shopping experience.
16.88% of Americans fall into
this segment.
MOBILE WARRIOR
All our Shopperstates have
a digital dimension, but we
identified a small but important
segment that is unusually
digitally driven. More than
most, Mobile Warriors use their
smartphones to compare prices,
get information, receive coupons
and make purchases. 8.84%
of our sample are what we call
Mobile Warriors.
STORE REASSURER
In a digital age, the Store
Reassurer prefers to shop at a
store rather than online because
they can touch and feel the
product and be more confident
they are buying the right thing.
16.11% in the BAV Shopper
research leans towards
this Shopperstate.
KNOWLEDGE SEEKER
Ratings and reviews junkies,
Knowledge Seekers do their
homework online before making
a purchase, whether they end
up buying in-store or digitally.
20.96% of our survey skews to
this Shopperstate.
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
6. BARGAIN
HUNTER
Skewing female, Bargain Hunters stick
to a strict budget and love a bargain,
getting a deal and saving money…
often putting their family’s needs
ahead of their own.
They are distributed fairly evenly across
age and income brackets. When the
data is split by low and high income
however, you get a more nuanced
picture of the Bargain Hunter. Above
$75k income, they are more digitally
oriented in their hunt for a bargain -
buying through Amazon Prime twice
as much as those under $35k, being
63% more likely to research online,
and 20% more likely to compare
prices on their smartphones in store.
The lower income Bargain Hunter is far
more store-centric – 52% more than
their wealthier counterparts - probably
by necessity and because they want to
ensure they are buying the right thing.
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A More Highly Evolved Shopper?
The fact that Bargain Hunters skew female
is in line with a 2014 study* which notes that
women are generally less impulsive than men
- and when they do shop impulsively, spend
less than men.
The Bargain Hunter Mommy
The female gender bias to Bargain Hunters
is supported by a recent Y&R research study
called “Who’s Your Daddy?” We found that
Dads are considerably less frugal than their
partners, with 33% trying to buy products on
sale, versus 52% of Moms.
/ 11 /
Bh
PROFILE DASHBOARD
37.2% Male
62.8% Female
20.2% (18-29)
27.7% (30-44)
26.2% (45-59)
25.9% (60+)
18.7% (<25k)
26.8% (25-49k)
31.5% (50-99k)
21.6% (100-199k)
1.3% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
21.50%
*Source: http://www.creditcards.com/credit-card-
news/impulse-purchase-survey.php
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
7. Knowledge Seekers do their homework
online before making a purchase,
whether that purchase ends up taking
place online or in-store. Though one
might expect these internet-savvy
shoppers to skew younger, they’re of
all ages. In fact, they over-index with
individuals in the 45-59 age range.
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Knowledge Seekers are Representative
of a Larger Trend
81% of people do online research before
purchasing. 61% read product reviews. And
on average, we visit at least three online
stores before making a purchase.* Knowledge
Seekers are the 21% of shoppers who do the
most online research.
And they are Older than You Might Expect
Online research is not just for Millennials.
56.2% of Knowledge Seekers are above
the age of 45.
/ 13 /
*Source: GE Capital Retail Bank’s second annual
Major Purchase Shopper Study (conducted by
Rothstein Tauber)
KsKNOWLEDGE
SEEKER
PROFILE DASHBOARD
53.6% Male
46.4% Female
19.6% (18-29)
24.2% (30-44)
31.6% (45-59)
24.6% (60+)
14.4% (<25k)
23.4% (25-49k)
33.2% (50-99k)
26.5% (100-199k)
2.5% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
20.96%
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
8. Practical Players are diverse—
they come in all shapes and
sizes (and ages and income
brackets). What differentiates
them from other shoppers is
their focus on convenience and
sticking to a strict budget. They
over-index slightly male, low
income, and older, but there
are many who don’t fit those
demographics.
/ 14 /
Buying Store Brands is a Matter of
Practicality, as Well as Price
Practical Players are 17% more receptive
to buying store brands over name brands.
Bargain Hunters are only 9% more receptive to
store brands.
On the other end of the spectrum, Brand
Desirers are 52% more likely to choose name
brands over store brands.
/ 15 /
PRACTICAL
PLAYER
PROFILE DASHBOARD
Pp
53.1% Male
46.9% Female
18.4% (18-29)
26.6% (30-44)
28.1% (45-59)
26.8% (60+)
24.7% (<25k)
24.8% (25-49k)
29.7% (50-99k)
18.8% (100-199k)
1.9% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
16.88%
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
9. PROFILE DASHBOARD These shoppers prefer the
experience of going to a store
over the convenience of shopping
online. Though you might
expect them to skew older, store
shoppers actually over-index
younger (18-29) and under-index
older (60+).
/ 16 /
The Store is More than a Showroom
73.5% of our respondents would “rather shop in a
store than online because [they are] more confident
that [they are] buying the right thing.”
79.7% of our respondents prefer going to the store
because they “can touch and feel the product.”
For some Shoppers, it’s the Opposite of a
Showroom
A December 2014 Harris Poll found that 45% of
U.S. adults planned to “webroom” as part of their
holiday shopping. Webrooming is the opposite
of showrooming—it’s researching your purchases
online before buying them in store.
According to a 2014 report by payment company
Cayan, 69% of people with smartphones in the
18-36 demo have webroomed, while only 50% have
showroomed. Among 37-48 year olds, 71% have
webroomed versus 53% who have showroomed.
This trend supports the hypothesis that physical
stores continue to fulfill a deep shopper need.
/ 17 /
STORE
REASSURER
Sr
49.6% Male
50.4% Female
27% (18-29)
28.3% (30-44)
28.7% (45-60)
16% (60+)
22.1% (<25k)
23.5% (25-49k)
31.1% (50-99k)
20.2% (100-199k)
3.2% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
16.11%
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
10. PROFILE DASHBOARD These shoppers pay close attention to
the many facets of a brand—its ethics,
what it stands for, product quality,
and customer service—and how that
brand reflects on them as a person.
They skew ever so slightly male; and
interestingly, over-index with both
low income (<25k) and high income
(200k+).
/ 18 /
Bridging the Gap between
High and Low Income
79% of people making below $25K a year
and 74% of people making above $200K
love “getting a deal, and saving money”
73% of people making below $25K and
76% of people making above $200K
“choose brands and products that reflect
who I am as a person”
The two income brackets that most
strongly agree with the statement “I prefer
brands that make responsible choices
about ethics and the environment” are low
income and high income: Less than $25K
and above $200K.
/ 19 /
BRAND
DESIRER Bd
52.3% Male
47.7% Female
25.1% (18-29)
27.5% (30-44)
25.5% (45-60)
21.9% (60+)
21.1% (<25k)
22.6% (25-49k)
30% (50-99k)
22.4% (100-199k)
3.9% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
15.71%
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
11. PROFILE DASHBOARD While all our Shopperstates have a
digital dimension, the smartphone
is the most important weapon in the
Mobile Warrior’s shopping arsenal,
whether it’s used to store coupons,
research alternative products, or
make purchases. This shopper skews
significantly younger, but these
behaviors and attitudes are by no
means limited to Millennials. In fact,
68% of Mobile Warriors are above the
age of 30 — and 31.9% are above the
age of 45.
/ 20 /
A Millennial Myth-Buster?
In Telefonica’s 2014 Global Millennial Survey
(conducted by Penn Schoen Berland), a
surprisingly low 37% of US 18 to 34 year-olds
said that mobile technology had significantly
transformed their purchasing behavior.*
Along the same lines, we found that only
24.4% of people between the ages of 18
and 29 are “Mobile Warriors.” Both of these
data points temper our assumptions about
Millennial shopping behavior. While “Mobile
Warriors” do bias younger, by no means are all
Millennials shopping with their smartphones
in hand.
/ 21 /
MOBILE
WARRIOR
*Source: Telefonica’s 2014 Global Millennial Survey
(performed by Penn Schoen Berland)
Mw
46.6% Male
53.4% Female
31.7% (18-29)
36.3% (30-44)
19.4% (45-59)
12.5% (60+)
19.7% (<25k)
23.6% (25-49k)
33.5% (50-99k)
19.6% (100-199)
3.6% (200k+)
F M
18
30
45
60
50 100
20025
0
$k
Yrs
GENDER
GENDER
POPULATION
INCOME
INCOME
AGE
AGE
15.71%
Most Americans
won’t buy online
if they have to pay
shipping costs
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
12. While Shopperstates are
broadly representative,
they naturally shift when
you look at individual
categories. You can
think of it like a shopper
version of DNA – we all
have a dominant gene
(and certainly the Bargain
Hunter Shopperstate is
prominent in the make-
up of many shoppers).
But we also have a
recessive gene that can
spring to the fore given
the right circumstances.
4
HOW
SHOPPERSTATES
SHIFT BY
CATEGORY
/ 23 // 22 /
These nuances affect how we map out the Integrated
Purchase Journey for our shoppers. In Electronics, the
right information in the right place at the right time
is extremely influential. In Grocery, making the store
experience easy, enjoyable and tactile is key (as well as
arming the shopper with the information to make the
best decision). And in fashion, whether shoppers buy
online or not, they want to try the item before committing.
Take the CPG* category versus
Electronics.
Customers prefer to shop
in-store rather than online
40% more for CPG than other
categories. “Brand” and “Price”
both over-index for this shopper.
At the same time, they are 20%
less likely to research products
online or use their smartphones
to compare prices before
purchasing.
When shopping for electronics
though, the Knowledge Seeker
is the dominant type.. Shoppers
are twice as likely to research
products and read online reviews
before purchasing. That’s where
the journey starts. Next they
look for the brand they desire.
But ultimately, even though
experiencing the product first
hand is high on their wishlist,
they may well end up buying
online. Our data shows that
electronics are shopped online
versus in-store 25% more than
other categories.
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER
13. 5
USING THE
DATA TO DRIVE
SHOPPER
INSIGHTS
/ 24 /
Besides analyzing how
people shift shopping
attitudes and behaviors
in different categories,
we can also analyze how
shoppers approach specific
brands—3,000 of them, to
be precise. This puts us in
the position to offer a variety
of actionable, data-based
shopper insights. We can
help both manufacturer
and retailer brands better
understand their target
shoppers, and we can see
how a brand stacks up
against its competition and
the category at large.
/ 25 // 24 /
TIDE VS. METHOD: BEAUTY IS
IN THE EYE OF THE SHOPPER
Both Tide and Method are
BrandAsset® Valuator power
brands, but shoppers see them
very differently. Practical Player
shoppers see Tide as 46% more
differentiated than any other
shoppers, but at the same time,
Tide is most relevant to Brand
Desirers. This may provide
opportunities (for example)
to emphasize the price per
load value equation of Tide to
Practical Players, while ensuring
the iconic identity and brand
BAV Shopper research can help
in terms of assessing the fit
between retailers and brands.
This case shows that while Sears
resonates most with Bargain
Hunters, its own Craftsman
and Kenmore brands appeal
to Mobile Warriors and Store
Reassurers. This may have
implications for distribution
strategy, to get the brands in
front of the right shoppers.
SEARS VS. KENMORE AND
CRAFTSMAN: SQUARE PEGS
IN A ROUND HOLE?
TARGET VS. WALMART:
REFINING YOUR PITCH
Target and Walmart appeal to
very different Shopperstates.
This can help guide
touchpoint and messaging
strategy in shopper marketing
campaigns. Target is a brand
high on the radar of Mobile
Warriors, so it’s important
to embed your brand in the
retailer’s digital ecosystem.
Walmart is first and foremost
a Bargain Hunter retailer, so
it’s critical to develop and
communicate a powerful
value proposition to attract
that shopper
Differentiation
Relevance
Mobile Warriors
Store Reassurers
Bargain Hunters
Mobile Warriors use Target 32%
more than other shoppers
Bargain Hunters use Walmart
17% more than other shoppers
proposition of Tide stands
out in store to the Brand
Desirer.
Meanwhile Method appeals
to Mobile Warriors, who view
the brand as 43% more
differentiated than Tide. You
can view this literally, as an
opportunity to think through
the digital path to purchase
for Method, or more broadly
that it is attracting a younger
and “smarter” shopper.
SHOPPERSTATES SIX DIMENSIONS OF THE NEW AMERICAN SHOPPER