The Drivers of Innovation

At Lab42, we understand the importance of innovation – we are innovators ourselves – but we wanted to know how important it was to the average consumer. What do consumers think makes a company innovative and how do they see the process of innovation?

As established in our post The Innovation Premium, consumers are willing to pay significantly more for products they feel are innovative. But how do consumers perceive innovation in a company?

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The Innovation Premium

Consumers will pay more for Innovation.

At Lab42, we understand the importance of innovation in our industry, but we wanted to know how important it was to the average consumer. How much do they actually care about innovation, and how does that impact their shopping behavior? During April 2015, we launched a survey to gather insights regarding consumers’ perception of innovation. Over the next few months we’ll be revealing some of the insights from the study that demonstrate the strategic imperative of innovation within your organisation.

One important element for marketing teams to understand is that, across the board, the majority of consumers are willing to pay more for a product or company they consider innovative. Perhaps unsurprisingly, 83% of respondents would pay more for innovation in electronics with 15% of these willing to pay more than 40% more. In the automotive industry, 75% of respondents would be willing to pay an innovation premium, with 10% willing to pay over 40% more.

Also, 67% of consumers will pay a premium for grocery store items which they consider to be innovative. And even in ‘dull’ categories such as insurance and gas, the data shows an ‘innovation premium’ uplift with 54% and 52% willing to pay more, respectively.

Take a look at our infographic to discover the full details of the premium innovation you can leverage on your company, products or services.

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Interested in learning more about Lab42’s research methodology and how it stacks up against traditional panels? Check out our Research on Research.

 

Know Your Sample: Social Media Versus Traditional Panel

At Lab42 we understand the pressures on marketing teams to secure business critical insights with quick turnarounds and on tight budgets, while maintaining the high quality insights necessary for optimal planning and decision making.

Rather than a hurdle, we feel those challenges present a great opportunity for innovation. By recruiting respondents through social media channels rather than maintaining traditional respondent panels, we believe we can address the needs of research clients in an increasingly demanding environment.

But is it a smarter way to do online research? Does it compete with traditional panels when it comes to behavioral and attitudinal representativeness? We set out to discover the truth Download our white paper and check out our infographic to find out for yourself.

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Are consumers willing to spend a premium price for innovative products and services? Check out ‘The Innovation Premium’ to learn more. 

Free Shipping Still #1 for Online Shoppers

Black Friday and Cyber Monday have come and gone, but there are still a few weeks of holiday shopping left on the calendar. Lab42 took a deeper dive into the mindset of 500 holiday shoppers to see how they are planning on shopping and how much they’re planning on spending.

When it comes to shopping online, free shipping is the most popular incentive for online holiday shoppers, with 40 percent saying it’s the best way to get them to purchase online. Women are more likely than men to view free shipping as the best incentive for online shopping (42% vs. 37%). The second best incentive is price discounts (26%), followed by previous positive experiences with the brand (18%).

Respondents were also asked about their holiday spending habits for 2014 compared to 2013. Although forty-seven percent said they plan to spend more on gifts this year, men were far more likely than women to say they were going to increase their spending (55% men vs. 39% women). Forty-one percent plan to spend about the same as last year, with women having a slight edge over men in this category (44% women vs. 39% men). Twelve percent anticipate spending less this year, with women being significantly more likely to curb their spending (17% of women vs. 6% of men).

Differences between men and women were also apparent when it came to budgeting and shopping for themselves during the holiday seasons. Seventy-one percent of respondents said they will buy items for themselves during the holiday shopping season, and men were far more likely than women to do so (80% of men vs. 62% of women). Nearly six in ten shoppers set overall budgets for holiday shopping, but women were slightly more likely than men to do so (63% of women vs. 56% of men), and women were also more likely to set budgets when buying items for themselves (64% of women vs. 58% of men).

When asked about their shopping habits this year, 91 percent of those surveyed will shop online this holiday season. Among the online shoppers, 53 percent will shop online more this year compared to last year. Forty-five percent said their online shopping habits would remain the same, while just 2 percent said they would shop online less this year.

The study also uncovered the following key findings:

• Retailers’ websites are the number one way shoppers research gifts
• Thirty-seven percent of respondents will use social networks to research gifts
• Holiday spending breakdown of how much consumers plan to spend this year:

o Less than $100: 5%
o $100-$399: 32%
o $400-$699: 29%
o $700-$999: 14%
o $1000 or more: 17%
o I don’t know: 3%

Black Friday 2014: Holiday Retail Trends at a Glance

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We’ve started an annual trend here at Lab42. Every November, we run a study to try to get inside the consumer mindset when it comes to holiday spending, and more specifically, Black Friday. This year, we surveyed 500 Americans who are planning on shopping for the holidays to see what they had to say.

One of the most interesting statistics that we found demonstrates a growing pushback to stores opening early on Thanksgiving. 70% of consumers felt that stores should remain closed on Thanksgiving, up from 60% in 2012 and 68% in 2013. Many shoppers are also banking on the idea that Black Friday is not the best day to shop, with over half (53%) of respondents saying that they believe Black Friday deals will be available at another date.

Black Friday shoppers are definitely early-risers, with 26% planning on starting their shopping between midnight and 3am. Fifteen percent of Black Friday shoppers will shop between 3am and 6am, and 20 percent are planning on starting between 6am and noon. The remaining 16 percent don’t plan to get an early start on shopping, saying that they are planning to start after noon. 23% of shoppers will start on Thanksgiving Day.

When picking their favorites between Black Friday, Cyber Monday and Small Business Saturday, 51% chose Black Friday, 37% selected Cyber Monday, and the remaining 12% chose Small Business Saturday as their favorite shopping holiday.

The study found that consumers are more likely to shop for themselves on Cyber Monday compared to Black Friday. 20% of Cyber Monday shoppers claim that they are shopping mostly for themselves, while only 13% of Black Friday shoppers are shopping mostly for themselves.

Traditional media is critical in getting the word out about Black Friday deals. When asked what the best way for retailers to communicate Black Friday deals, the top 3 answers were 1) TV commercials (28%), 2) social media, and 3) newspaper coupons and inserts (20%).

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The study also uncovered the following key findings:

  • 74% of Black Friday shoppers purchase things on Black Friday that they want but wouldn’t normally get, while 24% said that they only purchase things that they need. The remaining 2% said that they buy things they’ve never seen before.
  • 30% of those who do not shop on Black Friday skip it because they feel the same deals will be available online. 15% think retailers will run better deals closer to the holidays.
  • 38% think retailers should open at 6am or later on Black Friday
  • Most Cyber Monday shoppers plan to shop at home (72%) while 28% plan to shop while at work.

 

This Lab42 survey was fielded among 500 Americans aged 18+ who are planning to purchase gifts this holiday season. The survey was conducted November 3 – 4, 2014.