The Roots of Innovation

Here at Lab42 we have been detailing the results of our innovation survey, which aimed to find out just how important innovation really is to the average consumer.

Our research has shown that people are willing to pay significantly more for products they feel are innovative, and that generating new ideas and listening to customers are seen as the main drivers. But where do consumers see this innovation coming from?

Silicon Valley was beaten, perhaps surprisingly, as the top US innovation spot by New York City. When asked which places consumers considered the most innovative, 27.4% said the Big Apple beating Silicon Valley into second place with 22.6%. Los Angeles was third at 14.5%, with Seattle and Chicago filling out the top five with 6.7% and 4.2%, respectively. Rather than just one dominant centre of innovation, consumers now see innovation coming from pockets across the country, which is good news for businesses without a coveted (and expensive) Silicon Valley ZIP code.

This shift from West to East might also speak to a surprising ambivalence to the role of technology in innovation we found in our survey. When asked if technology is the most important factor driving innovation, although 16.4% strongly agree and 26.6% agree, more than a third (34.3%) are neutral about its importance and 66.3% agree that a company can be innovative without technology. So as consumers are increasingly concluding that technology and innovation are not synonymous, brands will have to try more than technological showboating to set themselves apart.



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

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.




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.



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%