Shoppers around the country say they are planning to spend an average of $854 for gifts this holiday season, up from $646 last year according to the 27th annual survey on holiday spending from the American Research Group, Inc.”
The results of this study state 45 percent of the people surveyed plan to use the Internet to make their Christmas purchases. Of those making purchases on the Internet, the average planned spending is $1,245, which is up from $714 in 2011. This data is based on telephone interviews with 1,100 adults, randomly selected.
I find it interesting that the people making purchases on the Internet are planning to spend over 45 percent more than the average holiday spending. This could be explained by several different factors. One plausible explanation is that the people who shop on the Internet have a higher income level and are able to spend more on their holiday shopping. A second reason could be the ease of making purchases over the Internet encourages us to spend more. There could also be evidence that we are willing to pay more for items that we purchase online due to the convenience of purchasing at home and not having to fight the crowds and weather of going to the store. The study does not differentiate the amount of spending that online shoppers will do online versus in the stores, only that 45 percent will use the Internet for some portion of their purchases. This is up from 37 percent in 2011, 40 percent in 2010, and 42 percent in 2009. The study goes back to 2002, where the percent of people making purchases on the Internet was 39 percent. There has not been a steady trend in the data showing a constant increase, as might be expected, in the percent of people making purchases on the Internet. Over the 11 years reported, the data has ranged from 29 percent to this year’s high of 45 percent.
With respect to shopping for sales, people claim they are willing to wait for sales. Only 18 percent of shoppers are willing to pay full price, while 54 percent will wait for the sale and 28 percent say it depends on the gift.
We have been trained by retailers to shop on certain days based on their promotions.
We wait until we have the best coupons before we purchase from some major retailers, and this allows them to staff their stores to meet this peak shopping demand.
They are able to use their non-sale days to reorganize the store, restack items and prepare for the next sale day.
Internet retailing does not need to manage for this face-to-face customer service and store organization. The online environment allows for greater flexibility in shopping hours and sale hours.
Many consumers are still learning where to get the best deals when shopping online while we have been trained as to the best time to do our in-store shopping.
Online retailers are still learning how to manipulate our Internet shopping behavior.
Columns from the Falls School of Business at Anderson University appear Tuesdays in The Herald Bulletin. This week’s columnist is professor Jill Merle.
Local Business
Related Photos
-
Jill Merle
Discussion
Jill Merle: Survey says more people plan to use Internet for holiday shopping
- Local Business
-
-
St. Vincent says it will eliminate some employees, contract associates
The St. Vincent Health network said Thursday it plans to restructure its workforce, eliminating employees and contract associates across its 22-hospital system.
-
Flagship Microloan program expands
The Flagship Enterprise Center is making $500,000 more in loan funds available to local small businesses.
-
Hospital dedicates St. John’s Chapel
St. Vincent Anderson Regional Hospital renamed its chapel on Tuesday to pay homage to its past. About 70 people attended the dedication service of the newly christened St. John’s Chapel just inside the main lobby doors at the hospital.
-
Emmett Dulaney: First sports marketing camp starts in June
For the first time, Anderson University is offering a summer camp for high school students who are interested in learning about the field of sports marketing.
-
Charo Boyd: Social Security honors all who serve
Every day of the year, Americans across the nation remember friends and family members who have served and sacrificed for their country. Memorial Day is a day when we all come together to honor those who have given their lives in the defense of freedom and the principles we hold dear in this country.
-
Study reflects local hospital costs on par
It’s hard to say what’s worse — being hospitalized, or the bill that follows.
But in some places, that bill might be a bigger hit than others: Say, Monterey Park, Calif., for example, where an inpatient being treated for heart failure could expect to pay about twice the average between Madison County’s Community Hospital Anderson and St. Vincent Anderson Regional. -
News of Record: Divorce and bankruptcy filings
Divorce filings and bankruptcy filings recently for Madison County, as published Sunday in The Herald Bulletin:
-
Yard sale season means big business
Yard sale season is upon us, again.
In Ginnie Clevenger’s Pendleton neighborhood, it’s been a Pendle Hill homeowners’ association tradition since 1977, marked every year with a big banner and balloons tied to mailboxes. Saturday, between 15 and 20 homeowners had signed up to price-sticker their old clothes, video tapes, whats-a-whose-its and thing-a-ma-bobs, and spread them across their front lawns. -
Business People: May 19
Business People briefs, as published Sunday:
-
Big Joe Clark column: Competing with tax policy difficult in a changing world
Years ago, I received valuable insight into the eyes of the Internal Revenue Service.
A client was being audited, and I saw the writing on the wall of the financial impact if the fines were truly assessed. - More Local Business Headlines
-
