Shopping.com Smart Shopping Index Finds That Region and Age Play Large Role in Online Shopping Behavior

Tuesday, June 14, 2005

BRISBANE, CA /PRNewswire-FirstCall via COMTEX/ - According to the first Shopping.com(TM) (Nasdaq: SHOP) Smart Shopping Index(TM), a quarterly survey of shoppers' behaviors and attitudes toward selected categories of products and services, shoppers in the Northeast spend the most on clothes, Midwesterners are less interested in the luxury category and the majority of online shoppers are not concerned with merchant size when purchasing apparel online. These findings and others will be a part of this quarterly Index that will gauge current consumer interest and actions as well as serve as a benchmark for the other indices to come.

As the largest online comparison shopping site in the US with over 22 million unique visitors a month according to comScore Media Metrix, and with its millions of diverse product offerings, Shopping.com has a unique lens on consumer shopping behavior.

"As more and more consumers use online resources to research and purchase products, the transactions that occur within that virtual marketplace become an increasingly important indicator of retail sector strengths and the consumer attitudes that most influence them," said Shannon Clouston, Chief Shopper, Shopping.com. "Our understanding of these trends helps us deliver one of the best online shopping experiences for both consumers and merchants."

Each quarterly Smart Shopping Index will focus on behavior with respect to a selected number of products and services of respondents across a variety of socioeconomic factors, including marital status, ethnicity, household income, and demographic region.

This quarter's index looks at Clothing, Electronics, Mortgages, Personal Care and Luxury Items.

Smart Shopping Index: First Quarter 2005

Clothing Appeals Most to Younger, Northeast Crowd

American adults, men and women over the age of 18, report spending an average of $177 on clothes over the three month period from January 1st through April 1st. Younger adults ages 18-34 spent an average of $208 on clothes, which is $37 more than adults ages 35-54 (who averaged $171) and $62 more than those ages 55+ (who averaged $146).

Adults in the Northeast spent more on clothes than adults in other regions of the United States, spending $206 on average during the first quarter of 2005; followed by the South ($185), West ($161), and Midwest ($155).

Smaller Retailers on Equal Footing with Larger Chains

Sixty percent of survey respondents said they did not have a preference on the type of retail store they visited when purchasing apparel. Though 26 percent chose to purchase apparel from a large chain retailer, 14 percent said they preferred to shop with smaller, independent retailers.

Gizmos and Gadgets

Consumers continue to flock online to shop for electronics ranging from computer equipment to video games to PDAs to digital cameras. In the first quarter of 2005, nearly 23 percent, or one in four respondents, purchased computer equipment such as desktops, laptops, monitors and printers, and one in five purchased video gaming systems and games. Similarly, 20 percent of respondents also shopped for audio equipment, such as iPods, MP3 players and home theater systems. While men showed that they were more likely to purchase electronics, both men and women preferred to consult a friend or family member before making a purchase. Men were also more inclined to visit the retailer's website and comparison sites before buying.

Shopping for a Home or Mortgage

The National Association of Realtors reports home sales have increased five percent in the first quarter of 2005. The Shopping.com Smart Shopping Index found that almost one in eight Americans plans to purchase a home in the next 12 months, with nearly half (47 percent) of prospective home buyers being younger adults (ages 18-34).

Respondents who rent their current residence are twice as likely as homeowners to plan on buying a home. In the past three months, 14 percent of adults surveyed have gone online to check mortgage rates. And though it is the renters who are more likely looking to buy homes, more homeowners (15 percent) than renters (11 percent) are actually going online to check mortgage rates.

Personal Care Products Are Big Sellers Online

Within the personal items category, personal care products, such as soap, shampoo, conditioner and toothpaste, top the list of items that adults have purchased online in the past three months (17 percent) followed by beauty products (12 percent), fragrances (nine percent), and hair styling products (nine percent). Not surprisingly, women are more likely than men to have purchased any of these products online, with 27 percent of women having done so in the past three months, compared to 19 percent of men. However, while men are less likely to shop for these products online, it was personal care products and hairstyling products that made it to the top of their shopping lists, at 18 and 10 percent, respectively.

Online Luxury Goods Appeal to Younger Set Nationwide -- but not Midwesterners

Younger shoppers are savvier about purchasing coveted luxury items online versus hitting the stores. Of the adults surveyed who have purchased luxury clothing online in the past three months, 48 percent are 18-35 (35 percent are 35-54; 17 percent are 55+). Shoppers in the Midwest are the least likely to purchase luxury clothing online, with only four percent of shoppers surveyed in that region having purchased high-end clothing online during the first quarter of 2005. Shoppers in the South, Northeast and West purchased an equal amount of luxury clothing online, with 10 percent of respondents in each region having purchased luxury clothing online during the first quarter of 2005.
Survey Methodology

This Shopping.com Smart Shopping Index is based on the findings of a survey conducted by Leflein Associates, Inc. using a national online sample of 1,000 U.S. adults with 464 males and 536 females, ages 18+, from April 13th - 22nd, 2005. Note that not all U.S. homes have Internet connections. This study has a margin of error of plus or minus three percent at the 95 percent confidence level. The margin of error for subgroups is higher.


About Shopping.com
Shopping.com Ltd. is a leading online comparison shopping service. The Company gathers product and merchant data from across the Internet, organizes and structures it into a comprehensive catalog, and presents the resulting information to consumers in a user-friendly interface. Shopping.com was launched in 2003 as the new brand and corporate identity of Dealtime.com, founded in 1997, and Epinions.com, founded in 1999.

Safe Harbor Statement
This release contains forward-looking statements, including statements regarding our future business opportunities. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to many factors, including our ability to forecast consumer behavior and recognize or respond to emerging trends, competitive factors, the market acceptance of our new products and product enhancements, and other risks and uncertainties. Please consult the various reports and documents filed by Shopping.com with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q for factors that may affect the Company's future financial results. All forward-looking statements are made as of the date hereof and Shopping.com does not undertake any responsibility to update or revise any forward-looking statement provided in this release.