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To: Lizzie Tudor who wrote (82696)11/1/1999 9:43:00 PM
From: Glenn D. Rudolph  Respond to of 164685
 
Holiday Buying Jumps Among New Internet Users, Reports NPD Online Research; Brick-and-Mortar Companies With Online Sites Stand to Benefit the Most From Increase

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Nov. 1, 1999--Newbies,
those Internet users with less than six months experience using the
Web, are more confident about shopping online this holiday season.
According to a recent NPD Online Research survey, 62% of Internet
Newbies plan to complete part of their holiday purchasing online, a
jump of 100% compared to one year ago. Most will spend between $100
and $300.

Web sites associated with brick-and-mortar stores should benefit
the most from online spending by Newbies. Major retail chains
dominated the top sites where Newbies plan to shop this holiday,
different from those sites preferred by more experienced Internet
users.

Top 5 Web Sites To Be Shopped This Holiday

Newbies versus Net Vets

Newbies Site Preferences Net Vets Site Preferences

Amazon Amazon

Toys R Us Barnes & Noble

Wal-Mart eBay

eToys eToys

Barnes & Noble CDNow

"Currently, Internet companies are using traditional print and
television advertisements to increase site awareness," explains Pamela
Smith, vice president of NPD Online Research. "New Internet users are
being exposed to online advertising more than ever. Such exposure
brings a certain level of comfort, making the decision to buy online
that much easier."

What is driving Newbies online this holiday season? Convenience
is key, as 29% reported that the ability to save time makes them shop
the Web. Other reasons included online price specials (20%), the
ability to avoid crowds (18%), and curiosity (16%). Surprisingly, 40%
of Newbies will miss none of the festivities available at
brick-and-mortar stores - decorations, music and visits with Santa -
when holiday shopping on the Web.

If Internet retailers want to capture more of the Newbies market,
overcoming security concerns and issues intrinsic to online buying
continues to require their attention. Twenty-six percent of Newbies
didn't buy online because of a trust or security concern. The need to
see before buying stopped 23%. Shipping costs proved too high for 10%.
And 5% were too anxious about returning online merchandise.

About the Study

The NPD online holiday survey was conducted as part of the NPD
Online Research omnibus survey. Four thousand, six hundred and one
individuals from NPD's Online Panel, a Web representative sample of
individuals prerecruited to participate in surveys, responded to the
questionnaire in early September. The NPD online omnibus survey gives
marketers the opportunity to share survey costs in order to monitor
consumer attitude and behavior on a wide range of topics.

About NPD Online Research

NPD Online Research, a division of The NPD Group, is a leader in
developing World Wide Web-based technologies to conduct and deliver
market research and analysis. The NPD Online Panel is a prerecruited
sample of Internet representative individuals used for conducting
marketing research on the Web. NPD also offers SiteSelect sampling
technology, allowing marketers to conduct random sample surveys on
their own sites. Clients include leading companies such as Yahoo!,
Excite, AOL, Lycos, Go Network, iVillage, First USA, GTE and Kraft
Foods.

About The NPD Group

The NPD Group is an international marketing information company
headquartered in Port Washington, NY. Founded in 1953, the firm
specializes in tracking consumer purchasing and behavior. NPD offers
both custom research capabilities and syndicated databases for more
than 20 industries including apparel, automotive products, consumer
electronics, cosmetics and fragrances, financial services, food,
foodservice, footwear, housewares, information technology, interactive
entertainment, pharmaceuticals, toys, and more. A leader in conducting
research on and about the Internet, NPD is also the developer of the
revolutionary Web audience measurement technology now marketed by
Media Metrix, Inc. NPD has offices and affiliations in 36 countries,
covering North America, South America, Europe, Asia and Australia.

npd.com

CONTACT:

NPD Group, Port Washington

Helen D'Antoni, 516/625-2496