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To: jach who wrote (30546)	12/20/1998 1:26:00 PM
From: jach	Respond to of 164684

home.microsoft.com links to Barnes&Noble

To: jach who wrote (30546)	12/20/1998 9:38:00 PM
From: Glenn D. Rudolph	Respond to of 164684

The Internet Capitalist SG Cowen Internet Research 6 findings aren't necessarily earth shattering, but they do add to our understanding of what drives consumers online as they contemplate transacting. Once again, we are taken with the positive consistency of the data and the volumes that it speaks about the development of the web and e-commerce. We are also delighted to hear that these WVTM results will be used as a baseline for further research, conducted with the same panel, in order to gain an understanding of how online shopping patterns and behavior develop and change over time (because of the infancy of the medium, it can be difficult to comprehend the time when the consumer e-commerce market will be mature). The key findings from the WVTM involve buying predictors (that is the activities that lead up to purchase behavior). Factor #1 is looking at product information. While on the surface this seems obvious (you want to learn about a product before you plunk down that disposable income), it is very telling for those advertisers/merchants who have adopted a wait and see approach to the Internet. The lesson here is, even for established brands and products, there is a predictable lag between the time you go online and the time your Internet sales go through the roof. Just as consumers take time to build a relationship with a brand (read: loyalty) in the bricks and mortar world, the same is true on the Web. Note: this also coincides nicely with the AOL/Roper Starch study. Factor #2 is time online. This refers to how long a user has had a connection to the Web, not the actual amount of time they spend online during a particular session. This again is a seemingly obvious conclusion; the more comfortable a consumer is with the Web in general, the more likely they are to make a purchase. Again, there is a clear message here: invest in getting people online, comfortable with the medium, searching for product information and soon they're ready to buy (this sounds an awful lot like the whole portal strategy - see “Company Watch” below for a glimpse at AOL's success turning users into buyers this holiday season). Factor #3 is number of daily emails. It is significant to note that email usage is far ahead of clicking on banners in terms of predicting buying. This is why Excite's MatchLogic is moving away from serving ad banners and pressing full steam ahead with targeted email services (see “Company Watch”). In discussing these predictive factors, it is worth noting that demographics are of little use, but past behavior is of the utmost value. Other key findings from the study include: * 45% of WVTM sample buys online (figure derived using logistic regression equations, yet identical to the AOL/Roper Starch findings of 45%) * Median amount spent online per year: $200 (US), $240 (Europe), $160 (Asia). * New users spend less than experienced users ($163 vs. $290) * WVTM estimates current North American online purchasing is $4 billion and projects worldwide online spending will grow to $23.7 billion in 2000 (see “Databank” for more e-commerce projections). WVTM conclusions about the profile of the typical online shopper echo the attributes described by Ted Leonsis of AOL at last week's Annual SG Cowen Internet Dinner (see “The Week” above) - an individual who is pressed for time and using the web more and more to make life easier. Advertisers/merchants/web designers/anyone trying to figure out how to make money on the Web should listen to the consumer and create shopping experiences that meet those