Consumer Behavior Report

Table of Contents

May 2010

PriceGrabber.com’s

Smartphone
Shopping Behavior
March 26 - April 12, 2010
Sample Size 2,445 U.S. Online Consumers

Consumer Behavior Reports are produced, implemented and analyzed by

PriceGrabber.com to give media, industry analysts, consumers and retailers
Copyright ©2010
insight into online shopping trends, purchasing behavior, product pricing and
PriceGrabber.com,
Inc. All Rights
market share.
Reserved
 Key Takeaways

 Over half, 53 percent, of online consumers own a Smartphone or other Web-enabled phone* (see page
4).

 In 2009, 32 percent of online consumers purchased their first Web-enabled phone. In the first quarter of
2010 nine percent of online consumers said they purchased their first Web-enabled phone (see page 6).

 3G connectivity has spread since last year. Sixty-four percent of consumers own Web-enabled phones
compatible with a 3G network as compared to 48 percent last year (see page 7).

 More consumers with Web-enabled phones say they purchase online with their mobile phones as
compared to last year, 13 and 10 percent respectively. Consumers are also using their phones to check prices
(22%), research products (21%) and purchase online (13%) more as compared to last year (see page (see page
9).

 What are consumers purchasing from their mobile phones? Consumers who purchase from their mobile
phones indicate that they buy items such as ringtones and apps (61%), consumer electronics (57%), books (42%),
clothing (34%), and jewelry (16%). The percentage of consumers with Web-enabled phones purchasing books and
consumer electronics has most significantly increased as compared to last year (see page 10).

 Of those consumers with a Web-enabled phone, 26 percent participate in online shopping, e.g.,
comparing prices, purchasing, etc. as compared to 17 percent last year (see page 12).

 Mobile shopping is within reach. Online consumers (with or without Web-enabled phones) say they expect to
be comparing prices (24%) and purchasing items from their mobile phones (22%) in the next 12 months (see page
14).

 Online shoppers ages 25 to 34 indicate more likely to purchase online from their Web-enabled phones
than any other age segment (see page 15).

 Future plans to purchase reveal that the Apple iPhone Smartphone (14%) is more sought after than the
Android (8%) and Blackberry Smartphones (7%) (see page 16).
*For the purposes of this study a Web-enabled mobile phone is defined as a phone capable of connecting to the Internet
through a service provider.
Press Contacts

For additional or custom data requests please contact:

Sara Rodriguez, Market Research Analyst
sara@pricegrabber.com
(323) 601.1282

For media inquiries or interviews please contact:

Sharon Banfield, Public Relations Director
sbanfield@pricegrabber.com
(323) 601.1231
Lexie Puckett, Public Relations Manager
lexie@pricegrabber.com
(323) 601.1223

Please let us know if you would like to*:

• Schedule a phone interview with PriceGrabber.com spokespeople
• Request a non-PDF report version
• Request raw survey data, product trends or pricing data
*All are complimentary
 53% of online consumers own a Smartphone or other
Web-enabled mobile phone

What type of mobile phone do you own?

39% Blackberry Smartphone

8%

Apple iPhone Smartphone

Palm Smartphone

24% Android Smartphone

13%
Other Web-enabled phone (i.e. voice, text
4% and data plan)
10%
2% I don't own a mobile phone

Non Web-enabled mobile phone (i.e.

voice and/or text capabilities only)
Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 2,445 U.S. Online Consumers

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
4
 Since 2009 the survey data reveals a slight increase
in the market share of the Apple iPhone™

2009 Vs. 2010 U.S. Online Consumers: What

type of mobile phone do you own?

42% 42%
2009 2010

29% 26%

21% 20%

8% 11%

Non Web-enabled Other Web-enabled Smartphone Apple iPhone

mobile phone phone

Source: PriceGrabber.com
Base 2010: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 2,241 U.S. Online Consumers with
Mobile Phones
Base 2009: Mobile Phone Online Shopping 3/10/09-3/31/09 I n = 3,305 U.S. Online Consumers with
Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
5
 Web-enabled mobile phone penetration increases:
32% of consumers purchased their first one in 2009

2009 Vs. 2010 U.S. Online Consumers with Web-enabled Phones: In

what year did you purchase your first Web-enabled mobile phone?

2009 Survey
32%
2010 Survey 25%
24%
21%
12% 13%
7% 9% 8%
6% 6% 7%
3% 3%

2003 2004 2005 2006 2007 2008 2009

Source: PriceGrabber.com
Base 1: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,189 U.S. Online Consumers with Web-enabled Mobile Phones
Base 2: Mobile Phone Online Shopping 3/10/09-3/31/09 I n = 1,716 U.S. Online Consumers with Web-enabled Mobile Phones

In 2010 to date, 9% of online

consumers said they purchased
Copyright ©2010
PriceGrabber.com,
their first Web-enabled phone.
Inc. All Rights
Reserved
6
 64% own Web-enabled phones compatible with a 3G
network as compared to 48% last year

2010: Is your current phone 3G compatible?

18%
64%

Yes

18% No
Unsure

Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,169 U.S. Online
Consumers with Web-enabled Mobile Phones 2009: Is your current phone 3G compatible?
25%
48%

Yes
No
Unsure
27%
Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,728 U.S. Online
Copyright ©2010 Consumers with Web-enabled Mobile Phones
PriceGrabber.com,
Inc. All Rights
Reserved
7
 13% of online consumers with Web-enabled phones
purchase online with their mobile phones

How do you shop online from your desktop/laptop?

Web-enabled mobile phone?
100%

74%
69% 65%
61% 56%
52%

19% 21% 22%

13% 13% 13%
1%

Desktop/Laptop Web-enabled Mobile Phone

Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,183 U.S. Online Consumers with Web-enabled Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
8
 More Web-enabled phone owners are using their
phones to check prices (22%), research products
(21%) and purchase online (13%) as compared to last
year

2009 Vs. 2010 U.S. Online Consumers with Web-enabled Phones: How do you
shop online from your Web-enabled mobile phone?

69%
65%
2009 2010

19% 21% 22%

13% 13% 14% 16% 16%
10% 13%
9% 8%

Source: PriceGrabber.com
Base 2010: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,183 U.S. Online Consumers with Web-enabled Mobile Phones
Base 2009: Mobile Phone Online Shopping 3/10/09-3/31/09 I n = 1,539 U.S. Online Consumers with Web-enabled Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
9
 Of those 13% of consumers who indicated
purchasing from their Web-enabled phones, 57%
purchased a consumer electronic as compared to
51% last year

Of those consumers who have purchased from their mobile

phones: What types of products have you purchased from your
mobile phone in the past 12 months? Select all that apply

Digital content for my mobile phone (e.g. 61%

ringtones, Apps, music, video clips) 58%

57%
Consumer electronics
51%

42%
Books
36%

34%
Clothing
31%
2010
31%
Computers, laptops or related equipment
37% 2009
16%
Jewelry and watches
20%

15%
Other
6%
Source: PriceGrabber.com
Base 2012: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 158 U.S. Online Consumers who have Purchased from their
Web-enabled Mobile Phone
Base 2009: Mobile Phone Online Shopping 3/10/09-3/31/09 I n = 157 U.S. Online Consumers who have Purchased from their
Copyright ©2010 Web-enabled Mobile Phone
PriceGrabber.com,
Inc. All Rights
Reserved
10
 32% of consumers who own Web-enabled phones
say they don’t purchase from their phones because
the process takes too much time
What has been preventing you from purchasing (or purchasing
more) from your mobile phone? Select all that apply

Other 37%

The purchase process takes too much time 32%

Transactions are too difficult to complete 26%

Products are too difficult to find 16%

I don't know how to purchase from my phone 16%

My mobile phone doesn’t support secure credit

10%
card transactions

Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,181 U.S. Online Consumers with Web-enabled Mobile Phones

Some of the main reasons consumers indicated in the “other” answer choice
include:
"Mobile phone screen is too small"
"The text size on my mobile is too small"

"Haven't tried to purchase from my mobile"

Copyright ©2010
PriceGrabber.com, "I'd prefer to use my laptop or desktop; it's easier"
Inc. All Rights
Reserved
11
 Of those consumers with a Web-enabled phone, 26%
participate in online shopping as compared to 17%
last year
With many online companies creating mobile phone applications and
websites simplified for mobile navigation, have you engaged in any of
the following online activities from your mobile phone in the past 12
months? Select all that apply
59%
Weather
55%
51%
Driving directions (e.g., traf f ic, maps)
48%
47%
News Updates
47%
Entertainment (e.g., movie times, restaurant 37%
reviews) 34%
Social Networks (e.g., Facebook, LinkedIn, 36%
Twitter) 22%
33%
Games
31%
Banking (e.g., view account, complete 27%
transactions) 25% 2010 Survey
Online shopping (e.g. compare prices, 26%
purchase) 17% 2009 Survey
24%
Sports (e.g., scores, game times)
28%
18%
Travel (e.g., book reservations)
16%
18%
Financial Updates (e.g., stocks, bonds)
24%
Copyright ©2010 Source: PriceGrabber.com
PriceGrabber.com, Base 1: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,180 U.S. Online Consumers
Inc. All Rights Base 2: Mobile Phone Online Shopping 3/10/09-3/31/09 I n = 1,501 U.S. Online Consumers
Reserved
12
 Millennial Generation uses their Web-enabled phone
to send text messages just as often as placing a
phone call

Which activities do you do most often on your mobile phone?*

1 = Most often, and 5 = Least often/Never

2010 Millennial 2009 Millennial

Rank Mobile Phone Usage 2010 Overall**
Generation* Generation*

1 Place phone calls 1.60 1.90 2.03

2 Text message 2.51 1.99 2.33
3 Browse the Web 3.48 3.35 3.19
4 Email 3.11 3.49 3.26
5 Instant Message (IM) 4.30 4.27 4.19
Source: PriceGrabber.com
Base 2010: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,060 U.S. Online Consumers with Web-enabled Mobile Phones
Base 2009: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | n = 1,539 U.S. Online Consumers with Web-enabled Mobile Phones
*Data filtered by U.S. Millennial Generation (Born 1980 or after)
** Mobile phone usage rank is based on consumer segment average (mean) response

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
13
 24% of online consumers (with or without Web-
enabled phones) expect to compare prices and 22%
anticipate purchasing items from their mobile
phones in the next 12 months

By when do you think you will use a mobile phone to do the following activities?

Download
28% 12% 9% 16% 35%
Apps
Compare
19% 14% 10% 16% 41%
prices
Purchase
13% 11% 11% 16% 49%
items
Scan 7%
coupons
14% 11% 16% 52%

Already use Will use in 6 months Will use in 6-12 months Will use in 12-24 months Not Interested/ Never

Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 1,938 U.S. Online Consumers with Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
14
 Online shoppers ages 25 to 34 have the highest
ownership of Web-enabled phones (66%) and
probability of ownership in the next 12 months (43%)

Web-enabled Mobile Phone Ownership & Shopping Behavior by Age Segment

Categories Age
18-24 years 25-34 years 35-44 years 55+ years
Own a Web-enabled 50% 66% 61% 38%
mobile phone
I purchase online from my 13% 16% 14% 10%
mobile phone
Plan to purchase online
from a mobile phone in the 21% 26% 30% 17%
next 12 months
Plan to compare prices
from a mobile phone in the 28% 26% 31% 19%
next 12 months
Plan to purchase a Web-
enabled phone in the next 37% 43% 39% 29%
12 months
Source: PriceGrabber.com I Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I 18-24 years, n = 50 I
25-34 years, n = 223 I 35-44 years, n = 357 I 55+ years, n = 802 U.S. Online Consumers with Web-enabled Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
15
 The iPhone & Android Smartphones are most sought
after by online consumers

Will you purchase any of the following Web-enabled mobile phones in

the next 12 months?

Apple iPhone Smartphone (e.g., 3G, 3GS) 14%

Android Smartphone (e.g., Dream/G1, Hero, Nexus

One) 8%

Blackberry Smartphone (e.g., Curve, Pearl, Bold,

Storm) 7%

Other Web-enabled phone 4%

Palm Smartphone (e.g., Pre, Pixi, Treo) 1%

No, I am happy with my current phone 65%

Source: PriceGrabber.com
Base: Mobile Phone Shopping Behavior 3/26/10-4/12/10 I n = 2,111 U.S. Online Consumers with Web-enabled Mobile Phones

Copyright ©2010
PriceGrabber.com,
Inc. All Rights
Reserved
16
PriceGrabber.com Spokespeople

Laura Conrad Barbary Brunner

Title: President Title: Chief
Expertise: Marketing Officer
Strategic direction Expertise:
of PriceGrabber.com Marketing and brand
and oversees all development and
growth and operations. oversees all product
and communications.

Graham Jones Sean Kane

Title: Vice President, Title: Vice President,
Merchant Accounts Business Development
Expertise: Global and Media Sales
merchant strategy Expertise: Strategic
and managing existing partnerships with top
merchant accounts. tier portals and also
oversees media sales.

To schedule interviews, contact Sharon Banfield.

What is PriceGrabber.com’s Consumer Behavior
Report?

PriceGrabber.com®, a part of Experian, is a leader in comparison shopping and an

unbiased resource for up-to-date trends and product information. The Consumer Behavior
Report is designed to give media, industry analysts, consumers and retailers insight into
online shopping trends, purchasing behavior, product pricing and market share. Each
month, a different topic will be the focus of the complimentary report.

Past reports are located at:

http://www.pricegrabber.com/about.php/about=press/sub_opt=15

PriceGrabber.com has 26 million unique shoppers per month and up-to-date

daily pricing on millions of products supplied by 12,000 merchants and sellers.

About Us: http://www.pricegrabber.com/about.php

Disclaimer: These slides and their content may not be reproduced, distributed
or published by any person for any purpose without sourcing
PriceGrabber.com (hyperlinked) appropriately.
 Methodology

2010 Survey Name: PriceGrabber.com Mobile Phone Shopping Behavior Survey, March
26 to April 12, 2010;
Sample Size: 2,445 U.S. Online Consumers

2009 Survey Name: PriceGrabber.com Mobile Shopping Behavior Survey, March 10, 2009
to March 31, 2009; Sample Size: 3,865 U.S. Online Consumers;
2009 Report: Mobile Internet Shopping Trends

The data, market trends and analysis in this report were prepared by PriceGrabber.com. The data
included in this report is based on the Mobile Phone Shopping Behavior Survey and
PriceGrabber.com site analytics.

For the PriceGrabber.com Mobile Phone Shopping Behavior Survey conducted between March 26,
2010 and April 12, 2010, we designed and fielded an online questionnaire to reach each consumer
who recently made an online purchase from one of our 12,000 retailers and sellers. After completing
an online purchase, each online consumer received an email confirmation, which included the URL
to the Web-based survey. Approximately 2,000,000 U.S. online consumers were invited to take the
survey and 2,445 validly completed the survey. The online survey was comprised of 23 closed-
ended questions. Respondents were asked about their mobile phone usage behaviors and opinions
as they related to their situation in the current state of the economy.

The sample set represents online consumers purchasing products over the 17 days the survey was
administered. The demographic variables collected include: age, gender and estimated annual
household income. The survey completion results showed that 84% of total participants completed
the survey and 16% partially completed the survey. All cross-tabulation statistics for this report were
analyzed using only quality-controlled, completed responses. Respondents that inappropriately
answered a validation question (potentially flagging a fraudulent response) and/or completed the
survey considerably faster than the average respondent speed were removed from the sample set.
The maximum sampling error for the survey data based on a statistically sound sample size of 1,980
respondents is +/− 1.98 percentage points at the 95% confidence level and +/− 2.61 percentage
points at the 99% confidence level.
Copyright ©2010
PriceGrabber.com,
Inc. All Rights Return to Report Highlights
Reserved
19