Presentation on online shoppingDate: December, 2008

Prepared for: D-Link Magyarország Kft.Client Service Team: Imre Kiss, Senior Research Executive

Project number: 60104199

Methodology

3

What?

Where?

Who?

How?

When?

Online shopping questionnaire provided by D-Link

December 2008

Among internet users

Methodology

Total sample size: N= 500Representative for internet users amond the 14-69 age-group, by TGI data

CAWI (Computer Aided Web Interview)

4

Active workers:• Owners of enterprise • State employees, public servants, civil servants • Employees at a private company

Inactive:• Students• Housewives• People who do not work temporarily (being on maternity leave, unemployed)• Pensioners• Other inactives

Lower education:• Less than elementary school• Elementary school• Unfinished vocational school• Finished vocational school• Unfinished technical school• Unfinished grammar school

Middle education:• Finished technical school• Finished grammar school• Vocational training after grammar school• Advanced level course after grammar school

Higher education:• Unfinished college • College degree• Unfinished university • University degree• University degree + academic level

Definitions of phrases used

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Central Hungary:• Budapest• Pest County

Eastern Hungary:• North Hungary (Borsod-Abaúj County, Heves County, Nógrád Count• North Lowland (Hajdú-Bihar County, Szabolcs-Szatmár County, Szolnok County)• South Lowland (Csongrád County, Békés County, Bács-Kiskun County

Western Hungary:• West - Transdanubium (Győr-Sopron County, Vas County, Zala County)• North - Transdanubium (Veszprém County, Komárom County, Fejér County)• South-Transdanubium (Baranya County, Somogy County, Tolna County)

Definitions of phrases used

Active workers: 56%Inactives: 24%

Callouts show significant differences in-between the demographic segments.

Results

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71%

76%

79%

83%

80%

76%

29%

24%

20%

21%

17%

24%

Total

Central Hungary

Higher education

25- 34 years

Budapest

Male

Yes No

Vast majority of the interviewed internet users has purchased something via internet in the last year. There are significantly more internet users who purchased online within the following groups: people live in Central Hungary, especially in Budapest; people with higher education; between 25-34 years; and men. These overrepresented groups are in line with the expectations.

(Q1) Purchased online

Q1. Have you made online shopping during last year? ?

500

157

228

134

108

250

Base:

8

The main reason for shopping online are the lower prices and the fact that one doesn’t need to go outside (during the hectic Christmas period it may be even more relevant). These advantages may be useful to be communicated.

(Q2) Reason for purchase online

Q2. Why you do online shopping?

56%

42%

31%

23%

18%

It is cheaper thenIn traditional

shops

I don't have togo outsider the

home

Online shops arewell- equipped

I have too lesstime for visits Intradittional shops

Other

Base: 355

Active workers: 30%Central-Hungary: 29%

25-34: 26%Budapest: 30%

Male: 36%

Male: 65%

9

There are two main groups of the barriers that may limit the potential of online shopping. One can not be solved so easily: it is about the lack of real-life interaction between consumer and seller: - can’t touch the goods; - can’t get advice.The other group of reasons is about being afraid: - loosing money; - not getting the goods in time. It can be solved with fair trade, secure transactions and with honest communication.

(Q10) Reason of non-purchase

Q10. Why you do not buy online?

62%

37%

23%

16%

13%

10%

14%

I can't touch/watch the productbefore the purchase

I am afraid of onlinepayment/money transfer

I am afraid of fraudulent traders

I don't know enough about onlinetrading

I can't get advice from a trader

I am afraid that I won't getpurchased product on time

Other

Base: 145

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Two thirds of the online shoppers use price comparison sites, and this ration is even higher among men.It shows that these sites are liked, and combined with the comment of other users, gives a real help before purchasing anything.

(Q3) Usage of price comparison

Q3. Do you use shopping comparison sites before do the online shopping?

66%

75%

34%

25%

Total

Male

Yes No

355

189

Base:

11

Almost everyone checks the comments of other users. It is a kind of word of mouth, which is turned out to be the most reliable source of information many times.

(Q4) Comment of other users

Q4. Do you take into consideration comments of other users before you buy a product?

90%

96%

96%

10%

4%

4%

Total

25- 34 years

35- 44 years

Yes No

355

73

44

Base:

Too low base!

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Probably because of being afraid of paying online, and partly because of the low penetration of credit cards the most wide-spread way of payment is still by cash on delivery. Some use bank transfer, but the usage of cards and the special payment methods (internet cards and Pay-Pal) are marginal. There is still some space for development, especially in case of credit cards.

(Q5) Method of payment

Q5. How do you pay for online shopping ?

Women: 87%

81%

43%

16%

5%

5%

by cash ondelivery

by bank transfer

by classic creditor debit card

by special cardonly for internet

transactions

through thethird- part service

(like PayPal)

Base: 355

Higher education: 48%25-34: 47%Men: 51%

Central Hungary: 22%Budapest: 28%

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Besides price, the most important factors are the reliability of shops and the guarantee terms, which indicates that people still have doubts, and want to be 100% sure that they will receive the chosen item(s).

(Q6) Most important factor, besides price

Q6. Besides price, what is the second most important factor when you order online?

Active workers: 41% Central Hungary: 42%

37%

22%

15%

11%

2%

14%

shop reliability

guarantee terms

payment terms

nothing else,price only

price is lessimportant for me

other

Base: 355

Inactive workers: 29% Lower education: 34%

14-24: 27%

25-34: 20%

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Two third of the shoppers check the warranty terms always. 25-34 year old shoppers and men check it to a greater extent, it indicates that there is space for education among the younger segments and among women (e.g. pr-article in Joy, Cosmopolitan, Maxima may be worthful).

(Q7) Warranty

Q7. Do you check the guarantee terms before purchasing online?

69%

63%

78%

76%

68%

39%

75%

63%

17%

20%

16%

17%

18%

14%

17%

8%

8%

16%

30%

8%

19%

14%

16%

30%

Total

14- 24 years

25- 34 years

35- 44 years

45- 54 years

55- 69 years

Male

Female

Yes, alwaysNo, I accept there is only a shop guaranteeNo, I didn't know that the guarantee is different

355

115

111

62

44

23

189

166

Base:

Too low base!

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There is only a small minority who has ever faced any problem during the process of online shopping, and it is mostly related to the purchased good (most probably it was damaged, or not the ordered one). Thus fraud seems to happen less frequent as it is perceived.

(Q8) Negative experience

Q8. Have you ever had a negative experience, when purchasing online?

Base:

19%

15%

27%

81%

85%

73%

Total

Active workers

Inactives

Yes No

355

216

139

78%

17%

10%

6%

Problemwith the

purchasedgood

Way ofdelivery

Payment

Guaranteeissue

Base: 69

(Q9) Reason of negative experience