© TNS 2012 1

Online shopping

Report by TNS Polska for PayU

© TNS 2012 2

Table of contents

1 Research data 03

2 Summary 05

3 Research results 08

4 Contact data 17

© TNS 2012 3

1 Research data

© TNS 2012 4

Research data

The objective of this research carried out by TNS Polska for PayU was to find out what Poles are anxious about when shopping online, whether they know their rights and what they pay attention to before making a purchase.

The research was made:

8 - 11 November 2012;

via Computer Assisted Personal Interviewing (CAPI);

on a representative, randomly selected sample of 1,000 Poles aged 15 and older;

Maximum sampling error for the whole sample +/- 3.1%.

© TNS 2012 5

2 Summary

© TNS 2012 6

Summary (1)

59% of the respondents admitted to not shopping online. This percentage goes up with respondents’ age. In addition, the lower their education, the higher the figure.

The level of the Internet shopping anxieties is equal for all respondents irrespective of their social and demographic characteristics. The most frequently articulated one is a fear of not receiving an already paid item (33%) – in other words, the respondents are mostly afraid of being deceived. They are also anxious that the item they receive may differ from the one presented on photos (29%). Other fears were more seldom. However, it’s worth mentioning that quite a large group of respondents (27%) have no online shopping anxieties.

The knowledge of rights of online shoppers is quite poor. The majority of people who do not buy via the Internet openly admit to not knowing enough. While when it comes to those who use this channel, it can be assumed that their replies may to a certain extent be accidental and not always be supported with knowledge.

© TNS 2012 7

Summary (2)

To all five questions concerning the rights of Internet consumers, only 2% of the online buyers replied correctly, while 7% gave four correct answers.

The older the respondents, the fewer correct answers to questions concerning Internet consumers’ rights. However, when taking account of only those who actually shop online, the difference is not as high.

People who happen to shop online pay the closest attention to price (60%). This is followed by: shop/seller reviews (38%), shipping cost (30%), shop /seller’s trustworthiness (29%) and product reviews (29%).

The respondents pay the least attention to payment options (9%) and free item return in case of withdrawal from the agreement (7%). Interestingly enough, the respondents rarely read the shop’s terms and conditions (9%).

© TNS 2012 8

3 Research results

© TNS 2012 9

1. What are you most afraid of when shopping online? (N=411 –online shoppers)

33

29

14

14

13

12

7

6

3

27

8

I pay the money but don't receive the item

The item will differ from the one on photos, e.g. in colour

The parcel will not reach me on time or delivery time will be

long

I will not be able to return an item which does not meet my

expectations

Difficult contact with the Seller if I decide to return the item

The parcel will be lost or damaged in transit

Additional or hidden costs

I'm afraid of ordering goods in foreign e-shops

I have other anxieties

Nothing, online shopping is safe

Hard to say

Figures in [%]

Percentages do not sum up to 100%, because the respondents could provide three answers.

© TNS 2012 10

What are you afraid of when shopping online?

As many as 59% of the respondents admitted to not shopping online. People who shop online are mostly afraid of paying money and not receiving the item (33%) or that the item they receive may differ from the one presented on photos (29%). 14% of the respondents fear that the package will not come on time or that they will not be able to return the item if it does not meet their expectations. In addition, some are afraid of having difficulties contacting the seller when returning the item (13%). The respondents mentioned items lost or damaged in transit (12%), additional or hidden costs (7%) and e-shops located abroad (6%). There is quite a large group of respondents (27%) who are not afraid of anything and claim that online shopping is safe.

Interestingly, all the Internet shopping anxieties are more or less similar irrespective of sex, age or education. Even the frequency of using the net plays no major role. The only difference is that residents of larger cities (500,000 people and more) have fewer anxieties than others (38%).

© TNS 2012

2. Let me read you a few sentences concerning the rights of online consumers. Please tell me if you agree with them. (N=1000)

70

14

67

14

59

11

55

11

74

13

18

12

17

11

22

12

23

12

10

9

12

74

16

75

18

77

21

77

16

78

I can resign from purchase (withdraw from

agreement) at any time on condition that I justify

it properly

Under the law, costs of a return package in case

of a return (withdrawal from agreement) are

incurred by the buyer

I have as much time to make a complaint about

an item, as I do to return it (withdrawal from

agreement)

Under the law, costs of a return package in caseof a complaint are incurred by the seller

In principle, I can return (withdraw from

agreement) an item bought online within 10 days

Figures [%]

Yes No I don't know

11

For more transparency, percentage values have by rounded up. This means that in some cases the values may not sum up

to 100%.

Buys online

Doesn’t buy online

Buys online

Buys online

Doesn’t buy online

Doesn’t buy online

Doesn’t buy online

Doesn’t buy online

Buys online

Buys online

© TNS 2012 12

What are the rights of an online consumer?

The level of knowledge of the rights of online customers is quite low. People who do not buy via the Internet most frequently admitted to their ignorance (74% to 78% said “I don’t know”). It would seem that respondents who happen to shop online should be more aware in this regard. In fact, however, they tend to give unconsidered “yes” replies to every sentence.

One fifth of online buyers know that they cannot resign from a purchase at any time, even if the request is properly justified (18%). A similar percentage sees a difference between a complaint and withdrawal from the agreement and knows that the allowed time for a return is shorter than the one for a complaint (22%).

In the case of three further questions, the positive answer was the correct one and the percentage of correct answers was much higher. Two thirds of the respondents (67%) said that under the law, the costs of a return package in the case of withdrawal from the agreement are incurred by the buyer, while 55% of the respondents knew that in the case of a complaint, the costs will be covered by the seller. Three thirds of online shoppers (74%) correctly claim that an item can be returned within 10 days after its purchase. However, this is not certain that such a large number of correct answers results from the actual knowledge among the respondents.

This assumption may be confirmed with the fact that correct answers to all five questions were given by only 2% of online buyers and to four questions – by 7% of the respondents.

© TNS 2012

2. Let me read you a few sentences concerning the rights of online consumers. Please tell me if you agree with them.

13

The diagrams present percentages corresponding to correct answers.

a - I can resign from purchase (withdraw from agreement) at any time on condition that I properly justify my decision – NO

b - Under the law, the costs of a return package in the case of returning an item (withdrawal from agreement) are incurred by the buyer –

YES

c - I have as much time for making a complaint as I do for returning an item (withdrawal from agreement) – NO

d - Under the law, the costs of a return package in the case of a complaint are incurred by the seller – YES

e – In principle, I can return (withdraw from agreement) an item purchased online within 10 days – YES

0

20

40

60

80

a

b

cd

e

0

20

40

60

80

a

b

cd

e

15 – 19 lat

20 – 29 lat

30 – 39 lat

40 – 49 lat

50 – 59 lat

60 lat i więcej

Respondents in total

N=1000

Online shoppers N=411

© TNS 2012 14

What are the rights of an online consumer?

The knowledge of the rights of an online customer differs in particular age groups. The analysis of all respondents reveals that the older the respondents, the fewer correct answers to questions concerning such rights. The only exception are the youngest (15-19), whose knowledge is poorer compared to 20- and 30-year olds.

If the analysis is limited to the customers of e-shops, the percentages of people who correctly answered particular questions, irrespective of their age, is similar. What’s interesting, even people aged 60 and more do not stand out. This means they have experience in online shopping and know more about consumer rights. However, the level of this knowledge cannot be regarded as satisfactory.

© TNS 2012 15

3. What aspects do you pay attention to before shopping online? (N=411 –online shoppers)

60

38

30

29

29

23

18

9

9

7

2

Product price

Shop/seller reviews

Shipping cost

Shop/seller's trustworthiness

Product reviews

Product look

Delivery time

Shop terms and conditions

Free item return in the case of withdrawal from agreement

Availability of favourite payment method

Other elements

Figures in [%]

Percentages do not sum up to 100%, because the respondents could provide three answers.

© TNS 2012 16

What do we pay attention to before shopping online?

The economic aspect is the key one for those who claim to shop via the Internet – they often pay attention to price (60%) and shipping cost (30%). Security is important as well – 38% of the respondents check shop reviews before making a purchase and 29% verify whether the seller is trustworthy. Despite such high importance of security, only 9% of the respondents think that terms and conditions are something worth paying attention to, although reading them could significantly reduce the number of problems.

In addition, before making a purchase in the Internet, the respondents pay attention to the product – the way it looks like (23%), its reviews (29%) and delivery time (18%). Only some of them mentioned free item return in case of withdrawing from the agreement (9%) and availability of a preferred payment option (7%).

■ What’s interesting, the youngest respondents (15-19 years old), more frequently than others pay attention to what a product looks like (39%), while respondents in their twenties (20-29 years old) read seller reviews more often (45%). This last element is also more important for people with higher education (45%), who more often than others pay attention to the seller’s terms and conditions.

© TNS 2012

Magdalena Gołębiewska Marketing and PR Director PayU S.A. ul. Marcelińska 90 60-324 Poznań, Poland T: +48 61 630 67 82

M: +48 532 536 999 E: magdalena.golebiewska@payu.com

17