What Seattle Really Thinks About Local

Presented by:

seattlenetwork.org

WE KNOW LOCAL
BRANDING MARKETING DIGITAL VIDEO SOCIAL

TRAYcreative.com

Purpose and Content

Why weve undertaken the study
This study is part of Seattle Good Business Networks efforts to provide Seattles locally owned businesses with the marketing insight they need to more effectively compete against non-local chains and corporations.

What weve measured

How Seattle-area consumers define the term local. The importance of purchasing from locally owned businesses in Seattle / King County.

Specific consumer segments within the Seattle market.

How much more, if any, consumers are willing to spend for locally sourced products and services.

Methodology
Technique: Online Survey Criteria:
King County residents: 75% Seattle; 25% King County outside of Seattle
Age: 18+ years; reflective of King County age demographics Have primary or shared shopping responsibility in household

Fielded: April 25 - 30, 2013

Sample Size: 495 completed interviews

What Are They Buying?

Purchased/Used In Past 6 months
Groceries Restaurant/bakery/coffeehouse Clothing/shoes/accessories Personal care products Books/music/videos Healthcare services Automotive Financial services Beauty salon/spa/massage Pet products/services Home furnishings Fitness services Home services Professional services Childrens clothes/toys 38% 33% 32% 31% 25% 51% 49% 48% 46% 72% 70% 88% 85% 82% 97%

Q. Which of the following categories have you purchased or used in the past 6 months? Base: All respondents

Why do they shop where they do?

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

Low prices

60%

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

Quality products/services

62%

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

Convenient location

63%

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

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Locally owned

12%

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

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Other Factors
Variety of products/services Reputation Knowledge/expertise Return policy Products in stock Hours 28% 21% 16% 13% 12% 8%

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: All respondents

What Is Local, Anyway?

Local is
Locally owned in area 79% 65% 42% 21% 15% 15% 7%

Multiple area locations

Multiple NW/West locations Global company headquarters in area Non-local, sells locally made items Locally owned, national franchise Non-local company, local employees

Q. How local is a business if it is Top 3 box summary (8 -10, on a 10 point scale where 1 means Not at all local and 10 means Extremely local) shown. Base: All respondents

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How Important Is It to Shop Local?

58%

29%
13%
Unimportant Neutral Important

Q. Compared to other things in your life, how important do you think it is to shop at locally owned businesses? Base: All respondents

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What Are Their Attitudes About Shopping Local?

Makes me feel good

52% 49% 42% 35% 31% 31% 30% 29%

Helps jobs/economy
Like to tell others about cool local businesses Wish more online options were available Online has better price and selection Online shopping is more convenient Shopping local is more environmentally responsible Want them to stay in business

Q. For each of the following statements, please tell us how much you agree or disagree. Top 3 box summary (8-10, on a 10 point scale where 1 means Strongly disagree and 10 means Strongly agree) shown. Base: All respondents

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What Are the Main Benefits to Shopping Local?

81%

80%

45% 39% 38%

35%
28%

Enhance the local economy

Support my community

Creates selfreliance

Makes me feel good

Close to my home/work

More personal

Better for the environment

Q. What are the main benefits of shopping at a locally owned business for you? Q. What, if anything, prevents you from shopping at a locally owned business? Base: All respondents

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What Holds Them Back From Shopping Local?

52%

27% 23% 20% 17%

Costs more/higher prices Inconvenient location

No local options

Less convenient hours

Unsure which stores are local

Q. What are the main benefits of shopping at a locally owned business for you? Q. What, if anything, prevents you from shopping at a locally owned business? Base: All respondents

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Will They Pay More For Local Options?

21%
Unlikely

33%

46%

Neutral

Likely

Q. In general, how likely are you to pay more for products or services offered by locally owned business? Base: All respondents

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How Much More Are They Willing To Pay?

Among those willing to pay more, they are willing to pay:

16%

36%

23%

25%

1 - 9% More

10% More

11-15% More

16+% More

Q. On average, how much more are you willing to spend for these products or services offered by a locally owned business? Base: Those who are likely to pay more at locally owned businesses

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What % of Their Shopping Goes to Local?

Home services Beauty salon/spa/massage Healthcare services Restaurant/bakery/coffeehouse Fitness services Automotive Pet products and services Groceries Financial services Professional services Children's clothes/toys Books/music/videos Home furnishings Personal care products Clothing/shoes/accessories 26% 26% 23% 22% 21% 41% 38% 38% 37% 48% 55% 64% 83% 82% 80%

Q. In the past 6 months, approximately what percentage of your purchases have been from locally owned businesses in each of these categories? Mean percent (from 0% to 100% purchased from locally owned businesses) shown. Base: All respondents/Variable base size

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Three Groups You Need to Know

Price Shopper (12%)

Local Loyalist (21%)

Fence Sitter (67%)

Q. When deciding where to shop for products or services, how important is it that a business is locally owned? Top 3 Box, Mid 4 Box, Bottom 3 Box. Base: All respondents

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Local Loyalists: Demographics

Average Age: 50 years Gender: Female: 53% Male: 47% Residence: Seattle 82% King County 18%

Area Tenure: 25 years in King County (avg.) 34% have been in King Co. 11-20 years 32 years in Pacific NW (avg.) 29% have been in PNW 11-20 years
Household Income: $100,260 (avg.)
Base: Local Loyalists

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Local Loyalists: Shopping Factors

Local Loyalists are more likely than other groups to seek out locally owned businesses, and to value the knowledge and expertise of a business.
63% 62% 60% 63% 60% 40%

34% 26% 12% 16%

Quality products/services

Convenient location

Low prices

Locally owned

Knowledge/expertise

Local Loyalists

All Shoppers

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: Local Loyalists

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Local Loyalists: The Importance of Local

Relative Importance of Shopping Locally Owned Businesses

90%
10%
Unimportant Neutral Important

Q. Compared to other things in your life, how important do you think it is to shop at locally owned businesses? Base: Local Loyalists

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Local Loyalists: Willingness to Pay More

Willingness to Pay More at Locally Owned Businesses

79% 20%
1%
Unlikely Neutral Likely

Q. In general, how likely are you to pay more for products or services offered by locally owned business? Base: Local Loyalists

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Local Loyalists: Attitudes About Local

Local Loyalists are extremely motivated by a sense of duty to their community.
Shopping local makes me feel good: 85% It helps with jobs and the economy: 85%

I like to tell others about cool local businesses: 75%

Its more environmentally responsible: 65% Ill shop around to find local options: 56% I shop local so the owners can stay in business: 55% I wish more online options were available: 55% I will pay more at locally owned businesses: 50%
Q. For each of the following statements, please tell us how much you agree or disagree. Top 3 box summary (8-10, on a 10 point scale where 1 means Strongly disagree and 10 means Strongly agree) shown. Base: Local Loyalists

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The Takeaway
Local Loyalists
Are your core customers those already patronizing your business.

Keep them loyal by reinforcing how you financially support the community and employees, communicate where your products come from, how you impact the environment, offering new ways to shop your product and service offerings, and supporting your employees.
They are most motivated when you do the following: Ensure that dollars flow back to local economy: 76% Stock locally sourced products: 74% Offer products/services online: 71% Offer benefits to your employees: 69%
Q. How likely would the following cause you to shop more often at locally owned business? If the business Base: Local Loyal ists

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Three Groups You Need to Know

Price Shopper (12%)

Local Loyalist (21%)

Fence Sitter (67%)

Q. When deciding where to shop for products or services, how important is it that a business is locally owned? Top 3 Box, Mid 4 Box, Bottom 3 Box. Base: All respondents

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Price Shoppers: Demographics

Age: 48.5 (avg.)

Gender: Female: 40% Male: 60%

Residence: Seattle 61% King County 39% Area Tenure: 27 years in King County (avg.) 33 years in Pacific NW (avg.)

Household Income: $88,880 (avg.)

Base: Price Shoppers

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Price Shoppers: Shopping Factors

Price Shoppers are more likely than other groups to base purchase decisions on value the best available mix of low prices, high quality and good selection. Locally owned is not important to them.
73% 60% 73% 63% 54% 44% 28% 16% 0%
Low prices Convenient location Quality products/services Seek variety of products/services Locally owned

62%

Price Shoppers

All Shoppers

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: Price Shoppers

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The Takeaway
Price Shoppers
Are a difficult audience to convert. Their priorities and values represent large hurdles for locally owned businesses to overcome. Your efforts are better spent elsewhere. However, there are a few things you could do to attract some of them: Have 5-star reviews: 36%

Have a local rewards program: 34%

Offer products/services online: 29%

Q. For each of the following statements, please tell us how much you agree or disagree. Top 3 box summary (8-10, on a 10 point scale where 1 means Strongly disagree and 10 means Strongly agree) shown. Base: Price Shoppers

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Three Groups You Need to Know

Price Shopper (12%)

Local Loyalist (21%)

Fence Sitter (67%)

Q. When deciding where to shop for products or services, how important is it that a business is locally owned? Top 3 Box, Mid 4 Box, Bottom 3 Box. Base: All respondents

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Fence Sitters: Demographics

Age: 48.5 years Gender: Female: 51% Male: 49% Residence: Seattle 71% King County 29% Area Tenure: 26 years in King County (avg.) 30% have been in King Co. 0-10 years 31 years in Pacific NW (avg.) 23% have been in PNW 0-10 years Household Income: $95,000 (avg.)
Base: Fence Sitters

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Fence Sitters: Shopping Factors

Locally owned is somewhat important to them.

64%

60%

63%

62%

62%

63%

16% 7%
Low prices Quality products/services Convenient location Locally owned

Fence Sitters

All Shoppers

Q. When shopping for products or services, what are your 3 most important factors in deciding where to shop? Base: Fence Sitters

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Fence Sitters: The Importance of Local

Fence Sitters are less likely than Local Loyalists to say that shopping locally owned businesses is important to their lives, but they still find it important.

58% 32%
10%

Unimportant

10 Neutral %

Important

Q. Compared to other things in your life, how important do you think it is to shop at locally owned businesses? Base: Fence Sitters

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Fence Sitters: Willingness to Pay More

Willingness to Pay More at Locally Owned Businesses

39%
17%
Unlikely Neutral

44%

Likely

Q. In general, how likely are you to pay more for products or services offered by locally owned business? Base: Fence Sitters

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Fence Sitters: Attitudes About Local

Fence Sitters shop local because they want to help the community, but they want more convenient options.
Shopping local makes me feel good: 47% It helps with jobs and the economy: 44%

I like to tell others about cool local businesses: 38%

I prefer the convenience of online shopping: 34% I wish more online options were available: 32% Online has better price and selection: 31%

Q. For each of the following statements, please tell us how much you agree or disagree. Top 3 box summary (8-10, on a 10 point scale where 1 means Strongly disagree and 10 means Strongly agree) shown. Base: Fence Sitters

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The Takeaway
Fence Sitters
Represent the largest potential audience segment for your business. They have some inclination to shop at locally owned businesses but just need a few more incentives. They want to support local businesses but they want it to be easy. How to connect with them: Offer products/services online: 47% Ensure that dollars flow back to local economy: 45% Have a local rewards program: 44% Have 5-star reviews: 42%

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The Takeaway
Fence Sitters
Additional ideas to consider:

Reinforce how your personal involvement in your business leads to a higher level of quality products and services.
Show how you are interconnected with the local community from an economic and personal standpoint.

Reduce the perception that your prices are substantially higher than non-local competitors.
Use social media and review sites to inform the community about what you offer and the level of your quality.

Consider ways that your customers can share their good feelings about shopping local.

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We Look Forward to an Ongoing Conversation!

David Bauer Paula Rosecky

@davidrbauer

4703 Ballard Ave NW Seattle, WA 98107

Phone: 206.706.7618 www.hemispheresinsights.com info@hemispheresinsights.com

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