TABLE OF CONTENTS

BACKGROUND
Purpose
What is Showrooming?
Analytics that Inform & Empower
Methodology
Category Definitions

FINDINGS
Best Buy: Consumer Expectations of In-Store Shopping
How And Why Best Buy Customers Shop at Amazon

KEY TAKEAWAYS
Best Buy: Expectations Reveal Opportunities for Action

NEXT STEPS
Opportunities to Differentiate
Expectations at Your Retail Locations
BACKGROUND
Purpose, Methodology, and Category Definitions
PURPOSE
With several major retail clients, the growing popularity of consumer
showrooming piqued our interest at Crimson Hexagon. We were curious:
how can we leverage online consumer opinion to address this major
industry-wide challenge?

Through deep analysis of social data, we seek to discover opportunities for
retailers to fight back against showrooming and keep customers in-store.
We discuss our research findings, and explain the implications for
retailers.
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WHAT IS SHOWROOMING?
DEFINITION
Showrooming occurs when a consumer examines merchandise in a brick and mortar retail store and takes advantage of
free staff expertise and other store intangibles, but ends up purchasing the items onlineoften for a lower price.

With the ease of mobile price checks and online product comparisons, traditional brick
and mortar (B&M) retailers have fallen victim to the showrooming phenomenon.
However, the main consequence of showrooming is one which all retailers can relate to:
customer loss. Even manufacturer-owned retailers must understand the motives some
customers have for switching to other B&M and online competitors.

In a competitive environment where retailers vie over content and keywords where
disappointed consumers find solace in typing six letters into their smartphones
web browser: A-M-A-Z-O-N deep knowledge of consumer expectations is a retailers
most powerful weapon against showrooming.
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ANALYTICS THAT INFORM & EMPOWER
Crimson Hexagon is uniquely effective in analyzing and
interpreting conversation related to showrooming and
customer migration. To conduct this study, we had to dig
deeper than basic sentiment classifications to accurately
discern consumer expectations and motivations. By linking
these nuanced opinions to our strategic research objective,
Crimson Hexagon delivers social intelligence about this
current challenge facing retailers.

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METHODOLOGY
Using the Crimson Hexagon ForSight platform, we analyzed the social conversation
around two major retail competitors throughout 2011. For the purpose of this study, we
used the case of Best Buy and Amazon as a proxy for retailers affected by this
phenomenon. We found over 1.5 million on-topic posts within our social media data
library about these retailers.

We developed a two-part framework for our analysis:

I. Consumer Expectations of In-Store Shopping
We uncovered, quantified, and tracked consumer expectations of shopping in-store at Best Buy.

II. Competitor Store Appeal
We uncovered, quantified, and tracked how and why Best Buy customers shop at Amazon.

When combined, the insights and trend data from these analyses can provide retailers
(both e-tailers and B&Ms) with opportunities to improve customer retention.

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METHODOLOGY:
I. CONSUMER EXPECTATIONS OF IN-STORE SHOPPING
Keywords: We collected posts from blogs, forums, Facebook, and Twitter that mentioned
Best Buy in various forms (simple mentions, common misspellings and abbreviations,
hashtags and @replies). To help us find the most substantive commentary, we excluded
posts that included links (as they tend to be spam).

We trained ForSight to understand distinct consumer expectations in online
conversation about in-store shopping at Best Buy.

How we discerned consumer expectations for this study:
Expectations may be explicitly stated in posts by consumers, inferred from an expressed reason for going
to a store, inferred from explicit disappointment with a particular shopping experience, or by explicit
acknowledgment of a friends testimonial or shopping recommendation.

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METHODOLOGY:
I. CONSUMER EXPECTATIONS OF IN-STORE SHOPPING
Expectations were organized into four relevant groupings and one irrelevant grouping, each with assigned categories. The
following logic was used to classify posts across the categories listed below:

Shopping Experience
Pleasant and painless shopping: Expectation that shopping and check out in store will be easy and stress-free; dont have
to wait in long lines, navigate through large crowds, etc.
Social gratification and peer support: Expectation that going to a Best Buy store with friends and family will be a socially
gratifying experience; it is fun and valuable to shop with others.
Service
Pre-sale service: Expectation of customer service and a helpful sales staff when shopping at Best Buy.
Post-sale service: Expectation of product exchanges, and repairs, installations etc. with Geek Squad at Best Buy.
Price-matching fulfillment: Expectation that Best Buy will match competitors prices in store.
Store Convenience & Availability
Product I want in stock: Expectation that Best Buy will have desired items in store inventory.
Wide product selection: Expectation that Best Buy has a large product assortment to choose from in store.
Sample products on display: Expectation that products at Best Buy can be tested prior to purchase; ability to personally
examine the look, feel, and functionality of items.
Pick up online orders and pre-orders: Expectation of ability to pick up previously ordered items in store.
Value
In-store Deals: Expectation of store sales and promotions at Best Buy.
Irrelevant
Irrelevant: Posts that included a keyword but were off-topic (like financial news, FourSquare check-ins without additional
commentary) or spam; conversation regarding Best Buys advertisements and online store were also excluded from
the analysis.
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METHODOLOGY:
II. COMPETITOR STORE APPEAL
Keywords: We collected posts from Facebook and Twitter that mentioned Best Buy and
Amazon in various forms (simple mentions, common misspellings and abbreviations,
hashtags and @replies). To help us find the most substantive commentary, we excluded
posts that included links (as they tend to be spam).

We trained ForSight to understand nuances in online discussion where Best Buy is
referenced in the context of Amazon; specifically, consumer dialogue expressing
reasons the online retailer is superior to Best Buy and why they want to leave Best Buy.

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METHODOLOGY:
II. COMPETITOR STORE APPEAL
Conversational themes about the migration from Best Buy were organized into five relevant groupings and one irrelevant grouping, each
with assigned categories. The following logic was used to classify posts across the categories listed below:

Using Best Buy to Shop at Amazon
Best Buy is just a showroom for Amazon: Explicit acknowledgement that Best Buy is where the consumer goes to sample products,
which he or she will then buy on Amazon.
Best Buy sells Amazon gift cards: Practice of using Best Buy gift cards to purchase Amazon gift cards at a Best Buy store.
Shopping Experience
I dont like long lines and big crowds at Best Buy: Switching to Amazon because of general inconvenience, displeasure when
shopping at Best Buy, and long waits for checkout.
General issues with Bestbuy.com: General displeasure when shopping on Bestbuy.com, problems with functionality, and
pricing errors.
Service
Poor customer service at Best Buy: Switching to Amazon because of dissatisfaction with customer service at Best Buy.
Best Buy wont price-match: Leaving Best Buy because the store will not offer a price-match.
Store Convenience & Availability
Best Buy doesnt have products I want in stock: Switching to Amazon because instant gratification could not be achieved at
Best Buy.
Order fulfillment delays from Bestbuy.com: Dissatisfaction with online orders, processing times, and shipping cancellations.
Value
Amazon has better deals: Switching to Amazon because of savings on products, shipping, and sales tax.
Irrelevant
Irrelevant: Posts that included a keyword but were off-topic (like financial news, FourSquare check-ins without additional
commentary) or spam; general chatter about brands, discussion of advertisements, and preferences for Best Buy over Amazon
were also excluded from the analysis.



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FINDINGS
OUR FORSIGHT ANALYSIS RESULTS
BEST BUY
CONSUMER EXPECTATIONS OF IN-STORE SHOPPING
INSTANT GRATIFICATION STILL MATTERS
Best Buy: Consumer Expectations of In-Store Shopping
(1/1/11 12/31/11) ! 1,501,777 opinions
Store convenience & product availability (32%) at B&M stores continue to appeal to shoppers.
14
PROMISE OF CUSTOMER SERVICE LOSES ITS APPEAL
Best Buy: Consumer Expectations of In-Store Shopping
(1/1/11 12/31/11) ! 1,501,777 opinions
Customer service (9%) only represents a minor shopping incentive, despite availability of sales reps.
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CONSUMERS ANTICIPATE SEASONAL DEALS
Store deals are most anticipated with holiday shopping from mid-November to early December (15%).
Best Buy: Consumer Expectations of In-Store Shopping
(1/1/11 12/31/11) ! 1,501,777 opinions
16
CONSUMERS ANTICIPATE SEASONAL DEALS
Expectation of in-store deals is lowest from mid-July to early August, at less than 2.5%.
Best Buy: Consumer Expectations of In-Store Shopping
(1/1/11 12/31/11) ! 1,501,777 opinions
17
SOCIAL MOTIVATIONS ARE LARGEST DRIVER OF
IN-STORE SHOPPING
The prime expectation (46%) is a playground experience: it is fun and helpful to shop with others.
@ohhellofriend
hittin up best buy
with the hubs
and friends!
-@Bri_Kim
Who knew best
Buy would be
soo much fun!!!
-@BExclusives
Best Buy: Consumer Expectations of In-Store Shopping
(1/1/11 12/31/11) ! 1,501,777 opinions
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AMAZON
HOW AND WHY BEST BUY CUSTOMERS SHOP AT AMAZON
AMAZON OFFERS COST SAVINGS VS. BEST BUY
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
A large proportion of customers are simply deal seekers (27%) who highly value Amazons lower prices.
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AMAZON HAS AMPLE INVENTORY VS. BEST BUY
If instant gratification at Best Buy is not possible, many consumers turn to Amazon (10%).
@LILBLAZE I had to
cop that album off
amazonBest Buy
around aint stocking
that album..I was so
pissed off when I got
there last night
-@joeybrabham
How is Best Buy still
in business? They
cant even tell me if
something is in stock.
Amazon is going to
finish them off
-@LA_Rabbit1
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
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CONSUMERS TRUST AMAZON TO FULFILL HOLIDAY
ORDERS VS. BEST BUY
Long processing times and order cancellations frustrated Best Buy customers, peaking to 23% on Dec. 25.
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
22
AMAZON SHOPPING IS FACILITATED AT BEST BUY
Over 60% of conversation involves using Best Buy gift cards to purchase Amazon gift cards on Dec. 31.
Christmas pro tip:
Best Buy gift cards can
be used to purchase
Amazon gift cards.
-@akshaun
Going to Best Buy to
trade in 23 games for
$400 with 60% bonus.
Then Ill use that gift
card for Amazon credit
lol thanks bb suckers
-@sukTHEfac
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
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CUSTOMERS ARE CANDID ABOUT THE PRACTICE
OF SHOWROOMING
Nearly 30% of conversation explicitly acknowledges Best Buy as a showroom for Amazon.
I love @BestBuy. It is
the perfect showroom
for everything I buy
from @Amazon.
-@djaniak
@samj @jpmorgenthal I
rarely buy from brick and
mortar, but do go view
products at places like
#BestBuy before buying
from #Amazon.
-@jonisick
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
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SHOWROOMING DISCUSSION PEAKS AROUND HOLIDAYS
Discussion of Best Buy as a showroom grows from 6% to 34% in the weeks leading up to Black Friday.
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
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34%
6%
SHOWROOMING DISCUSSION PEAKS AROUND HOLIDAYS
Discussion spikes in the days prior to Black Friday (44%), and two weeks before Christmas (42%).
How and Why Best Buy Customers Shop at Amazon
(10/1/11 12/31/11) ! 4,770 opinions
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BEST BUY AND AMAZON
KEY TAKEAWAYS
IN-STORE EXPECTATIONS ARE MORE DIVERSE THAN
INSTANT GRATIFICATION
I. Expectation of a playground experience at Best Buy creates a major
long-term opportunity to combat showrooming.

II. The holiday season provides a unique opportunity for Best Buy to
proactively address showrooming and the Amazon threat.

III. During the holidays, customer frustrations with store inventory and
online order fulfillment highlight an opportunity for retention.

IV. Expectation of in-store deals is highly seasonal, revealing new
opportunities for store promotions in the summer.

V. The practice of using Best Buy gift cards to purchase Amazon gift
cards presents an opportunity to refocus and recapture customers.
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EXPECTATIONS AT BEST BUY REVEAL OPPORTUNITIES
FOR ACTION: SHOPPING EXPERIENCE
I. There is a major long-term opportunity for Best Buy to leverage its
appeal as a playground destination.
The consumers prime expectation of social gratification and peer support (46%)
presents Best Buy with its greatest opportunity to combat showrooming.
By coupling its product showroom attraction with fun, in-store activities, Best Buy
has a unique opportunity to foster social shopping at its retail locations.
Best Buy can create special programs centering on a specific product or service
offering, such as:
Special store events
Group promotions
Challenges and competitions
Mobile initiatives
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EXPECTATIONS AT BEST BUY REVEAL OPPORTUNITIES
FOR ACTION: HOLIDAY SHOPPING EXPERIENCE
II. As the risk of Amazon migration is highest during the holidays, this
season represents a prime opportunity for Best Buy to address
Amazon and showrooming head-on.
In the weeks leading up to Black Friday, the showrooming discussion increases
almost 6x.
Best Buy can create special programs and offers specifically designed to keep
customers from shopping at Amazon, such as:
Publicized price-matching opportunities
An award of store gift cards with purchase from Bestbuy.com
Refer-A-Friend programs
Programs like these help capitalize on consumers prime expectation of social
gratification and peer support at Best Buy.
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EXPECTATIONS AT BEST BUY REVEAL OPPORTUNITIES
FOR ACTION: STORE CONVENIENCE & AVAILABILITY
III. Best Buy has an opportunity to assuage customer frustrations with store
inventory levels and online order fulfillment during the holidays.
Best Buy can promote a guaranteed delivery of products ordered by a certain date.
Best Buy can provide consumers with the option to view the precise number of items in stock
at each retail location via Bestbuy.com; if the inventory levels are accurate, this may help
reduce customer dissatisfaction and migration.
Best Buy can train store employees to guide customers to Bestbuy.com and other nearby
locations for out-of-stock items.
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EXPECTATIONS AT BEST BUY REVEAL OPPORTUNITIES
FOR ACTION: VALUE
IV. Best Buy can surprise and capture customers by creating and
publicizing mid-summer store promotions before the competitive
back-to-school sales cycle.
From mid-July to early August, less than 2.5% of the conversation revolves around
an expectation of deals when shopping in-store at Best Buy.

V. Best Buy has an opportunity to reduce the availability of Amazon gift cards
at its retail locations, and refocus customers on the value of Best Buy
products and services.
After Christmas, discussion regarding use of Best Buy gift cards to purchase Amazon gift
cards grew steadily, peaking to 60% of the conversation on Dec. 31.
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BEST BUY AND AMAZON
NEXT STEPS
OPPORTUNITIES TO DIFFERENTIATE
Showrooming and consumer migration are phenomena that every
retailer must address proactively. At present, a tremendous
opportunity for retailers to combat this behavior lies in discovering
and understanding the nuances of consumer opinion in social data.

Deep knowledge of store-specific expectations and consumer
migration patterns can inform each retailers strategy to reduce
showrooming and customer loss. It may even unearth opportunities
for new product and service offerings, and in-store activities to
improve the customer experience.

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OPPORTUNITIES TO DIFFERENTIATE
Whats more, an investigation of consumer expectations may create
opportunities for a surprise. When something unexpected and
memorable occurs in-store, it can stimulate positive conversation
on social media and likely encourage repeat store visits and
purchases.

Findings like these can fuel a retailers marketing vehicles,
empowering the organization to manage and capitalize on
prevailing consumer requirements.

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EXPECTATIONS AT YOUR RETAIL LOCATIONS
How do your customers expect to benefit from shopping
in-store? How do these requirements shift over time?
What drives your customers to the competition?
How do customer expectations and priorities differ when shopping at
each retailer?
What is the best way to address prevailing expectations? Are there
any customer needs that are not currently served?
What makes your store experience unique and memorable?
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CRIMSON HEXAGON
Crimson Hexagon, founded in 2007, is the leading global provider of social media
analysis software that delivers business intelligence for brands and market
research professionals. Powered by patented technology developed at Harvard
Universitys Institute for Quantitative Social Science, the Crimson Hexagon
ForSight platform overcomes the limits of traditional market research by
delivering a real-time view of how engaged online consumers truly think and feel
about a brand or issue. For more information, visit crimsonhexagon.com