Internet Mostly Indirect Influence on Purchasing

New York, NY, May 19, 2008--Although the Internet is routinely used by many people when making buying decisions, its influence doesn't compare with real people like friends and sales personnel, a new study the Pew Internet and American Life Project suggests.

The report looked at consumer behavior in purchasing music, cell phones and homes or renting apartments and it found the Internet's role to be indirect.

"The Internet helps people eliminate irrelevant alternatives," said John Horrigan, Pew's associate director. "The Internet may influence the choice modestly but has important consequences in getting better deals and in having a more focused search process along the way."

About 10 percent of real estate and cell phone buyers and 7 percent of music purchasers said the Internet had a major impact on their decision. Just 22 percent of the music buyers and 12 percent of cell phone purchasers ultimately bought their product over the Internet.

"People do cast their information nets widely when doing consumer research," Horrigan said. "At the end of the day, though, it's the offline nugget that has more influence."

The study also casts doubt on the value of Internet forums for seeking guidance. While many people look at recommendations before buying, few bother to add their own ratings or comments after a purchase.