Every nanosecond another stat about smartphones, mobile activity and new store launcges comes across the wire, yet we know so little about the mobile customer, how they use their phone and why. We MUST understand these consumers in order to market to them more effectively. This session will put into perspective the behavior patterns of these customers on smartphones and the growing tablet market. Lauren will share findings from their 10th Annual Merchant Survey just completed by 200 of the top retailers about their investment in mobile, traffic and revenue levels to set the stage. She will then highlight critical findings from the February, 2011 CoffeeTable/e-tailing group Mobile Consumer Shopping Survey of 1000 mobile device owners to get “inside” their heads regarding the following questions

1. So Just Who Is The Mobile Shopper????

4. I. The Merchant Speaks Highlights from the 10 th Annual Merchant e-tailing group Merchant Survey

5. Merchants of all sizes (annual sales) 33% $<$1M to $20M 20% $20M to $100M 30% $100M to $1B 17% $1B to $5B> Senior level participation 43% CEO/President/Principal or VP/ General Manager 45% Director, Senior Manager /Mgr 12% Analyst, Specialist, Assistant or Other Selling through a mix of channels 98% Internet 78% Email 52% Store 44% Catalog 36% Mobile 30% Social 7% TV 32 categories of products and services 40% Apparel/Accessories/Shoes/Luggage/Jewelry 25% Home & Garden/Home Improvement/ Tools/Appliances/Furniture/Organization 15% Sporting Goods/Outdoor Gear 11% Business to Business (B2B) 10% Consumer Electronics 10% Food & Beverages 10% Toys/Kids 9% Health & Beauty/Seniors 8% Books/Music/Video 8% Computer Hardware/Software/Peripherals 7% Arts & Crafts/Hobbies/Party 7% Gifting/Greeting Cards/Food & Wine 7% Office Supplies/Office Furniture 6% Entertainment 4% Business Services 4% Collectibles 4% Digital/Virtual Merchandise 4% Educational 4% Pets 4% Travel Profile of 200 Survey Respondents e-tailing group 10 th Annual Merchant Survey, 2011

6. Traffic from mobile is reported in the low single digits Q34 e-tailing group 10 th Annual Merchant Survey, 2011 28% > 3%

7. Revenue is less than 1% for most retailers Q35 e-tailing group 10 th Annual Merchant Survey, 2011

8. Mobile investments are mixed with many merchants just beginning to test the mobile waters Q32 e-tailing group 10 th Annual Merchant Survey, 2011

9. mCommerce sites are top-of-mind while iphone apps also see strong penetration particularly for brand-centric merchants Q33 e-tailing group 10 th Annual Merchant Survey, 2011 SMS and Android applications appear next on the horizon

10. Mobile features begin to see value among merchants e-tailing group 10 th Annual Merchant Survey, 2011

12. II. Mindset of The Mobile Shopper Survey Sponsored by CoffeeTable iPad’s ecommerce enabled catalog marketplace

14. Sample - Demographics e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

16. 57% of consumers surveyed have downloaded individual retailer or aggregator services though usage appears limited Q3 - 830 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

17. Relative to shopping smartphone usage starts with store locators while 1 in 3 consumers takes an aggressive stance when researching Q4 - 830 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey We would like to gauge your current usage of your Smartphone. How frequently have you done each of the following activities with your Smartphone over the past 6 months prior to visiting a physical store? Frequently/ Often Sometimes Rarely/ Never Looked up store information (hours, location, map, etc.) 44% 28% 28% Checked for sales and specials 40% 20% 40% Looked for competitive pricing at Amazon 38% 18% 44% Browse an online store for product of interest 37% 26% 37% Checked for product ratings and reviews 36% 20% 44% Looked for competitive prices on products at retailers online other than Amazon 32% 23% 45% Checked inventory of a product of interest prior to making a visit to the store 25% 21% 54% Look for competitive prices on comparison shopping engines (PriceGrabber, Shopping.com, etc.) 24% 19% 57%

18. Store Locator And Product Pick-Up

19. Checked Inventory Of A Product Of Interest Prior To Making A Visit To The Store

20. Checked For Product Ratings And Reviews

21. Sales/Specials

22. Looked For Competitive Prices

23. Consumers also begin to utilize smartphones to competitive price, compare product and access ratings and reviews while in store Q5 - 830 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

24. Amazon Competitive Pricing via App

25. Access Promotional Coupons For In-Store Redemption Based On Text Sent Via Email Link

26. Scan Bar Codes/Compare To Other Retailers

27. Scan Bar Code To Learn More About Specific Product Information

28. Check-In Using Shopkick

29. Smartphone usability is still awkward (49%) while credit card security (36%) and connection speeds (31%) top the list of challenges Q6 - 830 “ Other” was made up of those who prefer to shop in stores or via their laptops, have no knowledge of how to use their phones for shopping, have no desire to shop this way, or plan to do so in the future as well as those whose employers own phones

30. Awkward Shopping, Slow Connection And Error Messages

31. Unclear Imagery, Lack Of Or Unwieldy Product Information

32. Shoppers are evenly divided between heavy (daily/weekly), monthly and intermittent usage Q7 - 830 22% Heavy 28% Monthly 25% Intermittent e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

33. 400 of these consumers made purchases on their smartphones in the last 6 months; 1/3 did not make any purchases in this manner Q8 - 623 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

34. 84% will spend somewhat more to about the same as current levels via smartphone this year Q11 - 400 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

36. To date Aggregator Services are the shopping apps most frequently downloaded to tablets yet they subsequently see relatively limited usage Q13 - 417 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

37. Tablets are perceived as an ideal tool for researching products and browsing followed by purchasing Q14 - 417 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

38. Tablet owners appear to use these devices to browse and buy online more frequently than smartphone owners Q7/15 – 400S/417T 76% of tablet owners use these devices to browse or buy products online e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

39. Tablet owners use these devices to purchase online more frequently than smartphone owners Q8/16 – 400/363 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

40. Over 100 different merchants were named as one of the last 3 stores where purchases were made via a tablet with Amazon, Best Buy, Target, eBay, iTunes and Wal-Mart topping the lists Q17 – 324 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey TOP STORES Amazon Best Buy Target eBay iTunes Wal-Mart Apple Barnes & Noble

41. Note: -The categories purchased more with Smartphones are tickets and food -Tablet strongholds include clothing/accessories, and gifts and collectibles Q9/18– 400/324 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

42. Shopping via a tablet delivers a more satisfactory experience than shopping via a smartphone Q10/19– 400/324 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey

43. 69% of tablet owners report that their most recent shopping experiences via these devices was significantly to somewhat better than shopping with their smartphones Q19 – 324 e-tailing group/COFFEETABLE Mindset of the Mobile Shopper Survey