experian holiday shopping survey, 2014

1 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement

EDELMAN BERLAND

Experian Holiday Shopping Survey

November 2014


WHO HOW MANY ACCURACY WHEN HOW

Adults Nationwide

(18+)n=1,005

Margin of Error =

± 3.1%

Data Collection

Occurred

October 29 -

November 3, 2014

Online Survey

RESEARCH OBJECTIVE: To garner media-genic research around consumer’s holiday shopping behaviors with regard to

spending, identity protection and retail data breaches

Research Methodology


• Consumers anticipate spending more on holiday gifts this season compared to 2013, but 30%

plan to do their holiday shopping without creating a set budget

• Many plan to charge their holiday purchases on major credit cards (48%) and store credit cards (22%) or

put gifts on layaway (12%).

• Shoppers are particularly concerned about identity theft / fraud during the holiday season,

and they have an appetite for more information from retailers about how customer information

is being protected

• Consumers themselves take various precautions when shopping, but they also expect retailers to be

especially vigilant during this period of high volume commerce

• Shoppers that have been affected by a recent retail data breach are especially likely to take various actions

to protect their identities when shopping both in-store and online

• Consumers expect retailers to keep customer information protected, and breaches have direct

consequences for visitation and purchasing

• Nearly one in four consumers will shop at stores that had a recent data breach less often or not at all

• Fully 28% of retail data breach victims report that they have stopped shopping at the breached store

Key Findings

4

Holiday Gift Spending


62%

54%

44%

29%

30%

38%

25%

17%

Shop for holiday gifts without a setbudget

Set aside a budget for holiday giftshopping

Put off a major purchase to make it aholiday gift

Open a store credit card to purchase aholiday gift

Holiday Spending Behaviors(Shown: % Done in the past; % Plan to do this season)

Done in the past Planning to do this holiday season

Holiday shopping is often unbudgeted; this year 30% of consumers

plan to shop for holiday gifts without first setting a target spending

amount

Q5: Below is a list of holiday shopping behaviors. Which, if any, of the following have you ever done in the past / do you plan to do this holiday

season?

Men Women 18-34 65+

31% 30% 28% 42%

34% 42% 42% 25%

30% 20% 32% 15%

27% 7% 25% 8%

Anticipated Spending Behaviors(Shown: % Plan to do this season)


More than a quarter of consumers plan to give an “experience” or a

DIY gift this holiday season


season?

55%

53%

46%

37%

33%

27%

Buy yourself a holiday gift

Give a DIY / homemade holidaygift

Give an "experience" as aholiday gift

Holiday Gift-Giving Behaviors(Shown: % Done in the past; % Plan to do this season)

Done in the past Planning to do this holiday season

Men Women 18-34 65+

41% 33% 43% 22%

33% 33% 38% 28%

29% 25% 31% 22%

Anticipated Gift-Giving Behaviors(Shown: % Plan to do this season)


63%

47%

43%

39%

34%

Food & dining

Travel & adventure

Arts & culture

Sports & entertainment

Health & beauty

Experiential Gifts(Shown: % Selected)

More than a quarter of consumers plan to give an “experience” or a

DIY gift this holiday season


season?

Q6: Which of the following types of “experiential” gifts do you plan on giving this year? (Asked if giving an “experiential” gift this season, n=271)

Men

(n=146)

Women

(n=125)

18-34

(n=94)

65+

(n=34)

62% 66% 66% 50%

53% 40% 52% 26%

40% 46% 34% 41%

45% 34% 46% 21%

37% 31% 40% 21%


Shoppers anticipate spending marginally more on holiday gifts this

season compared to 2013

$722

$800

$644

$509 $566

$758

$864

$652

$563 $560

Total Men Women 18-34 65+

Holiday Gift Spending by Year(Shown: Mean USD amount)

Reported 2013 Holiday Spending Anticipated 2014 Holiday Spending

36%

39%

25%

Holiday Gift Spending Trend

Spending more this holiday season

Spending the same amount / Unsure

Spending less this holiday season

NET +11 MORE

Q7: People spend different amounts on holiday gifts each season. Approximately how much did you spend on holiday gifts last season / do you

plan to spend on holiday gifts this season?


59%

48%

47%

23%

22%

12%

9%

Cash

Major credit card

Debit Card

Reward Points

Store credit card

Layaway

Specialized SavingsAccount

Anticipated Payment Methods(Shown: % Selected)

Cash is the most universal form of payment for holiday gifts, but

nearly half of consumers anticipate using a debit card this season

No

Retail

Breach

Retail

Breach Men Women 18-34 65+

60% 58% 56% 62% 62% 54%

40% 54% 44% 52% 42% 59%

45% 49% 48% 46% 56% 29%

20% 25% 23% 22% 25% 9%

15% 27% 25% 19% 22% 20%

11% 12% 15% 8% 12% 3%

7% 11% 13% 5% 9% 5%

Q8: How do you plan to pay for your holiday gifts this year?

10

Identity Protection


Q14: To what extent do you agree or disagree with each of the following statements?

79%

76%

62%

I would like to hear from retailstores about what they are

doing to protect my personal /credit card information beforethe holiday holiday shopping

season starts

I am concerned about the riskof identity theft / fraud duringthe holiday shopping season

Retail stores will place higheremphasis on protecting theircustomers' personal / creditcard information during theholiday shopping season

Identity Concerns & Retailer Expectations

(Shown: % Agree)

Majorities want to hear how retailers are protecting customer

information this holiday season; interest is particularly high among

recent data breach victims

No

Retail

Breach

Retail


72% 84% 79% 79% 75% 85%

69% 81% 77% 74% 68% 78%

61% 63% 69% 56% 64% 58%


30%

23%

18%

14%

12%

When shoppingonline

In a retail store

In a restaurant

At the ATM

At a gas station

Perceived Places of Identity Risk(Shown: % Selected)

Consumers overall feel their identities are more at risk when

shopping online than in-store, but retail breach victims are more

split

Q13: Where do you feel that your identity is most at risk this holiday season?

No

Retail

Breach

Retail


33% 28% 28% 32% 39% 32%

21% 25% 21% 26% 22% 18%

14% 21% 18% 18% 11% 28%

20% 10% 18% 10% 17% 7%

10% 14% 14% 10% 10% 11%


12%

39%

48%

Anticipated Shopping Breakout

(Shown: Mean Percentages)

Shoppers anticipate visiting both physical and online stores; two in

five plan to use a mobile device for holiday purchases

Tota

l

No

Retail

Breach

Retail


Physical

Store95% 92% 97% 94% 96% 95% 95%

Online Store

via

Computer

86% 80% 91% 87% 86% 90% 82%

Online Store

via Mobile

Device

41% 32% 49% 56% 27% 57% 14%

Anticipated Shopping Methods(Shown: At least 1%)

Q9: What percentage of your holiday shopping do you anticipate doing in a physical store / online, using a desktop or laptop computer / online, using a Smartphone, tablet or other mobile device?


26%30%

24%28%

22%29%

43%

43% 42%44%

46%

38%37%

24%

31% 28% 32% 26%40% 33% 33%

Total No retailbreach(n=137)

Retail breach(n=280)

Men (n=281) Women(n=136)

18-34 (n=171) 65+ (n=21)

Shopping App Privacy Policy Interaction(Shown: % Selected)

When downloading and if updated When downloading only Never

Among consumers who plan to use a mobile device for holiday

shopping, nearly a third never interact with their mobile app privacy

policies

Q12: Thinking about the mobile apps that you use for shopping, which of the following best describes how you interact with their privacy policies? (Asked if shopping via mobile device, n=417)


Victims of recent retail breaches are especially apt to take security

precautions when shopping in-store

71%

70%

68%

63%

55%

47%

41%

Stay aware of surroundings

Do not leave purse / wallet in anunattended car

Carry a closed wallet or pursewhen shopping

Conduct transaction only at theregister

Keep credit / debit cardscovered until the point of…

Use a credit card / cash insteadof a debit card

Cover the pin pad whenentering PIN number at…

In-Store Shopping Precautions(Shown: % Action taken)

Q10: Which, if any, of the following actions do you take to protect your identity when shopping in a physical, brick-and-mortar store? (Asked if shopping in-store, n=954)

No

Retail

Breach

(n=397)

Retail

Breach

(n=557) Men

(n=471)

Women

(n=483)

18-34

(n=285)

65+

(n=144)

70% 73% 62% 81% 65% 83%

66% 73% 54% 87% 62% 87%

59% 75% 51% 85% 60% 86%

57% 67% 50% 75% 53% 75%

49% 60% 42% 68% 48% 66%

43% 50% 40% 54% 31% 62%

39% 42% 37% 45% 39% 37%


Retail breach victims also demonstrate greater awareness and

caution when shopping online

61%

61%

59%

59%

54%

46%

28%

Log out of personal accountsafter shopping

Check to see if the site is secure

Shop only on personal,protected internet connections…

Go to websites directly insteadof clicking on links

Do not click on links sent inemails

Do not store payment cardinformation on a retailer's…

Pay with a credit card dedicatedspecifically for online shopping

Online Shopping Precautions(Shown: % Action Taken)

Q11: Which, if any, of the following actions do you take to protect your identity when shopping online? (Asked if shopping online, n=899)

No

Retail

Breach

(n=355)

Retail

Breach

(n=544) Men

(n=447)

Women

(n=452)

18-34

(n=280)

65+

(n=126)

57% 64% 49% 73% 53% 68%

53% 67% 54% 68% 56% 70%

52% 63% 50% 67% 55% 70%

52% 63% 52% 66% 56% 63%

48% 58% 46% 62% 47% 64%

42% 49% 37% 56% 36% 57%

31% 26% 32% 24% 26% 27%

17

Data Breach Impact


57%

35%

24%

20%

19%

18%

16%

Retail stores

Financial institutions

Web service providers

Medical providers

Government agencies

Foodservice providers

Technology companies

Data Breach Experience by Industry(Shown: % Received notification of at least 1

breach)

One in two consumers has been notified of a retail data breach in

the past two years

Q16: In the past two years, approximately how many data breach notifications do you recall receiving from each of the following?

Men Women 18-34 65+

55% 60% 53% 60%

41% 28% 30% 33%

35% 14% 28% 18%

29% 12% 20% 16%

31% 7% 18% 12%

30% 7% 21% 11%

27% 6% 18% 9%


One in four retail data breach victims have stopped shopping at the

store where their personal information was compromised

Q17: Which, if any, of the following actions did you take after you were notified that you were impacted by a retail data breach? (Asked if received

at least 1 retail data breach notification, n=575)

71%

46%

30%

28%

16%

Checked bank statements for suspiciousactivity

Checked my credit report

Enrolled in credit monitoring servicesoffered by the company with the data

breach

Stopped shopping at the breached store

Enrolled in credit monitoring services notoffered by the company with the data

breach

Retail Data Breach Reactions(Shown: % Action taken)


40%

25%

23%

18%

14%

14%

I will pay with cash more

I will pay with debit cardsless often or not at all

I will shop at stores that Ihave had a data breach…

I will pay with credit cardsless often or not at all

I will pay with store creditcards less often or not at all

I will shop onine less often ornot at all

Data Breach Purchase Impact(Shown: % Selected)

Recent retail data breaches have encouraged consumers to shop

with cash more often; data breach victims also plan to use debit

cards less often

Q15: How, if at all, will recent retail data breaches impact the way you make purchases during the holiday season?

No

Retail

Breach

Retail


41% 39% 38% 42% 42% 38%

20% 28% 26% 23% 19% 23%

18% 27% 23% 23% 22% 28%

16% 20% 24% 12% 16% 14%

13% 16% 20% 9% 14% 13%

14% 14% 20% 8% 12% 10%