Net is most used source for financial research: Study
October 13th, 2008 | by admin |Indian consumers are using the Internet for not just research into financial products but even purchasing them.
A latest study indicated that as much as 18% of all financial products are sold online in India. However, using the Internet for research on products still takes centre stage. Nearly 68% of consumers go online to research products that interest them.
The study was conducted by Google and implemented by the strategic market research firm, Media Screen, to gain deeper understanding of Indian consumer behavior in the online space.
The study revealed that online sources, personal sources and traditional media are used equally to research financial service products. According to it search engines (60%) and financial company websites (57%) are the most used online sources for financial research.
But, talking of the offline sources, 57% turn to friends or family and 52% use financial agents representatives for advice. The study revealed that 96% of financial researchers use Google.
Comparing costs and product details are the two most common financial research activities. Indian consumers researching financial products online use search engines to help compare costs and compare product details and specifications. 30% also use search engines to become aware of special rates/promotions and access expert advice.
The study also states that financial company websites become the most important online sources when comparing options and making a final decision. Comparing costs becomes more important than evaluating product details when evaluating options.
The major reason for not purchasing financial products online is the preference for dealing with a company representative directly. Live access to a company representative and greater assurance information is secure are among several features that a majority of all offline purchasers say would encourage them to obtain financial services online in the future.
Commenting on the research, Sridhar Seshadri, Business Head, financial services, Google India said, 揟he dependency of financial services on online marketing will grow dramatically over the next few years, thanks to initiatives such as simple customer acquisitions, up-selling, cross-selling and major cost cutting initiatives from advertisers?
As per the survey about 18% of the financial service products are sold online in India and before buying products such as insurance, banking services, prospective customers indulged in research activities such as comparing details, costs, requesting for a catalogue or a prospectus, hunting for special rates etc.
The research also indicates that financial service sector is doing very well online and search engines seem to have become a great…
