In Bid for Hearts and Minds (and Wallets) - Main Street Trumps Chains; Personal Service - Convenience - Support for Community Lead in New WebVisible Survey for National Small Business Week

Respondents Shoot Down Common Perception That Bigger is Cheaper – 25 Percent Cited ‘Lower Prices’ Among Top Three Reasons to Choose Local Over Larger Chain

IRVINE, Calif. (May 20, 2010) – "Main Street" has become code for all that is right in America – especially in an election year – but what is it about the smaller, local businesses that makes consumers spend their money there instead of a larger chain?    

More than 4 out of 5 consumers – 83 percent – choose to patronize a small, local independent business over a larger chain, and their top three reasons for doing so speak to values that have long characterized small business:

• I want to support my community
• The local merchant is more conveniently located
• The service is more personal

Just 17 percent of American consumers say they don’t choose to patronize a small business over a larger chain.

Those are the key findings of a new nationwide survey conducted April 28 - 30 by WebVisible (www.WebVisible.com) to help kick off National Small Business Week, which begins May 23.  In conjunction with Chicago market researcher Synovate eNation, WebVisible asked 1,000 Americans: "What makes you choose to patronize a small, local, independent business over a larger chain?"  Respondents were asked to rank seven possible reasons in order of importance. 

Here are the results at a glance:

"While conventional wisdom would say that price should matter most in a recovering economy, it turns out Americans still make purchase decisions based on service, convenience and supporting their communities," said Kirsten Mangers, WebVisible CEO.  "That’s great news for local merchants.  As we celebrate Small Business Week, it’s helpful to get a sense of what it is that people love about their neighborhood businesses.  If you know what brings people in the door, it’s easier to communicate those values in your advertising and marketing to keep those customers coming back."

Bigger Doesn’t Necessarily Mean Cheaper

While the common perception is that smaller, independent businesses can’t compete with big box retailers on price, some consumers don’t share that view.  One in four overall said “lower price” was among their top three reasons for patronizing a smaller business over a larger chain.

Perceptions on price varied by income and age.  Those with lower incomes were more likely to give local merchants credit for lower prices – 34 percent of those with incomes under $25k placed price among their top three reasons, compared with 20 percent of those earning $75k+ and 25 percent overall.  The percentage placing price in the top three diminishes as incomes increase.

And score one more for small business: the youngest respondents were more likely than their elders to say that prices at the local merchant are usually lower than a larger chain – 33 percent of those 18-24 placed price among their top three reasons, compared with 13 percent of those 55-64 and 25 percent of respondents overall.

A closer look at the demographic breakdown reveals some interesting differences in priorities among the age groups. 

Seniors seem especially enamored of the personal touch that often characterizes small business.  While personal service was popular with all age groups, the oldest respondents – those 65+ – were the only ones to put it at the top of their list of reasons to shop local.  That same group was more likely than any other age group to put "knowing – or being known by – the owner or an employee" at the top. 

The youngest respondents were far more likely to cite convenience among their reasons to shop locally – 60 percent of those 18-24 placed it among their top three, while 48 percent of total respondents did the same.  Those in the 18-24 group were the only ones to give convenience the top spot overall, with 30 percent saying convenient location was No. 1, compared with 17 percent of the overall population.  

A few demographic groups went against the norm to place “knowing – or being known by – the owner or an employee” among their top three reasons.  They were respondents who earn less than $25k a year, those with high school education or less, and respondents who are self-employed.    

Other findings of note:

• Those with the lowest incomes value convenience – choosing it among the top three more than any other income group, and giving it the top spot overall. 
• Men and women differed in reasons they ranked as No. 1 – men opted for convenience, while women said they want to support their communities.
• Marriage alters priorities a bit – married respondents said their No. 1 reason for shopping local was to support the community, while non-married respondents said the top reason is that the local merchant is more conveniently located.   

The WebVisible/Synovate survey has a margin of error of +/- 3 percentage points.  For a full copy of the survey results and a graphic presentation of top-line data, email info@edgecommunicationsinc.com.

About WebVisible, Inc.

WebVisible makes it easy for small and mid-size businesses (SMBs) to be found online, where and how customers are looking. The leading provider of local online marketing products and services since 2001, WebVisible was among the first to pioneer the use of search as a reliable, measurable avenue to connect directly with a buyer’s needs. The company has helped more than 100,000 SMB customers from more than 4,000 industries in 14 countries to create innovative and accountable Internet advertising campaigns.  SMBs partner with WebVisible directly and through its many partner companies, including Intuit, AT&T, British Telecom and The New York Times Company.  WebVisible is based in Irvine, Calif.  For more information, visit www.webvisible.com or call 949-255-9677.

Media Contact

Ken Greenberg
Edge Communications, Inc.
818/990-5001
ken@edgecommunicationsinc.com