DULLES, Va.--(BUSINESS WIRE)--December 7, 1999--

Three-Quarters of Internet Shoppers Intend to Buy Holiday Gifts in Cyberspace; Many Foresee Doing All of Their Holiday Gift Shopping Online

Convenience is the No. 1 Driver of Online Shopping -- "Shopping Online in My Pajamas"

Online holiday shopping is surging with four in five (78%) of Internet shoppers saying that they plan to spend the same or more money online this holiday season compared to last year, according to a new study released today by America Online, Inc., the worlds leading interactive services company, and International Communications Research (ICR), a market research firm based in Media, PA.

Shedding new light on consumers who have shopped online within the last six months, the study also reveals that 75% of Internet shoppers intend to shop online this holiday season and 42% expect to someday do all of their holiday gift shopping online. The November 1999 research pinpoints convenience as the #1 driver of online purchases with four in ten Internet buyers saying they would rather shop online than at the mall and 60% reporting, "I have shopped online in my pajamas."

Patrick Gates, Vice President of E-Commerce for America Online, Inc., said: "This research shows that consumers are increasingly embracing online shopping -- especially for holiday gift shopping. The more experience people have with the online medium, the more its convenience becomes entrenched in their daily lives -- enhancing everything from how they communicate to the way they shop. This study underscores the great potential of consumer e-commerce with Internet buyers planning to increase their online spending."

The study also shows that the majority (70%) of e-shoppers shop online exclusively from home, while 22% shop from both work and home and 7% shop from work.

Study Reveals Online Shopping Makes Consumers Feel Smarter, Hipper.

The online medium is increasingly changing consumers buying habits both online and offline, the AOL/ICR study indicates. The majority of todays online shoppers say that online shopping makes them a better-educated consumer.

Almost half have researched products online before buying them at local "brick and mortar" stores. Additionally, three in five (57%) Internet shoppers say that Internet shopping helps them locate hard-to-find products not available in nearby stores.

The study also indicates that consumers are turning to cyberspace to stay up to date on the latest trends and cultural developments. Half of all Internet shoppers have discovered new authors or books while online, a full 20% of e-shoppers surveyed say they have discovered musical artists, while one in six have learned about new fashions or fashion trends.

Illustrating the ability of interactive marketing to attract new customers, the research found that two in five consumers first learned of online shopping through the Internet. Other key influencers were friends (16%) and family members (8%). These findings underscore the need for retailers to have a strong presence on the Internet, where first-time online shoppers are forming habits and learning about the medium.

John De Wolf, Vice President for ICR, said: "Our research finds that online shoppers think it makes them better-educated consumers, that buying on the Internet is a cool and cutting-edge thing to do, and they feel good about doing it. This information gets to the heart of why more and more mass-market consumers are shopping online, and why we are confident it will continue to grow."

America Online recently announced that AOL shoppers spending nearly tripled during Thanksgiving week 1999 over last year at the same time, with more than 4 million AOL members making purchases.