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Prospectiv Survey Reveals Internet as Vital Tool for Driving In-Store Holiday Purchases; Shoppers Say the Internet is a Valuable Research Tool and Predict an Increase in Their Online Spending in the 2005 Holiday Season

WOBURN, Mass.--(BUSINESS WIRE)--Oct. 26, 2005--According to a recent Prospectiv Consumer Preference Index (CPI), consumers - undaunted by the hustle and bustle of the holiday shopping season - are still making most of their holiday buys in-store. But, CPI found that many shoppers are opting to do much of the leg-work online. While 89 percent of consumers polled said they prefer to make mostly in-store holiday purchases, 71 percent said they intend to use the Internet to research and compare products and prices before heading out to malls, department stores and discount stores.

In addition to doing shopping research online, 35 percent of consumers said they will increase online spending for gifts this year, according to CPI. Fifty-five percent of shoppers said they make their online holiday purchases earlier than in-store purchases.

The convenience of shopping from home or the office, 24/7, is the number one reason for gift-buying online, said 57 percent of online shoppers polled. Nineteen percent of online consumers shop via the Internet to avoid the holiday crowds.

Not surprisingly, 45 percent of shoppers said free shipping would encourage them to make more online purchases. Thirty-six percent of respondents cited better sales and online special offers or discounts targeted to their preferences as the top incentives that would increase their amount of shopping online.

In-store shoppers are also looking for better deals. Sixty-five percent of consumers said more in-store sales would be an incentive to increase their purchasing.

"Even though the majority of consumers plan to make their holiday purchases in-store this season, the data shows effective marketers should use online marketing to drive consumers to their retail location," said Jere Doyle, president and CEO, Prospectiv.

Although most consumers will spend the same or more on holiday shopping compared to last year, 65 percent will be spending less than they would have due to rising prices at the gas pump and expected increases in home-heating bills.

About Prospectiv's Consumer Preference Index (CPI)

Millions of active, self-profiled consumers have registered at Prospectiv's vertically-targeted online properties - Eversave.com (connects consumers with quality offers from leading brands), TheKnowledgeStop.com (premier resource for online and campus-based education and degree programs), and Healthy-Individual.com (online resource focused on health and well-being offers) - enabling Prospectiv to compile insightful survey data for advertisers and marketers. Prospectiv's 20-point data authentication, cleansing and validation process ensures the database of self-profiled consumers is current, active, and accurate in order to deliver the highest quality data to clients.

About Prospectiv

Prospectiv provides industry-leading customer acquisition, email marketing and data analytics solutions to leading consumer brand marketers. The company's solutions enable the world's best brands to find and build profitable relationships with the right customers through multiple online channels, proprietary Customer Acquisition Optimizer technology, and comprehensive data validation. Millions of active, self-profiled consumers have registered at Prospectiv's vertically-targeted online properties - Eversave.com, TheKnowledgeStop.com and Healthy-Individual.com. Prospectiv generates more than 50 million pre-qualified responses per year on a pay-for-results basis for clients, including many Fortune 1000 companies such as Procter and Gamble, Wal-Mart, Pfizer, Dell, General Mills and Schering-Plough. Founded in 1999, Prospectiv is privately-held and is based in Woburn, Ma. Please visit http://www.prospectiv.com for more information.

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