Local businesses encouraged to expand online
HOUGHTON -- No matter what your shopping need, chances are you can find a business to buy from in the Keweenaw. But that doesn't mean most consumers do.
According to a year-long study conducted by business students at Michigan Tech, about 50 percent of the people surveyed bought clothing, toys and home improvement products from outside sources.
"Sixteen percent of the respondents predicted that they would spend more on the Internet in the next six months than they did in the past six months,” says student Patrick Smith. “That was surprising. This trend is strong and it's growing."
While presenting their findings to local business leaders, the students recommended an integration of Internet advertising, if not sales. Gartner's Gallery manager Jordan Johnson says they do that with a Facebook page, in addition to their main website and email list.
"We track our previous customers and our new customers, and I think with our heavy approach to advertising, we're getting a lot of new customers in the door, which is what we want to see," says Johnson.
The students didn't find conclusive data about the reasons people shop elsewhere, but they say consumers are generally looking for variety. That's something new business owner David Huang hopes to capitalize on when his Asian cuisine restaurant, Bambu, opens in Houghton this spring.
"I’ve assembled a unique business here, which should attract people to stay and spend their dollars locally," says Huang.
The students also looked at what they call "market leakage" in terms of services, which does exist, but it seems to be less common than outside product purchases. The business school hopes to continue and expand the study over the next few years.