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D:\Documents and Settings\Avo\Local Settings\Temporary Internet Files 1 1 FEDERAL TRADE COMMISSION 2 3 I N D E X 4 5 6 WELCOMING REMARKS PAGE 7 MR. RAINIE 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 2 1 FEDERAL TRADE COMMISSION 2 3 4 IN RE: ) 5 PROTECTING CONSUMERS ) 6 IN THE NEXT TECH-ADE ) Matter No. 7 ) P064101 8 ) 9 ---------------------------------) 10 11 TUESDAY, NOVEMBER 7, 2006 12 13 14 GEORGE WASHINGTON UNIVERSITY 15 LISNER AUDITORIUM 16 730 21st Street, N.W. 17 Washington, D.C. 18 19 20 The above-entitled workshop commenced, 21 pursuant to notice, at 9:00 a.m., reported by Brenda 22 Smonskey. 23 24 25 For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 3 1 P R O C E E D I N G S 2 MR. RAINIE: My name is Lee Rainie, and I'm 3 delighted to welcome you to the second day of the 4 Federal Trade Commission's Tech-ade hearings. 5 We have a wonderful panel to start the day on 6 the benefits to consumers of living in an instant 7 information culture. 8 Just to introduce the panelists here, we will be 9 hearing from Kamran Pourzanjani, the president and 10 co-founder of PriceGrabber.com; Mark Chandler, executive 11 vice president of sales the chief operating officer of 12 Autoland; Liam Lavery, who is the general counsel for 13 Zillow.com; Jeff Fox, the technology editor for 14 ConsumerReports.org. 15 And, unfortunately, Sucharita Mulpuru is not 16 able to be here. She is from Forrester Research. She 17 has a sick child today. So I will be doing some of the 18 presentation of her slides because I know the data from 19 Forrester. It is wonderful stuff. It also matches up 20 pretty nicely with the data we gathered from the Pew 21 Internet Project. 22 Since this is a panel about the benefits to 23 consumers living in the information age, the Federal 24 Tech Commission -- Federal Trade Commission has gone out 25 and done some user-generated content. For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 4 1 They have created a video of interviews with 2 people in the streets about how they use the Internet to 3 think about consumer purchases. 4 So why don't we roll that tape now. 5 (Whereupon, the video was played.) 6 MR. RAINIE: Soon to be coming to a YouTube near 7 you. Going to try it again. Here we go. 8 (Pause.) 9 Okay. I don't know that I would give it a high 10 consumer ranking on YouTube. 11 Since it is also Election Day, there are tools 12 next to you, voting machines next to you. I wonder if 13 you would be okay answering the following question on 14 your clickers next to you. 15 I use Internet shopping sites primarily to: 16 Number 1, research products and services; number 2, read 17 product reviews; number 3, compare prices; number 4, 18 make purchases; and 5, none of the above. 19 If you will vote in realtime now. We will show 20 you the results here. We had a little side bet back 21 stage about how you were going to be voting. 22 AUDIENCE MEMBER: Can you repeat that? 23 MR. RAINIE: I use Internet retail sites 24 primarily, not how you ever use them, but how you use 25 them primarily. Number 1, research products and For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 5 1 services; number 2, read product reviews; number 3, 2 compare prices; number 4, make purchases; and number 5, 3 or E, none of the above. Sorry, I was reading numbers 4 instead of letters. 5 How are we doing here? All right. Make 6 purchases is the number one answer. 7 If you add up all of the research-related 8 things, though, it is getting pretty close to making 9 purchases, doing research online. 10 With that as sort of your experience, let's see 11 how it matches up to what the panelists are going to be 12 able to describe to you. 13 First up here is Kamran Pourzanjani, who is the 14 president and co-founder of PriceGrabber. 15 MR. POURZANJANI: Good morning. Thank you, Lee. 16 Hopefully I will do a little better than the 17 video, but I won't make promises. 18 Before I get started, I wanted to see by show of 19 hands, nothing else, sort of low-tech, how many people 20 know about PriceGrabber, have used PriceGrabber before? 21 I think I have come to the right place. There 22 is no doubt about that. 23 How many of you have used comparison shopping in 24 general? Can I see a show of hands? 25 Those of you who raised your hand, you are among For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 6 1 the estimated 25 to 30 percent of consumers or Internet 2 users that have realized and taken advantage of the 3 power of comparison shopping to save time and money. 4 So PriceGrabber is a comparison shopping 5 service. We bring all the relevant information on 6 products and services, on prices and on sellers to 7 consumers so they can make the most informed purchasing 8 decision. 9 We have about 21 million unique users that use 10 our service. We have about 32 million products in our 11 database in 22 different categories, everything from 12 books and music to apparel to travel, consumer 13 electronics and many, many different products. You will 14 see this in a few minutes. 15 There are over 11,000 merchants that work with 16 PriceGrabber. These include all the name brands that 17 you know. Beyond that, we also have smaller merchants, 18 medium sized merchants and even individuals. So people 19 like yourself can sell products, whether new or used, on 20 PriceGrabber. 21 We also partner with a number of different 22 sites, portals, ISPs or enthusiasts and content sites to 23 power the comparison shopping or shopping. So if you 24 use the comparison shopping on I-Village or on 25 About.com, Comcast, you are actually taking advantage of For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 7 1 PriceGrabber technology. 2 Finally, you can use PriceGrabber through the 3 Internet, your computer or through your Web or mobile 4 device. We have sites for Canada, U.S., U.K., as well 5 as sites in Spanish and Portugese. 6 So this next chart shows you our home page, very 7 simple, basically all the different 22 categories of 8 products for which you can shop, basically the 9 categories and subcategories and some popular products. 10 You also can actually log into your own account 11 here with a different set of features. It is a very 12 feature-rich site. It is all designed to help you shop 13 smarter. 14 In this case, there are two ways you can use 15 PriceGrabber. One is if you already know the product 16 you are looking for. 17 In this example, we are looking for a Cannon 18 PowerShot S3. When you put that in, this is the chart 19 that actually shows up. You can see the product page, 20 which includes the picture of the product, a short 21 description. 22 You can actually look at detailed information, 23 specifications for that products. You can see what 24 other consumers think about this product. So these are 25 reviews, user-generated reviews as well as what For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 8 1 professionals or experts think about the product. 2 All the information is gathered for the consumer 3 to understand what the product is and what the feature 4 sets are. 5 Beyond that, you notice this product is -- and I 6 can't read it, I confess to you, from here, but you can 7 see all the prices are shown here. It ranges from about 8 300 to over $500, over 48 different merchants. 9 Here you see a snapshot of those merchants. 10 Actually, if you could see the whole page, this will 11 continue and you would see all the 48 merchants that are 12 selling this product. 13 So you will see that we have information on each 14 of the merchants, their services, what they provide. We 15 have the price, we have tax and shipping, which is 16 computed based on the consumer's zip code. 17 So that gives you a bottom-line price. You can 18 see we clearly identify what the best price is for the 19 consumer. 20 The interesting thing here is over 70 percent of 21 consumers or users of our site do not choose the lowest 22 price. That is a pretty amazing stat if you think about 23 it. 24 We provide information on the availability of 25 the product, and these are user-generated reviews by the For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 9 1 consumers, what type of experiences they have had with 2 this particular merchant. 3 This is where you can actually tap into some 4 other tools where its allows you to sell your own 5 product as well as the ability to set pricing.
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