SEATTLE — August 16, 2000 — Imagine a man walking into an electronics store and purchasing willy-nilly the first stereo that catches his eye. Better yet, picture that same man pulling into a car dealership and driving off in the closest red sports car without a lick of research. Ridiculous? Preposterous?

It seems inconceivable that any American male would even consider purchasing a stereo, let alone a car, without having probed at least a two-year stack of Consumer Reports. Why is it then that when men go to buy a diamond engagement ring or anniversary band — items that are extremely personal, expensive, and will last forever — that 45 percent do no research before purchasing?

With so many facts, figures, and comparative analyses to master, fine jewelry buying could rank right up there with baseball stats and stock charts for sheer research pleasure. But until now, finding an approachable and comprehensive jewelry source has been very difficult.

Blue Nile Inc., the online leader in the diamond and fine jewelry category, was created to be that friendly source. The company's whole focus is to provide consumers with the education and guidance necessary to select the perfect piece of jewelry with confidence. To gain further insight into what men are thinking when making a jewelry purchase, Blue Nile retained a leading market research firm, The NPD Group, Inc., to conduct an independent survey of more than 1,200 men and women, ages 20-60, for their perspective.

Education is Key to Buying with Confidence
The survey discovered that most men feel intimidated and confused about buying diamonds and fine jewelry. In fact, 57 percent of men describe jewelry shopping as stressful and 75 percent of men — and for that matter, 74 percent of women — said they don't feel knowledgeable about buying jewelry. In addition, both men and women (51 percent) agree that if you aren't educated on the subject, you're likely to get "taken." It's clear that consumers want more information but haven't known where to turn. However, despite their reservations, men do the bulk of the jewelry buying and comprise 70 percent of the $50 billion jewelry industry.

Men: The Romantic Truth
So why are men buying? The survey suggests that love does conquer all. Case in point, when asked to name the top reasons for buying jewelry, men listed the "just because I love you, honey" factor right up there with Christmas and birthdays.

Fifty-nine percent of men say they like to surprise women with gifts of fine jewelry. What's more, many men (56 percent) are willing to take the surprise even further by paying more to make sure that she loves the gift.

And, 68 percent are paying attention to her reaction long after the ring or bracelet is out of the box and the wrapping paper has been thrown away. Men say they know they did a good job when she shows the gift off to others and if she cleans and/or plays with it a lot.

Jewelry Shopping at Blue Nile: A Better Way to Buy
In 1998, Mark Vadon experienced firsthand the frustrations of searching for an engagement ring. Realizing the need for consumers to have access to jewelry information without the pressure of aggressive selling techniques, he set out to create a better way to buy jewelry. The result was Blue Nile (www.bluenile.com), of which Vadon is now the chief executive officer. Blue Nile is an information-rich site that offers education and guidance to the jewelry buyer.

Because it's cleanly designed and easy to navigate, the site offers consumers a better way to purchase diamonds and fine jewelry — ranging from loose diamonds to pearls to gemstones to gold and platinum jewelry.

"Consumers want the assurance that they're making the right decision with a jewelry purchase, just as they would with a home or automobile," Vadon says. "Blue Nile is, by design, a pressure-free environment where people can browse as often as they wish, whenever their schedules permit, and learn as much as they need to make a purchase with confidence."

Vadon said Blue Nile provides men and women alike with the education and guidance necessary to find the perfect diamond or piece of fine jewelry, so they can't go wrong. Visitors to Blue Nile can check out the "Product Education" section which offers detailed charts and illustrations; information on jewelry care; and a complete glossary. Other tools available to visitors are a proprietary diamond search engine, which allows consumers to find their perfect diamond according to their specific criteria, as well as links to credentialing organizations such as BBBOnLine Reliability, TRUSTe Privacy Program and the Jewelers' Vigilance Committee.

The survey also revealed that consumers see shopping online as a great vehicle for researching and purchasing fine jewelry. The top online shopping strengths include: 1) convenience 2) no pressure and 3) value.

"The feedback we've received from our customers has been great to hear," Vadon said. "They're telling us they finally feel they understand what they're buying. And, that, of course, is exactly what we had in mind when we created Blue Nile."

About The NPD Group, Inc.
The NPD Group is an international marketing information company head-quartered in Port Washington, NY. Founded in 1953, the firm specializes in providing insight into consumer purchasing and behavior via both Internet-based and traditional research methodologies, including online and offline consumer panels and point-of-sale tracking.

NPD offers proprietary databases and research expertise in more than 20 industries, including apparel, automotive products, consumer electronics, cosmetics and fragrances, financial services, food, foodservice, footwear, housewares, information technology, interactive entertainment, new media, pharmaceuticals, toys, and more. The firm also offers a full range of analytical tools for ad hoc research. NPD is the developer of the revolutionary Web audience measurement technology now marketed by its successful spin-off Media Metrix, Inc. NPD has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia. For more information on NPD, visit http://www.npd.com.