ten surprising facts about consumers and technology ted schadlercharles s. golvin vp & principal...
TRANSCRIPT
Ten Surprising Facts About Consumers And Technology
Ted Schadler Charles S. GolvinVP & Principal Analyst Principal AnalystForrester Research
September 1, 2005. Call in at 10:55 a.m. Eastern Time
Theme
Tech attitude is key to determining consumers’
technology behavior
Agenda
• What is Consumer Technographics®?
• Ten surprising facts about consumers and technology
• Why is consumers’ technology attitude important?
Consumer Technographics™ Benchmark Study
• Fielded in January and February 2005
• 68,884 households
• 347 consumer brands
The largest, longest-running consumer survey of technology adoption and use.
More than 700 data points in 12 areas
• Demographics
• Devices and access
• Online activities
• Financial services
• Mobile and telecom
• Television
• Retail
• Media and advertising
• Healthcare
• Travel
• Auto
• Government
700 data points for 69,000 consumers means we can answer a lot of questions
• What shopping attitudes and retail behaviors characterize low-income households in Texas?
• Which PC brands do women over 40 with college degrees and three children prefer?
• Which high-income households bank online over broadband? What search engines do they use?
• Which media do seniors consume most online?
• How do consumers research medical conditions?
Agenda
• What is Consumer Technographics®?
• Ten surprising facts about consumers and technology
• Why is consumers’ technology attitude important?
Ten surprising facts about consumers and technology
1. Three times as many technology optimists as pessimists use the Internet frequently.
Technology attitude segments the population
Tech attitude correlates with age and income . . .
. . . but is also independent of them
Base: North American households, * Online North American households
Ten surprising facts about consumers and technology
1. Three times as many technology optimists as pessimists use the Internet frequently.
2. Broadband is just now reaching the mainstream.
Broadband reaches 28% of US — and 37% of Canadian — households today
Broadband is going mainstream
2004
44%
20%
20%
15%
2000 to 2001
56%
16%
18%
10%
High-income optimists
Low-income optimists
High-income pessimists
Low-income pessimists
Up to 1999
64%15%
15%
5%
Base: new broadband subscribers in each time frame(percentages may not total 100 because of rounding)
Price is a likely factor in DSL gaining ground
Ten surprising facts about consumers and technology
1. Three times as many technology optimists as pessimists use the Internet frequently.
2. Broadband is just now reaching the mainstream.
3. Home networking is stalled below 10% of households.
Home networkers are early adopters
57%21%
16%
6%
High income optimists Low income optimists
High income pessimists Low income pessimists
Base: North American households with a home network
Sharing broadband is the No. 1 motivator for getting a home network
Broadband
Both drivers grow healthily; home networking will reach 40% of US households by 2010
0
20
40
60
80
100
120
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
All US Households InternetPC Laptop Multi-PC
Home network
Mill
ions
of U
S
hous
ehol
ds
Base: US households
Ten surprising facts about consumers and technology
1. Three times as many technology optimists as pessimists use the Internet frequently.
2. Broadband is just now reaching the mainstream.
3. Home networking is stalled below 10% of households.
4. Half of 18-25-yr-olds use cell phones for long distance.
Cell phones displace land line phones for long-distance calls, especially in young consumers
Fifteen percent of mobile users use data services, particularly for communications apps
Ten surprising facts about consumers and technology
1. Three times as many technology optimists as pessimists use the Internet frequently.
2. Broadband is just now reaching the mainstream.
3. Home networking is stalled below 10% of households.
4. Half of 18-25-yr-olds use cell phones for long distance.
5. Sharing photos is the fourth-most popular online activity.
Digital camera adoption is exploding
Photo sharing trails only email, shopping, and online research
Ten surprising facts about consumers and technology
6. This is the device decade of the century. ;-)
On average, households own five devices today — on their way to more than six devices by 2010
Ten surprising facts about consumers and technology
6. This is the device decade of the century.
7. Three percent of households publish blogs; 6% read them.
The blogosphere is tiny — and a bit incestuous
Ten surprising facts about consumers and technology
6. This is the device decade of the century.
7. Three percent of households publish blogs; 6% read them.
8. Internet nomads watch 3 hours per week less TV.
Laptops and home networks correlate with changing consumer behavior
• Internet nomads spend $120/quarter more online than broadband-only households.
• Internet nomads watch 3 hours per week less TV.
• Technology optimists spend 5 more hours online per week.
Ten surprising facts about consumers and technology
6. This is the device decade of the century.
7. Three percent of households publish blogs; 6% read them.
8. Internet nomads watch 3 hours per week less TV.
9. Twice as many technology optimists as pessimists shop online.
Online retail grows as broadband and home networks are adopted . . .
• Online shopping added 3.5 million households in 2004.
• Twice as many online shoppers are tech optimists today.
• 10 million more tech optimists — and 6 million more tech pessimists — will shop online by 2010.
Ten surprising facts about consumers and technology
6. This is the device decade of the century.
7. Three percent of households publish blogs; 6% read them.
8. Internet nomads watch 3 hours per week less TV.
9. Twice as many technology optimists as pessimists shop online.
10. The importance of brand is at a new (low) level.
“Please indicate how strongly you agree with each of the following statements.”
Base: US householdsSource: Forrester's Consumer Technographics® North American Studies
The importance of brand is falling, and the importance of price is growing
Percent ofconsumerswho agree
with statement
30
50
70
2000
2001
2002
2003
2004
2005
When I find abrand I like, Istick with it.
Price is moreimportant tome than brandnames.
Agenda
• What is Consumer Technographics®?
• Ten facts about consumers and technology
• Why is consumers’ technology attitude important?
Technology attitude segments the population
1
2
3
4
Each segment:
• Has a different technology pain threshold.
• Uses the Internet in different ways — if at all.
• Has a different marketing profile.
More technology optimists are receptive to new products — and are social networkers
More tech optimists
More pessimists
Ted Schadler
Charles S. Golvin
www.forrester.com
Thank you
Entire contents © 2005 Forrester Research, Inc. All rights reserved.