••• socioeconomic research
Poll charts changes in the haves/have-nots
Differences fall along expected lines
The majority of Americans, 58 percent, consider themselves to be “haves” in U.S. society, while 38 percent put themselves in the “have-not” group, reports Gallup’s Frank Newport. The percentage of have-nots has more than doubled since 1988 but has been more stable in recent years. Meanwhile, the percentage of haves has held fairly constant, except for a single higher reading during the economic boom in 1998.
Americans’ responses to this question provide a way of looking at inequality in U.S. society, based on Americans’ own perceptions of where they are socioeconomically. The update is part of Gallup’s 2015 Minority Rights and Relations poll, conducted June 15-July 10.
The percentage of Americans perceiving themselves to be have-nots rose in the 10 years between the initial 1988 survey and 1998, while the percentage choosing neither dropped. Since then, the have percentage has settled into a tight range between 57 percent and 60 percent. The have-not category has been on more of an upward trajectory, though percentages have fluctuated from year to year.
It is possible that these changes reflect the more difficult economic times ushered in by the Great Recession. It’s also possible that the higher visibility of discussions about social inequality has resulted in more people deciding they are on the less fortunate side of the nation’s economic divide.
As would be expected, socioeconomic status is strongly related to a person’s tendency to place himself or herself in one of these two groups. There are substantial differences between those in high- versus low-income categories and between those with college degrees and those without. Still, only a little more than half of those whose annual household income is less than $36,000 say they are have-nots, along with less than half of those with some college or less.
While all but 5 percent of Americans are willing to place themselves into a have or have-not category in the survey, more than half say they actually don’t view the nation in these terms.
In the current survey, 54 percent of Americans say they do not think of U.S. society as being divided into groups of haves and have-nots, while 45 percent do. The percentage of Americans who consider society divided into these two groups has fluctuated over the years but it was significantly lower in 1988 when Gallup first asked the question and slightly lower, on average, from 1998 to 2004 than in the years since. The starkest contrast was in 1988, when 26 percent said that the nation was divided. In 2008, just as the Great Recession was taking a firm hold on the nation’s economy, that percentage reached its all-time high of 49 percent.
As might be expected, those who believe the U.S. is divided into groups of haves and have-nots are much more likely to identify themselves as have-nots rather than haves (63 percent to 35 percent, respectively). Those who do not see the U.S. divided in this way are much more likely to place themselves in the have group (64 percent) than the have-not group (36 percent).
There is an interesting pattern in responses to these two questions among whites, blacks and Hispanics. Blacks are much more likely than whites or Hispanics to say they think of the U.S. as being divided between haves and have-nots. But blacks and Hispanics are equally likely to describe themselves as have-nots. These results suggest that blacks are more conscious on a daily basis of inequality in society as a whole than is the case for Hispanics or whites.
The stratification of U.S. society into unequal socioeconomic groups has long been a fixture of philosophic, political and cultural debate. It appears to have remained or even expanded as a fairly dominant leitmotif in the ongoing 2016 election, particularly among Democratic presidential candidates. The results of the two questions reviewed in this analysis show that a majority of U.S. adults do not think of American society as being divided along economic lines, and a slightly higher percentage say that if society is divided, they personally are on the haves side of the equation, rather than the have-nots.
These views are somewhat different than they were in 1988, when fewer Americans thought of the U.S. as being divided, and fewer, when asked, put themselves into the have-not category. In recent years, however, there have not been major changes on these indicators.
Results for this Gallup poll are based on telephone interviews conducted June 15-July 10, 2015, with a random sample of 2,296 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia. All respondents had been previously interviewed in the Gallup Daily tracking survey and agreed to be recontacted by Gallup. For results based on the total sample of national adults, the margin of sampling error is ±4 percentage points at the 95 percent confidence level. For results based on the total sample of 857 non-Hispanic whites, the maximum margin of sampling error is ±5 percentage points at the 95 percent confidence level. For results based on the total sample of 802 non-Hispanic blacks, the maximum margin of sampling error is ±5 percentage points at the 95 percent confidence level. For results based on the total sample of 508 Hispanics, the maximum margin of sampling error is ±7 percentage points at the 95 percent confidence level. All reported margins of sampling error include computed design effects for weighting.
••• advertising research
Trust in digital ads holds steady
Offline OK too
Researcher Nielsen reports that eight-in-10 global respondents (83 percent) say they completely or somewhat trust the recommendations of friends and family. But trust isn’t confined only to those in our inner circle, as two-thirds (66 percent) say they trust consumer opinions posted online – the third-most-trusted form of advertising, according to the firm’s Global Trust in Advertising Survey.
“The power of digital ad formats cannot be underestimated, as they offer many advantages for achieving effective reach,” says Randall Beard, president, Nielsen Expanded Verticals. “But few brands have mastered online word-of-mouth marketing techniques, the results of which can go viral very quickly. Passionate brand advocates can be powerful allies to amplify your message but you need to give them a reason to talk. Evolve the relationship from a one-way sales pitch to a two-way conversation. And be transparent and accountable. Online brand advocates can quickly become adversaries with the power to damage credibility and reputation if things go wrong.”
Owned (brand-managed) online channels are also among the most trusted advertising formats, Nielsen research found. In fact, branded Web sites are the second-most-trusted format, with 70 percent of global respondents saying they completely or somewhat trust these sites. In addition, more than half of respondents (56 percent) trust e-mails they signed up for.
Looking at two-year digital trends from the firm’s studies, trust in paid online and mobile ads has stayed relatively consistent since 2013. Almost half of global respondents say they completely or somewhat trust online videos ads (48 percent, no change from 2013), ads served in search engine results (47 percent, down one percentage point) and ads on social networks (46 percent, down two percentage points). About four-in-10 global respondents trust online banner ads (42 percent, no change) and mobile advertising (43 percent, down two percentage points). Just over one-third say they trust mobile text ads (36 percent, down one percentage point).
“Brands have been steadily increasing their digital ad spend as they get increasingly comfortable with digital advertising and measurement, but TV formats still deliver the highest unduplicated reach [i.e., the ad reaches each audience member only once] of 85 percent-90 percent,” says Beard. “While digital ads can offer considerable benefits – such as precision-focused campaigns, in-flight adjustments and more creative options – moving from TV to an all-display digital plan is a bold move for any marketer. Consider a mix of both offline and online channels for the best ROI.”
Despite continued media fragmentation, the proliferation of online formats has not eroded trust in traditional (offline) paid channels. TV, newspapers and magazines remain trusted advertising formats. More than six-in-10 global respondents say they completely or somewhat trust TV ads (63 percent), up one percentage point from 2013. Slightly fewer trust ads in newspapers (60 percent) and magazines (58 percent), which fell one and two percentage points, respectively, from two years ago.
Other findings include:
Millennials show the highest levels of trust in 18 of 19 advertising formats/channels, including TV, newspapers and magazines.
Self-reported action based on advertising exceeds trust by more than double digits for ads served in search engine results, ads on social networks and text ads on mobile phones.
Humorous ads resonate most in strongly in Western markets; health-themed ads are rated highest in Latin America; and ads depicting real-life situations are most appealing in Asia-Pacific and Africa/Middle East.
High-energy/action advertising themes resonate more with younger respondents, while pets/animal-centered ads resonate more with older respondents.
The Nielsen Global Trust in Advertising Survey was conducted between Feb. 23 and March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6 percent. The survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or an online population of 10 million for survey inclusion.
••• financial services
Credit cards still not secure enough
PINs viewed as worthwhile
According to a new study released by the National Retail Federation, Washington, D.C., the majority of U.S. consumers – 62 percent – believe new credit cards being issued by banks don’t go far enough to protect card data or prevent fraud.
“Consumers are worried that chip-and-signature cards really amount to chip-and-chance,” says NRF Senior Vice President for Government Relations Mallory Duncan. “The chip cards are a step forward but shoppers are concerned that they don’t go nearly far enough. Unless the new cards require the use of a PIN, they will only provide half the safeguards needed to stop increasingly sophisticated criminals. The card industry’s refusal to give consumers the full protection they want continues to be a huge disappointment.”
Among those surveyed, 62 percent said they prefer chip-and-PIN cards over cards that just use chip and signature and 63 percent said chip-and-PIN cards provide more data security than those that don’t. Among Millennials, the preference for PIN was even stronger, at 71 percent of those between the ages of 18 and 24 and 66 percent for those ages 25-34.
Contrary to some banks’ claim that consumers don’t want to have to remember a PIN, the survey found 83 percent of consumers who say a PIN is more secure would consider it worthwhile even if they had to remember a different number for each card.
The survey also found 71 percent of consumers with a credit card have at least one chip card in their wallets but that only 43 percent of credit cards are chip cards since most consumers have more than one card. Only 47 percent of consumers with a chip card have used it in a chip reader.
The online survey of 2,035 U.S. adults ages 18 and older was conducted for NRF Aug. 27 to Sept. 2 by ORC International.
After Oct. 1, the rules changed for how credit card transactions are processed and who is responsible for fraud costs. Under previous credit card industry rules, banks were responsible for fraud losses when a counterfeit card was used and retailers were responsible when the person using the card was not the legitimate cardholder. Now, banks will no longer honor their share of fraud costs if the card used is a chip card and the retailer does not have a chip card reader. Many retailers believe the liability shift is unfair because the chip reduces banks’ exposure to fraud while the lack of a PIN leaves retailers exposed to fraud.
The new cards, which banks have been rolling out over the past year, use EMV technology – short for Europay MasterCard Visa – to store data on an encrypted computer microchip. But unlike EMV cards used around the world for more than 20 years, which include a PIN, most cards being issued in the United States continue to use a signature to approve the transaction.
Over the same period, retailers have had to pay for new card readers, which average about $2,000 each when related software, equipment, installation and other costs are included, or an estimated $35 billion nationwide. Most major retailers and many smaller merchants have installed the equipment but many have reported that activation has been held up by bottlenecks such as delays in having the systems certified by card companies. That puts many retailers at risk for liabilities.
“The chips partially address the issue of counterfeit cards but do nothing about lost or stolen cards because thieves will still be able to sign any illegible scrawl to ‘prove’ that they are the cardholder,” Duncan says. “More importantly, sophisticated criminals can circumvent the chips, so a chip alone is not foolproof. A PIN is a secret password that makes the card useless to a criminal whether the card has a chip or not.”
••• consumer products
We still have time to clean the house
Convenience without compromise
While Americans’ lives may seem busier than ever before, they continue to carve out time for housecleaning, according to new research from Mintel. In describing their overall approach to housecleaning, 42 percent of Americans prefer to clean as they go, doing quick cleanups that fit into their schedules, versus setting aside time to give the whole house a thorough top-to-bottom cleaning (32 percent). While consumers value convenience and ease in housecleaning, most are not interested in compromising on effectiveness or results. Nearly half of adults (49 percent) who personally do housecleaning agree that it’s important to take the time to do housecleaning right, with one-quarter (27 percent) agreeing that the less time spent housecleaning the better.
While overall household surface cleaner category sales in recent years have been stagnant, rising just 4 percent between 2009 and 2014 to about $4.7 billion, performance has varied from segment to segment, reflecting changing consumer priorities and preferences. The strongest segments and subsegments in recent years have tended to be the ones that place extra emphasis on simplicity, convenience and quick cleanups and disinfection, including all-purpose cleaners, which saw an increase of five percent between 2012 and 2014, and disposable wipes, which grew 9 percent in the same time period.
Mintel research shows that most American adults get involved in housecleaning on some level, with more than half (52 percent) reporting that they take sole responsibility in their households, and more than one-third (35 percent) say they share responsibility for cleaning with someone else. Pointing to a generational shift in men’s involvement in housecleaning, men age 18-34 (52 percent) are almost as likely as women age 18-34 (56 percent) to claim primary responsibility for cleaning in their households.
While the way in which Americans prefer to clean the household has evolved over the years, with greater emphasis on quick cleanups, Americans still spend plenty of time cleaning. Consumers on average spend four hours and 21 minutes cleaning the house in a typical week.
The amount of time men and women report spending is almost equal. Male housecleaners report spending about 38 minutes less per week on average than female housecleaners, consistent with the finding that women remain more likely (61 percent) than men (42 percent) to describe themselves as the primary cleaner in their households. The relatively narrow gap in reported time spent cleaning is an indication that traditional gender-specific roles for household chores continue to lose relevance. Women age 18-34 report spending the most time cleaning, just over five hours, while men age 55+ report the least amount of time spent cleaning the house, at three hours and 10 minutes.
“Most adults get involved in housecleaning on some level, with many stating they take sole responsibility. Our data indicates a generational shift in men’s involvement in housecleaning, as men are almost as likely as women to handle the bulk of the cleaning. The slight difference in time spent cleaning the house as reported by men may be the result of men commenting on the amount of housecleaning they believe they should be doing, as opposed to what they actually do. Either way, the gap remains relatively narrow in reported time spent cleaning between men and women and is an indication that traditional gender-specific roles for household chores continue to lose relevance,” says John Owen, senior analyst, household at Mintel.
While they comprise only a small portion of the household surface cleaner market, leading eco-friendly brands posted modest gains of 2 percent in mainstream channels in 2015, according to Mintel research. Their small-scale success may be driven by concern that ingredients in conventional cleaning products can be unhealthy. This belief is held by more than six in 10 housecleaning consumers (62 percent), while 72 percent of consumers agree that natural cleaning products are healthier than conventional ones.
Consistent with the concern that some housecleaning consumers express about the safety of ingredients in cleaning products, nearly one-third (32 percent) of U.S. consumers will pay more for all-natural antibacterial products. Furthermore, nearly three in 10 (29 percent) will pay more for a cloth that cleans surfaces with just water.
••• utilities research
Satisfaction with gas utilities hits new high
Stable pricing has helped
Customer satisfaction with residential gas utilities has increased for a fourth consecutive year, reaching an all-time high, according to a study by Westlake Village, Calif., researcher J.D. Power. The firm’s Gas Utility Residential Customer Satisfaction Study, now in its 14th year, measures residential customer satisfaction with gas utility companies across six factors (in order of importance): billing and payment; price; corporate citizenship; communications; customer service; and field service. Satisfaction is calculated on a 1,000-point scale.
Overall customer satisfaction with residential gas utilities has increased by 27 points to 671 from 644 in 2014, continuing an upward trend to an unprecedented level in the study’s history. Satisfaction improves across all factors, especially in price (+30 points) and corporate citizenship (+31) from 2014 (620 vs. 590 and 633 vs. 602, respectively). Stable low pricing and familiarity with conservation programs help drive satisfaction with price. In the corporate citizenship factor, satisfaction is driven by customer awareness of their utility’s efforts to support economic development in local communities; improve the impact on the environment; and foster public safety.
Although safety awareness has steadily increased by 5 percentage points since 2013, the 2015 study finds there is room to improve, as 72 percent of customers are unaware of their utility’s efforts in this regard, and 67 percent indicate they want to hear more about safety. Carbon monoxide is one such topic of interest to customers, with only 4 percent of customers having heard how to avoid it and 33 percent wanting to hear more about it.
“Safety is becoming increasingly important to customers and they look to their utility to provide information that helps keep them safe when using and being around natural gas,” says Andrew Heath, director of the energy practice at J.D. Power. “The gas utility industry should ramp up its efforts to make sure more than just 28 percent of customers know about its endeavors to increase safety and to provide actionable advice to customers.”
In other key findings:
- Customer service satisfaction has steadily increased during the past three years in the phone and online channels (+30 points and +26 points, respectively).
- The average reported monthly bill amount has decreased in 2015 to $80, down from $81 in 2014 but higher than in 2013 at $75.
- Having an online account setup improves both customer service and billing and payment satisfaction. Customer service satisfaction is 52 points higher and billing and payment satisfaction is 43 points higher among customers who have an online setup, compared with those who don’t (779 vs. 727 and 766 vs. 723, respectively).
- The study ranks large and midsize utility companies in four geographic regions: East, Midwest, South and West. Companies in the midsize utility segment serve between 125,000 and 399,000 residential customers, and companies in the large utility segment serve 400,000 or more residential customers. The following utilities rank highest in customer satisfaction in their respective region:
East Large: New Jersey Natural Gas
East Midsize: Columbia Gas of Pennsylvania and Elizabethtown Gas in a tie
Midwest Large: MidAmerican Energy
Midwest Midsize: Alliant Energy
South Large: Oklahoma Natural Gas
South Midsize: TECO Peoples Gas
West Large: NW Natural
West Midsize: Cascade Natural Gas
The 2015 Gas Utility Residential Customer Satisfaction Study is based on more than 66,000 responses from residential customers of 83 large and midsize gas utilities across the continental United States. The study was fielded between Sept. 2014 and July 2015.