Americans growing more dependent on wireless
Americans are growing more and more dependent on mobile devices to stay online and stay in touch. Together, laptop and mobile wireless access account for the vast majority of wireless access, as 51 percent of Americans have gone online using either of these two methods. Some people (19 percent) even opt for both means of wireless access - portable laptops on fast Wi-Fi networks or handheld access on slower networks from cell carriers.
Use of the Internet on mobile devices has grown sharply from the end of 2007 to the beginning of 2009, according to a study conducted by Pew Research Center’s Internet & American Life Project, Washington, D.C. In December 2007, 24 percent of Americans said they had at some point used the Internet on their mobile device. By April 2009, that number had grown to 32 percent. In December 2007, 11 percent of Americans said they had yesterday accessed the Internet on their mobile, and by April 2009, 19 percent of Americans had done so. When mobile users were asked to think about how they get information or communicate with others while away from home or work, 50 percent say it is very important to them to have mobile access in order to stay in touch with other people, 46 percent say they mobile access is very important for getting online information on the go, and 17 percent say mobile access is very important to them so they can share or post online content while away from home or work.
African-Americans are the most active users of the mobile Internet, and their use of it is also growing the fastest. This means the digital divide between African-Americans and white Americans diminishes when mobile use is taken into account. Forty-eight percent of African-Americans have at one time used their mobile device to access the Internet for information, e-mailing or instant-messaging, and 29 percent of African-Americans use the Internet on their handheld on an average day, compared to national averages of 32 percent and 19 percent, respectively. Compared with 2007, when 12 percent of African-Americans used the Internet on their mobile on the average day, use of the mobile Internet is up by 141 percent.
The high level of activity among African-Americans on mobile devices helps offset lower levels of access tools that have been traditional inlets to the Internet, namely desktop computers, laptops and home broadband connections. By a 59 percent to 45 percent margin, white Americans are more likely to go online using a computer on a typical day than African-Americans. When mobile devices are included in the mix, the gap is cut in half; 61 percent of whites go online on the average day when mobile access is included, compared to 54 percent of African-Americans.
Broader measures of use of mobile digital resources also show fast growth from the end of 2007 to the beginning of 2009. In 2007 and 2009, respondents were asked about 10 different non-voice data activities they might do on their cell phones: sending or receiving text messages; taking a picture; playing a game; checking e-mail; accessing the Internet; recording video; instant messaging; playing music; getting maps or directions or watching video. Although several activities involve using the Internet on the mobile device, many (such as taking a picture) do not. In 2009, 69 percent of all adult Americans said they had ever done at least one of the 10 activities versus 58 percent who did this in late 2007. In 2009, 44 percent of all adult Americans said they had done at least one of the non-voice data activities on a typical day, up from 32 percent in 2007. For more information visit www.pewinternet.org.
Domestic autos boost their APEAL
The automotive industry has achieved a three-year high in appeal for new and redesigned models, and seven of these models have received segment-level awards, including the Dodge Challenger, Ford F-150, Ford Flex, Hyundai Genesis, Nissan Maxima, Volkswagen CC and Volkswagen Tiguan, according to the 2009 Automotive Performance, Execution and Layout (APEAL) Study from J.D. Power and Associates, a Westlake Village, Calif., research company. Throughout the years, vehicle models achieving high APEAL scores have been shown to benefit from faster sales, less need for cash incentives and higher profit margins on each vehicle sold. In 2009, the APEAL score for all-new and redesigned models averaged 790 on a 1,000-point scale - 11 points higher than in 2008 and 15 points higher than the 2009 score for carryover models.
The average APEAL score for all models in 2009 has improved considerably to 779 from 770 in 2008, driven primarily by increased owner satisfaction with fuel economy. This higher satisfaction comes from three main sources. First, fuel prices have decreased during the past year, which has reduced owner concerns about gas mileage. Second, owners are switching to more fuel-efficient vehicles. Third, automakers are designing models to be more fuel efficient than their predecessors.
In 2009, domestic brands comprised the four most-improved nameplates. Dodge posted the largest improvement, followed by Pontiac, Buick and Cadillac, respectively. In addition, the three most-improved models were from domestic manufacturers, including the Dodge Ram, Buick Lucerne and Ford F-150.
The overall gap in APEAL scores between domestic and import models has narrowed during the past several years and is just five index points in 2009, compared with 15 points in 2008 and 27 points in 2007. Among premium models, import nameplates retained a slight edge, while among non-premium models, domestic brands have a similar edge.
Volkswagen captured four segment-level awards - more than any other vehicle nameplate in 2009 - for the CC, GTI, Passat and Tiguan. Ford received model-level awards for the F-150 and Flex. Honda models that received awards are the Odyssey (for a fifth consecutive year) and Ridgeline (for a fifth consecutive year). Mercedes-Benz earned awards for the S-Class (for a third consecutive year) and SLK-Class. The S-Class achieved the highest APEAL score of any model in the industry. Nissan received awards for the Armada and Maxima.
Also receiving awards were the Chevrolet Avalanche, Dodge Challenger, Hyundai Genesis, MINI Cooper, Porsche Cayenne (all for a second consecutive year); and smart fortwo. Porsche was the highest-ranking nameplate in APEAL for a fifth consecutive year. For more information visit www.jdpower.com.
Safety concerns may impact private-label purchasing
Does fear limit consumers’ use of store-branded products? A study suggests that the urge to go private-label varies by category and what risks a switch might carry. While frugal American consumers have jilted their favorite national brands in favor of store brands for food/household (59 percent), health (48 percent) and personal care (48 percent) products, they’re far more reluctant to switch to store brands on purchases for children (12 percent) and pets (23 percent), according to research from ICOM, a division of Dallas research company Epsilon Targeting.
The less-risk-means-more-switch trend revealed itself as well in the category of over-the-counter medicinal health care items. There is a direct correlation between severity and specificity of ailment and openness to switch. Forty-two percent of consumers have switched to less-expensive store brands for general pain relievers; 32 percent for cold and cough medicines; 31 percent for allergy remedies; and 22 percent for heartburn medication.
“Perceived risk, that’s what is driving these key consumer decisions. This is the kind of insight that national brands can use to reach customers with promotions that meet their needs and bring them back,” says Warren Storey, marketing director at ICOM. “These results highlight that understanding customer psychology, and tailoring promotions accordingly, is a significantly more effective win-back strategy than scatter-shot, one-size-fits-all offers.” For more information visit www.epsilontargeting.com.
Online research ups consumer confidence in big purchases
Consumers are not willing to skimp on major home purchases where low cost can often mean low quality, but they are willing to research products in order to insure they’re getting a good product for the price. Fifty-two percent of consumers said reading user reviews on products is one of the most important factors when deciding to purchase a major home or kitchen appliance online; 49 percent included comparing product specifications; 45 percent chose finding a familiar brand or manufacturer; 31 percent included checking merchant rankings; and 24 percent selected the lowest price regardless of merchant ratings, according to research from PriceGrabber.com, a division of Dublin, Ireland, research company Experian.
Clearly, consumers are doing their homework. Although some remain reluctant to make final big-ticket home furniture purchases online, 65 percent of respondents research potential purchases online no matter where they make their final transaction. The majority of online consumers (53 percent) research and purchase home entertainment items online. Eighty percent of online consumers indicated they will likely research their next kitchen appliance online, and 30 percent said they will likely make their purchase online. Similarly, 77 percent of online consumers will likely research online for their next laundry home appliance, and 26 percent said they will likely purchase their next laundry appliance online.
Even though consumers are spending more time at home, reduced spending habits have suppressed purchase decisions on larger-ticket items like appliances and furniture. Fifty-five percent of consumers indicated that they have made a concerted effort to cut back in the past few months. While 40 percent of online consumers purchased a home entertainment product (HDTV, Blu-ray player, DVR, speakers), only 22 percent of consumers purchased a laundry appliance (washing machine, dryer) or kitchen appliance (refrigerator, range top, oven, microwave), and only 11 percent purchased home furniture online in the last 12 months.
Ad effectiveness is in the eye of the beholder
When it comes to types of ads, advertisers and consumers agree on the effectiveness of some, but disagree on others. Namely, advertisers believe their ads to carry much more impact than they do with consumers, according to research from Rochester, N.Y., research company Harris Interactive and networking site LinkedIn, Mountain View, Calif.
While over half of advertisers believe ads that make people stop and think (53 percent) and ads that give people new information (51 percent) are very effective, just three in 10 consumers (30 percent and 29 percent respectively) feel the same. One-quarter of advertisers think ads that are integrated into the feel of the program and have the same tone as the program it is based in are very effective, compared to just 7 percent of consumers. When it comes to ads that show before/after, 24 percent of advertisers say they are very effective, while 13 percent of consumers say they are very effective. One in five advertisers say ads that reinforce a message already known are very effective, compared to 10 percent of consumers.
However, consumers and advertisers both like ads that amuse. Thirty-four percent of consumers and 41 percent of advertisers say entertaining ads are very effective, and one-third of both consumers and advertisers say funny ads are very effective. But there is a fine line in amusement, as just one in 10 consumers and 14 percent of advertisers say ads that don‘t take themselves seriously are very effective. In fact, 18 percent say these ads are not at all effective.
Looking at advertisements that might not work, 41 percent of consumers and 32 percent of advertisers believe that scary ads are not at all effective. Also, over one-quarter of consumers and 18 percent of advertisers say ads about a serious topic that make people feel slightly guilty are not at all effective. For more information visit www.harrisinteractive.com.
The generations define their comfort foods differently
When it comes to which general types of foods constitute “comfort foods,” there’s no real generation gap, but more subtle differences in comfort food preferences do exist among age groups. For example, cheese - either by itself or with a bread or starchy food - seems to elicit the most passionate response across generations, but Boomers cite artisan cheeses while Gen X craves cheese crackers, according to a study from the Center for Culinary Development, San Francisco, and Packaged Facts, a Rockville, Md., research company.
Boomers prefer classic comfort foods such as braised meats, casseroles and ice cream, but many also enjoy gourmet choices such as high-quality dark chocolate and fancy cheeses. They crave foods from their childhoods such as peanut butter, popcorn, foods made with canned tuna fish, chicken noodle soup and hot oatmeal.
Gen Xers are more accustomed to commercial fare, and crave fast food (especially hamburgers) and burritos. They cite branded foods more often than the other generations, including favorite packaged cookies, ice creams, candies and snacks.
Gen Yers are also partial to burritos and ramen noodles, but in contrast to other cohorts, many also include healthier foods, including sushi and fruits, among their favorite comfort foods. They are less inclined than Gen X to associate specific brands with comfort foods.
Sweets dominate category choices regardless of age. Nearly half of men and women across the Boomer, Gen X and Gen Y segments say they turn to baked goods, sweets and desserts for comfort, versus entrées (19 percent), salty snacks (14 percent), side dishes (13 percent) and breakfast foods (4 percent). Women favor sweets even more than men (51 percent of women cite sweets as comfort food versus 36 percent of men). Among respondents who cite sweets, 26 percent chose ice cream as their top comfort food, 23 percent chocolate and 21 percent brownies.
Within entrées, roasted meats are the top choice across generations; within side dishes, macaroni and cheese and potatoes are nearly tied in popularity; and within salty snacks, chips rule (cited by 60 percent of total respondents, followed by popcorn and cheese, at 10 percent and 8 percent, respectively). For more information visit www.packagedfacts.com.