Consumer Internet Barometer

Press Release

More Consumers Using the Internet to Buy Stocks, Do Personal Banking and Carry Out Other Financial Transactions
Consumer Internet Barometer™ Tracks Who's Doing What on the Internet

October 6, 2003 - More consumers are going online to buy stocks and bonds and conduct personal banking transactions and carry out a variety of other financial transactions, according to The Consumer Internet Barometer, a quarterly measure of who's doing what on the Internet, as well as the level of trust and satisfaction that consumers have with their online experience. The Consumer Internet Barometer is produced by TNS, Forrester Research and The Conference Board.

Internet usage for financial transaction has surged during the past two years. Today, nearly half of Internet users conduct financial transactions online, versus 39% in the fourth quarter 2001. The proportion of consumers logging on primarily to conduct financial transactions has also grown from 3% to 5%. Frequent online activity is quite prevalent among these Internet users - more than two-thirds log on daily to conduct financial transactions.

"Increasing trust combined with the benefits to everyday life have been major factors in prompting more consumers to conduct financial transactions online," says Lynn Franco, Director of The Conference Board's Consumer Research Center. "And, these factors have also been key in making this one of the fastest growing ways that consumers are using the Internet."

Confidence in the Internet is important to those going online primarily to conduct financial transactions, and their overall level of trust has been increasing since the fourth quarter 2001. In addition, more than a quarter claim that the ability to manage their finances online has significantly improved the quality of their life.

Fewer than a third of American consumers have yet to go online compared with nearly 35% in the last quarter of 2001. This trend has been accompanied by an increase in the number of heavy Internet users. Over the past two years, the percentage of daily users has risen five percentage points to 39%. But while a greater number of consumers are using the Internet more often, their overall levels of satisfaction and trust have tended to waver. The percentage of consumers expressing satisfaction with their online experience has held steady at around 40% for the past two years, while their overall level of trust has hovered around 26%.

Online Buying Will Increase

Online spending gained some momentum in the third quarter, after having eased somewhat in the second quarter of this year. More than half of Internet users have made a purchase over the past three months, with 30% having spent more than $250. Buying intentions among consumers who made a purchase in the past three months remained about the same as in the second quarter of 2003. This is in line with intentions a year ago. Purchasing intentions among consumers who have not made a recent purchase are stronger than in the second quarter of 2003 and are above last year's figures.

About This Survey:
The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70%, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the third quarter of 2003.

For more detailed information, please visit: www.consumerinternetbarometer.us or email tortorici@conference-board.org.

TNS (www.tns-global.com)
TNS a market information group, is the world's largest custom research company. TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organizations.

Forrester Research, Inc. (www.forrester.com)
Forrester Research enables companies to understand the impact of technology on business. Forrester's WholeView™ Research, Strategic Services, and Events help clients understand how technology change affects their customers, strategy, and technology investment. Giga, through its Giga Advisory®, Giga Consulting™, and Events, provides objective research, pragmatic advice, and personalized consulting to global IT professionals. Established in 1983, Forrester is headquartered in Cambridge, Mass.

The Conference Board (www.conference-board.org)
The Conference Board is the leading global business knowledge network for the world's largest corporations. The Conference Board is dedicated to helping companies improve performance and strengthening the role of business in society. More than 2,500 companies in 60 countries are members of The Conference Board, which produces the Consumer Confidence Index, the Help-Wanted Index and Business Cycle Indicators for nine countries worldwide.

Past Releases

July 2, 2003 - Internet Usage on the Rise, With More Consumers Logging
on Daily

April 3, 2003 - Consumers Continue Flocking to the Internet

January 2, 2003 - More Consumers Trust That Their Online Transactions are Safe

October 16, 2002 - More Consumers Going Online, But Trust is a Major Concern

© 2009. All rights reserved. Consumer Internet Barometer is a joint trademark of TNS and The Conference Board. TNS and the TNS logo are trademarks of Taylor Nelson Sofres plc. The Conference Board and The Conference Board logo are registered trademarks of The Conference Board, Inc.