Consumer Internet Barometer

Press Release

Consumers Continue Flocking to the Internet
Usage, Satisfaction and Trust Continue to Improve

April 3, 2003 - While technology companies continue to face sluggish growth - with little improvement in sight throughout this year - consumers are stepping up their use of the Internet, according to the Consumer Internet Barometer, a quarterly measure of who's doing what on the Internet.

The Consumer Internet Barometer is produced jointly by TNS NFO, Forrester Research and The Conference Board. It provides a running record of consumers' evolving usage, trust and satisfaction with the Internet over time and identifies emerging trends.

Consumers' trust in the safety of the Internet has increased from last year. Now, more than 27 percent trust that their primary Internet activities are safe, up from 25 percent a year ago. Personal research and work-related activities lead the way. Consumers also continue to grow more comfortable conducting financial transactions online.

More consumers are satisfied with their Internet activities - 42 percent, up from 41 percent a year ago. Although the trend in satisfaction continues to improve, not all Internet activities are benefiting equally. Personal research and work-related activities saw the greatest gains in satisfaction. Bucking the trend was personal communication, as consumers conveyed that they are less satisfied with this activity today than they were a year ago.

"Greater numbers of consumers continue to log-on to the Internet today than a year ago," says Lynn Franco, Director of The Conference Board's Consumer Research Center. "Usage trends are shifting, with more consumers going online more often. And overall levels of satisfaction and trust, while varying for some activities, are higher today than a year ago."

Overall Internet usage continues to climb. Now, 64 percent go online at least monthly, up from 61 percent a year ago. About 38 percent log-on daily, up from 36 percent a year ago. The primary reasons for using the Internet include personal communication, personal research and purchasing products.

Some key findings:

The underlying trend in satisfaction continues to improve, yet not all Internet activities are benefiting equally. Personal research and work-related activities saw the greatest gains in satisfaction. Satisfaction with personal communication declined slightly.
Consumers' trust in the safety of the Internet has also increased from 2002. As with the trend in Internet satisfaction, personal research and work-related activities led the way. Consumers continue to grow more comfortable conducting financial transactions online, too.
About 38 percent of online consumers claim that personal communication is the primary reason that they use the Internet. Running a distant second and third are personal research and work-related activities.
High-frequency users are more likely to log on to conduct work-related activities - 70 percent log on every day - than to conduct any other online activity.
Consumers using the Internet primarily for personal communication and personal research tend to be less frequent users, with only 62 percent and 45 percent, respectively, logging on daily.
Consumer spending in excess of $250 online jumped by 15 percent from the previous quarter, but that was a result of the onset of the holiday season. It was an overall lackluster holiday season for retailers, as shopping patterns for 2002 mirrored the 2001 season.
Breaking the purchase barrier, however, produces promising results. Consumers who made an online purchase in the past three months are more than 80 percent likely to make another purchase in the coming three months. That degree of likelihood plummets to about 20 percent if no prior purchase had been made.

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 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. We conducted this survey during the fourth quarter of 2002.

For more detailed information, please e-mail tortorici@conference-board.org.

The next quarterly survey will be released on July 2, 2003 at 10:00 A.M. ET.

TNS NFO (www.nfow.com)

TNS NFO is one of the world 's leading providers of research-based marketing information and counsel. "Marketing minds specializing in research"™, NFO provides in-depth knowledge and understanding of businesses, consumers, and brands through research. TNS NFO is one of The Interpublic Group of Companies (NYSE:IPG).

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 2,000 companies in 61 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

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

© 2004. All rights reserved. Consumer Internet Barometer is a joint trademark of TNS NFO and The Conference Board. TNS NFO and the TNS NFO logo are trademarks of TNS NFO. The Conference Board and The Conference Board logo are registered trademarks of The Conference Board, Inc.