Security, Privacy Remain Top Consumer Concerns

A new national survey shows that privacy and security concerns remain a
nagging issue for Internet shoppers–but the ongoing boom in online sales
indicates that many are increasingly comfortable with electronic commerce.

The survey by Westlake Village, CA-based free ISP NetZero polled 1,000 Americans, seeking to
pinpoint their biggest concerns about shopping online.

Although the most popular response was “privacy and security”–cited by
more than half the sample (53%)–other issues included “can’t inspect
product closely” (20%), “don’t know how/too complicated” (6.4%), and “don’t
want to wait for delivery” (3%).

Of those polled–a sampling among the general population, not limited to
Internet users–some 13 percent indicated they do not have any concerns about
shopping online.

“While consumers may have concerns about shopping online, these concerns have
not affected their shopping habits,” said Ronald T. Burr, CEO of NetZero.
“The value and convenience that shopping with mouse and modem provides far
outweigh any security downside. Industry numbers–as well as numbers from
our own NetZero shopping site–confirm that consumers like to shop online,
since online spending exceeded $20 billion in ’98 and our shopping site has
seen a 100 percent increase in sales since January.”

“Where privacy is concerned, as long as you assure the customer that his or
her personal data will not be mishandled, they feel comfortable,” Burr said.

Other survey findings:

  • Women were more likely than men (56% vs. 49%) to have apprehensions about
    privacy/security issues related to shopping on the Internet.

  • Married people were more likely than singles (57% vs. 47%) to have concerns
    about online shopping.

  • Respondents in the 35-44 age group (64%) were more inclined to have privacy
    and security concerns, while those in the 65+ age group (23%) had the least–probably because they’re less likely to shop online.

  • The higher degree of education, the more concern about online security: 42 percent
    for those with high school or less, 59 percent for college, and 65 percent for
    post-graduates.

  • The greater the individual’s household income, the more he or she is
    concerned with security issues, ranging from under $15,000 (34%) to $50,000+
    (63%).

  • Regional differences indicated those in the Northeast (56%) were more
    disquieted by security issues that those in the West (47%). Midwest ranked at
    54 percent and South ranked 54 percent.

The NetZero survey was conducted January 5-6, 1999, by Market Facts Inc.
TeleNation. The margin of error is +/- 3 percentage points. NetZero offers
free Internet access and e-mail while offering highly targeted advertising.

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