E-Readers not a Christmas must-have

There is a lot of debate at the moment about how the print media industry will evolve to meet the challenges of fast, free online content. Newspaper circulation is on the wane, and many people get most of their news and commentary from free online sites like BBC News.

One of the suggested solutions is the E-reader – which would combine the usability and convenience of a newspaper with the constant updates of online news. Books, magazines, and newspapers could all be read on a single device (There is a great demo of how this will look for Sports Illustrated here.)

However, the idea does not appear to have captured the public’s imagination. A YouGov poll for The Bookseller found that only 11% of respondents would consider purchasing an e-reader for a friend or family member as a Christmas present. E-readers­ fell behind all other listed gifts including a digital camera, digital photo frame and games console. Even when asked what they would like to receive as a Christmas present just 14% of respondents said they would prefer an e-reader.

The main reason for such a lack of enthusiasm appears simple: they cost too much. Of those surveyed, 56% were only prepared to pay less than £150 for an e-reader, with just 9% prepared to spend more than £200. The mean expected cost was £110.50. ­However, consumers could be left disappointed with Sony e-readers priced between £139 and £249 and the Amazon Kindle around £156.

Malware can lurk behind a brand you trust

Research by YouGov on behalf of internet security firm Symantec has found that internet users, although aware of the dangers of opening unsolicited emails, will click on images of brands they recognize. 21% would click on social networking site brands, 16% on music store brands, and 5% on banking brands.

The results indicate that if cybercriminals hide malware behind popular brands or other recognizable images they stand a reasonable chance of gaining access to the public’s PCs.

Symantec has launched a campaign to warn and educate consumers about the various online pitfalls: www.everyclickmatters.co.uk

You Get What You (Won’t) Pay For

Further to our earlier work on the relative influence of Google and Rupert Murdoch, we put a brief mini-survey on the end of some other YouGov surveys yesterday, and invited respondents to take a few short questions for fun. The topic we wanted to investigate was people’s attitudes to paying for content or social networking services online.

The topline figures do not look good for those who want to introduce charges  for these things online (see the relevant news story today here).

Payment structures also made a significant difference to people’s responses, as  micropayments proved far more popular than monthly subscriptions. 81% of respondents said they would not pay a £5-per-month subscription to have full access to leading news providers and online services, while only 72% would not pay a 2p-per-use micropayment for the same things.

The relative value of various content and social networking providers was clearly marked. Top of the pile was Google, as 34% of respondents would be most willing to pay for it if they had to pay for one of the services. Next came the BBC, for which 18% would pay if they had to choose one paid-for service. Facebook was singled out by 10%.

Very few respondents chose a newspaper if they had to pay for one provider online: The Times (3%), The Guardian (1%), The Telegraph (2%), and The Sun (1%). The news gets worse for Murdoch, as no one would pay for use of MySpace, which News Corp bought for $580m in 2005.

There was some hope for Murdoch, however. Although only 7% of respondents said that they would be willing to make  micropayments to access The Times online, this 7% was drawn from the entire sample (many of whom would not have been Times readers). It depends what proportion of Times readers would be willing to do it as to whether Murdoch’s plan will work.

Android versus iPhone: Brand Fight Goes Global

The Independent are reporting that Motorola are launching their new handset the Droid in the UK on December 7th. The model runs on Google’s Android Operating System, and has won over a number of iPhone fans in the US.

YouGov’s BrandIndex has been the primary tool for tracking the impact that the Droid’s release – especially US Carrier Verizon’s combative iDont ads. We have been delighted that BrandIndex’s scientific brand-measuring data is finally getting the publicity we believe it deserves. AppleInsider, Cell Phone News 2.0, eWeek, and numerous other tech news sites (as far afield as China) have been quick to understand the implication of the BrandIndex figures.

Online Puchasing over the Festive Period: Security Fears?

According to a YouGov survey commissioned by VeriSign, online identity theft and lack of trust in web security will contribute to shoppers spending than a third of their total holiday shopping budget online.

Consumer spending over the festive season is often cited as a measure of the overall level of confidence in the economy, but caution over taking on excessive debt (an idea supported by the government) may deter some consumers from spending beyond their means.

22% of Britons say they are being held back from shopping online this Christmas due to reservations over online ID theft and fraud, while 14%  stated that they will not shop online because they do not trust ecommerce sites.

It also found that 32% of consumers are deterred from shopping online due to not being able to try before they buy, with 27% concerned that goods bought online will not arrive in time for Christmas. The postal strikes can only have exacerbated this concern.

Attitudes to online shopping are also aligned with age: respondents over the age of 55 are the most fearful of online identity theft and fraud, with 32% saying this will hold them back from shopping over the internet. However the 35-44 year old age range is the most brazen, with 47%  saying that nothing will hold them back from buying online this Christmas.
US vs UK Differences

There are some fundamental differences between the US and the UK, as noted here. The US has approximately five times the population of the UK, yet both eBay US and eBay UK expect to see about one million sales each on their two biggest shopping days.

iPayMyCreditCard?

A followup to an earlier post:

It has been suggested that iPhones could be used to make credit card payments, in a similar way in which they are used to pay for iPhone Apps from Apple’s online store. This potential was demonstrated to me some years ago, when a colleague pointed out the striking similarity of her phone’s SIM card and her credit card chip.

YouGov research carried out on Natwest’s behalf revealed that one in four customers are interested in making money transfers between bank accounts through their phones. However, it is possible that a far larger group of people will possess the relevant technology, and security fears may be alleviated as mobile payments became more common.

Personal Interaction and Regular Brand Contact Breed Trust in Banks

This article first appeared in City AM.

Last week saw the launch of NatWest’s personal banking iPhone app, in line with the banking sector’s efforts to cut costs and improve user experience by moving their operations online.

Recent YouGov research undertaken on behalf of Deloitte points to the risks in an online strategy: customers place high value on face-to-face interactions in their bank’s branches. The issue of trust – perhaps unsurprisingly given the popular perception of bankers – is paramount.

Personal interaction seems fundamental to trusting your bank. Fifty-three per cent of respondents said they would only place their savings in a bank with branches they could visit, and 65 per cent would only take out a mortgage after speaking with someone face-to-face.

This has already translated into changes in the market: 21 per cent of respondents say they have switched bank in the last two years due to their dissatisfaction with the way they have been treated.

This represents an opportunity for banks looking to increase their market share: 66 per cent of respondents have their current account where they believe they receive the best level of service, compared with 30 per cent who place their current accounts where they earn the highest interest.

We get interesting validation of those conclusions from the BrandIndex data shown in the chart. The first bar shows the proportion of satisfied customers, the second shows the proportion which would recommend the brand to others.

Online only bank, Egg, does worst, while the three with brands most closely associated with people’s everyday lives and with the most touch-points – the supermarket banks of Sainsbury’s, Tesco and M&S – do best.

In the middle are the high street banks Barclays, NatWest and HSBC. Note how the “recommend” scores follow the pattern, allowing for an interesting lowering effect within the sub-sector of supermarket banks.