Use of Online for Telecommunications Services
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1 Use of Online for Telecommunications Services We surveyed a total of 300 consumers that use the web to research and/or purchase Telecommunications Services A custom survey instrument (i.e. questionnaire) was developed to measure respondents use of the web, and search engines in particular, for researching and purchasing Telecommunications Services The survey was conducted online, through a web-based interviewing process, in March 2005 Our sample is evenly distributed across all age groups and genders Respondents were recruited through a variety of methods: web advertising, permission-based databases, public relations, telephone recruitment, partner-recruited panels, and alliances with heavily trafficked portals The survey was designed and administered by Global Market Insite (GMI), a global sampling and data collection company, and Media- Screen, an independent strategic market research firm 1
2 Executive Summary Three-quarters (78%) of Google users compare prices for Telecom Services online and 26% have purchased Telecom Services online Search engine usage: - Nearly two-thirds (64%) of Google users use a search engine first when researching Telecom Services, while less than 2% go to a portal first - Two thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision - The vast majority (9) of Google users say they would likely use a search engine after seeing an advertisement for a Telecom Service Over 7 of all respondents select Google (over other search engines) to research and purchase Telecom Services Almost three-fourths of Google users (74%) have heard of VoIP and the vast majority of Google users (92%) say they would be comfortable purchasing VoIP online Nearly three-quarters (74%) of Google users use a search engine to research cell phone plans and internet access services 2
3 Three-quarters (78%) of Google Users compare prices for Telecom Services online and one-quarter (26%) purchased Telecom Services online % 77% % % 31% 26% 2 Compared prices on Telecommunications services Go online to learn more about new Telecom Services that heard about elsewhere Became aware for the first time of a new Telecom Service Purchased/Subscribed to a Telecom Service offline after researching it online Returned to the site where purchased Telecom Services to purchase accessories/services Purchased/Subscribed to a Telecommunications Services online 1% Other Have you ever done any of the following online? Please select all that apply. 3
4 Over half (57%) of Google Users expect to compare prices for Telecom Services in the next six months 6 57% 5 45% 44% % 26% 23% 21% 2 Compare prices on Telecom services Learn more about a Telecom Service that heard about elsew here Learn about a new Telecommunications Service Purchase/Subscribe to a Telecom Service offline after researching it online None of the above Return to the site w here purchased Telecom Service to purchase accessories/services Purchase/Subscribe to a Telecommunications Services online Other Which of the following activities do you expect to do online in the next six months? Please select all that apply. 4
5 Nearly two-thirds (64%) of the Google Users use a search engine first when researching Telecom Services while less than 2% go to a portal first 2% 2% 32% Search engine Service provider Portal Retail shopping site 64% Other N=229 When you go online to research a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? 5
6 Most Google Users (65%) go to a service provider, but one-quarter (28%) go to a search engine first when purchasing a Telecom Service 1% 6% 28% Service provider Search engine Retail shopping site 65% Portal Other N=102 When you go online to purchase a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? 6
7 Almost three-fourths (74%) of Google Users have heard of VoIP 26% Yes No 74% Have you heard of a new technology called VoIP (Voice over Internet) that allows users to make phone calls over their broadband Internet connection? 7
8 Three-quarters of Google Users (77%) have heard about VoIP online % % 43% % 11% 7% N=167 Internet/online Friends/colleagues Television New spapers Magazines Direct mail Other Where have you heard about VoIP (Voice over Internet)? Select all that apply. 8
9 One-quarter (25%) of Google Users said they would purchase VoIP for their home, but over half (57%) are not yet sure 25% 57% Yes No Not sure yet 23% N=167 Would you consider purchasing VoIP for your home? 9
10 The vast majority (92%) of Google Users say they would be comfortable purchasing VoIP online 8% Yes No Not sure 92% N=38 Assuming you were prepared to purchase VoIP, would you consider making that purchase online? 10
11 Over 7 of all respondents select Google (over other search engines) to research and/or purchase Telecom Services % % % 2 16% 15% 5% 6% 7% 5% 5% 3% 1% 1% Google Yahoo MSN Ask Jeeves AOL Alta Vista Netscape iwon Lycos Allthew eb Infospace Looksmart Wisenut Other Never use a search N=300 engine Which, if any, of the following search engines do you use when researching or purchasing telecommunications services (phone service, Internet access service, wireless service plans)? 11
12 Two-thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision 2% 2% 27% 3 Very important Somew hat important Neither important nor unimportant Somew hat unimportant Not at all important 38% When you purchase telecommunications services how important is using a search engine in making your purchase decision? 12
13 The vast majority (9) of Google Users say they would likely use a search engine after seeing an advertisement for a Telecom Service 1% 43% Very likely Somewhat likely Not very likely Not at all likely 47% Assuming you saw an advertisement for the telecommunications service you were interested in, how likely would you be to then search for that service on a search engine? 13
14 Nearly three-quarters of Google Users use a search engine to research cell phone plans and internet access services 8 74% 7 68% % 32% 3 2 Wireless cell phone service plans Internet access services Traditional local/long distance phone service Internet-based phone service (VoIP) For which of the following telecommunications services do you use a search engine to help you conduct research on those services? Select all that apply. 14
15 Over two-thirds (69%) of Google Users use a search engine to make a purchase decision about cell phone plans and Internet access services % 66% % 3 26% 2 Wireless cell phone service plans Internet access services (cable,dsl, dialup, w ireless) Traditional local/long distance phone service Internet-based phone service (VoIP) For which of the following telecommunications services do you use a search engine to help you reach a purchase decision? Select all that apply. 15
16 Using a search engine, over half of Google Users located Verizon and Cingular for wireless phone services 6 57% 54% % % % 12% 9% 2% Verizon Wireless Cingular TMobile Sprint Wireless AT&T Wireless Nextel US Cellular Alltel Western Wireless Other N=179 You indicated that you have used a search engine to locate sites that offer wireless phone service plans. Which of the following sites have you used a search engine to help you find? Select all that apply. 16
17 Using a search engine, one-third of Google Users located Verizon, Comcast, and Earthlink for Internet access services 4 35% 37% 35% 31% 3 27% 25% 21% 2 15% 17% 16% 15% 11% 11% 11% 12% 5% 2% Verizon Comcast Earthlink SBC/Yahoo DSL Sprint Bellsouth United Online/Netzero Roadrunner Time Warner Cablevision Qwest Cox Covad Other N=172 You indicated that you have used a search engine to locate sites that offer Internet Access Services (ISPs). Which of the following sites have you used a search engine to help you find? Select all that apply. 17
18 Using a search engine, over half (55%) of Google Users located AT&T for traditional phone services 6 55% 5 47% 4 41% 33% 3 28% 28% 2 21% 4% 5% AT&T Verizon Sprint Bellsouth MCI Qw est SBC IDT Lingo Other N=100 You indicated that you have used a search engine to locate sites that offer traditional phone services. Which of the following sites have you used a search engine to help you find? Select all that apply. 1% 18
19 Using a search engine, Vonage was found by Google Users most often for VoIP services 6 55% % 32% 31% 3 27% 2 18% 14% 7% 5% 5% 5% 4% 1% Vonage AT&T CallVantage Verizon Voicew ing Net2phone Time Warner Digital Phone Skype Cablevision Optimumvoice Packet 8 Lingo Voiceglo Voicepulse Broadvoice Other N=66 You indicated that you have used a search engine to locate sites that offer Internet-based phone services (VoIP). Which of the following sites have you used a search engine to help you find? Select all that apply. 19
20 Google Users are almost equally likely to purchase Telecom Services online as over the phone % 44% % 13% Purchase/subscribe to service(s) online Purchase/subscribe to service(s) over the phone Fill in form and wait for a call back Other* After using a search engine to help you find a site that offers telecommunications services, please indicate how you ultimately purchase/subscribe to those services: Select all that apply. *Approximately 11% said they would purchase/subscribe at a retail store 20
21 Over 5 of Google Users said they would be very/somewhat likely to purchase Internet access services and wireless phone plans online Percent saying "very" or "somewhat" likely ( 4 or 5 on 5-point scale) % 5 51% 4 39% 34% 3 2 Internet access services Wireless phone service plans Internet-based phone service (VoIP) Traditional local/long distance phone services For each of the following telecommunications services, please rate on a 5-point scale how likely you would be to purchase that service online. 21
22 Over half of Google Users (56%) purchased Telecom Services online in the last 12 months, mostly cell phone plans/services 5 45% 44% 4 35% 3 31% 25% 2 15% 17% 15% 13% 12% 12% 5% 5% 4% 2% Cell Phone Plan/Service Ringtones Cable Internet DSL Internet Cell Phone (w ithout service) Long Distance Phone Service Local Phone Service Wireless Internet VoIP Other None of the above Which, if any, of the following telecommunications products or services have you purchased/subscribed to online in the last 12 months? Select all that apply. 22
23 Almost two-thirds (64%) of Google Users are planning to purchase Telecom Services online in the next six months, especially VoIP and cell phone plans 4 35% 36% 3 25% 26% 25% % 15% 9% 8% 5% 1% VoIP (Voice over Internet) Cell Phone Plan/Service DSL Internet Ringtones Cell Phone (w ithout service) Cable Internet Long Distance Phone Service Local Phone Service Other None of the above Which of the following telecommunications services are you considering purchasing/ subscribing to online in the next 6 months? Select all that apply. 23
24 Over three-quarters of Google Users prefer to find their Telecom Services online far more than other information channels % % 31% % 18% 18% 7% 2% Web/online Friend/associate/colleague Direct mail New spaper Magazine Retail Storefront Telephone Other In general, how do you prefer to learn about telecommunications products or services? 24
25 Our sample is evenly divided between men and women 51% 49% Male Female Are you: 25
26 Nearly three-quarters of the Google Users were between ages 25 and 54 years 8% 5% 13% 18% 18% or older 36% How old are you? 26
27 Half of the participating Google Users had incomes ranging between $35K-99K 2% 2% 4% 6% 14% 7% 6% 12% 15% Less than $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 or more Decline to answ er 22% Which of the following income categories best describes your total 2004 household income before taxes? 27
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