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Polling and Market Research Since 1984
AHEAD OF THE CURVE
September, 2006
Volume 2, Issue 8

"Taxing Internet Purchases"

Email Accounts - Can't Have Just One

Internet Users To Regulators:
“Hands Off!”

Let’s start with the obvious – the Internet has changed the way life is lived in America, and in many countries around the world. It allows us to research anything – from antique doorknobs to recipes to speeches made hundreds of years ago to the best place to buy more, well, computer equipment.

And then, of course, it allows us to buy whatever we want. It used to be a novelty to know someone who had purchased something over the Internet from someone they had never met or talked to. Now it is an oddity to not have done so.

Communications, of course, has changed forever. Email and instant messaging allows for people scattered across the globe to chit-chat in real time, or close business deals faster than ever imagined. Pictures and video of the critically important and the mundane alike share space whizzing across the Internet, entertaining and enlightening us all. In one case, the latest Internet craze, video website www.youtube.com, has caused a sitting United States senator to take a nose-dive in the polls after his insult of a man of Indian descent was caught on tape and posted online. Where he once held a wide lead in his re-election campaign, he now trails by several points in Zogby’s latest polling.

That’s the sort of thing we have come to expect from the Internet—the unexpected.

The latest Zogby Interactive survey – itself taken over the Internet using a secure server and strict protocols that guarantee accuracy – shows that computer users pretty much like the way things are online, and don’t want them to change.

The picture of Internet users that emerges from our survey is one where they believe in rugged individualism – the surfer beware – and personal responsibility. They want parents, not the government or Internet providers, to regulate what their children see online, and they don’t want interference in their pursuit of whatever website they want to visit.

And the vast majority – 68% - think the Internet should be freely accessible to everyone – that is, that Internet service providers should not be able to charge for access. Twenty-four percent of those responding to this Internet-based survey said they do not favor universal free access.

 

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Volume 2, Issue 8 Page 2

The Internet (continued)

It’s easy to understand both sides of this argument. For those who cannot afford access to the Internet, the process of getting online is difficult (sign-ups and waiting times at the local library, etc) and essentially puts them at a disadvantage in this information age. But if Internet providers are not allowed to charge for their services, they lose any incentive to provide it at all, let alone pursue improvements that could make the Internet and their connection to it better for their customers.

And most people responding to this survey seem to understand the need for good quality connections to the Internet – 82% said they employ broadband high speed connections, while 17% employ dial-up services.

Of those with high-speed connections, 49% get access through their local cable company, while 33% get it somewhere else using DSL or other connections.

Asked how they view Internet service, 81% said they see it much the way they see telephone service, where a company gives you access to call anyone you like, but has no ability to restrict whom you call, when, or why. On the other hand, 6% said they think Internet providers are like cable television providers, and that they should be able to pick and choose which websites their customers can visit, much like a cable company chooses which channels to offer its customers.

Excluding time you spend with email, how much time per week would you say you spend on the Internet?

Less than 1 hour
2%
Between 1 and 3 hours
15%
Between 3 and 6 hours
21%
Between 6 and 10 hours
20%
More than 10 hours
41%

Eight percent said they think providers should be able to regulate the sites its customers visit, while 88% said they should have no such power. Similar ideas are getting kicked around Capitol Hill, and the implications are enormous. First, it could mean that the founders of websites could lose control of them. It could mean that only those who have significant financial resources to pay Internet service providers to carry their site could afford to have wide circulation. It would almost certainly mean an end to the “blogosphere” as we know it - those websites that are long on opinion and short on cash (and often short on fact), home to the Underwear Investigators that have roiled politics locally and nationally for at least the last few years.

Further, most respondents (96%) said that they do not think ISPs should be able to charge customers based on the sites they visit – that is, that they should not be able to charge more to those who visit more popular sites, or who visit more than a certain number of sites. The Internet has been called the “Wild West of the Information Age,” and if that is true, most Americans don’t want a sheriff to ride into town anytime soon.

Thinking of government regulation of the Internet, just 19% agreed with the idea that it should be able to impose the same decency restrictions on websites that it places on television and radio broadcasts, while 71% disagreed.

 

 



Volume 2, Issue 8 Page 3

The Internet (continued)

Which of the following best describes the role government should play in Internet censorship?

It should review and grant approval before website start-up
1%
It should issue guidelines which every website must follow
10%
It should monitor only sexually explicit websites
23%
It should have no involvement in Internet content
58%
Other/Not sure
9%

Of course, protection of children is the focus of most censorship, and most telling is that 91% said that it should be parents, not the government or Internet providers, who should be regulating the content that is consumed by their children.

That said, a large majority of respondents said they think sexually explicit websites ought to carry their own suffixs – dot-xxx – to make it easier for visitors to know what to expect from the sites, much the way commercial sites end in a “dot-com,” educational institutions end in a “dot-edu,” and the websites of non-profit groups end in a “dot-org.”

Most of those surveyed – 76% - said they had Internet access at work, while 20% said they did not (4% said they were not sure – you figure that one out), and nearly half (49%) said their employer restricts their access to the Internet. Most felt that was appropriate – 88% said employers should have the right to decide how the Internet is used on the job in order to keep workers concentrating on their duties.

Among those who are most familiar with the Internet (our respondents to this Internet survey), 40% said they are confident enough in it to be willing to use it to cast their ballot in a political election:
During the next election, if you were given the choice of voting over the Internet or going to the voting booth, which would you choose?

Vote over the Internet
40%
Vote at a polling place
55%
Other/Not sure
5%

A Taxing Situation

One of the arguments against taxation of Internet purchases has its roots in competitiveness – that those who buy things online have to pay for shipping to actually receive the product, and that such shipping charges are generally about the same as the typical state sales tax, and if sales taxes were tacked onto Internet purchases, it would make many online purchases too expensive, and could kill Internet commerce.

On the other hand, some argue that the added time and expense of driving to the local brick-and-mortar outlet generally offsets shipping charges, and that, because of those largely unseen costs, Internet shoppers have an unfair advantage.

Asked about this situation, 58% said they thought the fact that online buyers have to pay for shipping is a fair offset to the payment of sales taxes, while 27% said such buyers should be required to pay taxes like everyone else.



A Taxing Situation (continued)

Our consumer panel appears to appreciate the need for taxes to be paid (30% said online stores should collect sales taxes), but a strong majority (58%) said they should not. This, of course, opens the door to all kinds of questions that have no easy answers. For instance, if taxes were applied to all Internet purchases, which state’s tax would apply – the state where the business is located, or the state where the purchaser is located? If it is the state where the business is located, wouldn’t this give an unfair advantage to those businesses in states with no or with low sales taxes? And what to do about purchases made from companies located outside the United States?

Well, it wouldn’t address the problem of international purchases, but a national sales tax on all online purchases could solve the other problems that crop up with the question of sales taxes. And one third of Zogby respondents (36%) said they would agree with such a tax (remember, this was a Zogby Interactive survey taken online in which 98% of respondents said they or someone in their household have made at least one purchase online). However, 25% said they would disagree with such a tax, and another 30% said no purchases online should be taxed at all.

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For more infomation about polling and market research, contact Chad Bohnert at (315) 624-0200 ext. 237 or chad@zogby.com

Just like potato chips...?

Email Accounts-Can't Have Just One

Is it a needed means of communication, or a massive waste of time and productivity or is it both? Email today raises such questions.

One thing is clear from our latest Zogby Interactive survey – that most regular Internet users have multiple accounts, and they spend plenty of time checking them regularly. No wonder the cost of stamps at the local post office keeps going through the roof – there’s no way they can compete.

How many email accounts do you have?

One
23%
Two
32%
Three
23%
Four
10%
Five or more
11%
Most of the respondents to our survey – 76% - said they have at least two email accounts, and 72% said they check those accounts several times a day. Another 20% said they check them at least once a day, and the rest of those Internet schleps are the ones who still haven’t responded to an email invitation you sent them to have dinner at your place last month.

It should come as no big surprise that younger people check their email more often than older people, but even most (63%) of those age 70 and older said they check email several times a day. Another 31% of those 70 and over check it at least once a day, so it appears Internet communication is overcoming what naysayers have complained is the technology's biggest hurdle - penetrating the lives of older Americans. Big city dwellers were also a little more likely than rural residents to check email several times a day, but most other demographic groups showed little variance - another sign that email has become ubiquitous for computer users.


Zogby's American Consumer Newsletter
Zogby’s American Consumer Publisher
John Zogby
President & CEO, Zogby International
Editor-in-Chief
Fritz Wenzel
Managing Editor
Marc Penz
Copy Editor
Joe Zogby
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