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From...
Shoppers trust the Web, study finds
September 2, 1998
Web posted at: 10:00 AM EDT
by Warren Ernst
(IDG) -- If you're currently an Internet user in the United States and Canada, then chances are you're also shopping online, says a recent Nielsen Media Research and CommerceNet study. In addition, the report reveals that the proportion of Internet users actually buying goods and services is growing at more than twice the rate that new Internet users are going online.
For a period of nine months ending in June 1998, the telephone poll indicated there were 79 million Internet users who go online at least once a month, 48 million Internet shoppers who browse and compare items for sale online, and 20 million who actually submit a credit card number and purchase something, indicating that 25 percent of Internet users are Internet buyers. In the previous poll conducted in September 1997, only 17 percent of the Internet's then 58 million users were active online consumers, indicating that the growth of Internet purchases is increasing two to three times greater than the growth of the Internet as a whole.
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"A couple of things are going on," says International Data Corporation analyst Barry Par. "It has to do with [the Internet users'] degree of comfort. They have finally decided to make a plunge after looking around quite a bit. The number of companies [selling] online has increased dramatically, and there are just more opportunities to make purchases, which further increases the comfort factor."
In addition, Par says online security has become less of a worry. "People are realizing that the risk [of online shopping] is minimal," compared to "real-life" transactions where consumers might recite their credit card numbers to a perfect stranger over the telephone and not think twice about it. As long as the browser's built-in security features are used, people believe that credit card theft is not a major issue.
Still, it's wise to use caution when buying online. But how to find a reputable seller? James McQuivey, an analyst at Forrester Research advises that you treat buying on the Web like moving into a new town: Ask around.
"There are plenty of trusted Internet brand names, but if you're new to the Web you may not know them," McQuivey said. "Ask friends where they go and who they buy from. When you use a search engine, you'll see some mom and pop shops that may be totally trustworthy, but you don't know. If you don't have the luxury of a recommendation, stick with a brand name that you're familiar with outside of the Web."