From...

by Kathleen Ohlson

(IDG) -- Despite the growth of Internet buying, three-fourths of consumers haven't yet purchased any products online, according to a study by NFO Research Inc. released today. The concern over privacy and security is the main reason why consumers are reluctant to go online, the survey found.

Most online purchases are made by young households and affluent consumers. Out of 5,000 sample households surveyed, households ranging in age from 25 to 34 made more than 40% of online buys, NFO said. The 35-44 age segment follows, accounting for 33% buying online. Less than 10% of homes over 65 purchased online, NFO said.

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NFO Research, a NFO Worldwide company in Greenwich, Conn., conducted the survey for the New York-based Conference Board.

Over 40% of affluent consumers -- those making over $50,000 -- bought items online, NFO said. Consumers that made between $35,000 and $50,000 ranked second, accounting for more than 25% of Internet purchases.

According to the study, consumers are conservative when it comes to spending money online. Their largest purchase totaled less than $50, NFO said. In addition, 33% spent between $50 and $199 on online purchases, while only 8% went nuts spending over $1,000.

What would it take for consumers to become frequent online buyers? NFO's survey said 60% of consumers want better prices, 55% want improved security and 40% want easier navigation.