Realtime Strategies for Customer Satisfaction

We began our surveys on Personal Information Equipment last year to examine how consumers think about PCs and related products. Since we published our first findings (in March 1996), we have seen some interesting trends that reflect how quickly computers and the Internet have pervaded the lives of Japanese consumers.

Perhaps the most remarkable change in our quarterly survey responses has been the decrease of those answering "uncertain" to Internet-related questions. In March 1996, for example, 33.7% of respondents answered "uncertain" when asked what they would like to do on the Internet. In our latest survey (December 1996), this had dropped by nearly half, to 18.4%.

The five most popular uses of the Internet remained unchanged throughout 1996: personal information gathering (48% in December), homepage surfing (28%), online shopping (25%), e-mail (23%), and business information gathering (21%). In 1997, public interest and usage of e-mail is likely to increase dramatically, owing to a "spill-over" effect from academia and the business world.

Probably the greatest vehicle for propelling interest in the Internet has been the mass media. Countless television programs and commercials have done a remarkable job of educating Japanese consumers. In our surveys, 44% of respondents selected "television" as their number one source of information about the Internet (followed by 32% who selected "friends and acquaintances").

When we broke down the survey results by specific groups, we discovered one segment that has assimilated knowledge about the Internet more rapidly than any other consumer group: single working females (SWFs). SWFs have taken to the Internet much faster than any other group, including white collar males. In our December 1996 survey, for example, only 6.8% of single working females answered "uncertain" regarding how they would like to use the Internet, as opposed to the overall average of 18.4%.

SWFs show a much higher than average level of interest in the Internet in all categories except "business information gathering." The obvious explanation is that, since SWFs tend to live at home until marriage (thus saving on rent and other expenses that accrue from living alone), they have the most liberal lifestyle in terms of leisure time and disposable income. Not surprisingly, most SWFs (62%) rely on TV for their Internet information.

Despite their apparent interest in and knowledge of the Internet, single working females remain significantly below industry average in terms of ownership and use of computers, however. Only 8.2% own a computer, compared to the industry average of 14.5% (and 27.5% for their male office counterparts). The top two reasons that SWFs give for not purchasing a computer are " not necessary" and "costs too much."

Other than feeble attempts by makers of network computers and Internet- capable televisions, no product has tried to capture the interest of SWFs. With the exception of one Japanese computer manufacturer that has been extremely successful in targeting female consumers, there has been little product differentiation for men and women in the computer industry. SWFs have the potential to be a large market for both computers and the Internet.

Internet providers also have the opportunity to differentiate their services for men and women. Our surveys show a marked difference between male and female respondents regarding what they would like to do on the Internet. For example, more women than men (28% vs. 22%; 41% for SWFs) show an interest in online shopping, whereas more men than women show an interest in gathering business information (31% vs. 11%; 16% for SWFs).

Maturity in a market leads to product and service differentiation. Because the Japanese computer and Internet industry is still relatively immature, there is great potential for future growth in products and services that cater to specific consumer groups. There are still plenty of opportunities among some of the most Internet-conscious consumers: single working females.