ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Tuesday, December 26, 1995 TAG: 9512270018
SECTION: BUSINESS PAGE: A-10 EDITION: METRO
DATELINE: DETROIT
SOURCE: Associated Press
CONSUMERS HAVE GROWN WARIER about on-line shopping, a new survey shows. They worry about service and credit card security.
Consumers tapping into the Internet's World Wide Web are getting more product information there, but a survey shows many are reluctant to buy on-line because of doubts about security and service.
Businesses still have to gain consumers' trust before they can take full advantage of the Web's potential as a sales vehicle, said Sunil Gupta, a marketing professor who conducted the survey for the University of Michigan Business School.
The Web is a popular portion of the Internet that allows anyone with a personal computer and modem to tap into information, graphics, pictures and sound from businesses, the government, other organizations and individuals.
It is a medium well-suited to provide detailed and eye-catching information about products. Thousands of businesses have established ``Web sites,'' where consumers can get information, order products and communicate with company representatives.
But preliminary results of the semiannual survey showed for the first time that users view the Web less favorably overall than shopping malls, catalogs and other traditional marketplaces. The prior three surveys showed the Web faring better.
Its current performance, Gupta said, was due in part to the population of Web users becoming larger, more diverse and less computer-sophisticated. ``It's becoming a less elite crowd in terms of education, in terms of income, and in terms of gender,'' he said.
Newer users tend to lack the skills and patience of Internet veterans, so it is more important for businesses and Internet service providers to make sure Web sites are easy to reach and use, Gupta said.
The survey found that 60 percent of the respondents cited security concerns as a primary reason for not buying on-line. And a majority rated the Web as inferior to traditional retail outlets in seven of 12 categories, including variety, reliability, security and after-sales service.
The on-line survey was conducted Oct. 10 to Nov. 10. It was promoted on business Web sites, in Internet news groups, and in some newspapers and magazines. More than 23,000 responses came from 75 countries, every state and Canadian province. Respondents e-mailed completed surveys to the university.
It is not considered a scientific survey because those responding were not selected at random - a task made difficult by the vastness and diversity of the worldwide population of Web users. But Gupta said it provides a good snapshot of what many Web users are thinking and doing.
The survey results of the survey's fourth installment point to two major issues that stop people from buying on-line: security and reliability.
Users, especially women, are reluctant to provide credit card numbers or other personal information to on-line businesses, Gupta said. They would rather hang up the computer and call to place on order by phone.
The survey found that users are more likely to buy on-line if a major bank or credit card company is involved in completing the transaction on behalf of the vendor.
Users also are skeptical about the reliability of on-line businesses, whether they will be able to get a refund or service after the sale.
``Every day, there are 100-plus companies coming on the Web; many are born-on-the-Web companies,'' Gupta said. ``Often, there is no way to evaluate one company from the next.''
Gary Arlen of Arlen Communications Inc. in Bethesda, Md., a consulting firm specializing in interactive transaction services, said security fears have resulted partly from news stories about cyberfraud. But he said the same threat exists in mail-order transactions.
``It's not an irrelevant fear, because there is potential for fraud,'' Arlen said. ``But I think once folks get comfortable with the system, they'll start to rely on it and forget about these self-imposed barriers.''
Arlen said he does not expect on-line retailing to take off until about 2000.
LENGTH: Medium: 77 linesby CNB