This deck is an aggregation of interesting consumer behaviour data that I have been collecting.
Also, I blogged about the value of Slideshare and Earnings Calls' Q&A: http://www.mypublicbrand.com/2012/02/18/slideshare-and-earnings-calls-qa-a-unique-recipe-for-meeting-preparation/
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Among those who banked with one of the big four, respondents who had never considered switching to a smaller bank or credit union were more likely to believe that bigger profits equal more safety than those who had considered switching. Around a quarter of big-four customers apparently do not interpret recent bank profits as evidence of overcharging; on the contrary, they see such profits as evidence they have chosen a ‘safe’ bank for their funds.
Younger people were much more likely to believe that a bank with big profits is safer. People who banked with one of the big four were also more likely to hold this view, suggesting that perceived ‘safety’ is a factor in their choice of financial institution.
The survey also asked respondents for their views on whether its profits affect how ‘safe’ a bank is. 19 % said that it is safer to deposit money with a bank with bigger profits, while 4 % said that a bank with smaller profits is safer. Most respondents (=67 % said neither—profits make no difference to how safe a bank is.
Survey findings indicate that most Australians do not believe that the highly concentrated structure of the banking market is desirable. 72 % agreed that the big four banks in Australia have too much market power, while only 13 % disagreed. People who did their banking with a smaller bank or credit union were more likely to believe that the big four have too much market power.
Transactions up to $50 accounted for around three-quarters of the number of payments in 2010, but only one-fifth of the value of payments. By contrast, only 0.1 % of transactions were more than $5 000, but they accounted for more than one-fifth of the value of payments.
Given this, it is not surprising that cash continues to be the most widely used payment method in Australia, accounting for 62 % of all payments made by Australian consumers.
Cards are the dominant payment method used for mid-sized transactions and are the second most frequently used payment method for all payments. BPAY, internet/telephone banking and cheque are important payment methods for higher-value transactions (particularly those above $500), although these payment methods collectively account for less than 10 per cent of the number of payments.
Roy Morgan Research in December and November 2010
Consumer Behaviour on Making Payments in Australia
Although the broad patterns of payment behavior have remained unchanged, the use of different payment methods has evolved to some degree in the period between surveys.
Most noticeably, the relative use of cash declined. Although the average use of cash actually increased slightly between survey periods, the increase was less than for other payment methods .Therefore, the share of cash use in the total number of payments decreased from 70 % in 2007 to 64 % in 2010 .
Card payments are responsible for the bulk of this shift away from using cash for low-value payments: card payments accounted for around 24 per cent of payments under $50 in 2010, up from 19 per cent in 2007. To a lesser extent there has also been some substitution to other electronic forms of payment, such as BPAY; the industry with the largest decline in cash use was household bills, where ‘paperless’ billing, which encourages electronic payment, has been promoted increasingly in recent years.
Australian Shoppers, especially those aged under 30 and with a credit card, are sending $4.2 billion a year to overseas online retailers, robbing local bricks-and-mortar shops of business.
On the consumer side, bank surveys have shown that this trend is facilitated mainly by two important developments. First is the enhanced security of online payments. A recent PayPal survey reports that in the early days, 95 % of internet shoppers expressed strong reservations about the safety of online transactions. More advanced payment technologies have, however, recently increased consumer confidence in making online purchases. Second is access to credit cards and other forms of online payment. Research shows that more than half of internet sales are finalized using credit cards.
In the economic literature, there are formal models of consumption behavior that have been used to explain this trend towards increased internet consumption. First of these is the Transaction Cost Economic (TCE) model, which basically says that a transaction subject will choose one form of transaction channel instead of others because of lower transaction costs. Applied to internet shopping, which is essentially a choice between the internet and traditional stores, consumers are thought to choose the internet channel because of the lower transaction costs. Lower transaction costs necessarily includes the money costs of the good or service purchased but also refers to convenience gained by the purchaser in the process.
The second model is the standard economic model of competition, and clearly complements the TCE explanation. The internet acts mainly as a mechanism that reduces consumers' costs of acquiring information about products and prices. Before the online age, someone looking to buy a fridge, say, might have gone into one or two local shops — and perhaps rung a few more — to compare prices. The web, however, makes it easy to gather more information.
Private health insurance plays an important part in delivering Australians access to world-class care. Last year private health funds paid $12.4 billion in benefits towards the healthcare of the 11.7 million Australians with private health cover.
By proposing to means-test the 30% Rebate, the Minister for Health and Ageing will make healthcare less affordable for all Australians, and by her own admission, add more pressure to our public hospitals.
The Minister’s press release of today fails to point out that the estimates of the effect of the Medicare Levy Surcharge changes on private health membership were based on the original 2008 Budget proposal, which was altered significantly in the Senate in October 2008.
The Minister herself at the time of the altered legislation passing said “the projection of the number of people from Treasury that will drop out of health insurance is just under half a million, 492,000 people”.
The Minister is being deliberately misleading in what she is choosing to tell Australian health consumers about those changes then and what will happen to our health system if the means-testing legislation is approved by the Parliament.
www.ahia.org.au/news/media_releases/“no-minister of May 2011
Private Health Insurance in Australia- A snap shot
PayPal in Australia has over 3 Million active users and over 30,000 Australian businesses as of 2010 now using PayPal as a secure way to send and receive money online. PayPal is capitalizing on the growing Australian eCommerce market with the number of customer registrations growing more than 25% in the last calendar year.
The total payment volume for PayPal in 2009 was almost US$2 billion, an increase of 32 per cent from 2008, demonstrating rapid growth as consumers and businesses seek fast, safe and secure ways to shop online.
In addition to domestic growth, PayPal has enjoyed a growth in cross border sales. The recent rise in the Australian dollar has brought about a year on year increase of 32 % in cross border payments as Australians seek bargains and choice from overseas, and take advantage of the strong dollar.
Conversely, PayPal opens the door to Australian businesses seeking opportunities to sell products or services to overseas markets. With more than 84 million active accounts in 190 markets and 24 currencies, PayPal enables global eCommerce.
Jonathan Reid, Director, MyCatwalk.com, an online Aussie fashion boutique and PayPal merchant commented: "Building revenue from overseas is critical to our business and PayPal has definitely helped us to grow our business abroad.
Over the past 5 years, several factors have been responsible for the slower uptake of e-tail amongst Australian consumers. While the cost of shipping, long delivery times and uncertainty around returns policies have prevented some consumers from shopping online, concerns around the security of transactions remains the top concern to consumers shopping online today.
James Stevens, CEO and Founder, Roses Only, one of Pay Pal's first merchant partners in Australia, commented: "We integrated PayPal the minute it was available in Australia. Delivering a gifting service, it is critical that our customers feel confident that their payment is secure.
The third is the integration of digital into traditional retailing. So things like interactive store experiences, bringing technology into the traditional retailing environment
The second is the use of social media, so people referring to friends and family when talking about brands and products."
The biggest one by far is the growth of mobiles, for accessing the internet and buying products.
The third and final piece of advice is around convenience, which feeds back into the growth mobiles and smart
phones. "You need to allow that people can buy your products anywhere, at any time," Stephen Foxworthy says. This
is especially important given the dollar is now at parity and people are looking at buying overseas.
Online retailers need to start filling their sites with ways to communicate with friends and family through social
networks. One needs to be offering the possibility to rate and review products, and consumers should be allowed to
share your products on social networks.
The confidence between a consumer and an online site has to be built. One needs to give consumers the confidence
to buy online when they can't touch the product or can't see it.“Eg usage of high quality photos, making sure the retail
experience is a high value experience.
Retailers need to make efforts in order to bring many customers online. They also need to enhance the shopping
experience of customers. There are certain areas where the retailers and online marketers need to focus. They are:
Source: Forrester Research and Leading Edge, Comments by Reactive strategy director Stephen Foxworthy http://www.smarttechnology.com.au/blog20101125ecommerce-sales-heads-27-billion-2010
Online Retailers response to Consumer's Expectation
Online shopping giant Amazon. Com has decided to expand into Australia. Amazon’s web services are ready to start operating from a local data centre by early next year to meet the needs of enterprise and government clients.
As the materials are shipped in Australia from other countries, buyers in Australia have to pay a little extra. However, many complaints have not been made regarding this due to the strong domestic currency.
Customers have been taking unfair advantage of the strong Australian dollar and have directed themselves towards online shopping. This in turn has an adverse effect on the local retailers. In the month of July Amazon. COM has also taken over Britain’s Book Depository, which is really popular amongst Australian book lovers as it offers considerably lower .
Amazon. COM has also completely turned around the fashion purveyor, by setting up a members only website, Myhabit.com which offers to its customers international brands such as Dolce and Gabana. A lot of the products purchased via Myhabit.com are available on a 60% discount, the website offers shipping and delivery in more than 50 countries including Australia for only USD 15 flat rate
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