The first study of the Yahoo!/ACNielsen Internet Confidence Index (the E-commerce Index) is designed to measure consumer confidence in e-commerce services, based on attitudes and intended behaviour. The two partners have also announced the launch of the overall Index programme, which will provide a barometer for consumer confidence in Internet offerings, giving the industry a powerful tool around which to design policies and services.

The E-commerce Index measures consumers' overall confidence in e-commerce, reflecting their attitudes toward motivators and barriers to e-commerce, as well as intended purchasing behaviour. The Index score for the initial E-commerce Index wave has been set to 100 for use as a baseline, and future waves of the E-commerce Index will be released quarterly, providing trended Index scores.

According to Grant Winfrey, senior marketing director for Yahoo’s commerce services, "The results from the first wave of the Yahoo!/ACNielsen Internet Confidence Index reinforce the importance that consumers place in price comparison tools, selection, and the availability of information when evaluating online purchases. Interestingly, the Index showed that convenience was not a primary motivator to consumers' purchasing patterns online."


"One of the more striking findings of the Index is the substantial dollar amount of e-commerce that is expected to be transacted during the next three months," added Travyn Rhall, managing director, ACNielsen International Research. "Despite industry consolidation and a changing business landscape, the Index clearly demonstrates the public's continued confidence in making purchases over the Web."

The study revealed that attitudes toward e-commerce among different age groups were primarily driven by product selection, comfort with online credit card use and customer service, with the youngest age group surveyed (ages 18 - 24) displaying higher confidence in these areas. Regionally, Internet users in the Northeast exhibit generally higher confidence in e-commerce overall, especially in regard to delivery of goods purchased, price comparison tools and the ability to find better prices online.

The study showed that the main motivators driving online purchasing are the ability to get a wide array of product information, the ability to compare prices, and product selection. Consumers rated comfort with using a credit card online and disclosure of personal information as the biggest barriers, but also revealed that they are relatively confident that the goods they order online will be delivered properly. Convenience does not appear to be a significant motivator to online shopping, and consumers are less confident in their ability to find better prices online.

Comparing heavy Internet users (daily use) with light Internet users, overall confidence among heavy users is driven by higher confidence in online credit card use, convenience, availability of information and proper delivery of goods, as well as the ability to compare prices. While men and women indexed similarly in most attributes, men have more confidence that they will find lower prices online.

More than four out of 10 (42%) Internet users said they intend to purchase online during the next three months, with more than three in five (63%) surveyed intenders indicating they would purchase once a month or more frequently. Among previous online purchasers, nearly seven out of 10 (68%) people intend to purchase over the next three months. On average, purchasers will spend an estimated US$184 each during the same time period.

The Yahoo!/ACNielsen Internet Confidence Index is a research study intended to measure and trend US-based consumers' confidence levels in Internet products, services and issues. Using ACNielsen's research expertise and Yahoo!'s insight into online consumer behaviour, the two companies have developed a proprietary measurement Index. ACNielsen conducts research for the Index through a random-digit-dial telephone survey, utilising a sample size of 1,000 adults, aged 18 and above, who may or may not be currently using the Internet. The study is designed to measure attitudes from a general consumer audience. The Index is computed using factor analysis, which defines the relationship between the attributes which are measured and the overall Index score. Each survey study focuses on a specific Web-based product, service or Internet-related issue, and Yahoo! and ACNielsen plan to jointly publish the E-commerce Index results on a quarterly basis.