2013 African-American Consumer Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national online survey of 400 adult African-American wireless phone users, who are likely voters. The survey was conducted between May 14-21, 2013. All interviews were conducted online. Interview selection was at random within predetermined geographic units. These units were structured to statistically correlate with actual census of the African-American population. The accuracy of the sample of 400 adult African-American wireless phone users, who are likely voters, is within +/- 4.9% at a 95% confidence interval. The survey results in this summary have been rounded and the wording for each question is verbatim from the questionnaire

Summary

African-Americans remain highly satisfied wireless phone consumers and believe they get a good value for the price they pay for their wireless service. Most African-Americans consider their wireless service as an essential service in their everyday life. The plurality says it is more important to have a wireless phone than broadband Internet, cable/satellite television or a home landline phone. Like all wireless phone consumers, African-Americans are very price sensitive. They overwhelming support the Wireless Tax Fairness Act and are likely to believe adding new regulations would make their wireless service more expensive. With a near unanimous opinion, African-Americans believe the wireless tax rate should be the same or less than the taxes they pay on general goods and services, which is approximately 7%.

Survey Structure

The survey is divided into 5 sections. Jump to a section or explore the whole survey.

• Consumer Satisfaction
• Consumer Lifestyle
• Government Regulations
• Digital Downloads
• Taxes & Fees

Additional Consumer Surveys

• 2012 African-African Consumer Survey

Consumer Satisfaction

Overall, are you satisfied or dissatisfied with your cell phone service?

African-Americans continue to be overwhelmingly satisfied (94%) with their wireless phone service. The majority (52%) is “very” satisfied. The level of satisfaction is extremely high across all demographics. Only 6% say they are dissatisfied with their service.

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Considering the price you pay for your cell phone service and the benefits it provides you, do you consider the value of your cell phone service to be excellent, good, fair or poor?

Considering the price they pay for their wireless phone service and the benefits it provides them, 4 in 5 (83%) African-Americans consider their wireless phone service to be either an “excellent” (35%) or “good” (48%) value. A little less than 1 in 5 (17%) considers their value to be either “fair” (14%) or “poor” (3%). The net positive rating increased by 10-points from +56 in April 2012 to +66 in this year’s survey.

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Consumer Lifestyle

If you had to choose one, which one of the following is the most important for you to have?

The plurality (38%) continues to say that having a wireless phone is more important to them than having broadband Internet (31%), cable/satellite television (17%), or a home landline phone (14%). The importance of having a wireless phone increases among African-Americans 40 years old or younger. Among senior citizens, the plurality (33%) sees broadband Internet as the most important.

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Would you consider giving up your home landline phone and only use a cell phone?

Almost half of African-Americans already has (30%) or would consider (19%) giving up their home landline phone and only use a wireless phone. A slight majority (51%) wouldn’t consider “cutting the cord.” African-Americans 40 years old or younger are more likely to “cut the cord” than older consumers. Half of 18-29 year olds only have a wireless phone and an additional 29% would consider giving up their home landline phone.

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When making phone calls at home, do you…?

The majority (55%) tends to use their wireless phone more than a home landline phone. Less than one-third (30%) is more likely to use a home landline phone and 15% use the both phones equally. Two in five (42%) use their wireless phone exclusively. More than two-thirds of consumers 40 years old and younger are regular wireless phone users at home. Older consumers are more likely to use their home landline phone. African-American men more than women use their wireless phone at home.

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Outside of your workplace or office, which one of the following devices do you use most often to send and read e-mails?

Desk top (42%) and lap top (35%) computers are the top devices used most often to send and read e-mails. Roughly 1 in 5 (19%) African-Americans tend to use a wireless phone to read and send e-mails and only 5% use a tablet more often. The use of a wireless phone significantly increases among African-Americans 40 years old and younger.

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Outside of your workplace or office, which one of the following devices do you use most often to go online?

Like with e-mails, a large majority of African-Americans use a desk top (42%) or lap top (37%) computer most often to go online. Less than 1 in 5 (17%) use a wireless phone more often to go online and only 5% use a tablet.

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Do you consider your wireless service as an essential service in your everyday life?

Four in five (83%) African-Americans consider their wireless service as an essential service in their everyday life. This overwhelming sentiment is evident across all consumer demographics.

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Other than making or receiving voice calls, which one of the following cell phone features is most important to you?

Other than making or receiving voice calls, texting (70%) is by far the most popular wireless phone feature among African-Americans. The other top features are Internet access (49%), taking pictures (49%), and e-mail (44%). Among 18-29 year old consumers, the importance of Internet access, e-mail, music, games, apps and video significantly increases. Among 30-40 year old consumers, Internet access, e-mail, music, and apps spike up. The importance of each feature decreases among consumers older than 55 years old, except for taking pictures.

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What type of “apps” do you use most often on your cell phone or other wireless devices?

Weather (42%) and social networking (39%) are the most popular apps African-Americans use on their wireless devices. The second tier of most used apps includes entertainment (33%), GPS (30%), banking/finance (25%), news/politics (21%), and sports (21%). The use of weather and social networking apps increases among African-Americans 40 years old and younger. The popularity of entertainment apps nearly doubles among 18-29 year olds. Sports apps are predominately used by men rather than women, particularly men between 30-40 years old.

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Do you or does someone in your household use a wireless device, like a wireless phone or tablet, for education or school related purposes?

Overall, more than one-third (37%) of African-American households use a wireless device for education or school related purposes. The majority (59%) in households with a child or adult in school or college uses a wireless device for education related reasons.

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Have you ever used your cell phone for civic engagement or advocacy like signing an online petition, sending an e-mail to a legislator or making a donation to a certain cause?

Less than 1 in 5 (16%) African-Americans have used their wireless phone for civic engagement or advocacy. Younger African-Americans, under 41 years old, are more likely to use their wireless phone for civic engagement or advocacy.

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From the following list, which privacy issues for wireless consumers are most important to you?

Protecting personal data, communications and transactions is clearly the most important privacy issue among African-American wireless consumers. The second most important privacy issue is allowing or blocking advertisements or marketing phone calls, and spam text messages. Allowing or blocking location based services that use your phone to determine your location and protecting children’s privacy are the bottom two issues. Among senior citizens, allowing or blocking advertisements or marketing phone calls, and spam text messages is just as important as protecting personal data, communications and transactions.

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Government Regulations

Do you believe adding new government regulations on cell phone service would make your cell phone service more expensive or less expensive?

Like other consumers, African-Americans are price sensitive and wary of the negative impact new government regulations would have on their wireless service. By a 6 to 1 ratio (48% to 8%), approximately half believes adding new government regulations on wireless phone service would make their service more expensive.

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Digital Downloads

How often would you say you purchase online digital downloads such as ringtones, music, videos, games, books, software or apps to your cell phone or other wireless device?

Three in five (61%) African-Americans purchase online digital downloads to their wireless phone or other wireless device. At a higher percentage and greater frequency, younger African-Americans are more likely they to purchase digital downloads. African-American men are more likely to purchase digital downloads than women.

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Which statement do you agree with more on the issue of taxing the purchases of online digital downloads?

1. Federal guidelines should establish one fair and consistent set of taxes to apply to purchases of online digital downloads.
2. Each state should have the right to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase.

By a 2 to 1 ratio (50% to 23%), half of African-Americans prefer digital downloads being subject to one fair and consistent set of taxes established by federal guideline. One-quarter (25%) thinks each state should have the right to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase. With one-quarter (27%) not having an opinion on the issue, it remains apparent that consumers need to be educated in order to make an informed decision.

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Taxes & Fees

From what you know, about what percentage of your monthly cell phone bill is taxes and fees?

There continues to be a significant lack of awareness among African-Americans about how much they actually pay in taxes and fees on their monthly wireless phone bills. A little less than one-third (30%) doesn’t know what they pay in taxes and fees. Among those who gave an estimate, most African-Americans think they pay less than 15%. The average answer is 8.8%, which is much lower than the national average of 17.1%.

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Do you think the tax rate on your monthly cell phone service should be lower, the same or higher than the average sales tax rate of about 7% paid on general goods and services?

The majority (60%) of African-Americans still think the tax rate on their monthly wireless phone bill should be lower than the taxes they pay on general goods and services, which is approximately 7%. Combined, 98% believes the tax rate should be the same or less than the taxes they pay on general goods and services, which is relatively consistent across all demographics.

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Would you support or oppose Congress passing a 5-year freeze or moratorium on all new wireless taxes and fees, which would prohibit states and municipalities from raising taxes and fees on wireless services?

Approximately 4 in 5 (79%) African-Americans support Congress passing a 5-year moratorium on all new wireless taxes and fees. The support is both wide and deep. The majority (56%) “strongly” supports it. Only 6% opposes the proposal.

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Under current law, there is a moratorium that prohibits states and municipalities from taxing your access to the internet— the monthly charge from your internet service provider. This law is set to expire in November 2014. If it expires, state and local governments would be allowed to impose taxes on your monthly internet bill. Would you support or oppose Congress continuing the moratorium, which prohibits states and municipalities from taxing your access to the Internet?

By a 4 to 1 ratio (72% to 17%), close to three-quarters support Congress continuing the moratorium which prohibits states and municipalities from taxing access to the Internet. The majority (55%) “strongly” supports the moratorium. This large majority consensus cuts across all consumer demographics.

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