2013 Hispanic Consumer Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national online survey of 400 adult Hispanic wireless phone users, who are likely voters. The survey was conducted between April 16-26, 2013. All interviews were conducted online and respondents were given a choice to take the survey in English or Spanish. Interview selection was at random within predetermined geographic units. These units were structured to statistically correlate with actual census of the Hispanic population. The accuracy of the sample of 400 adult Hispanic 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

Hispanics continue to be highly satisfied wireless phone customers and consider the wireless service they get to be a good value. Most Hispanics view their wireless service as an essential service in their everyday life. A slight majority says it is more important to have a wireless phone than broadband Internet, cable/satellite television or a home landline phone. Like other wireless phone consumers, Hispanics are very price sensitive. They oppose adding new wireless taxes and fees and are likely to believe that adding new regulations would make their wireless service more expensive. Nearly all Hispanics 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 National Online Survey of Hispanic Consumers

Consumer Satisfaction

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

Hispanics remain overwhelmingly satisfied with their wireless phone service. Nine in ten (94%) are satisfied customers and the majority (53%) is “very” satisfied. This high level of satisfaction is both wide and deep across all demographics. Only 6% claims to be 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, virtually 4 in 5 (79%) Hispanics consider their wireless phone service to be either an “excellent” (28%) or “good” (51%) value. One in five (21%) considers their value to be either “fair” (16%) or “poor” (5%). The net positive value rating improved 12-points between May 2012 (+46) and this year’s survey (+58).

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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?

A slight majority (51%) says having a wireless phone is more important to them than having broadband Internet (27%), cable/satellite television (13%), or a home landline phone (10%). The importance of having a wireless phone increases among Hispanics 40 years old or younger, Hispanics in rural areas and women. Broadband Internet is just as important as wireless phones among 41-55 year olds.

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

More than two-thirds of Hispanics already have (30%) or would consider (39%) giving up their home landline phone and only use a wireless phone. A little less than one-third (30%) wouldn’t consider “cutting the cord.” Even the majority of senior citizens has or would consider “cutting the cord.”

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When making phone calls at home, do you…?

Seven in ten (70%) Hispanics use their wireless phone more than a home landline phone. One in five (19%) is more likely to use a home landline phone and 11% use both phones equally. Just over half (51%) “always” uses their wireless phone at home. More than three-quarters of consumers 40 years old and younger are regular wireless phone users at home. The use of a home landline phone increases among Hispanics older than 55 years old.

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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?

Lap top (34%) and desk top (33%) computers are the top devices used most often to send and read e-mails. The use of wireless phones doesn’t trail far behind at 27%. Only 6% use a tablet more often to send and read e-mails. The use of a wireless phone is the top choice among Hispanics who are under 41 years old or in urban areas.

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

The plurality (39%) of Hispanics uses a lap top computer most often to go online followed by a desk top computer (33%), a wireless phone (23%) and a tablet (6%). The use of a wireless phone increases among those who live in urban areas or are under 41 years old.

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

Nearly 9 in 10 (88%) Hispanics 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 (75%) is clearly the most popular wireless phone feature among Hispanics. The other top features are taking pictures (58%), Internet access (57%), and e-mail (54%). Hispanics 18-29 years old frequently use a wide variety of features on their wireless phones.

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

Weather (50%), social networking (48%), GPS (47%) and entertainment (45%) are the most popular apps Hispanics use on their wireless devices. The second tier of most used apps includes banking/finance (38%), news/politics (29%), restaurant/dining (23%), and sports (23%). The use of the various apps, except apps related to civic engagement, increases among Hispanics 40 years old and younger. Sports apps are predominately used by men rather than women.

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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, roughly half (49%) of Hispanic households use a wireless device for education or school related purposes. More than two-thirds (69%) 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?

A little over one-quarter (28%) of Hispanics has used their wireless phone for civic engagement or advocacy. Younger Hispanics and Hispanics in urban areas 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 the top priority privacy issue among Hispanic wireless consumers. The second most important privacy issue is allowing or blocking advertisements or marketing phone calls, and spam text messages. Protecting children’s privacy and allowing or blocking location based services that use your phone to determine your location are the bottom two issues. Among senior citizens, allowing or blocking advertisements or marketing phone calls, and spam text messages is almost 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 wireless consumers, Hispanics are sensitive to anything that would increase the price of their service. By virtually a 3 to 1 ratio (51% to 17%), 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?

More than two-thirds (69%) of Hispanics purchase online digital downloads to their wireless phone or other wireless device. Hispanics under 41 years old are more likely to purchase digital downloads.

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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.

The plurality of Hispanics (44%) prefer digital downloads being subject to one fair and consistent set of taxes established by federal guideline. Nearly one-third (32%) 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 (24%) 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 lack of awareness among Hispanics about how much they actually pay in taxes and fees on their monthly wireless phone bills. One-quarter (25%) doesn’t know what they pay in taxes and fees. Among those who gave an estimate, most Hispanics think they pay less than 15%. The average answer is 10.7%, which is significantly 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?

Approximately two-thirds (65%) of Hispanics 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, 96% 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 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?

Hispanics continue to overwhelming support Congress passing a 5-year moratorium on all new wireless taxes and fees. More than three-quarters (78%) support the proposal and the majority (56%) “strongly” supports it. Only 9% 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 nearly a 3 to 1 ratio (67% to 23%), two-thirds of Hispanics support Congress continuing the moratorium which prohibits states and municipalities from taxing access to the Internet. A slight majority (51%) “strongly” supports it.

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