2014 Asian-American Consumer Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national online survey of 400 adult Asian-American wireless phone users, who are likely voters. The survey was conducted between November 14-20, 2014. All interviews were conducted online. Interview selection was aimed within predetermined geographic units that were structured to statistically correlate with actual census of the Asian-American population. The accuracy of the sample of 400 adult Asian-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

Asian-American wireless phone consumers continue to be highly satisfied customers. They view their wireless phone as an essential service in their everyday life and the majority considers their wireless phone service to be more important than broadband Internet, cable/satellite television or home landline phone services. The results also depict a growth in their usage of smart phone technologies and features. Like other wireless consumer groups, Asian-Americans already believe they pay too much in wireless taxes and fees. They oppose adding new wireless taxes and fees and are more likely to believe adding new regulations would make their wireless service more expensive.

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

• 2013 Asian-American Consumer Survey
• 2012 Asian-American Consumer Survey

Consumer Satisfaction

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

More than 9 in 10 (94%) Asian-American consumers remain satisfied with their wireless phone service. A slight majority (51%) is “very” satisfied. The overwhelming consumer satisfaction cuts across all demographics. Only 6% are dissatisfied with their service.

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Consumer Lifestyle

Other than making or receiving voice calls, which one of the following cell phone features is most important to you? (Allowed to Choose All That Applied)

Asian-American wireless consumers use various features provided on their wireless phone. The overall usage rate of features is greater in this year’s survey than in past surveys. The most popular features are texting (72%), Internet access (68%), e-mail (68%), taking pictures (60%) and GPS (55%). As seen in previous surveys, the variety and usage rate of wireless phone features is greater among younger Asian-American consumers (40 or younger) than older Asian-American consumers.

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What type of “apps” do you use most often on your cell phone or other wireless devices? (Allowed to Choose All That Applied)

Asian-American consumers are using more apps than in previous years. The most popular apps continue to be related to weather (64%), GPS/Maps (62%), and social networking (55%). The second tier apps are related to entertainment (46%), banking/finance (46%) and news/politics (46%). Younger Asian-Americans (40 or younger) continue to be more likely to use a wider range of apps at a higher frequency than older consumers.

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

Wireless phones continue to outrank other services. The majority (55%) says having a wireless phone is more important to them than having broadband Internet (31%), cable/satellite television (9%), or a home landline phone (5%). The margin between wireless phone and broadband Internet increased from 13-points to 24-points since last year’s November poll. The gap is wider among younger consumers (40 or younger) than older consumers.

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

Seven in ten Asian-American consumers have already given up (32%) or would consider (38%) giving up their home landline phone and only use a wireless phone. Less than one-third (30%) wouldn’t consider “cutting the cord.” Asian-Americans 18-40 years old are the most likely group to cut the cord; however, there is a significant pool of older Asian-American consumers who have or would consider giving up their landline phones. A slight majority of consumers over 55 years old don’t want to give up their landline phone.

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

Nine in ten (90%) Asian-American consider their wireless service as an essential service in their everyday life. The percentage decreases among senior citizens, but three-quarters (76%) of senior citizens do consider their wireless service essential.

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Do you use a wireless device, like a wireless phone or tablet, for things related to work, school or personal management? (Allowed to Choose All That Applied)

Four in five (84%) Asian-American consumers use a wireless device for things related to work, school or personal management. Two-thirds use a wireless device for personal management, about half (49%) use it for work and 1 in 5 (19%) use a wireless device for school. Like with wireless phone features and apps, younger Asian-American consumers (40 or younger) use a wireless device more often for personal, work or school related purposes than older consumers.

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Would you be at a disadvantage without your wireless device and service for daily activities related to work, school or personal management?

Three-quarters (75%) of Asian-American consumers believe they would be at a disadvantage without their wireless device and service for daily activities related to work, school or personal management. Although the percentage decreases among senior citizens, a slight majority (52%) says they would be at a disadvantage.

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Whether it’s on a computer or a wireless device, do you consider Internet service as an essential service in your everyday life?

Whether it’s on a computer or a wireless device, nearly every (95%) Asian-American consumer considers Internet service an essential service in their everyday life.

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How often do you use your cell phone to access the Internet?

Nine in ten (92%) Asian-American consumers have a wireless phone with Internet access. The majority (59%) of senior citizens have a smartphone. More than three-quarters of younger Asian-American consumers (40 or younger) use their smartphone to access the Internet every day.

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Government Regulations

Do you believe adding new government regulations on cell phone service would make your cell phone service better or worse, or make no difference?

The opinions about whether adding new government regulations on wireless phone service would make service better, worse or have no difference is divided evenly. When combined, a little over two-thirds say added regulations would either make their wireless service worse (34%) or make no difference (34%) instead of better (33%).

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

The majority (61%) believes adding new government regulations on wireless phone service would make their service more expensive. This sentiment cuts across political lines and consumer demographics.

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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?

Four in five (82%) Asian-American consumers purchase online digital downloads to their wireless phone or other wireless devices. The younger they are, the more likely they are to purchase digital downloads and at a greater frequency.

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Do you think it’s fair or unfair for consumers who buy digital goods or services to have to pay taxes from several different government jurisdictions for the same purchase?

By a 2 to 1 ratio (57% to 27%), the majority believes it’s unfair for consumers who buy digital goods or services to have to pay taxes from several government jurisdictions for the same purchase. There is majority consensus across the board.

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Taxes & Fees

Do you think the tax rate on your monthly cell phone service should be lower, the same or higher than the taxes you pay on general goods and services, which is approximately 7%?

The majority (57%) thinks 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, 93% believe the tax rate should be the same or less than the taxes they pay on general goods and services. Older consumers, especially senior citizens, are more likely to want the taxes to be lower.

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Do you believe a combined federal, state and local tax rate of 17% for wireless services is not enough, about right or too much?

Virtually three-quarters (74%) believe a combined federal, state and local tax rate of 17% for wireless services is too much. A little less than one-quarter (22%) says the tax rate is about right and only 4% believes it’s not enough. The opinion that the tax rate is too much is highest among consumers older than 55 years old.

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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%) Asian-American consumers support Congress passing a 5-year moratorium on all new wireless taxes and fees. Half (50%) “strongly” supports it. Only 11% opposes the proposal. This wide and deep level of support cuts across all political and demographic lines.

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Do you support or oppose adding an Internet access tax on your monthly Internet service bill?

By greater than a 3 to 1 ratio (74% to 22%), roughly three-quarters oppose adding an Internet access tax on monthly Internet service bills. The majority (56%) “strongly” opposes it. This strong sentiment is evident among all political and demographic groups.

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