2014 Hispanic Consumer Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national online survey of 417 adult Hispanic wireless phone users, who are likely voters. An initial 121 interviews were completed between May 23-28, 2014 as part of a full national survey. An oversample of 296 interviews was conducted between June 2-5, 2014. 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 417 adult Hispanic wireless phone users, who are likely voters, is within +/- 4.8% 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

An overwhelming number of Hispanics are satisfied wireless phone customers and consider their wireless service as an essential service in their everyday life. Without their wireless device and service, a vast majority believes they would be at a disadvantage in managing work, school and personal things. Like other wireless phone consumers, Hispanics oppose adding new wireless taxes and fees and are likely to believe that adding new regulations would make their wireless service more expensive. Nine in ten 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%. In addition, a clear majority opposes adding an Internet access tax on their service.

Survey Structure

The survey is divided into 6 sections. Jump to a section or explore the whole survey.

• Consumer Satisfaction
• Consumer Lifestyle
• Government Regulations
• Internet & Digital Downloads
• Taxes & Fees
• Applications & Features

Additional Consumer Surveys

• 2013 National Online Survey of Hispanic Consumers

Consumer Satisfaction

Overall, are you satisfied or dissatisfied with your cellphone service?

Hispanics continue to be overwhelmingly satisfied with their wireless phone service. Nine in ten (94%) are satisfied customers and close to two-thirds (64%) are “very” satisfied. This broad satisfaction is both wide and deep across all demographics. Only 6% are dissatisfied with their service.

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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?

Having a wireless phone (49%) remains more important to Hispanics than having broadband Internet (27%), cable/satellite television (16%), or a home landline phone (9%). Wireless phone is the top choice among all key demographics.

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

It appears more Hispanics are willing to consider giving up their home landline phone and only use a wireless phone. Four in five Hispanics already have (28%) or would consider (53%) “cutting the cord.” One in five (19%) would keep their home landline phone. Consumers under 55 years of age are most likely to “cut the cord,” especially the 40 and under crowd, but the majority of older consumers have or would consider it. Households with an income under $60,000 are more likely to have already “cut the cord;” however, a majority of higher income households would ponder it.

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

In this survey Hispanics nearly unanimously 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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Do you use a wireless device, like a wireless phone or tablet, for things related to work, school or personal management?

(Work, School, Personal Management don’t equal 100% because respondents were allowed to choose multiple answers)

The vast majority (86%) of Hispanics use a wireless device for things related to work, school or personal management. A large majority (71%) uses a wireless device for personal management followed by work (48%) and school (23%). Nearly all Hispanics 40 years old and younger use their wireless device to help manage personal, work and school related things.

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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?

More than three-quarters (78%) say they would be at a disadvantage without their wireless device and service for daily activities related to work, school or personal management. Among consumers 40 years old and younger, 87% feel they would be negatively impacted if they didn’t have their wireless device and service.

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Government Regulations

Do you believe adding new government regulations on cellphone service would make your cellphone service better or worse?

A slight plurality thinks adding new government regulations on wireless phone service would make their service “better” (39%) than “worse” (36%); however, the majority (61%) believes adding new government regulations on wireless service would either make their service “worse” or make “no difference.”

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

In this survey, two-thirds (69%) of Hispanics believe adding new government regulations on wireless phone service would make their service more expensive. Only 11% thinks it would make their service less expensive.

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Internet & Digital Downloads

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

Greater than 9 in 10 (95%) Hispanics consider Internet service as an essential service in their everyday life. This overwhelming sentiment is seen across all consumer demographics.

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

Nine in ten (93%) Hispanics have a smartphone with Internet service. The majority (60%) accesses the Internet on their smartphone every day. The percentage of regular Internet users significantly increases among consumers 55 years old and younger.

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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?

At a higher rate than before, 83% of Hispanics purchase online digital downloads to their wireless phone or other wireless device. Hispanics 40 years old and younger are more likely to purchase digital downloads. Consumers between 30 and 55 years old have the largest level of download frequency. Although more women download digital goods, men do it more often.

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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?

The majority (56%) thinks it’s unfair for consumers who buy digital goods and services to have to pay taxes from several different government jurisdictions for the same purchase. One-third (32%) thinks it’s fair. Among households with an income under $60,000, it’s 63% unfair to 20% fair, but among households with higher incomes, a slight plurality thinks it’s fair (49% to 47%).

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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 average sales tax rate of about 7% paid on general goods and services?

The majority (59%) of Hispanics continue to 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, 90% believes the tax rate should be the same or less than the taxes they pay on general goods and services.

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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?

Two-thirds (68%) of Hispanics believe a combined federal, state and local tax rate of 17% for wireless services is “too much.” One-quarter (26%) thinks the tax rate is “about right” and 6% say it’s “not enough.”

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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?

By a 6 to 1 ratio (79% to 13%), the vast majority of Hispanics remain supportive of Congress passing a 5-year moratorium on all new wireless taxes and fees. Just over half (51%) “strongly” supports it.

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

By a 2 to 1 ratio (65% to 31%), virtually two-thirds of Hispanics oppose adding an Internet access tax on their monthly service bill. The majority opposition has intensity with 51% who “strongly” oppose it.

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Applications & Features

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

Weather (61%), GPS/Maps (57%) social networking (57%), entertainment (52%) and banking/finance (48%) are the most popular apps Hispanics use on their wireless devices. The second tier of most used apps includes news/politics (37%), restaurant/dining (37%), and sports (31%). Hispanic consumers 55 years old and younger use a greater variety of apps than older consumers.

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

Other than making or receiving voice calls, texting (74%) remains the most popular wireless phone feature among Hispanics. The other top features are Internet access (63%), e-mail (63%), and taking pictures (60%). Second tier level features include music (48%), GPS (48%) and apps (45%). Similar to apps, Hispanic consumers 55 years old and younger use more features on their wireless phone than older consumers.

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