Australia in the digital economy
Who is not participating?
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- Online risk management
- Methodology
- ACMA-commissioned research methodology
Who is not participating?The most common reason for not purchasing online, cited by a quarter of respondents (25 per cent), was lack of trust in the internet. Nearly a fifth of respondents (19 per cent) cited a preference for shopping the ‘old fashioned way’, a lack of need was cited by 17 per cent of respondents and 14 per cent said they prefer to purchase in person.
There was little variation in the reasons given for not purchasing goods and services between males and females. There were, however, differences cited between younger and older respondents. For example, 24 per cent of those aged 55 to 64 years said one of the main reasons they did not purchase goods and services online was because ‘I can’t see, feel or try on what I’m buying’. Just six per cent of those aged 25 to 34 years gave the same response. A larger proportion of respondents in metropolitan areas said they prefer to buy in person compared to those in non-metropolitan areas (16 per cent compared to 11 per cent). Online risk managementThere are a number of areas where the consumer experience of e-commerce differs from the traditional retail environment. These include the way in which information is made available to consumers, security of payments, privacy of personal information, and access to redress.7 The increased use of the internet for online transactions has been identified by the ACMA as a key trend which requires attention to reduce online risk.8 As mentioned in the previous section, one of the key reasons for not participating in online purchasing was mistrust of the internet. This section of the report examines ways in which consumers attempt to minimise risk when purchasing goods and services online. Research conducted by the ACMA found that the most highly adopted security precautions undertaken by those purchasing goods or services online were to only buy from reputable or known sites (94 per cent) and to use security software (93 per cent). Other popular precautions included checking the conditions of sale (86 per cent), only buying from sites that encrypt payment contact details (77 per cent) and ensuring a contact phone number is available (71 per cent). In terms of methods of payment, 26 per cent use a separate credit card for online purchase and nine per cent volunteered that they use PayPal.
Less than five per cent of respondents volunteered other security precautions such as: changing passwords or have multiple passwords; not using credit cards with a preference for cash or BPAY; research the seller and read other buyers reviews; and contact the seller via email or phone. MethodologyOverview of research sourcesThe data in this report is drawn from a number of sources, including: ACMA-commissioned research, in the form of a survey of consumer attitudes and use of telecommunications services undertaken in November 2009 Australian Bureau of Statistics (ABS). ACMA-commissioned research methodologyThe ACMA commissioned Taverner Research to undertake a national telephone survey of telecommunications users in November 2009. The survey sampled 1,615 respondents aged 18 and over. Of the total sample of 1,615 respondents, 17 per cent said they did not have an internet connection at home. These respondents were excluded from the analysis for this report because it focuses only on online activities and engagement with e-commerce. Survey design The questionnaire was developed by the ACMA to examine consumer usage of communications services in Australia and attitudes towards these services. The questions were given rigorous review and pilot testing prior to conducting the survey. Computer-assisted telephone interviews (CATI) were conducted using random digit dialling (RDD). The survey was based on respondents selected and used ‘person in the household with next birthday’ as the selection criterion. Stratified sampling proportional to ABS regional population data was applied to achieve representative state and metropolitan/non-metropolitan sample structure. The sample is designed to enable broad level disaggregation of data by age, gender and other key socioeconomic sub-groups with a high degree of precision. An overview of the sample for the survey is outlined in tables below.
Data analysis Results from the survey were analysed using descriptive analysis techniques, and by socioeconomic and demographic factors, to identify any areas with significant patterns or differences. Only results with significant differences are reported in this research. Sample size The sample size limits some analysis by smaller subgroups, such as data at an income level, education level or work status level. Rounding Discrepancies may occur between the sums of the component items and totals due to the effects of rounding. 1 The Department of Broadband, Communications and the Digital Economy, Australia’s Digital Economy: Future Directions, 14 July 2009. 2 www.acma.gov.au/WEB/STANDARD/pc=PC_311301. 3 Reports available at www.acma.gov.au/WEB/STANDARD/pc=PC_311301. 4 Australian Bureau of Statistics, Household Use of Information Technology 2008–2009, ABS Cat No. 8146.0. 6 Australian Bureau of Statistics, Summary of IT Use and Innovation in Australian Business, 2008–09, ABS Cat No. 8166.0. 7 The Treasury, The Australian Guidelines for Electronic Commerce, March 2006. 
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