The Digital Futures white paper explains the skill and use of technology by teens and uncovers their digital behaviour in terms of communication, online content consumption, perception and their approach to online privacy and the impact that these behaviours will have on businesses in the future. For a discussion of some of these findings read our article in Marketing Week - Teenagers are more connected than older groups and proficient at multi-tasking across devices, but brand trust is a stumbling block for young teens.

For the complete paper please email us via this link - enquiry@intersperience.com. We will forward within 24 hours of receiving your request.

For more on the Digital Futures study objectives, project scope and methodology click here - Digital Futures.

Research reveals that teenagers are communicating more than ever before

The uncommunicative teenager is a myth according to a study looking at how 8-18 year olds use technology. Rather they are sociable and sophisticated communicators making over 50 contacts a day with family and friends.

Parents and businesses may be surprised to discover the levels of sophistication involved in teen communication.

Consumer research specialists Intersperience found that teens make multiple and simultaneous contacts across an ever increasing number of communication platforms. In addition to email, face-to-face and phone contact they are adding instant chat and messenger, social networking sites and texting to the suite of tools they use to connect with their peers.

Intersperience found that this activity enriched young people's social interactions, developed their relationships off and online and gave them a greater feeling of belonging to a group.

Fourteen year old Ruby, one of the one thousand young people interviewed uses Facebook and her Blackberry's Messenger Service (BBM) to contact her friends. Waking to about 15 BBM's or texts every morning she will reply to those, get dressed and send another text. Ruby told researchers that she will send more than 50 texts or BBM's a day.

Sarah, who is 18 yrs old said: “I am more in the know and I'm a communicator now as well, I talk to people that I probably wouldn't talk to if I didn't have Facebook on my phone.” Another respondent added “I feel in some ways a lot happier and I feel that I've got to know my friends a bit better, for those who I don't see that often I can keep in contact with them.”

Similarly 12 year old Aaron said he uses instant messenger, text, email and social networking site messages. He has just been allowed to join Facebook adding this to the list of ways that he uses to communicate with his friends. He also uses moshi monsters, a social game, and many online gaming sites.

The evidence from the Digital Futures study, which provided other revealing insights into the under 18's online behaviours, concluded that today's teenagers are by far the heaviest users of social networking and instant messaging outstripping even the 18-25 yr old age group: 64% of teens use instant messaging on their mobile phones every day compared to 37% of 18-24's. Their communication behaviours are more complex, faster and more frequent than any previous generation.

However the survey also revealed that some things never change: young people still remain a mystery to adults. The survey showed that adults don't understand young people's need for continuous and seemingly purposeless communication or why young people prefer to use mobile internet communications when face-to-face would be easier.

Intersperience's CEO Paul Hudson added: “Organisations must be prepared to deal with the full force of a communications onslaught as this demographic becomes economically active.”

If you are interested in finding out more about Intersperience's Digital Future's findings please contact CEO Paul Hudson.

Savvy youngsters lie online to protect their digital identities

"I don't give out my details online, I make up fake ones” say 22% of savvy 8 to 17 year olds in response to concerns over who uses their data and how.

With businesses keen to track and market products at customers through social networking sites, and EU policy makers poised to take action over how information is used, Intersperience has taken a closer look at the under 18's use of digital media.
 
Our 'Digital Futures' project, which studied 1,000 youngsters aged 8 -18, shows that Facebook is the place for business to find young people. Despite its sign-up age being 13 years old, three out of ten 8-9 year olds are on Facebook, rising to nine out of ten 16-17 year olds.
 
And, the study finds, online privacy is important to 61% of all those questioned. 33% of under 18's are worried about websites that ask for information that's not needed and 23% worry that this information will be shared with someone else. Under 18's don't want, or expect, their data to be tracked by businesses and they modify their behaviour and provide false information in order to protect themselves.
 
“I didn't know that businesses use [Facebook]” and, if they do, “putting statuses, or pictures and people liking that, but nothing further… that's probably as far as interaction [should] go” is a recurring sentiment amongst those surveyed.
 
The study shows an increasing trend towards giving false information to companies online. “I would rather be anonymous to people I don't know” is the common response of those surveyed. With the young more likely to lie than the old, in comparison only 8% of 45 year olds and over would provide untruthful details, Intersperience conclude that the privacy issue is going to get worse.
 
And here in lies the conundrum.
 
What use are half-truths to companies who tap into the wealth of personal information on social networking sites to track behaviour and target products at users in real time? With Facebook and Google seeking commercial gain from access to user information a solution is needed (Recent discussion in the Guardian).

As the debate about the use of online identities remains unanswered the 'grown-ups' or businesses which will benefit most are those that embrace transparency and involve the consumer honestly in how their data is used. For some, like Intersperience's client Iceland, it's through the company's own social space 'Ice-Chat'.
 
In the meantime those who reveal their personal insights through social media are choosing to protect themselves by lying. And young people are cottoning on to this fast.
Industry needs to act if they want to base their marketing, research and relationships with customers on more than half-truths. Expect some solutions from Intersperience's next project, 'the New Social' which reports back in April. For more information about this new study please click here.

Let's Talk - Consumers will execute their power through social networking

Informed and equipped with a wide range of information sources, customers expect to be involved in shaping business decisions and sharing their ideas.

Popularity of review sites will create pressure on businesses to 'join the conversation' and allow customers to shape their brand's image.

Next year, businesses will face a challenge of consumer power created through the social web. This is not new in itself but how businesses respond – by embracing the dialogue or not – will decide who the winners are in 2013. For a deeper understanding join the New Social

Consumers in Hiding - Consumers will place greater value on their personal data

In 2013, businesses will need to look critically at their data management policies and become more transparent about the purpose, and benefits of collecting personal data from their customers.

Trust in companies is falling. Consumers have begun to question how businesses manage their data and are aware of the large volumes of personal information left online. They have developed 'protective tactics' for looking after their data and are becoming harder to reach and engage with.

The companies that do well in 2013 will be those that respect personal data and are transparent in how they use it.

Where did we get this insight from? Our recent piece of research Digital Selves

Mobility Matters - Increasingly connected consumers will demand a seamless service

In 2013 the choice and popularity of mobile devices will continue to increase. Tablet penetration has risen faster than any other device through 2012, and 2012 was the first year when desktop PC ownership actually began to fall.

Consequently, there is no doubt that mobility matters – and consumers crave convenience, expecting to be connected to the internet where ever they go. Mobile devices will play an ever-growing part in work, shopping and entertainment.

Businesses need to respond to the desire for access to any service through any device at any time, allowing users to access services across all devices. What tools and resources does your company provide for anytime, anywhere interaction?

In the past 12 months, the number of devices that each consumer owns has increased significantly, with a quarter of the UK now using 7 or more devices.

Over the last year more and more customers have become multi-taskers - having 5 or more devices switched on at the same time, pursuing tasks more effectively across a range of devices, instead of only one.

The delivery of the right content to the right device and in the right way will become critical next year. Businesses will need to understand how each device is used and develop a 'content strategy' displaying the content the user is looking for at that time.

“No, I will not wait!” - Impatient consumers will demand more

Next year, the expectation of instant access, fast service delivery and immediate query resolution will increase yet further.

Always connected consumers are losing patience and demand attention, setting new challenges and benchmarks for businesses to meet. The hyper-consumer is here. Is your business ready?

In 2013 businesses will need to develop systems, processes and service turnaround times that meet these demands. Old standards of 24 hour email response time, a week's delivery time, 2 minute holds in calls and stock 'outages' are all no longer acceptable.

Can you deliver the highest quality, consistent service 100% of the time?

Background

Social Networking Sites offer people new ways to communicate and interact with each other. The rapid growth of social networking in recent years has made these sites part of everyday UK culture.

Effective customer engagement requires communicating with consumers across all available touch points. With consumers spending more time on social sites compared to other websites, social media provides an attractive opportunity for brands to engage with their customers.

Outcomes

1. Themes of consumer use and behaviour on social media

2. Consumers' expectations from advertising and commercial presence on social sites

3. Marketing and customer service strategies via social media

4. The effect of location based services on consumer behaviour

5. Influence of security concerns on social interactions online

Objectives

All funding partners can input into the objectives and provide specific questions.

1. Profile and understand the use of social media.

• Discover attitudes and behaviours towards top social networking websites (e.g. Facebook, Twitter)

• Identify reasons for use and types of activities performed on social sites focusing on communication, information exchange and content sharing

• Explain types of social connections and interactions for specific age groups and identify generational differences

2. Explore content replacement and complementary use of social sites.

• Investigate the role of social networking sites in media consumption via other channels (e.g. interactive viewing or advertising, social experience alongside a live event or TV programme)

• Identify the extent to which social sites are replacing other information and media sources (e.g. news, forums, apps)

3. Investigate marketing and brand engagement opportunities on social sites.

• Determine perceptions of business presence on social networking sites and the type of interaction consumers are prepared to have

• Examine consumer expectations from customer services delivered via social networking sites and establish the response consumers have to direct contact

.• Explore the influence of business/corporate vs. personal 'image' on brand engagement and consumer perception

• Identify consumer perception and use of location based services, types of services used and situations where they are used the most

• Discover consumers' reactions to new forms of social media built around mobile devices and location

• Determine influence on privacy and security concerns

• Determine the significance and approach of consumers to unintended consequences of publicly posting sensitive or personal information

• Measure the level of understanding of security and privacy on social sites and determine if confusion over privacy settings exists

• Identify the intent and approach to establishing or maintaining contact with people one doesn't know

More and more consumers are using more and more devices at the same time

A new phase in the digital divide is emerging as a growing number of us use seven or more digital devices in the home: with up to five switched on at any one time.

According to the latest findings by consumer researchers, Intersperience, there is a 12% jump in the number of people who have seven or more digital devices, whilst those with three or less remains the same as last year at 18%.

A new type of super user, the 'device junky', is emerging and represented by 29% of those surveyed. Whilst the majority of us (53%) have between four and six devices at home, a drop of 13% compared to the same time last year.

Over a thousand people in the UK, of all ages, were asked how new technology is being used in the home through surveys, brainstorms, smart-boards, diaries and discussions. Compared to a similar survey last year, the results show developing patterns of use with major implications for businesses that need to capture the attention of these polarising groups.

The 'device junky', the majority of who are under 45 years old, will have as many as five devices switched on at the same time. Multi-tasking, using several devices, dividing attention across devices rather than switching focus and using them in a more social environment are examples of the 'device junkies' more complex digital behaviours. “I was watching TV Sky + HD whilst using an iPad and also using a phone to text” said one respondent.

Family households are more likely to have more than seven devices suggesting the presence of young residents may well explain the wider digital catalogue and more complicated behaviours of use.

This multi-tasking behaviour is not just confined to those who have seven or more devices. Nearly half of the respondents indicated that in the course of four hours there was at least one occasion when they used more than one screen device at a time.

This contrasts with the group who has three or less devices in the home. They are adapting more slowly to technological upgrades creating a new phase in the digital divide. 60% of them are 45 plus years old.

These results, echoing other study findings, have major implications for businesses. Just how do you reach a consistent minority who don't use any, or many, devices? How do you attract the attention of device junkies who flit across a plethora of screens? And is there an opportunity to further expand the seven plus market by targeting the four to six device users?

Notes on devices:

The term devices includes: smartphones, mobile phone, laptops, tablets, personal computers, satellite or cable TV, games console, internet radio, e-reader, connected TV. The biggest increase of all device use is the tablet computer. Four times more respondents indicated that they use the tablet computer compared to a survey in 2011. The increase in the use of the smartphone continues with uptake almost doubling (although slower than that of tablet computers).

Gulf emerges as multi-tasking digital device owners leave majority of UK consumers trailing

The number of people in the UK using tablets has almost quadrupled this year, driving rapid changes in consumer behaviour and the emergence of a new demographic of highly-skilled digital multi-taskers, according to new research from Intersperience.

Tablet usage has jumped from just 6% in 2011 to 23% in the UK, growing at a faster pace than any other popular digital consumer device, according to the Digital Selves study. The research also showed significant rises in e-reader and smartphone usage, although at a slower pace.

Since the launch of the first iPad in 2010, tablets have become increasingly popular, especially among technology innovators, under-45s and families with children who like to use them for games and other entertainment as well as for general information purposes.

The rapid growth in adoption defies sceptics who doubted whether there was a major market when the first tablets were introduced. However, it fits with the prediction made by Intersperience at the time of the iPad launch, that family consumers would hold the key to mass adoption: Family consumers hold the key to iPad success

Intersperience has studied how tablets are being used at home and concludes that an explosion in daily usage for a range of tasks has had a marked effect on consumer behaviour.

The most notable change is the ease and speed with which consumers who own tablets have become proficient multi-taskers, simultaneously using tablets in conjunction with PCs, laptops, smartphones and other devices. This was apparent in our recent study of how home audiences used digital devices to follow events during Olympics 2012 - we found that one in two Brits shared the experiences across one or more devices, with tablets featuring prominently.

The increasing level of sophisticated consumer interaction with technology is one key finding, another is the accelerated pace of change in consumer behaviour. The rapid adoption of smartphones (UK ownership is now 39%) ratcheted the pace up a notch several years ago and now, signs of a potentially even more rapid growth in tablet adoption imply that the pace of change will quicken again.

As Intersperience said at Open Ideas (2020 Vision), we expect to see even more change in the coming decade than in the last 10 years and it will take place at what will seem like breakneck speeds.

A major implication is that it will result in greater digital divides in society as the technology skills gap among consumers widens. The top end of the spectrum will comprise digitally connected multi-device using households, followed by families who either own or use fewer digital devices and are less adept in multi-tasking.

However trailing in the wake of both groups will be the 2 in 10 UK households who, (according to the latest Ofcom report) remain completely 'digitally excluded' with no internet connection at all.

The implications for businesses and organisations seeking to serve all demographics are potentially far-reaching: not least the fact that a one-size-fits-all approach to communication channels as well as to product and service design and delivery is no longer appropriate.

Home screens in overdrive as one-in-two Brits shared London 2012 experience across several devices simultaneously

British fans were so eager to keep up with the London 2012 Olympics action that more than half not only switched on TVs but also used radios, laptops, smartphones and iPads to follow events simultaneously, according to Intersperience's latest research project.

A group of 250 people around the UK participated in a special online research project in which they recorded how they followed the action during the middle weekend of the Olympic Games which marked the start of a medal gold rush for Team GB.

The project revealed that information-hungry consumers are highly skilled at using a range of digital devices at once, easily switching attention between tasks and devices. The trend has been spurred by increased use of mobile internet especially via smartphones and tablets.

The research demonstrated that London 2012 was a major event for social media as online diaries revealed strong social networking activity among people following the Olympics at home. It underlined the increasing influence of social media in consumers' lives: if the results were extrapolated and applied across the entire UK population, it would imply that 16% of people in the UK - or close to 10 million people - used social networking sites to share the Olympics.

In terms of multi-tasking, the research found that 52% of people who watched the action on television followed events simultaneously across two or more devices, frequently following several sports at a time on different screens. In fact, 10% of participants used three or more devices to keep up with the sporting action, while some people used four or more devices.

Participants used several devices in order to get their preferred mix of live action, replays and post-event interviews as well as to get more detail on specific events and athletes and to access social networking sites. Many people reported chatting on the phone about the Games, while also reading results online, watching live TV and sending emails. Chatting on iPad via Facetime was also a popular activity.

In terms of social media, 50% of people following the Olympics at home were social networking during the event, with 45% directly communicating about the Olympics.

Facebook emerged as the dominant site, with 95% of participants using it to share Olympics facts and opinions compared to just 18% who used Twitter, although Twitter was more popular when people were away from home.

The project revealed that many families used digital technology to share the Olympic experience. One woman participant said: "I was on Skype to my husband in Afghanistan and I pointed my laptop webcam at the TV so he could watch specific events with me and I was using Facetime on my iPad to talk to my daughters at Gatwick Airport at the same time so we had a four-way conversation."

A total of 46% of people watching the games on TV at home were also using their laptops at the same time while 31% were using smartphones. Ipads proved popular also, especially for using Facetime to connect with friends and family during major events.

Another participant described his experience of following the Olympic marathon: "I had my DAB radio on Radio Five Live, I had my TV switched on with the sound turned off and I used my laptop to get details of the marathon.

Background

Digital technology has changed the way we live – how we communicate, socialise and purchase are all radically different to a decade ago. But what of the next decade? What will our digital lives be like in 2020? Having been born into a digital world, 'digital natives' have radically different behaviours to everyone else and in 10 years' time, this group will account for 50% of the population.

This major new project sets out the generational change that 'digital natives' will bring, exploring in detail their expectations and behaviours.

Objectives

1. Sets out the expectations and behaviours of digital natives (those aged 18 and under);
2. Explains how social media is used and the influence it has within this age group;
3. Explains the roles that online media, mobile devices and social networking for digital natives;
4. Explains the generational differences between digital natives and the rest of the population (see Digital Selves study) and predicts the pace of future change;

Click here for Digital Futures report overview (opens PDF in a new window.)

For more information please email: paul.hudson@intersperience.com.

Legal moves on internet privacy highlight rising tension between control and convenience

The introduction of new laws governing the collection of personal data online has highlighted an emerging trend for consumers to regard personal information as a powerful new currency, according to the latest Intersperience research.

It has become an increasingly hot issue following the introduction of a new European law on May 26 governing the use of 'cookies' (text files used to collect details of visitors to websites). Organisations use the data to identify customers' preferences and to tailor marketing efforts accordingly.

Until now, consumers were relatively unaware of 'cookies' but the new law has resulted in cookie disclosure declarations appearing on many websites, enabling the public to make an informed decision on the collection and use of their personal data for the first time.

The data privacy debate has intensified as a result of claims that Google's 'Street View' cars allegedly harvested large amounts of personal information from millions of private UK home Wi-Fi networks.

Reports that both Google and Apple are also now deploying powerful 'spy planes' to produce highly detailed 3D aerial maps of the UK have added to the controversy over the collection of personal data without consent.

Monetisation of personal data is an even more controversial issue. Google Executive Chairman Eric Schmidt once famously declared: “The Google policy...is to get right up the creepy line and not cross it.”

Intersperience's Open Ideas Event in London asked delegates representing some of the biggest consumer brands to vote on whether personal data will become a new currency in the future. An over-riding majority said that it would, with several commenting that it has already happened.

The vote is backed up by more in-depth Intersperience research which showed that UK consumers are already alert to the value of their personal data and that under-25s are particularly smart on data disclosure.

Around one-third of under-25s do not like to give personal data to websites and 32% would not use websites which ask for personal details. However, younger consumers are smart about the value of their data with 20% willing to trade data for something in return. The proviso is that they feel no compunction to tell the truth - 22% said they would give false personal details.

Consumers are generally conflicted over the pros and cons of disclosing personal data and often feel forced into a compromise. They are keen to retain control of information about their lifestyles and preferences for their own personal benefit: for example, to access favourite programmes versus services such as Sky Anytime Plus.

However, they see the benefit of allowing data to be used by the likes of Amazon; which can use it in a beneficial and convenient way to make recommendation or special offers. The price of convenience is, however, leaving a personal trail.

Every day, consumers have to make a new call on who controls their data and increasingly they want to make informed decisions and to receive tangible benefits in return for ceding control.

This project will explain how best to reach and engage consumers via connected devices such as smartphones, PCs/laptops, tablet computers and connected TVs.

Understanding how consumers approach connected devices, what they do, what they buy, what media they are exposed to and how they choose to respond to viewed stimuli is a foundation of good customer relationship management, marketing strategies and interactions with individual customers.

A new era of constant internet access adds to complexity and diversity across users and further changes consumers' behavioural intention and technology use.

Outcomes

1. Consumers' expectations from advertising and commercial presence on connected devices and their effects on brand perception.

2. Consequences of delivering services seamlessly across 4 screens to digital behaviour.

3. Reasons for and pace of adoption of new devices and products.

4. Practices encouraging users to buy online and via mobile devices.

5. Best approaches from organisations towards online privacy and security.

Objectives

All funding partners can input into the objectives and provide specific questions.

1. Establish how new devices are changing behaviour patterns;

· Explain the use and types of tasks undertaken on smartphones, tablets and connected TVs.

· Identify barriers to adoption of connected devices and mechanisms which assist in overcoming these barriers.

· Explain user preferences for media consumption, purchasing behaviour and communication on each device.

· Explain reasons for use, strength of device preference and barriers to adoption across specific user groups identifying generational differences.

2. Identify the role of devices, how they are used and whether replacement exists;

· Identify how each device is used by cataloguing user's ownership, digital activities and time allocation.

· Explain the concepts of replacing, stockpiling and upgrading devices, providing an understanding of the reasons for this and pace of device adoption.

· Examine users' multitasking across devices, explaining the impact of time allocation, frequency of use and attention to media.

· Explain the impact that 'on demand' content has on content ownership, identifying the features worth paying for.

· Explore the drivers towards interactive viewing, live broadcasts and on demand services.

3. The importance and influence of internet connectivity on digital behaviour;

· Explain the user's reliance on online content, identifying the consequences of this and the expectations of organisations.

· Determine the impact of consumers' ability to instantly feedback on quality of information and service on an organisations brand.

· Establish the expectations of connectivity between devices.

4. Consumers' approach to privacy in an online world;

· Establish the consumers' understanding of online privacy and how influential this is on interactions with organisations via different platforms.

· Understand the consumers' perception associated with collecting, analysing and sharing data on their browsing activities, purchasing history and online habits.

· Evaluate the importance associated with convenience and personalisation, exploring the concepts such as tailored Google searches, or advertising based on purchasing history and defining consumers' attitudes.

· Identify the value consumers assign to their personal data, what type and amount of data consumers are prepared to share and for what reasons.

5. Consumers' perceptions of the security risks online;

· Explore the size of risk associated with online financial transactions and source for concerns.

· Define perceptions of the security of websites as accessed via different devices and internet connections, explaining the factors that influence these perceptions.

FlexMR has an unrivalled range of tools that can be mixed and matched to suit any budget.

Developed over eight years and used currently by the Intersperience research team with their clients, it is now available for use across the industry as a stand-alone piece of software.

This means that for the first time you can conduct research with or without the support of Intersperience.

FlexMR is available to all, including research agencies, freelance researchers, small businesses and companies who want an innovative and social research tool to talk to customers, employees, even other businesses, in disparate locations.

FlexMR, available in 60 languages with 23 tools, can be used for any and every type of online research project, small or large, short or long term: from one bulletin board focus group through to the most sophisticated research community.

CEO Paul Hudson talks about the potential of the system: “FlexMR offers a range of tools allowing users to engage in interesting feedback, rather than exhaustive questioning. It does this, without detracting from the key focus of the research. FlexMR is particularly effective with teenagers who are notoriously difficult to get to take part in research. It offers a new way of bringing young people's voices to the attention of businesses.”

“Our industry is struggling to inspire confidence about how peoples' data is found and used online. Online research forums seem to be a more honest and collaborative way of using personal information.” Paul added.

FlexMR is being launched at the Market Research Society's annual conference in London on 19 & 20 March 2013.

For more information visit: http://flexmr.net/

Under-18s will test resources to the max as multi-channel contact goes into overdrive.

Frequent multi-channel exchanges with youthful consumers sounds like a marketer's dream but our research identified dangers for businesses who overlook radical changes in how under-18s communicate and who fail to prepare for an explosion in contact volumes.

Our research showed that while 18-24 year olds are consummate digital communicators, their younger siblings (dubbed the 'Regeneration') are the most frequent and prolific communicators of any age group across every channel.

Contact via mobile internet-enabled devices is rising fastest and the brisk pace is set to continue: worldwide mobile data traffic is forecast to rise 18-fold within five years as the number of mobile internet-enabled devices exceeds the number of people on the planet.

Teenagers are sophisticated in their choice of communication channel; with many opting to communicate first by mobile internet which saves their phone credit and allows them to reach more people simultaneously - under 18s juggle multiple conversations with ease.

We found a direct correlation between age group and frequent use of social networking sites and instant messenger. Under-18s emerged as by far the heaviest users of both, outstripping even18-24 year olds by a large margin. As they mature and play a larger part in the economy, we expect the 'Regeneration' to trigger a rapid proliferation in communication on all fronts.

This demographic of ultra-keen and technically skilled communicators excites businesses keen to build positive relationships with them. However, our research presents two uncomfortable truths that businesses may not be equipped to deal with.

Firstly, the sheer volume of communication which we anticipate under-18s will generate, will strain resources across an organisation from marketing to customer service teams who will face a deluge of inbound contact. Secondly, there is no evidence to suggest that an explosion in contact volume will be accompanied by wholesale migration to digital channels from traditional ones, which means resources will be spread thinly as all channels will continue to require support.

Many businesses expect that under-18s will overwhelmingly prefer to communicate with them via digital channels. However, we found that email remains the preferred form of communicating with businesses whether consumers are under-18 or over-25, phone calls also rank highly regardless of age.

Currently, 18 to 24 year olds communicate more frequently with organisations than any other age group, and far from being restricted to, or dominated by social media channels, they make frequent use of every contact channel. Overall, their total volume of contact is 7% higher, with email and phone calls used most often, although they also use Facebook, online chat, Twitter and video chat more frequently than other age groups.

Hard on their heels is a younger generation which we already know to be more prolific communicators across every medium. Factor in the fact that this age group is only beginning to make its presence felt in the commercial world in a small way and the scale of the looming communication explosion becomes apparent.

According to the latest findings by consumer researchers, Intersperience, there is a 12% jump in the number of people who have seven or more digital devices whilst those with three or less remains the same as last year at 18%.

A new type of super user, the 'device junky', is emerging, represented by 29% of those surveyed. Whilst the majority of us (53%) have between four and six devices at home, a drop of 13% compared to the same time last year.

“We are seeing a new phase in the digital divide as the technology skills gap among consumers widens” comments Intersperience's CEO Paul Hudson.

“At one end of the spectrum there are digitally connected multi-device using households, who are adept at multi-tasking. And at the other end there is a persistent minority with fewer than three devices whose online repertoire is much more straight-forward.”

Over a thousand people in the UK, of all ages, were asked how new technology is being used in the home through surveys, brainstorms, smart-boards, diaries and discussions. Compared to a similar survey last year the results show developing patterns of use with major implications for businesses that need to capture the attention of these polarising groups.

The 'device junky', the majority of who are under 45 years old, will have as many as five devices switched on at the same time. Multi-tasking, using several devices, dividing attention across devices rather than switching focus and using them in a more social environment are examples of the 'device junkies' more complex digital behaviours. “I was watching TV Sky + HD whilst using an iPad and also using a phone to text” said one respondent*.

Family households are more likely to have more than seven devices suggesting the presence of young residents may well explain the wider digital catalogue and more complicated behaviours of use.

This contrasts with the group who has three or less devices in the home. They are adapting more slowly to technological upgrades creating a new phase in the digital divide. 60% of them are 45 plus years old.

Paul Hudson adds:

“The implications for businesses and organisations seeking to serve all demographics are potentially far-reaching. When you add in the two in 10 UK households that Ofcom recently claimed were still 'digitally excluded', with no internet connection at all, we estimate that 31% are nowhere near the 'device junkie' multi tasker. On the one hand, businesses have to invest heavily in technology to support the device junkies, whilst simultaneously continuing to invest in supporting the rest of the population who may not be adapting as quickly.”

Ends

* Case studies are available showing how devices are being used, please click here to see the case studies.

For specific information about the survey please contact Paul Hudson or Pam Taylor on 015395 65450.

Notes to editors

Devices: The term devices includes: smartphones, mobile phone, laptops, tablets, personal computers, satellite or cable TV, games console, internet radio, e-reader, connected TV. The biggest increase of all device use is the tablet computer. Four times more respondents indicated that they use the tablet computer compared to a survey in 2011. The increase in the use of the smartphone continues with uptake almost doubling (although slower than that of tablet computers).

About Intersperience: Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in the UK, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: ITV, The British Council; General Motors; Iceland; Samsung; ScottishPower and William Hill.

http://www.intersperience.com/

For more information: E: enquiry@intersperience.com T: + 44 (0) 15395 65450

Cracks show in consumers' love affair with smartphones as internet performance disappoints

The consumer love affair with smartphones is showing signs of cooling in the UK amid frustration over poor mobile internet connectivity and performance, according to new research by Intersperience.

In the latest Intersperience study looking at mobile internet, consumers were asked to rate their satisfaction with the main devices they use to access the internet and only 39% rated smartphones as excellent for internet access. The results compare unfavourably with other devices such as laptops, PCs and iPads, all of which were rated as excellent by more than 80% of consumers.

Intersperience Chief Executive Paul Hudson said: “It's not that people are any less keen to use smartphones for internet access, in fact the opposite is true. They are now so conditioned to expect 24/7 fast internet connection wherever they are via whatever device they choose that they are increasingly frustrated when smartphones fail to deliver.”

The key issues raised by consumers who expressed dissatisfaction with internet access via smartphones included: slow connections, interrupted signals and lack of universal connection in all UK localities. The study also highlighted the fact that tech-savvy consumers are becoming increasingly critical of apps with limited functionality.

Hudson said: “Usually consumer behaviour and the pace at which people adapt to innovation lags behind the speed of technological change. Unusually, we have detected evidence that this time consumers are ahead and the technology is failing to fulfil their desire to use smartphones to access a wide range of information on the move.

Mobile internet usage used to be defined by extreme micro use to access data quickly such as train times or sport scores but now consumers want to browse more widely on the move and perform more complex functions. We believe we're seeing the start of a significant shift in mobile internet usage patterns.”

Evidence of significant dissatisfaction over smartphone internet performance emerged despite the fact that parallel research by Intersperience revealed that British consumers have a strong emotional dependence on their smartphones, with some even sleeping with them at night.

Hudson commented: “Consumers are emotionally connected to their smartphones - it's just that the honeymoon period is over as far as performance is concerned. It's logical to expect some kind of backlash when consumer satisfaction levels fall below 40%. The question arises of who consumers will hold to account for poor internet access performance and which brands will suffer as a result.”

The pathfinder survey of consumer attitudes on internet access via different devices forms part of a larger syndicated Intersperience research project 'Internet on the Move' which will be completed in early May. The project addresses critical issues for mobile internet from a consumer perspective including app preferences, Wi-Fi usage and flexibility of operating systems.

A first ever study of the role of digital devices on Christmas Day shows technology is moving in on some of our Christmas traditions.

1000 people in the UK, aged between 18 and 65, were asked what role digital devices will play on Christmas day, the sorts of gifts they will be buying and putting on their wish list, and how they will shop for them.

The survey by consumer research specialists, Intersperience, found that when it comes to one of the main events of the day, Christmas dinner, one in five of us intend to use a digital device during the meal.

“Whilst Christmas is about time spent with friends and family our findings show that many of us will also want to spend time with our digital devices. We will either be watching, or catching up with, the latest soap or 'The Queen's Speech', taking pictures or texting Christmas wishes. 13% of respondents said they would use a smartphone, laptop or tablet to connect to the Internet during the meal to carry out these activities” said Intersperience's CEO Paul Hudson.

The survey also revealed that during Christmas Day 75% of us intend to use the internet at somepoint. Of those planning to do so, 25% of us use a laptop, tablet or smartphone to watch TV and 1 in 10 said they would follow the Queen's speech on these devices.

But by far the most popular use of the internet on Christmas day is social networking. With 61% of us intending to access these sites on Christmas day, to send Xmas greetings, the tradition of keeping in touch looks set to be an important part of the day.

An important statistic for retailers is that over a quarter of us are planning on shopping on Christmas Day leading Hudson to comment that:

“Whilst this is one of only two days of the year shops aren't allowed to open, it seems that our insatiable appetite for a bargain won't let us rest. The internet has provided a route for us to start sales shopping earlier. This shows, more than ever, how important it is for retailers to have a good presence online.”

The survey also found that almost 1 in 10 parents plan to buy their under 18's a tablet computer whilst almost 3 in 10 adults are hoping to receive one for Christmas.

In terms of the contents of Santa's sack, there's a split between parents who intend to put gifts of clothes, books and toysabove digital purchases and those who won't. 47% of us expect to purchase technology presents for our children this year.

“We are seeing digital devices making quite an impact on the traditions of Christmas day. We can expect their appearance at Christmas dinner, as part of Santa's sack and we'll certainly be using them to send each other Xmas wishes as well as starting our sales shopping” added Intersperience's Paul Hudson.

However one 170 year old Christmas tradition, the sending of a card or letter, continues to stand the test of time in this new digital age. It is still the most popular way of wishing someone 'Happy Christmas'. 64% of those surveyed said they would be posting their greetings this year.

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For more information please contact Paul Hudson or Pam Taylor on 015395 65450.

Notes to editors

Devices: The term devices includes: smartphones, mobile phone, laptops, tablets, personal computers, satellite or cable TV, games console, internet radio, e-reader, connected TV. The biggest increase of all device use is the tablet computer. Four times more respondents indicated that they use the tablet computer compared to a survey in 2011. The increase in the use of the smartphone continues with uptake almost doubling (although slower than that of tablet computers).

About Intersperience: Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in the UK, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: ITV, The British Council; General Motors; Iceland; Samsung; ScottishPower and William Hill.

http://www.intersperience.com/

For more information: E: enquiry@intersperience.com T: + 44 (0) 15395 65450

The results of the vote on the first motion highlights the extent to which the awareness of 'show-rooming' (where consumers merely look at goods in stores and then buy elsewhere, predominantly online) is not yet prevalent in the UK although it is already a hot topic in United States and there is some evidence of this trend growing in the UK.

Shops will become non-transactional spaces

Personal data proved an emotive issue, with several delegates expressing a view that not only will it become a powerful currency in future, but that this has already happened.

Personal data will become a new 'currency' in future

Meanwhile, despite the fact that consumers are rapidly adopting mobile devices such as tablets and smartphones and using them for an increasing number of tasks, delegates do not believe this will lead consumers to being ahead of technology in future.

Consumers will be ahead of technology in future

Finally, the rise of multi-channel contact, particularly an explosion in social media traffic led delegates to conclude that companies are not geared up to respond to the communications boom that is on the very near horizon.

The communications boom will leave companies wrong-footed

Retailers wary of 'showrooming' shoppers who visit stores then use mobiles to hunt for online bargains

Price-conscious consumers are increasingly using mobiles to hunt for bargains, stoking fears among retailers that the only footfall they may see in future will be from people checking out products in person before buying online from rivals.

Intersperience has researched how consumers use mobiles in a retail context as part of its 'Internet on the Move' project which is currently underway in the UK. Pathway findings indicate that mobile internet is fundamentally changing the way people shop.

Although consumers are clear that they still enjoy a physical shopping environment where they can touch and try on goods and ask assistants for advice, there is a growing tendency for people to visit stores as much for enjoyment and research as for commerce.

Our researchers found that one in three people now use smartphones to surf the net for price comparisons, product reviews or to check availability of goods. We found that almost 20% use their mobiles to call up rival websites and compare prices while they are in a store - and that 30% of the people who do so actually complete a purchase from a rival while they are still standing in the store.

The growing influence of mobile internet and increased adoption of smartphones, lies behind the emergence of the 'showrooming' phenomenon (where shoppers visit stores to check out goods only to buy the product online, frequently from a rival at a lower price).

Its influence is increasingly being felt by high street retailers prompting debate on how they can re-engineer their price, product and service propositions to persuade shoppers to spend money in-store instead of online. The reaction so far has varied from defensive tactics such as preventing shoppers from scanning barcodes with smartphones in order to check prices to more consumer-friendly tactics. The latter include smartphone apps which connect a user with a salesperson when they enter a store and allow them to send and receive details of special offers, discounts or new lines by their favourite brand.

From a consumer's perspective, smartphones can help tip the balance of power in their direction, as they can go into a store armed with up-to-the-minute knowledge of prices, user reviews and special offers. This directly challenges the customer service proposition, particularly in the way staff are trained in product knowledge. It also raises difficult questions for retailers at a strategic level in terms of their responsiveness on price.

Our 'Internet on the Move' project, which will be reported in May, compiled case studies of people's experiences of using mobile internet in stores. One participant commented: “It's like a friend who helps you with deciding and saving some money with its inputs, perfect suggestion and making a decision for us to take forward.”

Another participant explained that his online price comparison search failed to secure him a discount on a camera at a major UK retail outlet - a common experience. He said: “If they would have given me the camera at a cheaper price or with freebies, like a tripod or cover case [I would have bought it there] I did tell the guy who was showing me the camera... He said he was helpless and can't bend what is on offer...So I decided to purchase it online.”

Paul Hudson, Chief Executive of Intersperience said: “Mobile internet is not just changing our shopping habits; it is altering the power balance in the consumer-retailer relationship. We are seeing the first wave of change in the retail sector but we predict it will become a powerful tide. The onus is on retailers to make in-store shopping more attractive and rewarding to shoppers, from loyalty bonuses to limited edition goods, price matching and more personalised service.”

He added: “So far the chief effect of mobile internet in a retail context has been to drive shoppers towards online purchasing but the power and convenience of mobile internet could be used creatively to enhance and improve the in-store proposition. Regardless, the evidence is overwhelming that consumers increasingly regard their mobiles as their favourite shopping companion.”

'Internet on the Move' is a syndicated study which includes qualitative research (20 in-home interviews with a cross section of ages, including teenagers and owners of different devices) and quantitative research (1,400 response survey including 400 12-17 year olds and 1,000 18-60 year olds). The report will be released in May 2012.

Please contact Paul Hudson (paul.hudson@intersperience.com) for further details.

London, UK, 27 May 2010 – Gadget geeks will be first in line at the UK launch of Apple's iPad but a critical demographic of entertainment-hungry family consumers holds the key to mass adoption, says international consumer research specialist Intersperience.

Intersperience Chief Executive Paul Hudson said: “Contrary to popular belief the key to mass adoption of the iPad will not be its role as a mobile device but its use in the home for leisure and entertainment. If Apple wins over the consumers we class as 'Optimistic Rangers', we believe the potential UK market for iPad and similar devices could exceed seven million by 2015.”

Intersperience has researched consumer attitudes towards the internet and online usage patterns and identified a group called 'Optimistic Rangers' which currently represents around 22% of the adult online population. They possess a relatively high degree of web literacy, are adept at multi-tasking, and embrace new technology challenges confidently.

Hudson said: “The iPad will mark a sea-change in how people access the internet in the

home and Optimistic Rangers will be at the forefront of this change. Some analysts have predicted that the iPad will struggle because it's neither a PC, a laptop nor a mobile - but this is missing the point. The reason it will succeed is that it's the first device that truly fits with the lifestyles of families and the new ways they want to use the internet.”

Hudson added: "The iPad launch is part of a chain of events that is redefining how consumers interact with the internet. To predict which devices will gain mass adoption requires an understanding of how consumers are adapting to the evolving role of the internet and rigorous analysis of their behaviour, not just a technical review of the device."

Currently consumer behaviour when using mobile internet devices is characterised by extreme micro use in short sharp bursts for problem-solving, fact-checking or quick communication updates. Hudson believes the iPad could see a major shift in usage patterns to embrace a wider range of tasks, with a greater emphasis on entertainment.

Intersperience also identified a key consumer group it defines as 'Informed Rejecters' which could prove a hard sell for not only the iPad but other mobile internet devices. Ironically, this group is defined as being the most technically-literate, with a strong attachment to the internet and easy access to mobile internet devices.

Hudson said: “Informed Rejecters may appear to represent the ultimate marketing sweet spot for new mobile internet devices like the iPad but our research found that only 37% of this group find mobile internet useful with the majority showing a marked resistance to using mobile devices to go online. The real sweet spot is families looking for a device which delivers an enhanced entertainment experience in the home.”

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The reality is that there seems little danger of the situation being over-hyped. If anything, we need to shout louder about this because few organisations are sufficiently well-informed at a senior management level about the seismic changes taking place in how people communicate, especially younger ones who are the consumers of the future. That means they have little idea about the impact this will have on their operations and relationship with customers.

We have carried out several special research projects on mobile internet use and the consumer of the future, as well as into behavioural trends and attitudes among under-18s and we have overlaid these findings to create a highly detailed picture of how people will communicate in the next five to 10 years. The unequivocal conclusion is that the sheer volume of communication will increase exponentially, driven by a number of factors, including a proliferation in contact channels.

The key factors influencing this are an acceleration in mobile data traffic growth (it is forecast to rise 18-fold within five years as the number of mobile devices exceeds the number of people on the planet). In particular, growth in adoption of smartphones and tablets is fuelling increased communication, while the spread of social networking is also an important contributor, predominantly in the personal sphere, but increasingly in the corporate sphere also.

Contact Overload – Research Update

There are more generations than ever embracing social networking as a habitual form of communication but the most prolific of all are young teenagers who use social networking sites and also instant messenger twice as much as 18-25 year olds, who are already active users.

Q2 If teenagers are mostly fixated on digital communications won't we see a reduction in contact via more traditional channels in future?

That is the prevailing received wisdom - but it is not an accurate understanding either of what is happening today or what will happen in future. What we're seeing is a desire and need for continuous communication in the teen group not just via digital channels but across all contact channels.

Today's teenagers are sophisticated communicators who juggle simultaneous communication across different channels with ease - they are frequently on Facebook, texting and speaking in person to friends, all at the same time.

Connected Generation – E-Journal

You might surmise that as they already use social media and instant messenger more than any other demographic; they are likely to give up on text, email or phone calls - but our research shows that is not happening. Texts are popular for personal contact but phone calls also remain popular. Email is rarely a top choice for personal contact among teens but is one of the most popular choices (along with phone calls) for contacting organisations. What this clearly tells us is that the future of consumer contact is not about channel substitution, it is in fact about proliferation of contact via every channel.

Q3 Are organisations prepared to respond to the communications explosion?

Speaking bluntly - no, they are not. A critical thing that is often overlooked in the customer communication debate is that there are often deep internal conflicts within organisations when it comes to customer contact strategy.

Opposing Tensions – E-Journal

For example, marketing success is frequently measured in terms of increased engagement which fosters increased contact via multiple channels, offering customers as many opportunities as possible to engage with a brand.

Contrast this with customer service operations where senior management are frequently incentivised to reduce contact in order to strip out the cost of service. There is also a common trend for service operations to attempt to drive channel migration to the cheapest channel rather than offering channel choice to customers.

Conflicting drivers within separate parts of an organisation complicate the picture, often obscuring the board's overarching view of how customers actually want to make contact - which ultimately hampers their ability to plan for the future.

In simple terms, there is limited awareness of the fact that teenagers are communicating significantly more and that channel substitution is simply not happening. Organisations need to recognise that myth and tackle the contradictions within their own businesses on optimal customer contact strategies. That is a hard circle to square.

Website designers may struggle to appeal to sophisticated generation used to online gaming thrills

Web designers looking to attract the attention of tomorrow's consumers will have to raise their game in order to connect with a generation which has grown up playing sophisticated, content-rich and socially interactive online games.

The conclusion emerged from the latest Intersperience research project 'Digital Futures', which found that children as young as eight have mastered complex online tasks to navigate their way through interactive gaming sites and that as a result by comparison, conventional websites hold little appeal for them.

Today's children play sophisticated interactive online games even as pre-schoolers, taking on virtual opponents, interacting socially and participating in reward and incentive schemes. That means they come to websites expecting a rich experience in terms of graphics, social interaction and multimedia elements. As adults they will expect an equally rich experience from corporate websites but that won't happen unless web design ratchets up a gear in recognition of the way kids engage online.

Gaming is the favourite online activity in the under-12 age group who enjoy challenges, puzzles, earning virtual currency, progressing through different skill levels and colourful and fun graphics as well as sound and animation. Favourite sites for this age group include Club Penguin and Moshi Monsters although they also engage in educational games both at home and in school.

The research found that children have developed more sophisticated browsing skills through their gaming experiences, characterised by browsing at 'hyper speed', absorbing information in what looks like a random way to adults but is actually highly time-efficient. They also develop creativity, problem-solving and team-working skills through collaborative multi-player games which often involve a high degree of social interaction online.

Intersperience Chief Executive Paul Hudson said: “The next iteration of websites must take account of the different attitudes, skills and behaviour of today's under-18s who are the first generation to have been born into the digital age.”

Current website design is for the most part based on simplicity and ease-of-use to suit the needs of an older demographic of users who browse websites in a linear fashion, in the same way as they consume books, newspapers or other traditional information sources. This partly explains why so many websites today are designed to provide only basic information or to enable users to conduct basic transactions.

Future website design must take into account the fact that the social element of websites exerts a powerful pull on children and teens, enabling them to connect with friends and talk to one another.

Paul Hudson added: “Interactive websites which encourage social interaction represent a virtual playground to under-18s. This challenges web designers to build a social element into every site. It also challenges Facebook and othersocial networking sites to add new dimensions as the digital generation may not value websites whose sole focus is socialising, without offering any other function or benefit.”

- More than half of consumers used social networking sites during Games

London, UK - August 11 2012 - British fans were so eager to keep up with the London 2012 Olympics action that more than half not only switched on TVs but also used radios, laptops, smartphones and iPads to follow events simultaneously, according to new research by international consumer research specialist Intersperience.

A group of 250 people around the UK participated in a special Intersperience research project in which they recorded how they followed the action during the middle weekend of the Olympic Games which resulted in a weekend gold rush for Team GB.

The research found that 52% of people who watched the action on television followed events simultaneously across two or more devices, frequently following several sports at a time on different screens. In fact, the research showed that 10% of participants used three or more devices to keep up with the sporting action.

Participants used several devices at once to get a mix of live action, replays and post-event interviews as well as to get more detail on events and athletes and to access social networking sites. Many people chatted on the phone about the Games, while also reading results online, watching live TV and sending emails.

Paul Hudson, Chief Executive of Intersperience said: “ Our research shows that London 2012 was not just the world's first Digital Games, it was a major event for social media. We found that 45% of the people using social networking sites while watching the Games, were directly communicating about the Olympics. If these figures were replicated across the total population, it would mean that 16% of the total UK population used social networking sites to share the Olympics.”

Facebook emerged as the dominant site, with 95% of participants using it to share Olympics facts and opinions compared to just 18% who used Twitter, although Twitter was more popular when people were away from home.

The project also showed the ways in which families used digital technology to share the Olympic experience. One woman participant said: “I was on Skype to my husband in Afghanistan and I pointed my laptop webcam at the TV so he could watch specific events with me and I was using Facetime on my iPad to talk to my daughters at Gatwick Airport at the same time so we had a four-way conversation.”

A total of 46% of people watching the games on TV at home were also using their laptops at the same time while 31% were using smartphones. Ipads proved popular also, especially for using Facetime to connect with friends and family during major events.

Another participant described his experience of following the Olympic marathon: “I had my DAB radio on Radio Five Live, I had my TV switched on with the sound turned off and I used my laptop to get details of the marathon.”

Paul Hudson said: “This research shows that ordinary families are becoming very sophisticated in the way they consume and share information across digital platforms. Digital is now mainstream in the UK - this is a wake-up call for organisations who have not yet mastered multi-channel digital contact.”

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NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E:valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in the UK, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower and William Hill.

http://www.intersperience.com/

For more information: E: enquiry@intersperience.com T: + 44 (0) 15395 65450

The digital revolution has resulted in dramatic changes in consumer behaviour and unless businesses fully understand the scope and significance of those changes, they will be unprepared to engage with the consumer of the future.

Mahatma Ghandi said: “The future depends on what you do today.” His words have resonance for business leaders in the 21st Century who must act now to devise strategies for engaging with a new breed of consumer.

To succeed, they require a greater understanding of current behaviour and of the forces that have effected remarkable change in today's adult consumers and which are driving more radical change in the next generation.

Our 'Open Ideas' event drew on our extensive research into multi-generational consumer behaviour and the impact of technological change to deliver unique insights into the multi-faceted nature of future consumers.

The future consumer is highly demanding, constantly connected, ever-mobile, and hyper-local in their behaviour. The forces that have shaped this new breed are the all-pervasive and constant presence of the internet; the rapid adoption of mobile devices, especially smartphones; and explosive growth in social networking.

The rise of the 'connected consumer' affords an opportunity for constant brand engagement but there is a risk of alienation if your engagement methods and content are not relevant and delivered in a format which suits the consumer's evolving needs.

Being 'connected' has afforded consumers both greater choice and control, via product browsing and price comparison, while Facebook and Twitter have given them a powerful voice to praise, criticise and rate business in a highly public manner. Google's search facility was like turning on a light - consumers could suddenly see what they were looking for and now social networking sites provide a megaphone to shout to the world.

This has shifted the balance of power from an adult/child dependent relationship between business and consumers to a more challenging grown-up relationship and businesses must recognise and adapt to this new dynamic.

While connected consumers like having control over their personal data, they are conflicted over how much control to cede for the sake of convenience in the form of more personalised service and offers. The price of convenience is leaving a trace of personal preferences, a contentious issue for many consumers. In the future, the businesses which tackle this issue transparently and in a way which clearly demonstrates benefits for consumers will emerge as winners.

Mobile devices have wrought some of the biggest changes in behaviour - for digital natives, the internet just is mobile. Having no mobile engagement strategy is like saying you don't open for business on a Thursday.

Yet, business is still playing catch-up in the mobile sphere and there are illogical gaps in strategy as a result. For example, mobile ads are 80% more memorable, with consumers still able to recall them after 15 days - yet, 79% of major advertisers do not have a mobile-enabled website.

The numbers on mobiles are compelling - there are now 7 billion mobiles in the world and in the UK smartphone penetration has passed 50%. For under-18s especially, mobiles represent the key to their lives, 75% said they could not live without them. Under-18s have the boldest vision of how all-important mobiles will be in future, envisaging a world in which their mobile controls a range of other devices.

Mobile, or M-commerce, is not the same as E-commerce; it is less about transaction and more about browsing and gathering intelligence, although this will evolve with the arrival of mobile wallets using Near Field Communications technology.

We know that 70% of UK consumers access the internet via mobile and that figure is growing, so services distributed or marketed via the internet need to be optimised for that channel. Overall, mobile is the most important trend of the digital age - businesses simply cannot afford not to have a mobile strategy.

A major trend affecting the future consumer is the convergence of social, locational and mobile - known as SOLOMO. This has spawned the 'hyper-local' consumer and some of the smartest investors on the planet, including legendary fund manager Warren Buffet, are investing in services which serve a local need.

While the internet is universal, everyday life is local and people really want to know about their local community. Brands which tap into that desire and market relevant local offerings will have a competitive advantage.

We know that 84% of smartphone users want recommendations for what to do in a new place and value the opinion of other consumers more than brands. Consequently, to influence opinion, brands need to develop 'brand advocates' who will win over new converts.

The 'hyper-local' trend is still emerging and is hampered by limited location optimisation technology and lack of universal network coverage. However, as it develops it has the potential to enable more businesses to proactively market location-specific deals designed to transform a browsing visitor into a paying customer.

The pace of change is accelerating - we are doubling the rate of technological change every decade. Business survival necessitates a rapid and flexible response which means stepping out of the comfort zone, even if your business enjoys a seemingly entrenched dominant position today. The average lifespan of a company was 65 years in 1920, today it is 15 and even once-mighty giants like Kodak have foundered by reacting too slowly to technological change.

Companies most at danger of obsolescence in this new reality are those which delegate responsibility for change, have rigid legacy operating environments and make conservative management decisions. Other danger signs are businesses with hierarchical structures which mean senior management are remote from the consumer as well as those paralysed by capital constraints.

As businesses hurtle towards this somewhat daunting future, these are the five key trends they must address:

1. Locally-empowered consumers will transform business

The show-rooming trend is the tip of the iceberg - mobile browsing and price comparison will continue to increase. Locally targeted offers will become the norm.

2. Consumers will become ever more demanding

Constant connectivity has fostered the 'now culture' which means instant gratification is expected. Businesses which struggle with impatient and well-informed customers will fail.

3. Consumers will expect seamless service across channels and screens

Brands must deliver a universally good service regardless of channel or device. They need to consider device connectivity and focus on the overall quality of customer experience.

4. The communications boom is here

Multi-channel consumers demand more communication, not less. Under-25s communicate with businesses 7% more than over-25s and use all channels, digital and traditional (phone and email). The future is channel proliferation not channel substitution.

5. The Future Generation are on their way

Under-18s are the most prolific and skilled multi-channel communicators we have ever seen, especially via social networking. They dictate terms on channel choice and personal data disclosure which makes them harder to reach and control. Devising a strategy which recognises this is essential.

London, UK, July 11 2012 - International consumer research specialist Intersperience is launching a study across several continents to determine the impact that cultural differences have on how citizens use mobile technology in diverse societies within Europe, Australasia, and North and South America.

The project, which commences in July, involves surveying a total of 1,800 citizens from nine nations including the UK, Germany and Spain; Australia, Japan, South Korea and China; the United States and Brazil. It will also involve additional desk research in native languages conducted by Intersperience's dedicated multinational research team in the UK.

The 'Culture of Mobile and the Internet' project will explore how different cultural values and beliefs affect people's expectations, uses and perception of technology, with a particular focus on smartphones and mobile internet usage.

The new project follows the ground-breaking 'Cultural Lens' research project conducted by Intersperience in 2007 which demonstrated the extent to which cultural background influences consumer behaviour. Intersperience devised an innovative means of measuring cultural differences and similarities between nations for this study.

Paul Hudson, Intersperience Chief Executive said: “Our 'Cultural Lens' study showed how culture influences purchasing, communication and responses to marketing and advertising. The new study puts this firmly in the context of mobile internet which is changing consumer behaviour in radical ways. We will deliver vital intelligence on a complex issue because we will delve deeper and not only pinpoint cultural differences but explain why they have direct bearing on the ways in which different nations respond to mobile technologies.”

The new study will focus specifically on young urban professionals aged 25 to 35 in each of the nine countries, all of whom own smartphones and have mobile internet access at home. It will provide a detailed assessment of how culture influences mobile usage and online behaviour and it will also examine how cultural issues impact the pace of mobile internet adoption in different countries.

Hudson said: “Our project will shed new light on critical commercial issues for big brands in the mobile age, from mobile operators to businesses selling goods and services online. It will deliver a greater understanding of how culture affects responses to apps and online advertising as well as how attitudes to security can impact mobile payment systems. We will effectively create an international cultural route map on mobile internet adoption among young urban professionals, an attractive consumer target group.”

The project will equip businesses with the insight they need to devise culturally-appropriate online experiences and marketing and advertising messages for target customer groups in major global markets. It will also include research into the role of social platforms in establishing consumer relationships with both western and local brands in key markets.

Intersperience has recruited its first clients for the multi-country study. There is still an opportunity for organisations to participate in the research which concludes in September.

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NOTES TO EDITORS

For more information and to enquire about participating in the 'Culture of Mobile and the Internet' study please contact Intersperience directly:

Email: enquiry@intersperience.com

Tel: + 44 (0) 15395 65450

Media Contact: Valerie Darroch, T:07970 737708

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower and William Hill.

http://www.intersperience.com/

M-consumers don't simply want to make calls and send texts. Typing emails to the boss on the train no longer seems extraordinary. Uploading a picture to a social networking site is now a 10-second task and browsing fashion apps for the latest must-have shoes passes a few hours at home when the television is rubbish.

From its humble beginnings as a glorified email reader for busy executives, the smartphone has evolved into an everyman device that has changed the behaviour patterns of large swathes of the world's population.

This mini industrial revolution has all happened in the five years since Apple launched the iPhone and is gathering pace. It would seem the next stage of evolution, from a technology standpoint, is to bring all the various mobile devices together in one super smartphone that can make calls, surf the web and take care of a myriad other daily chores.

For developers and corporations this idea of convergence holds out enticing possibilities of huge efficiency savings from working to one global standard and being able to scrap many peripheral technologies and more traditional means of communication, such as the humble telephone.

A beguiling dream, perhaps, but it is not going to happen. Intersperience has been tracking the behaviour of mobile consumers since they first emerged and there is strong evidence in our latest research, revealed at Open Ideas in May, that convergence remains an elusive aspiration of software developers. If anything, people are using more devices, rather than fewer.

There has been a 20% rise in the number of people using mobile internet in the last three years and people are as likely to click on a smartphone as they are a laptop or PC for the most popular online tasks – email, social networking, website searching, games, headlines and sports scores.

Some 8% have a smartphone and a tablet, while 63% of those with both have used a tablet to connect to the internet when they could have used a TV. There is nothing to suggest convergence in that.

When the iPad was launched in April, 2010 Intersperience said it marked a defining moment in the evolution of the internet. We predicted then, and are seeing it happen clearly now, that the very nature of the internet would change as it comes to be seen as the “electricity” that powers a vast online world, rather than an end in itself.

It is not the desktop PC or even the laptop, but the multi-functional smartphone that is emerging as the fulcrum of this new reality. Here are two very small nuggets that prove the point: 42% of under-18s want to use smartphones to “control other things” in the future and three times as many under-18s would choose a mobile over a PC for downloading photos.

In our qualitative studies we have found enthusiasm for the following as additional services offered on mobile phones: universal remotes for controlling home entertainment and appliances; games console controllers; traffic monitors to avoid congestion; keys for cars, homes and businesses; augmented reality platforms to provide maps with routes embedded and project images of friends.

If this all sounds a bit sci-fi – or hormonal teenager's bedroom – the fact is that the growing number of mobile consumers want greater access to the online world and are happy to use any device that delivers it.

Whether the smartphone is the catch-all device is a moot point. However, it does have the advantage of being small, lightweight and offers charging structures – monthly tariffs and micro payments for apps –that most people are familiar with. It is the most personal of devices, the one we keep with us all of the time (some even sleep with it close by).

While it might be the device of the moment, companies seeking to engage m-consumers should not consider it a catch-all, nor should they ignore other communication channels. For example, by 2015 there will have been seven million iPads sold. Even now, email and phone remain the most popular methods of communicating with corporations with consumers.

When it comes to cloud computing, the great British public has not yet worked out what it is most comfortable with. Only 10% of those questioned consider themselves technology experts and 57% see themselves as “beginners”. At the same time, 61% see technology as “necessary” to their everyday lives.

M-commerce has been a much-hyped channel for five years but we at Intersperience always predicted that adoption would be slow and that the impact would not be felt in direct sales, but rather in the seamless way mobile devices interact with other sales and marketing channels, as price comparison tools and providers of accessible consumer information.

Bombarded with choice and delivery mechanisms, the attention of today's m-consumer is divided. Our evidence shows those companies offering technologies and products that are easy to grasp and deliver identifiable benefits to individual lives are poised to be the long-term winners.

London, UK - 22 June, 2012 - International consumer research specialist Intersperience has signed a new contract with William Hill Plc, the world's biggest bookmaker, to provide mystery shopping services during an action-packed summer of sports.

A team from Intersperience will make mystery shopping calls throughout an exciting summer season which includes horse racing at Glorious Goodwood, England versus South Africa cricket, the start of the new Football League season, the Rugby League Challenge Cup final, and the London 2012 Olympics.

Paul Hudson, Intersperience Chief Executive said: “Intersperience is delighted to be providing mystery shopping services for William Hill, which is one of the most recognised and trusted brands in the gambling industry. Our team will provide a detailed and objective evaluation of their customer experience during what will be an exceptionally exciting summer for sporting bets.”

William Hill, which has a 75-year sports betting heritage, engaged Intersperience to deliver mystery shopping services as part of its commitment to continuously evolve its products and services delivery to meet the changing demands of its diverse global customer base.

Intersperience will make 400 mystery shopping calls during which researchers will place bets with William Hill and five competitors, providing expert evaluation of the company's performance benchmarked against its rivals.

Intersperience will employ Soft Skills Benchmarking (SSB) methodology (regarded as an industry de-facto standard since its creation by Intersperience and the Henley Centre in 1998). SSB assesses more than 30 separate soft skills during four stages of customer interaction, delivering an independent analysis of strengths and weaknesses.

Chris Kenny, UK Operations Manager for WIlliam Hill said: "Summer 2012 is shaping up to be a thrilling summer for our customers with so many sporting events to choose from. We are pleased to be working with Intersperience again on a mystery shopping programme which helps us deliver a first class experience for our customers. Intersperience adds significant value through its considerable expertise in this area of consumer research."

The latest contract continues a successful five year collaboration between the two companies. Over this period Intersperience has provided mystery shopping services across phone, email and chat channels; checking the quality of the customer experience for people placing bets or accessing William Hill's customer service functions across sites in the UK, Gibraltar and Philippines.

Ends

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

The research project (which involved 1,300 participants in the UK ranging from age 18 to over 65) explored how communication channels are used by customers today and which channels and customer service interactions are the most influential in building brand perception. The results provide new insight on current failings in service and engagement and offer pointers on effective strategies for dealing with customers of the future.

We found that generally there is decreased satisfaction with customer service in the UK today, despite the significant level of innovation and sophistication with which organisations are tackling contact channel strategies.

Delving deeper, it became apparent that organisations are currently grappling with two different but interlinked and critical issues. Firstly, it is clear that contrary to general expectation, overall customer contact volume continues to rise in a multi-channel environment. There is little evidence of channel substitution as new channels are introduced and the resulting proliferation in contact often leads to resource issues, among other difficulties.

Secondly, but of equal importance, the emergence of the 'Now Culture' means that organisations must now meet the service expectations of a generation of consumers which has grown used to instant gratification and will not accept anything less. These expectations have been shaped by their experience of being constantly connected, whether via the internet or mobile phone, or increasingly from the confluence of both via smartphones.

It takes just seconds for someone to get a response to a query on a search engine - and that level of speed and responsiveness has set a new benchmark for consumers who increasingly (however unrealistically) are now hardwired to expect a lightning fast, super efficient response from every interaction with a business or service organisation.

In reality (and owing to a complex interplay of factors, practical attitudinal and economic) few organisations achieve this. Consequently, the majority of current multi-channel customer contact and service systems have an almost inbuilt propensity to disappoint rather than delight consumers.

In simple terms, speed matters - 78% of people we questioned rated speed of response as very important. It is one of the top three expected traits of interaction with companies, ranking equally important with how customers are treated and spoken to by agents. Importantly, the greater focus on speed is still accompanied by a desire for quality of contact and a personalised experience.

If you compare levels of anger over customer service in the UK in the last 9 years, you will see a fairly steeply rising curve, from 15% in 2003 to 27% in 2011. The backdrop, and indeed a major contributing factor to this has been the increasingly pervasive influence of the 'Now Culture' as well as a proliferation of multi-channel contact methods.

Our research suggests that unless businesses can deliver a uniformly positive customer experience across all contact channels, they risk losing not only the goodwill and trust of their customers, but ultimately their custom. On top of this, there is the risk of wider brand 'contamination' as dissatisfied customers are highly likely to share negative experiences with their peer group and to do so in a public way via channels such as social media sites.

The increasing availability of channels to communicate and feedback with organisation has meant that customers have much greater access – and at all times – to companies.

Furthermore, as customers seamlessly and comfortably move between channels (using whichever channel is most convenient to them at that time or which most suits their purpose) it puts the onus on organisations to formulate a 'joined up' response, with integrated management information systems across channels. In reality, many organisations are playing catch-up when it comes to channel integration, giving rise to falling satisfaction.

Brand perception is influenced by many moments of truth at different touch-points across an organisation. Our project revealed that the opportunity to create better brand engagement is actually three times stronger via traditional contact channels such as the phone than via new channels, emphasising that companies would be ill-advised to attempt wholesale substitution of phone contact with other newer channels.

Overall, although phone is still a dominant choice of channel (closely followed by email), we expect call volumes to diminish over time as new channels morph into traditional channels, as happened with email. Moreover, we contend that total volume of contact will continue to rise in a multi-channel environment, which means customer contact will remain a complex issue with which businesses must wrestle for the foreseeable future if they are to rise to the challenges presented by the 'Now Culture.”

Five key trends that will dominate next year

From location-based services to new mobile payment systems, increasing take-up of smart TV and record e-book sales, 2012 will see the emergence of key digital developments that will have a significant impact on consumer behaviour.

Through strategic consumer research the Intersperience team has produced a special New Year Trend Forecast which identifies five key trends we recommend businesses pay close attention to next year to keep in step with their customers.

1. Location-based services

Expect a major focus on location-based services in social networking and mobile services in 2012. If there was any doubt that the technology big guns are turning this way, Facebook's recent purchase of the development team of Gowalla, experts in location-based services, should dispel it. Dubbed SoLoMo (for Social, Local, Mobile), it has massive implications for social networking, retailing and marketing and also for research techniques. Intersperience will launch a mobile research app early in 2012 with a full location-based toolkit.

For more on location-based services see the latest blog from Paul Hudson: Location, Location, Location!

2. Mobile payment services

Momentum is gathering on this one, but will customers be keen to use these new systems? Some will, but don't expect to be knocked over in the rush as there is still reluctance among consumers worried about security. However, mobiles will exert a powerful influence on the way we browse and purchase and the ramifications for retailers and marketing will be huge. Look out for our Internet on the Move project, which begins in January, for fresh insight into how mobiles are changing the way we consume products and services.

3. Smart TV

Google and Apple are both vying for a lead in this space and YouView – a partnership between broadcasters and communication firms to create an open internet-connected television platform – is set to launch in the UK in early 2012. This is the beginning of the next big development of the internet and the impact will be felt in every home. Our Digital Selves and Digital Futures projects will explore the implications of this shift and report from the living rooms of early-adopters.

4. E-books

We predict that 2012 will be the year that the book industry is forced to wake up to the onslaught of the e-reader. We forecast the Kindle will be the top techno gift this Christmas while global e-book sales are forecast to rise to more than £6 billion by 2016. The only way is up for this digital trend.

5. Customer service goes back to the future

Social media may seem to be the future but the majority of consumers – even under-25s – still want to contact organisations through traditional channels: phone; email and letter. If you want to keep customers happy and loyal in 2012 you need to ensure that these channels are first class. It is tempting to focus huge efforts on social media because it is new, influential, visible and measurable but it is not the only way consumers interact with your brand.

London, UK, June 13 2012 - International consumer research specialist Intersperience is launching 'Connected Olympics', a unique ethnographic study of how digital media is used by British families, involving footage from cameras installed in 20 homes as well as a 300-strong online community to test findings across a wider base.

The in-depth project, which involves several innovative methodologies, will run throughout the London 2012 Olympics which will be the world's first truly digital games as consumers follow the action on more technology platforms than ever before - including tablets, smartphones, laptops and TVs (including internet-enabled sets).

The project's findings on how and why people interact with different digital devices and platforms such as social media in a range of real-life situations, will deliver exclusive insights on current and anticipated future consumer behaviour for a wide range of commercial organisations.

Paul Hudson, Intersperience Chief Executive said: “The London Olympics will mark the point when digital will finally go mainstream as the public switches on one billion smart devices to follow the Games. This peak in digital activity creates the perfect conditions for a unique 'live testing lab' designed to deliver fresh insight into how consumers interact with digital technology on a daily basis.”

Hudson added: “This research project is not about the Olympics per se - it is about using the behavioural insights we gather to identify the rate of adoption of new devices and explain how people are using them. It will also deliver invaluable intelligence for organisations seeking to spot product opportunities early and to gauge the impact of new devices, digital and social media on marketing and advertising.”

As well as surveillance cameras in homes, the 'Connected Olympics' project will involve in-depth interviews with family members with an emphasis on lifestyle and household dynamics to augment the video footage and add context. Participants in the project will also keep a 'mobile media diary' recording their use of digital media with the aid of Intersperience's unique location-based diary app, taking the project out of people's homes and 'following' them as they go about their lives.

It will also include research from a larger online community of 300 people which will test findings from the smaller family groups against a wider base of consumers, adding weight and depth to the overall results.

Intersperience has structured the project in three modules focusing on marketing, devices and social media, offering clients an opportunity to identify and access the elements of the project which are most relevant to their business sector. Participation in the project is priced at £2,500 per module. Intersperience has already signed up its first clients for the 'Connected Olympics' project and welcomes new participants.

Ends

NOTES TO EDITORS

For more information and to enquire about participating in the 'Connected Olympics' study please contact Intersperience directly:

Email: enquiry@intersperience.com

Tel: + 44 (0) 15395 65450

Media Contact: Valerie Darroch, T: 07970 737708, E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower and William Hill.

http://www.intersperience.com/

Under-18s are proving to be among the most savvy internet users when it comes to managing personal information on their computers. One-third of youngers aged 8-11 regularly copy their data on to separate hard drives to keep it private and the figure rises to almost 50% by the time they reach 15 (see column two above). Some 20% of 15- to 17-year-olds say they upload data to specialised websites, indicating their faith in internet security and virtual storage as well as their ability to protect their most important files. As a result, one-fifth of respondents do not worry about losing files because they know they can download them again.

*Multiple choice question: does not add up to 100%

The growth of Wi-Fi and mobile internet has created a culture of 'always on' consumers, whose expectations of constant access to the internet has encouraged the belief that we have finally reached the much heralded M-Age, a digital nirvana in which everything from social interaction to shopping and mobile payments, can be handled online and on the move. Mobile internet is set to reshape the way organisations communicate with customers and is becoming the biggest driver of consumer change in the next 5 to 10 years. This major new study analyses the evolving behaviour of mobile users in the

UK and how it is being affected by the exponential rise of mobile applications and services.

Two years ago mobile internet usage had grown to 24% of the UK adult population, with almost half of these using it daily. At that time, it was predicted that 48% of the population would be regular users of mobile internet by 2014, although adoption rates have continued to increase and these forecasts look like being met earlier. This project will explain how your brand can make the most from mobile internet: exploring emerging behaviours, explaining the impact of these changes and charting the future opportunities for your brand.

Objectives

All funding partners can input into the objectives and provide specific questions. All have the opportunity to input into the design of the research at every stage.

1. Current use and behaviour

• Explain current use of mobile internet, considering customers' needs and expectations – what applications and content are people using and why?

• Explain who is using mobile internet and what their primary use of it is; create behavioural typologies to group consumers in a commercially realistic and understandable way:

- Based on learning and motivations to use

- Priorities and needs

- Styles of use

• What are the barriers to using mobile internet? How significant are they?

• How is mobile internet used to discover or share content such as video, films, trailers or music? How important is this source compared to others?

• Examine social networking across mobiles.

• Examine the level of importance, attachment and emotional connection that customers have with their mobile devices and why this makes them the most valuable 'brand real estate' of all.

• Examine the influence and use of mobiles in different contexts and situations – travel, home, social, work – explaining the implications for advertising, service and retail on organisations' mobile strategies.

2. Commerce and m-commerce

• Explore the role of mobile internet during purchase decisions – at home, at the point of sale and on the move. Is the role primarily one of comparison, widening choice or actually making the purchase?

• How significant are the barriers and security concerns associated with purchasing via mobiles? How will this impact the growth of m-commerce?

• Explore the motivations and barriers to adoption of mobile wallets and mobile payment systems – are they likely to be adopted? If so, how fast and by who? How influential will mobile payments be in the future? What do customers expect from them?

3. Connectivity

• Now that mobile internet is central to customers' lives, how important is connectivity to customers? How high are their expectations of brands that supply mobile-based services?

• Where connection fails, even for a short time, what impact does this frustration have on the customer experience and which brand is affected (device, operator, telco, service, etc.)?

• Which connection types do customers value most Wi-Fi or 3G? How do customers perceive each connection type and how does it influence their use of mobile internet?

• Explore the impact of cloud computing on consumer behaviour? Do people actively choose devices based on access to cloud storage? What is the consumer perception of cloud storage? Do they perceive it to be secure? What are the barriers to its adoption?

4. Pace of change

• Chart and predict the likely pace of change in the future:

- Compare use and behavioural changes over the last 2 years, since the last time this study was conducted.

- By creating behavioural typologies of consumers, explain the speed at which mobile internet is being adopted and how use will change in the next 2 years.

- Consider how new mobile devices such as tablets and mobile consoles impact consumption and use of internet on the move.

- Intersperience to reveal new digital behaviour research in run-up to first digital Olympics http://www.intersperience.com/open-ideas

- BBC to unveil plans for digital coverage of 2012 Olympics at Open Ideas event May 24

- Digital communication to go mainstream as London prepares for 1 billion smart devices

- Twitter records set to be smashed as 4 billion viewers worldwide tune into the Games

London, UK, 16 May 2012 – The London Olympics will mark a turning point in the digital communication revolution with digital going mainstream in the UK as sports fans are set to switch on one billion smart devices in the capital to follow the Games, says international consumer research specialist Intersperience.

Intersperience, a specialist in how digital issues impact on consumer behaviour, is staging an Open Ideas event on May 24 at which Phil Fearnley, who is responsible for the delivery of the Digital Olympics at BBC Future Media, will provide an insight into the many ways in which the public can enjoy coverage of what will be the world's first truly digital Games.

The Open Ideas event, which will be attended by representatives from some of the world's biggest consumer brands and advertising and marketing firms, will include a special presentation from the BBC, digital rights holder for the Games, on how it will deliver more footage than ever on more devices to an anticipated global audience of four billion people.

Intersperience Chief Executive Paul Hudson said: “People are communicating across more digital platforms than ever and greater use of mobile internet is radically changing the way we send, consume and share information via email, text, Facebook and Twitter. London 2012 represents the biggest digital challenge ever for a live sporting event - the Superbowl generated more than 10,000 Tweets per second - the Olympics will be even bigger.”

Hudson added: “We've been charting critical shifts in consumer behaviour since the digital revolution began and our latest research concludes that the UK has reached a turning point in terms of mobile internet adoption and consumers' desire for 'constant connection.' The Olympics will showcase not just how broadcasters measure up to the challenge but how the world's biggest consumer brands respond to the growing army of switched-on digital citizens.”

Intersperience will present new research findings on a range of issues impacting on the UK's increasingly digital society at the Open Ideas event, which takes place at the Museum of London. These will include insights into the 'connected consumer', the behavioural traits of the 'mobile consumer' and a study of the 'hyper-local consumer' - the latest fast-growing consumer segment to emerge from in-depth research across all age groups within the UK.

Ends

NOTES TO EDITORS

Media Contact:

Valerie Darroch T: + 44 (0)7970 737708 Email valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

http://www.intersperience.com/

T: + 44 (0)15395 65450

About Open Ideas, May 24, London:

Intersperience is holding an Open Ideas event for major brands, marketeers, and opinion formers which will lead debate on Digital Britain. The guest speaker will be the BBC's Phil Fearnley who will provide an exclusive insight into the broadcaster's plans for digital coverage of the 2012 London Olympics which will encompass reporting on 26 sports and 14,500 athletes, delivering footage across more platforms than ever, including an array of mobile digital devices.

The event will also showcase Intersperience's unique and authoritative new research on the changing behaviour and attitudes of consumers in the UK, focusing on three major emerging types:

- the Connected Consumer

- the Mobile Consumer

- the Hyper-Local Consumer

It will provide insights into consumers' increasing tendency to expect 'always-on' communication; the impact of more widespread mobile internet usage and what it means for engaging with consumers on the move; how consumers want business to engage with them via scoial media and traditional media; and the significance of the emergence of a new type of consumer as a result of mobile, social and local data converging in a way that has never been possible before.

Intersperience has conducted ground-breaking research on these issues and the results make compulsive reading for business leaders seeking to understand the consumer of tomorrow.

Open Ideas takes place 0900 to 1400 on May 24 at Museum of London; London Wall, EC2M

To learn more about the event or to attend click this link www.intersperience.com/open-ideas

To request a media pass for Open Ideas please contact Alison Little at Intersperience

E: alison.little@intersperience.com

T: + 44 (0)15395 65450

Absolutely. For marketing directors, the aim is to create engagement with the brand. The more they can achieve this, the better, hence the proliferation of Facebook fan pages and corporate Twitter accounts which increase opportunities for the brand to engage with consumers.

Our research project 'The Future Consumer' has encouraging news for marketing teams because it found that customers, especially under 25s, want to interact with brands more. On average, young people said they have interacted with brands about 6% more than over 25s in the last year. We found that multi-channel consumers interact with brands more as a result of having increasing channel choice and communication opportunities.

Our research shows that we are very much in a multi-channel contact environment and that customers clearly want a choice of contact channels so they can decide which to use depending on their needs or situation and even to a degree their personality type.

What challenges are posed by a multi-channel environment?

There can often be very different and competing drivers within the customer service and marketing areas of an organisation and this poses a particular challenge.

Marketing success will be measured in terms of increased engagement, so encouraging customers to embrace new channels (whether it is to follow a brand on Twitter or to become Facebook fans) frequently forms part of a multi-contact marketing strategy which creates more touch points for customers.

However, from a customer service perspective, success lies in balancing two things: increasing customer satisfaction but also in doing it in the most efficient manner at the lowest possible cost.

Multi-channel consumers want more, not less, communication with brands and the key challenge for customer service is that this communication comes across all channels, traditional ones such as voice, as well as new channels such as social media.

There is no evidence in our report that customers are substituting voice calls with email or social media contact. The demand for voice not only remains strong, but it is as strong among under 25s and even under 18s as it is among older consumers. So as we add new channels, the old ones don't go away and there is clearly a cost implication in resourcing all these channels.

How can businesses reconcile a desire to switch to new lower cost channels with consumers' demands for a choice of both old and new channels?

There is a real challenge here. There was a general expectation that newer, lower cost-to-serve channels, would to some extent have replaced much more expensive ones such as voice by now. In reality, organisations are adding new channels but still retaining old ones which means they must support multiple channels. Meanwhile, customers are becoming more demanding and want to swap communication channels at will. This means that the customer experience has to be seamless across channels which requires integrated and management information systems and multi-skilled agents - there are clearly cost implications.

In the future, complexity and cost are likely to increase so customer service departments must evolve very rapidly. This must start with a realisation that mass migration from traditional channels to new ones is wholly unlikely. Businesses need to create new service models that embrace flexibility. They also need to understand how customers use each channel and when and how to leverage each in order to derive maximum benefit. Our latest research provides significant fresh insight on these points.

What are the prospects of resolving internal conflict within organisations over customer contact strategy?

It must begin with a common agreement across an organisation that customer contact is unequivocally a good thing. This has to lead to a resolve that customers must enjoy the best possible experience regardless of which contact channel they use because there is a clear causal link between purchase decisions and the quality of a customer's interaction.

A change in mindset is required so that business leaders cease to equate contact purely with cost and acknowledge and measure the wider benefits that engagement brings. A holistic approach which keeps the customers' needs and desires firmly in view can give rise to a new contact model which is more apt for the consumer of the future.

Phone users concerned about possible data theft

Consumers' security concerns about using their mobiles to pay for goods or services are likely to hamper UK adoption of new 'mobile wallet' payment systems, according to the latest research from Intersperience.

Intersperience questioned British adults on their attitudes towards using mobile phone payment systems and found that just 17% would like to use their mobile phone as a wallet in future, with 44% citing a lack of security software in mobiles, as their chief concern.

The findings are part of an in-depth study, Digital Selves, which surveyed more than 1,000 UK adults. The research findings, which coincide with trials of Google's new wallet payment system in the United States ahead of an anticipated 2012 UK launch, revealed a mix of emotional and rational views on mobile phone security.

Almost a quarter (24%) of respondents worry that their mobile is more likely to be stolen than their wallet while the same percentage said that using their mobile for payment “feels less secure but I'm not sure why”, highlighting the extent to which irrational fears may govern consumer behaviour in this area.

The research uncovered a marked rise in security concerns when people use devices with mobile internet access such as smartphones compared to accessing the internet via a fixed connection on a PC. This is despite the fact that there have been far higher instances of security breaches via PCs than mobiles.

The study found that consumers generally feel happier about security on fixed devices while the more 'untethered' the device, the greater the security fears. A key reason for the level of consumer anxiety over 'untethered' devices is the context in which mobile phones are used, which is largely when people are on the move in public places rather than sitting comfortably in a private personal space.

The study looked at consumers' willingness to conduct transactions via PC and via mobile and found that while 11% of people would hesitate to make a purchase via PC, this figure more than trebled to 37% when it came to the percentage who would hesitate to use a mobile phone to buy something.

Digital Selves showed that currently only 8% of adults use their mobile to buy things; however it indicated that confidence in mobile shopping will increase as it becomes more commonplace, with 21% of people saying they would like to use their mobile to buy something in future.

The younger generation emerged as the keenest future fans of mobile commerce - although just 7% of under-18s currently shop via mobile, one in three (33%) said they would like to use their mobile to buy something in future. Under-18s are also keener on mobile wallets or payment systems, with 25% happy to use one instead of a traditional payment method.

Intersperience CEO Paul Hudson said: “Consumers are fearful because they are adjusting not just to a digital world but an increasingly mobile world. There is a common perception that as your internet link becomes 'untethered' you are automatically less secure and that will impact on the pace at which UK consumers will adopt mobile payment schemes.”

However he added: “Today's adults may be adopting a cautious stance on mobile payments but we expect the next generation to take a bolder approach. Our research showed that under-18s are much more comfortable both with the concept of shopping via mobile phone and mobile wallet systems. Digital Natives will be in the vanguard of mobile commerce.”

As featured in today's Telegraph article - Majority of Britons are scared of 'wave and pay'

- 65% of teen mobile internet users admit to being “addicted” to their mobiles

- Teens would rather live without TV, Facebook and chocolate than their mobile

- Research shows loss of mobile would make users agitated, panicked and tearful

- 70% now use mobile internet daily, up from 58% in 2009

London, UK, May 14 2012 – The majority of British teenagers who use mobile internet admit to feeling “addicted” to their smartphones and would rather give up television, Facebook and chocolate than their phone, according to a new study by international consumer research specialist Intersperience.

The study found that mobile addiction is on the rise across all age groups in the UK with almost half (48%) of adults admitting to feeling addicted, compared to 65% of under-18s. The addiction is being fuelled by a communications boom which has seen the percentage of the UK population regularly using mobile internet jump to 38% from just 24% in 2009.

Both teenagers and adults named their mobiles as the number one object or activity they could not live without. Teenagers were more willing to give up Facebook, television and chocolate than their phone while adults would rather live without make-up, alcohol, cigarettes and coffee than their phone.

The findings are drawn from Intersperience's 'Internet on the Move' project which researched mobile internet use across the UK, analysing the behaviour of 1,400 mobile users, including 400 aged between 12 and18. It is part of a series of research studies into the impact of the digital society on UK consumers.

Smartphone ownership is higher among under-18s (66%) than adults (58%) but the study found that both age groups have strong emotional connections to their phones. Respondents said they would be “agitated”, “lost” and “panic-stricken” and many said they would cry if they lost their mobile.

More teenagers (60%) than adults (48%) would feel agitated if they did not have their smartphone for a full day and teenagers were also more likely to describe themselves as sad, helpless and lonely without their phones.

The study also revealed growing pressure on parents to buy mobiles for children at an earlier age - under-18s think a child should get its first mobile at age 10 to 11 while parents think it should be age 12 to 13.

Intersperience Chief Executive Paul Hudson said: “The rise in smartphone addiction stems largely from a significant increase in the percentage of people regularly using them to access the internet. This is particularly noticeable among under-18s and it is having a marked effect on their behaviour and emotions.”

Hudson added: “Three key themes emerged from our research - an increasingly high emotional dependence on mobile internet; the pervasive presence of mobile internet across all aspects of life; and the impact of the communications boom on young teenagers. Most people regard 18-25 years olds as 'Digital Natives' but we found that 12-18 year olds are an even more 'connected' generation, with 61% of them social networking via mobile every day. As that generation grows up, Britain will be transformed into a nation of 'connected consumers'.”

KEY FINDINGS FROM 'INTERNET ON THE MOVE'

1. Emotional dependence

The study highlighted the extent to which increasing numbers of people from aged 12 to older adults make frequent daily use of mobile internet for a range of activities from social to educational, work-related or leisure. This has resulted in all ages experiencing a more intense emotional attachment to their smartphones.

Excerpt from research:

Q: Which of the following could you not live without? (multiple choice)

Responses:	Under-18s	Adults
Mobile	68%	46%
TV	57%	46%
Chocolate	41%	26%
Facebook	40%	16%
Games console	39%	9%
Make-up	29%	14% (sample skewed towards females)
MP3 player	29%	14%
Football	14%	11%
Coffee	7%	23%
Alcohol	N/A	17% (adult only response)
Cigarettes	N/A	16% (adult only response)

2. Communications boom

There has been a sharp rise in the volume of communication across all digital platforms, with mobile communication rising fastest. The communications boom involves all age groups but under-18s are in the vanguard, emerging as a distinct generation of consummate multi-channel communicators, surpassing even 18-25 year olds.

Key data:

- 50% of phone owners use mobile internet regularly, up from 37% in 2009

- 38% of entire UK population use mobile internet regularly, up from 24% in 2009

- 70% of mobile internet users use it daily, up from 58% in 2009

- 60% of 18-34s use mobile internet regularly

- 28% of 45-65s use mobile internet regularly

- 64% of under 18s use instant messenger via mobile every day while 37% of 18-24s do

- 61% of under-18s do social networking via mobile every day while 46% of 18-24s do

3. Increasingly pervasive nature of mobile internet

The repertoire of online tasks done on a mobile phone is catching up with those done on a computer but the approach remains different, with info delivered via mobile preferred in bite-sized chunks. This has led to increased expectations of mobile internet coverage and device performance and signs of rising consumer dissatisfaction with current performance.

Key facts:

- mobile used for short sharp bursts of activity

- browsing time for mobile internet 5-10 mins, compared to 2 hours plus on PC/laptop

Use of mobile internet increasingly similar to PC and laptop:

- equal use for social networking - PC (71%), mobile (72%)

- similar use for information search - PC (71%), mobile (68%)

- similar use for weather and travel updates - PC (51%), mobile (50%)

Key difference: greater use of PC (64%) for purchases than mobile (21%)

Rising consumer dissatisfaction with smartphone internet performance:

- 39% satisfied with connecting to internet via smartphone

- 84% satisfied with connecting to internet via iPad

- 88% satisfied with connecting to internet via PC or laptop

*******************************************************************************************************

NOTES TO EDITORS

Media Contact:

Valerie Darroch T: + 44 (0)7970 737708 Email valdarroch@googlemail.com

About Internet on the Move:

Intersperience has conducted wide-ranging research into current use of mobile internet and associated behavioural trends in the UK. Researchers used qualitative and quantitative techniques to build a comprehensive picture of how people use mobile internet, participants mirrored the UK population in terms of social class. The research included responses from 1,400 mobile users, including 1,000 aged 18 to 64 and 400 under-18s. Insights were gleaned from forum comments, polls, brainstorming sessions, diary tasks and smartboards. The research team also conducted 20 in-home interviews with adept smartphone users who completed online diaries relating to their mood when doing different mobile tasks online. The findings outline how mobile internet is influencing behaviour in both a social and commercial context.

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team is headquartered in Cumbria and has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; William Hill.

For more information: http://www.intersperience.com/

T: 00 44 (0) 15395 65450 E: enquiry@intersperience.com

The main problem is that the stereotype outlined above does not fit the reality. If anything, the customer behaviour of teenagers and young adults is more akin to what we traditionally associate with over-25s.

While texting and Facebook are the preferred tools for communicating with friends and relatives, the phone is actually more influential with them in purchasing decisions and a strong personal interaction with a company has a huge impact on the brand loyalty of the younger audience.

In short, reaching young consumers requires use of more communication channels, not less. The goal of customer service for Generation Y must be constant and instant interaction. Plus, each of these channels must be state-of-the-art.

However, a key finding of our Future Consumer study is that young and older consumers interact with brands in broadly the same ways: when dealing with companies, for the foreseeable future at least, we all prefer the telephone and email.

Clearly, social networking sites (SNS) are becoming increasingly important because, according to many of those we questioned, “it is the first thing [they] use” – but it is significant that they are referring to their personal lives, not necessarily for communicating with organisations.

So let's have a closer look at the figures from our Future Consumer research and analyse what they tell us.

In general, one in five people communicate through mobile instant messenger and, as a rule, texting increases with age. However, the phone is still the most popular communication tool among under-18s: seven out of ten like to call and 71% text their friends and family.

Inevitably, Facebook is growing in importance. It is the favoured means of communication for 58% of those questioned, which is 8% higher than email. This is especially true of the 12- to 14-year-old age group.

However, this usurping of email still has some way to run. It remains the preferred channel of contact with a company for 38% of under-25s, far higher than any of the alternatives. Interestingly, the figure for over-25s is a very similar 42%.

Email is popular among under-25s for corporate communications because it acts like a filter. Whereas they are comfortable about being public property with their “friends” on Facebook, email allows them to be more discerning about who to let into their world.

They would see no reason to be shy about pictures of them having fun on holiday, but they know the value of their email data to marketing departments and it is almost as if they are forcing companies to work harder to get to them.

However, when under-25s latch on to an organisation they like they will tend to communicate with it much more than older consumers – and when this bond of trust is established they will want to use all channels, from video chat to Twitter.

Online channels such as social networking are more likely to influence purchase decisions for under-25s than older consumers. Around 60% of the younger generation find browsing the internet a fun way of killing time which makes them more likely to be influenced by product suggestions or well-received products or services on review sites.

Nevertheless, and despite under-25s being savvy with technology, the use of the traditional channels of phone and email has a positive influence on the impression of a company three times stronger than the use of newest technology.

Around seven out of ten under-25s say how they are spoken to and the way they feel they are treated is very important when dealing with companies. Phone and web chat gives them a feeling of being looked after and one-to-one attention.

However, the good impression that can be created can also be fragile. Too much contact irritates, especially unsolicited sales calls. This might explain why around 30% of consumers try to have minimum contact with companies.

As a general rule, a broad range of communications from a company across many diverse technology platforms can positively influence under-25s more than it does the older generation.

Is the death of the PC one step closer?

Are the days of the PC numbered? According to new research from Intersperience, they may well be, as young consumers value mobile devices far more highly than PCs which occupied bottom place in a list ranking their favourite devices.

Intersperience asked people across a wide age group to rank the technology devices they use in order of preference and mobile devices emerged as the clear winners - smartphones occupied the top slot (26%), closely followed by laptops (25%) while PCs were ranked least favourite device overall.

However, when the results of the poll were analysed by age group, the overwhelming verdict was that PCs hold little appeal for under 25s. The vast majority (75%) of 18 to 21 year olds regard laptops and smartphones as their top devices with only 5% naming PCs as most important to them.

It is a different story for over-25s who are more likely to use PCs at work or home, with 29% of this age group listing PCs as their most important device, followed by laptops.

However, even in the older age group, Intersperience has evidence that strongly suggests that PCs will decline in importance in future. It conducted a poll of senior figures in marketing, research and customer relations at the Intersperience 'Open Ideas' event in which they were asked to decide whether the statement 'Are PCs days numbered ?' was 'fact' or 'fiction' - 90% said it was a fact.

Paul Hudson, Chief Executive of Intersperience said: “Mobility holds the key to device popularity, particularly among the younger generation of 'Digital Natives' who demand 'always-on' internet connection. The PC is still an important device for the older generation but our data points to a sharp demographic divide on how PCs are regarded.”

Hudson added: “We're not forecasting sudden death for PCs, they will still be used at home and at work as backup devices but their use will be limited and in irreversible decline. Consumer preferences are shifting towards mobile devices with an emphasis on practicality and flexibility - mobile access is the gateway to everything.”

The new data emerged from Digital Futures, an authoritative research study into the behaviour and attitudes of consumers from aged 8 to 24. Intersperience compared the results with its earlier study 'Digital Selves' which looked at the 25 plus age group.

Hudson said two key drivers accounted for the relative popularity of technology devices for under 25s - practicality and emotion. He said that laptops are the practical winners because they offer both portability and significant functionality which is why they are the preferred device of the 18 to 21 age group (the majority of the student population).

But when it comes to emotional ties, Hudson said that smartphones are the winners because they are always with you and can help you solve problems while on the move.

PCs, by contrast offer neither portabilty and rarely (if ever among younger people) engender an emotional connection, relegating them to bottom of the heap for the Digital Native generation.

Intersperience researchers also showed young people aged from 8 to 24 images of a mobile phone, a laptop, a bike, a board game, a website, and a pile of books and asked them to rank the images in order of preference. In every age bracket from children aged 8 to 11 up to 22 to 24 year olds, the top picks were mobiles and laptops while books trailed in the bottom slot for every age bracket.

The website image only featured as high as third place with 22 to 24 year olds and even lower with younger age groups. Hudson said: “Younger people don't regard the internet as a separate thing, they take it for granted like electricity in the background of their lives. They are more focused on the devices through which they access the internet and mobile devices are the future.”

Online and digital technology is increasingly pervasive, affecting all aspects of our lives in many ways, changing the way we buy, the way we access information on the move and the way we communicate with each other and with businesses.

Recent evidence suggests the rise of the 'multi-channel' consumer has led to a dramatic and strategic shift in their expectations and a more demanding customer, in what we are terming the emergence of the 'now culture'.

In 2003 the proportion of people who were angry about service stood at 15%, rising to 17% by 2006 before accelerating sharply in the last five years to 27%. This major new project will explain how to engage customers more effectively in a technology-driven, multi-channel world.

Today and in the future, brand perception is set and influenced through many different moments of truth. The complex array of communication channels continues to accelerate, driving down costs but also increasing the complexity of management. Every contact (service or marketing) influences customer perception. This project will define the contacts which have the most impact and the greatest Return On Investment (ROI).

Objectives

All funding partners can input into the objectives and design of the research.

1. Understand how communication channels are used by customers. The study will consider marketing communications and customer service interactions. By channel we mean email, post, telephone, social media, web chat, print and text.

2. Explain which media channels are the most influential in building brand perception.

· Do certain marketing channels create more trust in a brand than others? Are some channels better at engaging certain groups of customers than others?

· What is the optimum mix of marketing channels for generating the highest brand engagement with each group of customers?

3. Understand how customers use channels for communicating with companies for customer service interactions.

· To what extent are customers 'channel agnostic' or are they tied to particular channels? Do they really have a 'preference' for using a specific channel?

· Explain how different groups of consumers use channels. Are there some consumers who use fewer channels than others? Who are the 'single channel' users and the 'multi-channel' users?

· Understand the emotional influence that each type of service interaction has on brand perception.

· Help organisations understand how to measure ROI on interaction management, comparing brand engagement for each channel, rather than purely cost.

4. Create a new consumer segmentation based on channel behaviour and preferences.

5. How do customers preferences for using channels change, depending on circumstances, situation or sector?

6. How is channel behaviour likely to change in the future? What are the implications for organisations? How will it impact structure, training, systems and costs?

London, UK, 19 April 2012 - International consumer research specialist Intersperience has signed a new contract with major utility group ScottishPower to run an online customer research panel to deliver customer insight into its products, service and critical energy-related issues.

The one-year contract renews a successful three year collaboration between the two companies during which ScottishPower benefited from using Intersperience's proprietary online research platform which combines the latest 'community-based' research with a range of qualitative, quantitative and mobile research techniques.

The customer panel created by Intersperience comprises a total of 4,000 people who can rapidly respond online to ScottishPower's specific research needs and it also includes a community of 400 engaged customers.

Intersperience runs the panel on behalf of ScottishPower and provides three different types of research including: adhoc research (including fieldwork, one-to-one customer interviews, and research feedback); 'hot topic research' on selected issues via polls and discussion threads; and a new 'community listening' service, which will drive change from consumer-driven issues.

Paul Hudson, Chief Executive of Intersperience said: “We're delighted to have renewed our contract with ScottishPower and look forward to collaborating with them on more cutting-edge customer research.”

He added: “We've introduced a powerful new element to our work with ScottishPower via our new analytical tool which performs 'community listening' more effectively. It enables us to analyse not only new customer discussion threads but to mine data going back four years and hone in on critical issues. It creates a more flexible and more comprehensive research tool and more cost-effective solution.”

Ends

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

Service strategy under scrutiny after sharp rise in angry customers

Consumers have become increasingly angry about customer service standards in the last decade, according to a new survey by international consumer research consultancy Intersperience in which 27% of respondents declared themselves to be irritated, furious or annoyed.

The survey revealed that the proportion of people who are angry about customer service has been consistently rising. In 2003 it stood at 15%, rising to 17% by 2006 before accelerating sharply in the last five years when it rose by 10 percentage points.

Paul Hudson, Chief Executive of Intersperience said: “There are several conclusions you could draw - either that service standards have simply universally fallen in the last decade for a variety of reasons - or that a more dramatic and strategic shift has taken place in customer expectations. The jury may be out on the former but there's a strong case to be made for the latter due to what we term the emergence of the 'Now Culture'.”

He added: “We are living in the Digital Age which is characterised by always-on instant communication across more channels than ever before from email to text to Twitter. As a result we are seeing the increasing influence of the 'instant customer' on service expectations. We're witnessing increasing levels of frustration and intolerance towards poor service - customers want good service and what's more, they want it 'Now'.”

Also, increased internet usage makes it easier for people to do instant research before contacting customer service operations, making them more informed when they get in touch with an organisation. This can be regarded as a double-edged sword by organisations whose staff and systems struggle to cope with more 'demanding' customers.

Organisations have to respond across more communications channels than ever before at a time when economic pressures are constraining resources such as staffing levels and technology solutions which can deliver efficiency improvements. “We are breeding complexity and cost in customer service operations and there is clear knock-on effect in terms of customer satisfaction with service standards,” Hudson said.

The phone remains an important channel for customers seeking to contact service operations - the survey showed polarised views on the standard of phone service with 65% describing service as good, very good or excellent, a figure which has remained unchanged for five years. However, the percentage of people who rate phone service as poor or very poor has almost trebled in that time to 23% from 8%.

Hudson said: “We have data going back to 1998 which shows that at that time 81% of customers considered phone service as good, very good or excellent but that was before the internet and email took off. The whole service proposition is more complex now and requires a deeper understanding of customer expectations and how different segments use different channels.”

Intersperience will be researching these topics in more depth in a new project 'The Future Consumer' to be launched in October. It will look at how organisations can engage different customers with different channels, depending on circumstance, situation or sector. It will produce research findings which organisations can use to plan for and design future service operations.

Never underestimate the power of marketing. Thanks to wall-to-wall advertising, Amazon's Kindle e-book reader looks set to be the must-have gadget this Christmas – beating last year's must-have gadget, the iPad, into sixth place. Of those planning to buy a technology present, almost one in four said they are most likely to buy a Kindle or other e-book reader, while only 10% said the iPad was top of their list. Many of the messages in our TrendSpot chatroom have been extolling the virtues of this handy alternative to bulky paperbacks. “I was quite against the idea of the Kindle before, but after reading your comments I'm so curious to try one out,” said fudgecake22. “I'd better put it on a letter to Santa!!” As well as demonstrating the shift from Apple to Amazon this year, our graphic also clearly shows the continuing move away from fixed line internet devices to mobile. The only fixed line 'box' in our list, a blue-ray player, is only rated by 1% of consumers. Changed days, indeed.

Related blog post: Digital revolution to hit the book industry

Consumers clamp down on spending as economic woes bite

Economic worries have prompted one in three UK consumers to forego a holiday this summer, according to the latest quarterly survey by Intersperience, the international consumer research specialist.

The survey, which asked UK consumers about their spending plans and their views on the economy, found that an increasing number of families now consider holidays an unaffordable luxury in the current economic climate.

The survey, which polled a representative cross-sample of UK consumers in May 2011, found that 32% do not intend to take a holiday either abroad or at home this summer, while a further 18% will spend less on holidays this year.

Overall, the consumer mood was little changed from the first quarter of 2011, with 72% of respondents describing economic conditions in the UK as 'very poor.' However there was clear evidence of consumer spending under pressure amid persistent worries over the impact of government spending cuts.

The survey revealed a sharp swing among consumers towards saving and a clampdown on spending. Only 20% of people now describe themselves as 'spenders' rather than 'savers', marking a 14 percentage point drop since first quarter 2011.

Intersperience Chief Executive Paul Hudson said: “The majority of consumers are clamping down on spending despite some recent indications that economic confidence may have stabilised. Families are concentrating on buying essentials rather than luxuries and that will have a negative impact not only on the high street but the wider economy.”

Hudson added: “There were glimpses of a potential return to 'Austerity Britain' in our survey - only 16% of people expect to be able to afford everything they need in the next few months and 29% say they will be unable to afford any luxuries. We are not forecasting an imminent return to recession but spending remains fragile as people worry over the prospect of more cutbacks in both the public and private sectors.”

The survey found that 28% of people feel 'insecure' in their current employment while half of respondents said that their spending plans had changed greatly as a result of government spending cuts and a further 15% said their spending had changed 'a bit.'

The publication of the survey results follows jobs data for May released this week which showed the fastest rise in the number of people claiming unemployment benefit in the UK for almost two years as well as data showing that UK inflation held at a two and a half year high of 4.5% in May.

Consumer confidence is very fragile as we approach this festive season. Our annual Christmas Shopping Survey found that 53% of the population expect the economic climate to impact their spending greatly, which compares to only 45% last year.

More than four out of ten people we questioned expect to have less money to spend than last year, which itself was a rather gloomy year with 37% expecting to spend less than 12 months previously.

One respondent among our TrendSpot online community pithily summed up the mood: “I started today and intend to finish tomorrow. Less money means fewer choices, therefore easier shopping.”

Bad weather was blamed for poor sales in 2010, is it influencing purchasing habits this year?

With heavy snow predicted again in December, people appear to be starting their present buying earlier to avoid the weather disrupting their plans. Some 31% of those surveyed said they were preparing to begin shopping earlier than last year.

However, the earlier rush to the shops is not entirely linked to weather worries. Lower economic confidence appears to be changing purchasing habits this year, with many reporting they are shopping earlier to try and hunt out bargains and some cutting back on sending Christmas cards.

How much are people expecting to spend this Christmas?

They may complain of having less disposable income but shoppers told us they each expect to spend £307 this year on presents, food and drink, which is actually £7 per head higher than they predicted at this time in 2010.

If that pattern plays out uniformly across the 35 million or so people of working age in Britain, the result would be a boost to total high street spending of around £343 million compared to last year.

Then, there was a big reduction in spending among the over-25s, the group which accounts for the majority of retail sales, but in 2011 they appear to be loosening the purse strings. The older group are planning to splash out £312 per person, a big jump from the £287 they anticipated at the same point last year.

In contrast, under-25s each intend to spend £185, down £4 per head from last year's expectations.

One thing to bear in mind with all these predictions is that that our post-Christmas survey shows that people always spend more than they expected to.

What is the outlook for online shopping?

In 2011, we are seeing a swing in sentiment away from online spending towards the high street –the first year expectations have reduced around internet spending.

Consumers expect to spend £7 each less online and £14 more in stores, which represents a 'swing' of £21 away from online towards high street spending.

There is a general disappointment with online service that is a hangover from last year and it is affecting people's plans for this year. I would still expect online sales to continue their overall year-on-year growth, but online retailers need to do a lot of work this Christmas to win back customers' trust.

Of those who say they won't be spending online at all, 40% made clear it is because they worry products won't be delivered on time. In 2010 a smaller proportion, 29%, were concerned about that – but one in six online shoppers failed to receive at least one present by Christmas Day.

Our survey this year also found that 36% were nervous about receiving the wrong present, more than double the figure in 2010. Again, bitter experience explains why there has been this shift in sentiment because 11% got an incorrect item or something they were not expecting last Christmas.

What does this mean for internet retailers?

Quite simply, they have to get their act together this year and outperform to win back a sceptical public.

While 81% of the population saying they expect to shop online for gifts seems an impressively high figure, it is well down on the 89% who had planned an internet Christmas in 2010.

However, there is still a big appetite for mouse-based shopping and 20% of consumers said they would have spent more online had it not been for experiencing frustrations with ordering and delivery.

If online stores perform well they will pick up significant market share but if there is a rerun of 2010 then expect to see stores outperform last year's figures. In that scenario, the big winners are likely to be supermarkets and high street chains.

Do social networks forge strong or weak bonds?

Friendship connections on networking sites (SNS) are multiplying daily but their impact on the size of our core friendship groups is limited according to Intersperience which argues that behavioural research shows that humans can only maintain a finite number of strong social bonds.

The proliferation of social networking has raised questions about whether we are collectively expanding and also strengthening our social ties on an unprecedented scale as a result of the technological ease with which people can use SNS to connect 24/7.

SNS activity is growing by the day - Facebook, the most popular social networking site, has more than 600 million users worldwide, with each user estimated to have an average of 120 connections. That represents massive daily online communication via millions of status updates, chat messages, photos and video links.

Paul Hudson, Chief Executive of Intersperience commented: “Statisticians are struggling to quantify social networking data because activity is growing so fast but numbers tell only part of the story. To understand the significance on society you have to study behavioural context which is why we are researching how people exchange and consume information and the strength of social connections via SNS.”

Hudson added: “Our Digital Selves research indicates that the number of truly strong social ties people have today is similar to before the social networking revolution. The human brain is hard-wired to cope with a limited number of strong social relationships which explains why the most active and reciprocal SNS communication is with people in our inner networks with whom we communicate regularly in real-life. Communication on the periphery of that group is more one-sided with people observing rather than engaging.”

Hudson said the extensive number of SNS connections a person has, initially raises questions over an anthropological theory known as 'Dunbar's Number' which contends that the human brain has a cognitive processing limit which restricts our capacity to maintain stable social relationships to 150 people. While the average number of Facebook connections per person is currently estimated to be 120 (below Dunbar's threshold), the figure amongst teenagers is likely to be far higher with the average number of Facebook connections closer to 450.

He said: “Our research on SNS behaviour shows that much of the information is consumed in an almost voyeuristic way, meaning friendship bonds are fairly loose. We are looking in particular at how maintaining literally hundreds of connections influences social behaviour and the strength of social ties among today's teen generation.”

Intersperience has completed both the qualitative and quantitative research on 'Digital Selves' and is now working on analysis and interpretation. There is an opportunity to become involved in this stage of the project and to receive a full briefing on results. For further details either see Digital Selves, email paul.hudson@intersperience.com or telephone 015395 65450.

• New research uncovers distinct differences in kids online behavioural trends

• Gadget Geeks more likely to be boys

• Girls dominate online Socialite groups

• Entertainers excited by online gaming activity

London, UK, 19 March 2012 – British children divide into three main behavioural types determined by their online activities - Gadget Geeks, Confident Entertainers, or Socialites, according to new research into how under-18s use the internet, conducted by international consumer research specialist Intersperience.

Gadget Geeks, who account for 25% of under-18s, are the most proficient internet users, highly enthusiastic about the online world, excited by new technology gadgets and they expect to be able to access the internet wherever they go. There are more boys than girls in this category which comprises 56% males and is also dominated by 12-17 year olds. Gadget Geeks are unlikely to make new friendships online but are very chatty online with existing groups of friends, Intersperience found.

Confident Entertainers are the biggest group, accounting for 31% of under-18s, with a more even gender split. They are keen on online entertainment and particularly like gaming sites such as Friv, Club Penguin, Moshi Monsters and Beast Quest. They lack the enthusiasm of Gadget Geeks and have lower expectations of constant connectivity.

In the Socialite category, girls outnumber boys, accounting for 57% of this group which is keen on chatting and other social activities online and also most likely to forge new online friendships. Socialites tend to be younger children, with 77% ranging from age 8 to 14.

The remainder of under-18s (30%) are classified as E-Beginners who are highly enthusiastic about the internet but more likely to be overwhelmed by the amount of information online and least likely to make new friends online. This category is dominated by under-12s who often have constrained online access in terms of time and browsing freedom due to parental controls. However a substantial number of teens still count as E-Beginners.

Intersperience Chief Executive Paul Hudson said: “Children and teens generally view the online world as an 'always-on' virtual playground and a constant companion that stays with them wherever they go. However when you analyse what under 18s actually do online, distinct behavioural trends emerge which influence the sites they gravitate to, how comfortable they are online and whether they are likely to make new online friends.”

The findings emerged from the 'Digital Futures' project, which surveyed 1,000 young people in the UK between the ages of eight and 18 on the impact of online and digital technology in their lives. Researchers also did field research with family groups which captured the views and experiences of parents and younger children, representing one of the most comprehensive studies of under-18s and the internet to be conducted in the UK.

All children were found to have a strong emotional attachment to the internet, but particularly Gadget Geeks of whom 73% said they would be sad without it. The emotional connection among under-18s is stronger overall than in the adult population where our previous research found that 53% of over-18s would be sad without the internet.

Hudson said: “Generally Digital Natives are more at home online than adults, more skilled in conducting a wide range of activities online and also much smarter than parents realise about data back-ups, security and privacy. Even though we detected differences among under-18s in terms of skill and confidence online, to an extent that reflects the fact that the youngest kids are still on a learning curve.”

Interviews with families participating in the project revealed that parents frequently impose parental controls on internet access for children, either denying them password privacy or limiting websites they can access.

Our project found that 40% of under-18s had been blocked from some websites by their parents. One mother of 11 year old twins said: “The day they change their password and I can't get on is the day they lose their internet access.”

Facebook features heavily in online social communication among under-18s, second only to texting as the most commonly cited social activity. The research showed that even pre-teens regularly use Facebook, despite the fact the age limit for Facebook is 13 and it found that Facebook contact from adults, particularly parents, is considered unacceptable.

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E:valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in the UK, has more than 25 years experience in consumer research. It employs a range of interpretative models and frameworks including proprietary online research methods, research communities and a customer panel, TrendSpot. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

About the Intersperience Digital Futures research project:

Intersperience conducted a wide-ranging survey among 1,000 young people in the UK between the ages of eight and 18 on how they use the internet and internet-enabled devices. Participants mirrored the general UK population in terms of social class and of the total group, 35% were aged between eight and 11, 37% were aged 12 to 14, and the remainder were aged 15 to 17. In addition, the team carried out qualitative research among 15 families with children aged from two to 18 which included participation in family tasks such as video diaries, communication logs and mood diaries. Researchers also carried out 23 family interviews including 11 face-to-face interviews with under 18s.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

The ground-breaking research project asked 1,000 young people in the UK between the ages of eight and eighteen their views on mobiles, how they use them now and how they would like to use them in future. The results delivered compelling evidence that the mobile or M-Age has well and truly arrived in the UK.

The over-arching conclusion was that for young people, mobility is the key feature for a device, defining its role and importance in their lives. Mobiles are already central to British children's lives, permeating every aspect, from social to transactional.

It is clear that mobiles will become even more important to under-18s who emerge as a demanding new breed of consumers who want and expect far greater functionality from mobiles in future. A key finding from the study was that 42% of under-18s want to use a mobile to control other things in future, compared to just 24% of adults.

It offers a fascinating glimpse of the future from a child's perspective where the internet is the conduit through which connectivity between devices can be achieved on an unprecedented scale. Their view of the future is defined by far greater inter-connectivity between devices than that of their parents. Suppliers must think innovatively about how to deliver services in future in a way that fits with the lifestyle of 'connected customers'.

The findings imply that software developers, phone companies and service providers in general need to accelerate efforts in this area if they are to satisfy the demands of the next generation of consumers for whom greater inter-connectivity, versatility and functionality are important factors.

Under-18s regard mobile devices in a wholly different way than the older generation who regard even the most advanced smartphones as primarily a phone that can also do other things like access the internet or take pictures.

Digital Natives' use of mobiles, however, is focused on the device's additional features. A mobile is prized as a means to access the internet, which is their natural habitat and they relish the freedom it gives them to communicate, have fun, experience new things and to have 24/7 connectivity, which they regard as the norm.

Greater affordability of smartphones has put them within the reach of teenagers whose parents are generally willing to pay around £20 a month for bills, according to research we carried out among families with children ranging from age 2 to 18.

Children and teenagers emerge as skillful multi-taskers who currently place a high value on mobiles for entertainment but the study showed that they want mobiles to deliver even greater functionality in future including payment facilities as well as an ability to control other devices.

Eight to 11 year olds have the highest expectations from mobiles in future. They are particularly keen on entertainment features with 39% saying they want to watch movies via mobile, although playing games was the top future activity for 75% of that age group.

The study indicated that mobile commerce, which has been slow to take off in the UK, may accelerate as Digital Natives become economically active. One third of under-18s said they would expect to use their phone to buy something in future, compared to just 21% of adults. Children are also keen on using a mobile to check prices, an activity which emerged as an important feature across the age spectrum, with half of 15 to 17 year olds keen on this and one-third of 8 to 11 year olds.

There was encouraging news for businesses, including Google, which are rolling out new 'mobile wallet' systems as under-18s are less nervous about using a phone as a wallet than adults, with 25% expecting to do so in future compared to just 17% of over-18s.

Digital Natives are conscious of security issues regarding mobile payment but expect and will demand that these issues are addressed to enable them to make purchases safely. This expectation underlies the fact that under-18s are four times as likely as older people to want to use their phones to store personal information in future.

Children show a strong preference for mobiles for entertainment and leisure activities - almost three times as many under-18s as adults would choose a mobile over a PC for downloading photos and music or to buy something online, underlining the declining importance of PCs to this generation.

Mobiles are very important to Digital Natives for communication via social networking sites as they want to have 24/7 connectivity with their peers. More than half of young people aged from 12 to 17 want to use a mobile in future to update their profile on social networking sites (SNS).

The study, which also involved questioning 15 families with children ranging from 2 to 18, uncovered parental angst over the appropriate age to give a child a phone, with age 11 or when a child goes to secondary school emerging as the age at which most children receive one.

London, UK March 6 - British consumers are fast becoming part of a 'showrooming' phenomenon sweeping the retail sector in which they visit shops purely to check out the goods before using smartphones to secure cheaper deals online, according to a new report by international consumer research specialist Intersperience.

Dubbed 'showrooming', the practice is causing increasing concern for traditional retailers who resent being undercut on prices by online rivals with lower overheads.

Intersperience has researched how UK consumers use mobiles in a retail context as part of its 'Internet on the Move' project. Pathway findings indicate that mobile internet has had a major impact on how people shop, with 'showrooming' increasingly commonplace.

Paul Hudson, Chief Executive of Intersperience said: “Mobile internet is fundamentally changing shopping habits and altering the power balance in the consumer-retailer relationship. Showrooming marks a wave of change in UK retail and we predict it will become a powerful tide.”

Hudson added: “The onus is on retailers to make instore shopping more attractive, via loyalty bonuses, limited edition goods, price matching or better service. So far mobile internet has mainly driven shoppers online but it could be used creatively to improve the instore proposition. For British consumers, their mobile is now their favourite shopping companion and retailers need to figure out how to respond to that.”

Intersperience found that one in three people in the UK used smartphones to surf the net for price comparisons, product reviews or to check availability of goods over the festive holiday. Almost 20% used their mobiles to call up rival websites and compare prices while they were in a store - and 30% of the people who did so went on to complete an online purchase from a rival retailer while still standing in the store.

The 'Internet on the Move' project, which will be released in May, compiled case studies of people's experiences of using smartphones in stores. One participant commented: “It's like a friend who helps you with deciding and saving some money with its inputs and perfect suggestion...”

Another participant reported disappointment that an online price check failed tosecure him an instore discount at a major UK retailer - a common experience among participants.

He said: “If they would have given me the camera at a cheaper price or with freebies, like a tripod or cover case, I would have bought it there. I did tell the guy who was showing me the camera... He said he was helpless and can't bend what is on offer...So I decided to purchase it online.”

The project found that UK consumers still enjoy a physical shopping environment where they can touch and try goods and seek advice, however it also uncovered a growing tendency for people to visit stores as much for enjoyment and research as for commerce.

The latest Intersperience research shows that the UK is fast catching up with trends in the United States where the rise of 'showrooming' has prompted a backlash from traditional retailers including Target, the second biggest US discount retailer, which recently wrote to its suppliers asking them to produce more exclusive 'in-store' only lines to woo consumers.

Hudson said: “From a consumer's perspective, smartphones tip the balance of power in their favour as they enter a store armed with up-to-the-minute knowledge of prices, user reviews and special offers. This directly challenges the customer service proposition, particularly with regard to staff training on product knowledge and it also raises very difficult questions for retailers in terms of their responsiveness on price.”

Ends

As featured in internetretailing.net on 6 March 2012 - 'Showrooming' sweeps UK shoppers as they use stores to check out goods – then buy on mobile

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E:valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

About the Internet on the Move research project:

'Internet on the Move' is a syndicated study which includes qualitative research (20 in-home interviews with a cross section of ages, including teenagers and owners of different devices) and quantitative research (1,400 response survey including 400 12-17 year olds and 1,000 18-60 year olds). The report will be released in May 2012.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

Our new Digital Futures study, which surveyed 1,000 young people between the ages of eight and 18, found that children growing up in the Digital Age possess a distinctly different communication style and approach to learning than older people. These critical differences, which we observed in children as young as eight, present a challenge to organisations seeking to influence this highly technology literate generation as consumers of tomorrow.

Unlike their parents, who see the world in terms of distinct online and offline environments, tasks and communication, for 'Digital Natives' there are no such distinctions - the internet is ubiquitous and woven into the fabric of their lives. For children and teenagers, the internet is a mobile, constant and fascinating companion which grants them 24/7 access to a connected world where communication is instant and takes place across an array of devices, unconstrained by physical barriers.

The research, which also included in-depth interviews with families with children as young as two, revealed a highly sophisticated use of technology even among the youngest children, many of whom are more skillful in using some digital devices such as tablets than their parents.

Tablet computers are more widely used by children than adults, with 11% of under-18s using them compared to just 6% of over-18s. Generally, however, children regard the device as not versatile enough to replace a PC.

In fact, two year olds emerged as habitual users of family iPads as an entertainment device within the home and on car journeys, displaying intuitive understanding of touch-screen technology. While our study focused on older children, interviews with parents indicate that today's toddlers are at the forefront of a 'touch generation' whose interaction with technology may be different even from their older siblings in future.

Our study also revealed that 8 year olds are smart users of an array of digital devices from PCs to laptops, games consoles and smartphones, acquiring an understanding of how to use them through direct experimental learning and motivated by a search for fun, entertainment and contact with their peers.

In fact under-12s engage in a surprisingly large number of activities besides playing games, including browsing news online, watching films and looking for things to buy and sell. They also confidently carry out relatively complex tasks such as backing up personal data to hard drives and uploading content to websites.

Some 65% also regularly use the internet for help with homework tasks and while their approach to accessing information may seem random, in fact they work at 'hyper speed', assimilating information in a non-linear way.

Online gaming holds a huge attraction for under-12s and is by far their favourite online activity, giving them early exposure to navigating content-rich, multi-dimensional interactive websites.

Popular sites such as Club Penguin and Moshi Monsters give children experience of handling 'virtual money' and incentive and reward schemes, all of which influence their views of what they regard as a fulfilling web experience. In fact, one 12 year old was disappointed when he looked at his mum's Facebook page, regarding a site which focuses on purely socialising as unexciting compared to the rich web experience he was used to when gaming.

Older children from 12-17 are generally heavier users of mobile devices such as smartphones and laptops than fixed devices and by age 15 smartphones generally assume more importance. Across the full age range from 8-17 we detected declining importance of the PC in favour of mobile devices which offer 24/7 internet connectivity.

The key differences between under-18s and adults are that for Digital Natives the three words that most sum up what the internet means to them are: mobile, entertainment and social, with socialising one of the most important aspects of their online world.

For adults, the approach to the internet is precise and definite and associated with a task, situation or place. The internet is primarily viewed as a source of information and the three words which sum up what it means to them are: transactional, fixed and resource.

Fears that children in the Digital Age will lose the art of conversation as a result of being immersed in online chat appear unfounded. The richness, diversity and sheer amount of communication the under-18s take part in, means they are consummate communicators, more adept and skilled than their parents.

Despite the fact that Facebook chat is part of their everyday lives (it is the second most common form of communication after phone calls), they still value face-to-face communication. Some 55% of under-18s said they like to talk to friends in person, compared to 35% who like to talk to friends online. Moreover, they only want to talk to people of their own age on social networks, resenting intrusion by adults either on a personal or business basis, preferring email contact with companies to keep 'intruders' out of their personal space.

Children are protective of their personal online space and identity, emerging from our study as remarkably astute about the upside and downside of disclosing personal data on websites. In general they are opposed to giving out their details but are willing to consider trading info for the right incentive or reward.

The study revealed an even stronger emotional attachment to the internet among children and teenagers than we detected among adults in our previous study Digital Selves, which found that 40% of grown-ups would be lonely without the internet and 52% would be sad. Older teens showed the strongest emotional response - almost half (48%) of 15 to 17 year olds said they would be lonely without the internet while 60% would be sad. But even under 12s feel strong emotional ties, with one in five saying they would be lonely without the internet and 49% saying they would be sad.

Digital Natives are often characterised as being universally tech-smart and gadget friendly. It is true that as a generation they are all 'digitally enabled' and share some common behaviour, however, perhaps one of the most surprising findings of the study is that they cannot be regarded as a totally homogenous group. There are significant variations in behaviour and preferences and it is not overwhelmingly decided by age or gender, although there is evidence that these have some influence.

Four distinct groups are identified within the under-18 age group:

- Gadget Geeks, the most confident internet users, with a slight bias towards boys who represent 56% of this group. They represent 25% of the total.

- Confident Entertainers - second most confident but lack the enthusiasm of the first group and social interaction is mainly within existing circles. They represent 31% of the total.

- Socialites - a bit overwhelmed by technology but most likely to engage socially and form new friendships, 57% of them are girls. Overall they represent 14% of the total.

- E-beginners - dominated by the youngest age group with social interaction focused on existing friends but strong enthusiasm for the internet. They represent 30% of the total.

Overall, our findings show a rich diversity in the ways that children and teenagers engage in internet activity and with digital devices today in the UK. The most important observations include the ubiquitous nature of the internet in their lives and the realisation that the social aspect of the internet is built into everything under-18s do.

The 'Now Culture' has firmly taken hold among under-18s who expect always-on connectivity and instant communication and it is also clear that the importance of mobile devices versus fixed devices is growing among under-18s, a trend that is likely to continue.

The findings have important ramifications for businesses in future who must ensure that their services and products are designed to meet the needs of Digital Natives who represent an important new generation of consumers.

Do social networking sites make us more or less social?

The influence of social networking sites (SNS) is increasing rapidly as people switch on to the benefit of instant connection with friends and family but new research from Interperience has uncovered growing awareness of negative aspects of social networking.

Preliminary qual findings of the 'Digital Selves' study into how people interact with digital technology, indicate that the principal appeal of social networking sites is the ability to stay in touch, connect with like-minded people and enjoy an enriched social life.

However, users are becoming increasingly aware of the drawbacks of SNS as a means of communication. Intersperience has identified this trend even among teenagers, whose use of SNS sites is more prolific than other age groups.

Paul Hudson, Chief Executive of Intersperience, said: “The central question arising in our research is whether we really 'share' on social networking sites or whether SNS activity focuses more on self-promotion than meaningful engagement. Do social networking sites encourage people to be more 'nosey' than sociable?”

The project takes place as SNS activity is rising sharply, with Facebook alone chalking up 30 million UK users or half the population. Intersperience has examined key issues such as what motivates each generation to use SNS and whether they use it to experiment publicly with their identities.

Hudson added: “Social networking sites are becoming increasingly pervasive and our research will enable a more informed debate on their impact on society. It is a relatively new phenomenon which means people are confused over whether SNS should be viewed as 'friend' or 'foe' - our study sheds new light on this question.”

The views of teenage participants in the project reflect mixed attitudes. One 18-year old female participant commented: “I think I benefit really, I'm getting to know different people from all over the world,” while another 15-year old admitted to being unsure why she checks SNS so regularly other than having seen her peers do it.

Even the youngest teenage users often have several hundred 'friends' on social networking sites and the research looks at whether having a large number of SNS connections really enriches people's social lives.

Hudson said: “Facebook enables us to make more connections but we're asking whether that really leads to a more social society. Are we really sharing or is our ability to be truly socially connected limited to far smaller groups?”

Intersperience has completed qualitative research on 'Digital Selves' and is working on a quantitative survey which will look at initial findings in greater depth. There is an opportunity to become involved in this stage of the project and to sign up to receive a full briefing on results. For further details either see Digital Selves, email paul.hudson@intersperience.com or telephone 015395 65450.

SNS users in their 20s emerged as the demographic claiming the largest number of friends while the over 50s have the least friends, ranging between zero and 20.

The research showed a clear link between the age of the user and the number of SNS friends, with the most youthful adult users having the greatest and numbers of online friends declining in accordance with advancing age.

Additional research into SNS friendships among teenagers (a demographic which has particularly active SNS users) found that 13 to 16-year olds list an average of some 450 friends, with girls having slightly more than boys.

Paul Hudson, CEO of Intersperience commented: “The age differential is very marked when it comes to totting up SNS friendships. Of course, when it comes to measuring friendships, quantity does not necessarily imply quality - the definition of 'friend' is often loosely applied in an SNS context, particularly by younger users.”

Intersperience has conducted in depth research into different aspects of how society is adapting to the dawn of the Digital Age, including the forthcoming 'Digital Selves' report. 

This research has also been featured in the online edition of the Daily Mail ( http://bit.ly/iD9M4T ) and made the front page of the Daily Telegraph ( http://bit.ly/m15EQH ).

Consumers are deeply worried over the fragility of the UK economy and its impact on job security, according to the results of the latest quarterly consumer survey by Intersperience.

A total of 74% of consumers described the economy as “very poor” while confidence in job security has hit its lowest level since 2009 with 29% of people describing themselves as feeling “insecure” in their current employment.

The survey revealed that 37% of people have already begun to change their spending habits as a result of their concerns, focusing more on saving rather than spending. There was also a strong signal that consumer belt-tightening will intensify in future.

The survey showed a clear link between consumer confidence and major public sector spending cuts which were announced in the Government's Comprehensive Spending Review last October. So far, 44% of consumers say their spending has not changed as a result of spending cuts but only one in three predict that this will remain the case going forward.

Intersperience Chief Executive Paul Hudson said: “Unfortunately, the implication is that things are going to get worse before they get better. Consumer confidence impacts on spending and ominously, there has been a major deterioration in attitudes towards job security which have plummeted in the last three months from a high point in November.”

He added: “There can often be a delayed reaction to bad news on the economy. Our survey highlights the fact that the real impact of spending cuts is just beginning to be felt by consumers as public and private sector managers start taking tough decisions on where the axe will fall in terms of both budgets and staffing. It is unsettling news for anyone banking on a consumer-led recovery.”

The Government aims to shed around 490,000 public sector jobs and to make major cuts in capital spending across government departments in order to reduce the UK's structural deficit. The cutbacks will also have a knock-on effect on the private sector, especially suppliers to public sector agencies.

The Intersperience survey took place against a backdrop of data painting a gloomy picture of the UK economy including a rise in UK unemployment to 7.9% by the end of 2010, a revision in December retail sales to show a drop of 1.4% - the biggest December fall since records began; and mounting concerns over inflationary pressure which could trigger a rise in interest rates.

Globalisation has been underway for many years now but was previously seen as the preserve of huge consumer brands that had the financial muscle and manufacturing, distribution and marketing capabilities to reach every key market. However, we are entering an exciting new phase where the internet allows companies of any size to achieve global reach practically from start-up. Now niche products from small companies can compete on the same level playing field as the major brands. Indeed, success is just as likely be delivered by creating a stir on YouTube as it is by a multi-million pound global advertising campaign.

Does this trend make brand building and communication easier?

In theory, it does. Products can be sold online anywhere in the world, distribution can be centralised for cost-efficiency and the rapid growth and adoption of smart phone “apps” and social media makes communication with potential customers much easier. A company's brand values and marketing can be developed and controlled from the centre, thus achieving unparalleled levels consistency across the world. However, there is one big problem: the lack of local context in a centrally controlled, one-size-fits-all marketing and communication plan.

What are the dangers of misunderstanding local context?

Consumers in different countries have identifiable traits that influence behaviour. Without understanding those, companies risk failing to exploit their full potential or, worse, actively harming their brands. Last year we created a “Cutural Lens” with which we identified huge differences in attitudes towards customer service in Europe and found, for example, Italy and Spain prefer highly personalised service and like to engage with a 'real person', whereas the UK and Denmark value efficiency and speed above this. Extrapolate those findings and accentuate the cultural differences for markets in the Americas, Asia and Africa and you quickly realise that the successful global brands will be those that offer customers a number of ways to interact with them. Frustratingly, as designing and manufacturing products for a global market gets easier, serving customers is becoming more complex.

Will increased use of technology increase these cultural clashes?

There is every chance that it will thanks largely to the new generation of mobile devices. M-commerce, or mobile commerce, has been slow to take off because hand held devices were clunky to operate and expensive to buy until relatively recently. Now phones and tablets are cheap, intuitive and, with the rise of “apps”, able to deliver a host of products and services directly to the user's handset that are specific to where they are at any given moment in time. An attractive offer on a dress in Hammersmith on a slow Wednesday afternoon might be 10% off, while in Hamburg it might be 20% on a Friday morning. Keeping track of all this and fine-tuning marketing messages to take account of local sensitivities while delivering a consistent level of customer service to this highly atomised customer base actually requires more communication and service channels, not fewer.

What are the wider implications for global businesses?

One of the biggest shifts required is greater understanding of how products are consumed in different geographic locations. At the moment developers design goods based on their technological functionality, not how they could be used in everyday life. This runs the risk of wasting many millions of research dollars on things which work brilliantly but have limited practical attraction to would-be buyers.

Researchers need to fully understand the context of their target consumers and how they interact with products at different stages in their lives, enabling product developers to focus efforts more effectively to maximise sales. Ultimately, this means the whole basis of research will have to change and take cognisance of the context products are likely to be used in rather than their functionality.

The great opportunity of the M-Age we are entering, so called because it will be dominated by young people who have never known a world without the internet and mobile phones, is the multitude of routes to market available to reach consumers. Smart phones, tablets, and internet-enabled hand-held gaming consoles all offer companies mouth-watering possibilities for opening up dynamic, instant and highly personalised routes to precisely targeted groups and individuals.

The challenge for marketeers lies in trying to maintain central control of every aspect of the brand against a range of everyday lifestyle, cultural and geographic sensitivities.

Online sales fail to meet expectations

One in six internet consumers in Britain failed to receive at least one gift in time for Christmas Day, as online retailing figures once again failed to match heightened expectations.

More than one-third of consumers said they ordered more presents online than they anticipated, partly because of freak icy weather in December –but 68% experienced problems in ordering or delivery.

The survey by Intersperience, the international consumer research specialist, also showed that as well as the issue of missing goods, 11% of buyers received the wrong item or something they were not expecting.

Intersperience chief executive Paul Hudson said: “The majority of those that went online looking for a bargain or to beat the snow had a problem of some kind. Overall, online retailing failed to live up to people's expectations and the problems they faced receiving orders put them off further internet purchases.”

Almost 90% of those surveyed before Christmas said they expected to buy presents online, but the actual figure measured in the first week of January revealed that only 81% actually did.

By contrast, the number of people who shopped in the high street was in line with expectations. Some 82% shopped for gifts in stores, exactly the proportion that said they would in Intersperience's pre-Christmas survey. However, this was down from 85% last year.

Retailers cannot blame sluggish internet performance on stock shortage, one of the biggest factors in disappointing online sales in 2009. Only 18% complained of gifts they wanted to buy not being available, compared to almost 30% last year. Nonetheless, 52% complained of delivery delays, compared to 34% 12 months ago

“The share of online in the shopping mix has gone up but it is equally clear that online sales should have been higher. Growth is impressive but retailers are missing out on opportunities.” said Paul Hudson.

• 42% of children want to use a mobile to control other things in future

• 33% of under-18s expect to use a mobile for payment and purchase

• Parents willing to pay average of £20 a month for kids' mobile bills

• Age 11 regarded as most appropriate age to give kids a mobile

London, UK, 20 February 2012 – Mobile phones must be able to connect with other devices and become a 'remote control for life' to satisfy demanding under-18s who represent the next generation of consumers, according to a new research report.

International consumer research specialist Intersperience asked 1,000 young people in the UK between age eight and 18 their views on mobiles, how they use them and how they would like to use them in future. The findings are part of a comprehensive 'Digital Futures' study of how under-18s engage with technology, particularly with internet-enabled devices.

The research found that 42% of under-18s want to use a mobile to control other devices in future, compared to just 24% of adults. Children are also keener than adults on embracing new developments such as using a smartphone to buy things, with 33% expecting to use a mobile for payment and purchase and 25% expecting to use their phone as a 'mobile wallet' - significantly higher than for adults.

Under-18s already use mobiles for more functions than adults, particularly for games, photos, music and making videos. Children and teens are also four times more comfortable using their phones to store personal information than their parents.

In future young people want interconnectivity between mobiles and other digital devices and even household services such as cable or satellite TV or utility supplies. Eight to 11 year olds have the highest expectations from mobiles of the future with a strong emphasis on interconnectivity with entertainment functions such as gaming and movies.

Intersperience Chief Executive Paul Hudson said: “For under-18s the future is uncompromisingly mobile. They have a vision of a powerful multi-functional mobile which can connect with and control an array of other devices and services from a Sky+ box to home heating or lighting systems and functions we haven't even thought of yet.”

He added: “Children's view of the future is defined by far greater inter-connectivity between devices than their parents who regard even smartphones as primarily a phone that happens to do other things. The onus is on suppliers to develop innovative services in future that fit the lifestyle and aspirations of a new breed of 'connected customers'.”

The findings imply that software developers, phone companies and service providers in general need to accelerate efforts in this area if they are to satisfy a generation of consumers for whom greater inter-connectivity, versatility and functionality are important factors.

Mobiles are reducing PC usage by children - twice as many under-18s said they would choose a phone over a PC for music downloads, emails or research while an even higher ratio would rather make purchases via mobile rather than via a PC.

In terms of affordability, the study found that smartphones are now within the reach of the current generation of teenagers with parents generally willing to pay around £20 a month to cover their children's mobile bills.

It also revealed significant 'pester power' among children who put pressure on parents to buy them a mobile from as young as eight. Parents frequently buy children an iPod Touch as a compromise before caving in to pressure to buy a mobile and the majority regard age 11 as an appropriate age for a child to receive its first mobile.

Ends

As featured in the Telegraph article on 20 February 2012 -  'Parents think 11 is the most appropriate age for first mobile'

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

About the Intersperience Digital Futures research project:

Intersperience conducted a wide-ranging survey among 1,000 young people in the UK between the ages of eight and 18 on how they use the internet and internet-enabled devices. Participants mirrored the general UK population in terms of social class and of the total group, 35% were aged between eight and 11, 37% were aged 12 to 14, and the remainder were aged 15 to 17. In addition, the team carried out qualitative research among 15 families with children aged from two to 18 which included participation in family tasks such as video diaries, communication logs and mood diaries. Researchers also carried out 23 in-depth family interviews including 11 face-to-face interviews with under 18s. Field research was carried out between July and August 2011.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

Nowhere is this shift more evident than in the retail sector. Not so long ago shares of companies reporting results would be marked up strongly for a robust store opening programme; now they only get the nod of approval if their online sales growth numbers are strong. Nobody, it seems, cares about footfall any more. The lazy assumption has taken hold.

But this assumption needs to be challenged because it is leading retailers off in the wrong direction. Yes, their online businesses have huge opportunities to grow but their high street presence is arguably more important than ever. Why? Because we are entering the world of Integrated Reality.

This is a world in which boundaries between the behaviour of different age groups are blurred – and perceptions of how they behave are often, quite simply, wrong.

We need to think of the population as i-Natives and Adaptive Immigrants. The i-Natives are the younger generation born in the last 15 years who have grow up with technology as part of their everyday lives. To them, firing up a computer is as uneventful as turning on a light and texting is as natural as phoning.

However, it is entirely wrong to think of their lives as being conducted wholly online.

The key to understanding the behaviour of the i-Natives is to comprehend that they do not perceive any difference between the online and physical world – one is merely a continuum of the other. Shopping, for example, is seen as a social activity –an excuse for a day out with friends and a chance to try on favourite fashions they may have seen in magazines or on websites.

Adaptive Immigrants are the other key demographic. They are generally a middle-aged, middle income group who generate and spend most of the country's disposable income.

Being born in an era when buying a telephone could take two months, they are fascinated by the speed and efficiency of modern technology. They place great faith in the internet's ability to make their lives easier and the promise of great bargains to be had by surfing the web.

To Adaptive Immigrants the internet and its associated technological spin-offs are sophisticated tools that need to be diligently mastered to unlock their full potential –i-Natives give that same technology as much thought as they do electricity: i.e. not a lot.

These different perspectives lead to very different behaviour than the lazy assumption would predict, as our last annual Christmas retail survey demonstrated. Despite being generally far less tech-savvy, it was the older age group who were keenest on online shopping and reported higher use, higher spend, greater motivation and fewer problems than younger people.

Overall, shoppers were evenly split on whether they preferred online or high street shopping, with 18 to 24-year-olds showing a preference for in-store browsing and purchasing while the older generation was more likely to use the internet, particularly for goods such as books and DVDs.

For Adaptive Immigrants there has been a “halo effect” around internet shopping – it is popular because it is easier to source goods, they are generally cheaper and they are delivered to the door, negating the need to battle through crowds.

However, online sales generally were significantly down on expectations, despite the bad weather in December which might have been expected to deliver a boost. Could this be down to the waning of the “halo effect”? Are Adaptive Immigrants beginning to act like i-Natives and becoming less in awe of technology?

These are key questions for retailers. Integrated Reality means they must stop thinking of two distinct worlds, one online the other on the high street, but must start to view them as one joined-up marketplace with several different roads leading to it, rather like an old town square.

They must be more alert to the threats and opportunities in all distribution and communication channels and work out a way to exploit them all in a more closely coordinated fashion.

All too often large corporates operate in silos. Typically they would have a high street division, an e-commerce division and, increasingly a mobile commerce (m-commerce) group. While this might look neat and tidy on a balance sheet, the reality is these divisions all need to work in tandem.

The winners in the world of Integrated Reality will be those that create a buzz about their offering via social networking, use location-based services on smart phones to ping highly personalised special offers to their database of customers and lure them to bright new stores which will be kitted out as all-encompassing retail destinations selling a much wider range of merchandise.

Even when they have done all of this, such is the changing nature of modern consumer behaviour, they still will not be able to guarantee success. The frustrating reality of Integrated Reality for marketing teams of the future is that reaching potential new customers is becoming easier, but persuading them to stay is infinitely more difficult.

Major survey reveals fears behind festive sales drop

Fears about the economic situation, rather than heavy snow, were the main reason for a fall in UK consumer spending in the run-up to Christmas.

Four out of ten shoppers said economic uncertainty made them more cautious and contributed to them spending around £245 million less than they did last year, according to a new survey by Intersperience, the international consumer research specialist.

Consumers over the age of 25, who account for the vast majority of retail sales, spent £313 per head, which was £7 per head less than last year. Seven out of ten people said they stuck to their budgets this year, an unusually high proportion.

Paul Hudson, chief executive of Intersperience, said: “Our survey clearly shows that economic confidence had a bigger negative influence on actual Christmas spending than snow. Harsh weather drove more people online but consumers told us even before the snow hit that they would spend less. People feel the financial situation is more negative than last year and that remains a key worry for the retail sector.”

If many high street chains were forced to make downbeat trading statements, there were clear winners in the Christmas spending period which may also point to a more fundamental change in shopping behaviour.

Supermarkets saw higher sales for gifts and took business away from some traditional high street stores. Some of this was attributed to shoppers seeking “one-stop shops” for all their buying needs rather than making multiple trips to the high street in atrocious weather conditions.

However, the scale of the shift is significant. The percentage of consumers buying most of their presents from supermarkets rose to 34% from 31% last year. Conversely, the number buying most of their gifts from high street stores fell to 71%, from 77%.

Paul Hudson said: “The rise of the supermarkets has been relentless over the past five years and has clearly moved beyond just grocery shopping to gift shopping.

“Tesco has done particularly well, with 43% of shoppers we polled buying Christmas gifts there. Sainsbury has done well, too, but it is still playing catch-up to an extent because of the relative amount of floor space it has devoted historically to non-food sales.”

• 49% of kids under 12 would be “sad” without the internet

• 70% of teenagers chat on Facebook

• Two year olds dominate the family iPad

• Children perform more daily tasks online than adults

London, UK, 30 January 2012 – Young children in the UK have a powerful emotional connection to the internet with 49% of under-12s reporting that they would be “sad” without it while one in five would be “lonely”, according to a new study by international consumer research specialist Intersperience.

The findings emerged from the 'Digital Futures' project, which surveyed 1,000 young people in the UK between the ages of eight and 18 on the impact of online and digital technology in their lives.It uncovered radical differences between the ways children and adults relate to the internet with under 18s primarily valuing it for social and entertainment purposes and older teens particularly keen on mobile internet.

The study found that teenagers are even more emotionally bound to the internet than either primary school age children or adults, with 60% reporting that they would be “sad” if they could not connect to the internet, while 48% (more than double the proportion of under 12s) said they would be lonely.

Teenagers are the heaviest users of mobile devices, particularly smartphones, and their number one online activity is chatting to friends - more than 70% of teenagers said they chat on Facebook. However, they are still keen on real-life conversation as more than half like to talk to friends face-to-face, compared to 35% who like to talk to friends online.

Intersperience Chief Executive Paul Hudson said: “The fact that children have a strong emotional attachment to the internet is often regarded as a negative thing but in fact it is perfectly natural for a generation whose social life is largely online. It's equivalent to taking a phone away from older people, they'd feel sad and lonely too.”

Under 12s emerged as sophisticated internet users with 74% playing online games, 65% using the internet for homework and more than one-third going online to look for things to buy or sell. In a cost-conscious climate, young teens are also using it to check prices for clothes or other fashion items.

Children are also smart about backing up data, with kids as young as eight using hard drives and teens storing information in 'the cloud'. Young people are also well-informed about online security and discerning about releasing personal data, with one-third unwilling to give their details to organisations online while 22% said they give false ID information.

Even toddlers have acquired a high level of skill with internet-enabled devices according to parents who said their two-year olds are the most likely to dominate the family iPad. Toddlers easily master touch screen technology to access games or stories independently.

Paul Hudson said: “Our Digital Futures project is one of the most comprehensive studies undertaken in the UK on how children interact with the digital world. It shows that even very young children are skilled multi-channel communicators who view the internet as an ever-present virtual playground. However they also have a surprisingly good grasp of complex issues like online security and e-commerce.”

He added: “We matched the results against our Digital Selves research on adult behaviour and it shows that even eight to 11 years olds perform a wider daily range of tasks online than grown-ups. Adults may be concerned about the strong emotional connection kids have to the internet today but our study shows that far from losing the art of conversation, children still prefer chatting to their friends in person.”

As featured in the Telegraph article on 30 January 2012 -  British children feel 'sad' without internet connection

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

About the Intersperience Digital Futures research project:

Intersperience conducted a wide-ranging survey among 1,000 young people in the UK between the ages of eight and 18 on how they use the internet and internet-enabled devices. Participants mirrored the general UK population in terms of social class and of the total group, 35% were aged between eight and 11, 37% were aged 12 to 14, and the remainder were aged 15 to 17. In addition, the team carried out qualitative research among 15 families with children aged from two to 18 which included participation in family tasks such as video diaries, communication logs and mood diaries. Researchers also carried out 23 in-depth family interviews including 11 face-to-face interviews with under 18s. Field research was carried out between July and August 2011.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

We are no longer on the cusp of it. We have all - to a greater or lesser degree - become Digital Citizens, which means we are both witnessing and participating in seismic change which permeates every aspect of our daily lives from work to play, education to commerce.

Rapid technological advances, the launch of increasingly intelligent consumer-friendly devices, and a marked acceleration in people using the internet and mobile devices worldwide provide compelling evidence that we have finally crossed the Rubicon. The challenge now is to understand the significance of this for citizens in the Digital Age.

Historians argue about the precise onset of the Industrial Revolution, the last period of such profound and widespread change. Equally, arguments abound on what marked the start of the Digital Age - from the birth of the Internet in 1969, to Motorola's first mobile phone in 1973, the launch of IBM's first PC in 1981, or last year's launch of Apple's iPad.

The earlier events laid the foundations for the Digital Age, as did telecoms liberalisation, the rollout of broadband access, cheap mobile phones, cloud computing, and more recently social media.

Apple, along with Google, YouTube, Amazon, Sony, Facebook and Twitter are in the pantheon of game-changers in the Digital Age. Their innovations have changed the way we interact with technology, bringing it into every sphere of our lives.

What is clear is that adoption of the internet and digital technology has now been achieved on a mass scale. There are two billion internet users worldwide, according to the United Nations International Telecommunications Union (ITU), while the number of mobile phone users worldwide has breached five billion, with close to one billion of these 3G subscribers.

To put that in perspective, the global population is 6.8 billion, so almost one in three citizens worldwide now accesses the web, while mobile phone ownership has skyrocketed.

The high growth phenomenon is not restricted to the developed world, in fact 57% of internet users are in developing countries. Mobile phone usage is also mushrooming in poorer nations as comparatively low costs make it more affordable than a fixed phone line.

The proliferation of hi-tech devices has resulted in a deluge of digital traffic, with 200,000 text messages sent every second worldwide and 50 million tweets a day. The latter statistic highlights the rapid spread of social networking activity in particular, as Twitter was only launched in 2007.

Arguably, Facebook is outpacing all-comers as the most rapidly growing internet activity, with 600 million users worldwide, including 30 million in the UK (or half the population). Facebook's popularity has accelerated sharply, highlighting changing trends in the way we use the internet and what propels us to go online.

Citizens of all ages have mastered the internet, albeit at different speeds and with different drivers and competency levels. The number of internet users globally has doubled since 2005 and has risen by a staggering 444% since 2000.

In the earliest days of the internet it was used on static devices, largely PCs, with fixed internet access and overwhelmingly in a work or academic context. Even 10 years ago internet use was mainly directional, transactional and relatively brief.

Now the internet is all-pervasive - like electricity, we take it for granted as part of the basic infrastructure of the modern world.

The tasks we undertake online span shopping, socialising, learning, enjoying music and soon it seems we will even be able to use our smartphone as a mobile wallet or payment device if 'wave and pay' trials succeed.

In short, we now have unprecedented freedom to use the internet to do a multitude of tasks anytime, anywhere. The significance of reaching this point cannot be underestimated as technological change is driving far-reaching behavioural change.

Behavioural change is being driven by a decreased emphasis on physical location; ubiquitous internet access; greater connectivity; increased social interaction; and integration of different forms of communication.

The rising use of mobile devices is also a key factor: smartphones now account for 30-40% of mobile phone sales and more model launches and an ever-increasing number of applications available, are underpinning upward sales momentum. The result is that the internet is increasingly both mobile and ubiquitous.

The launch of Apple's iPad last year marked a major milestone for the Digital Age as its size, design and ease of use brought mobile internet to a new multigenerational audience. The sale of the latest version triggered global buying stampedes and catapulted Apple into top slot in the leading 100 global brands.

Observing how people use such devices is critical to understanding the dynamics of the Digital Age and we have charted clear differences in the way people used fixed-access and mobile internet. On mobile devices, users characteristically access the internet in short sharp bursts to conduct specific tasks or solve problems, rather than for longer general browsing.

We have conducted rigorous research into both the context in which people use devices and the impact on their lives. Our research yielded unique insights and led us to develop unique classifications which accurately describe how different groups within society are responding in the Digital Age.

The most marked differences in both behaviour and attitude are between older people or 'Adaptive Immigrants' to the Digital Age and younger people or 'Digital Natives.' The differences are even more pronounced between the older generation and 'a subset of Digital Natives - 'M-Agers' or those born from around 1997 onwards who have grown up in a world of internet and mobile phones.

The way M-Agers learn, think and communicate is different - they multi-task, they use multi-communication channels and (unlike Adaptive Immigrants) they see little or no distinction between the real world and the virtual world.

By 2018 they will begin entering the workplace in significant numbers which means it is imperative that organisations wishing to engage with them as employees, colleagues or customers understand how they operate.

The issues are far from simple as the Digital Age has both new tools and new rules. Some interaction is now entirely online, devoid of the visual and aural clues man has relied upon for centuries to decode social messages. In their place is a new unwritten etiquette, new vocabulary (abbreviations LOL, OMG, etc.) and emoticons which can have different meanings in different cultures.

Our latest research into social networking behaviour revealed a clear generation gap. It showed that the average 22 year old boasts 1,000 online friends compared to fewer than 20 for the average 52-year old, yet in the real world the picture may be very different as we are forced to re-examine the definition of friendship in the Digital Age.

On top of this is the tricky issue of moral relativism as ethical codes in the virtual world do not always mirror those of the real world. This can affect sensitive issues such as confidentiality and ownership which may impact not only on interpersonal relations but also on commercial relations between individuals and organisations.

For those who think that our arrival in the Digital Age will be accompanied by a slower pace of change, think again. The next decade will herald equally momentous change and the breakneck pace we have witnessed, if anything, is likely to accelerate.

Technological change causes disruption of the status quo. It was true in the Industrial Revolution and remains equally true in the Digital Age.

It forces us to challenge the way we operate and interact on every level. It requires us to reassess the skills we must master and to re-examine and maybe even redesign the kind of products and services we must offer if we are to remain competitive and relevant to an increasingly demanding and diverse customer base.

Change is the new normal in the Digital Age. The only certainty in this uncertain future is that it will become more radical. However, change also creates new opportunities for those prepared to embrace and respond to it in a positive and dynamic way.

For businesses operating in a fast-moving multi-channel environment, the three watchwords for the future are 'connectivity, integration and interaction.' Organisations must not only attain a solid understanding of these issues, they must also possess the determination and imagination to draw on this insight to formulate a strategy for success in the Digital Age.

Background

Online and digital technology is increasingly pervasive, affecting all aspects of our lives and in many ways, changing the way we buy, the way we access information on the move and the way we communicate with each other and with businesses. All industry sectors are being forced to adapt to keep pace with consumer research and consumer behaviour.

This major new project will explore how technology is affecting the way we live; the influence and changes it is having on our relationships, communications, our purchasing habits, the fabric of our family life, our trust and our dealings with organisations. It will guide on the pace of change and adaption to new digital media and comment on its future trajectory.

This project will answer the question, “How digital are we?” and explain how technological and social change is affecting the needs and expectations of your customers.

Objectives

All funding partners can input into the objectives and provide specific questions. All have the opportunity to input into the design of the research at every stage.

1. Explain how technology is affecting the way we live today;

· What impact is technology having on the fabric of our family life and the nature of our relationships?

· What influence is it having on the way we communicate and interact with our friends, families and organisations?

· How is online and mobile web changing the way we make purchasing decisions and affecting the way we buy?

2. Explain the pace of behavioural change and forecast future consumer behaviour;

· How digital are we? How fast are we adapting to new digital media?

· Steer on the likely timescale and impact of new technologies (e-readers, iPad etc)

3. Explore the use and influence of social media;

· How integrated is Social Media into people's lives? How central is to people's communication and relationships? How does this differ across different segments?

· How does Social Media change the nature of relationships between friends, family and organisations?

4. Explore issues of privacy in a digital age;

· To what extent are people concerned with 'privacy' online? How concerned are people with 'privacy' in social networking?

· Is fear of security online related to issues of 'privacy' or is security solely related to online purchasing and fear of financial fraud online?

· Do people trust information provided through social networking sites? To what extent does the consumer trust online information in general? How does this differ to traditional media?

• 1 in 3 shoppers used mobile phones to help them buy gifts
• 38% used discount coupons or sought out early bargains
• Overall spend up, online spend up, high street spend down

London, UK, 12 Jan 2012 – The way UK consumers shopped for presents this Christmas was completely different to any previous year, according to the annual survey by international consumer research specialist Intersperience.

With continued worries about the economic situation, people went bargain hunting early, and made more use of discount coupons and smartphones to compare prices in order to get the cheapest deal.

“This is the year that the mobile phone changed the way we shop,” said Intersperience chief executive Paul Hudson. “With people very conscious of their reduced spending power this year, they have chosen the latest technology to help them find the best deals.

“One in three used their phones to check competitor prices, look for reviews of products, search ratings and check specifications. Almost 20% of people called up rivals' websites while standing in a high street store looking at the item they wanted to buy. And 30% of them went on to purchase those gifts online from somebody else's website while standing in the shop.”

“Discount coupons were much in evidence and we found people have taken to seeking out bargains at all times of the year, buying presents cheaply off-season and keeping them hidden until December. We are as a nation, in effect, Christmas shopping all-year round now.”

Mobile phones were a major factor in a general pattern of increased online sales. The average amount spent by each internet shopper was up £25 to £188, while the average spent in stores dropped £13 to £166 per customer.

While the amount spent was up, the proportion of the population buying online actually fell from 81% in 2010 to 72%. More than half of internet shoppers, 51%, said they experienced problems with stock shortages or delays in delivery – and almost 1 in 10 said their gifts did not arrive by Christmas Day.

Intersperience chief executive Paul Hudson said: “Although the proportion of people buying online has fallen, the number of transactions per shopper has increased and the value of goods bought online has also risen. That means there has been overall headline growth in online sales.”

“It tends to be the over-25s who prefer to purchase presents online. Younger consumers use the internet and their smart phones for research but more of them buy in stores. When we asked them why, 41% said they worried about order delivery, a far higher figure than among older consumers.”

The trend towards a Mobile Christmas came against a backdrop of continued uncertainty about the economic outlook. Some 65% of consumers said the economic situation affected their Christmas spending, compared to 48% in 2010.

Ends

NOTES TO EDITORS

About the Intersperience Christmas Shopping Survey:

Intersperience conducted a comprehensive survey of 1,000 UK shoppers about their spending plans and shopping habits in the run-up to Christmas 2011 and the week after. The survey used quantitative and qualitative research methods to predict shopping behaviour and includes consumers' views on the impact of economic conditions and favourite gifts for this year. It includes data on the impact of internet shopping on consumers and analysis of differences in the behaviour and preferences of consumers aged 18-24 and those aged 25 and above.

Intersperience Chief Executive Paul Hudson is available for interview.

Photographs are also available upon request.

Media Contact:

Valerie Darroch 07970 737708

Email valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

www.intersperience.com

Tel: + 44 (0) 15395 65450

These are the results of polling on key technology issues and changing consumer behaviour from our Open Ideas event in London earlier this year. Senior figures in marketing, research and customer relations from some of the UKs most dynamic companies were asked to debate four motions and then decide whether they were “fact” or “fiction”. The charts show how once all-pervasive communication channels, PCs and mass television, are becoming marginalised as we enter the digital age. They also highlight a widespread feeling that the M-Agers who will dominate this period and the “touch” technology that they have grown up with are not only going to force businesses to change the way they connect with customers but also how they structure themselves internally and conduct their own affairs.

Hitting the high street puts us in Christmas mood

For all their increasing online sophistication, nothing brings shoppers out on to the high street like Christmas.

Some 52% of people say that hitting the high street in December gets them in the Christmas spirit.

Four out of ten agreed wholeheartedly that a huge part of the enjoyment of the traditional festive shopping spree is not just searching for presents but taking time to look at all the Christmas displays and hearing carols in the background.

The study by Intersperience, the international consumer specialist, will give a boost to traditional shopkeepers as it confirms findings earlier this year that while consumers are buying more online, many still prefer to visit a variety of stores to see the physical goods and compare prices before making their final choice.

It is a thrill that firing up a computer to search the web simply cannot replicate. When asked if shopping online for Christmas gifts got them in the festive spirit, 46% replied “not at all”!

Intersperience chief executive Paul Hudson said: “We are a nation that likes our traditions and for the vast majority of people there is still something about heading out in the snow to find that particular gift that means a lot to us.

“The big tree in the town square, the colourful lights and carols in shops are all important factors that help us get into the party atmosphere.”

Whether the high street or the internet will dominate consumer spending is one of the key questions being asked by retailers this Christmas. Intersperience believes the high street will still come out on top but that online shopping will increase significantly. Those intending to shop both on the internet and in-store, predict 54% of their spending will be online.

One area where our love of Christmas tradition seems to be adapting to the electronic world is in greetings cards. “There looks like being a big shift in the number of e-cards that are going to be sent this year,” said Paul Hudson.

• Drop in numbers who trust internet retailers to deliver on time
• 53% say economy worries will affect their spending overall
• Kindle and e-readers most popular technology gift

London, UK, 21 Nov 2011 – Four out of 10 of shoppers who refuse to buy Christmas gifts online this year fear a repeat of last year's delivery fiasco when one in six presents bought from websites failed to turn up on time, according to new consumer research.

The Intersperience Christmas Shopping Survey 2011 also showed that 36% of consumers who are not prepared to buy online are concerned about the risk of receiving the wrong item following problems in 2010 when one in ten people received incorrect items or something they had not expected.

Paul Hudson, Intersperience Chief Executive, said: “There is a general disappointment with online service that is a hangover from last year and it is affecting people's plans for Christmas. Retailers need to do a lot of work to win back customers' trust in online shopping.”

Despite these concerns, overall UK online sales are expected to continue growing. However, Intersperience has identified a marked shift in sentiment away from web-based shopping.

Although 81% of the population said they expect to buy something online this year, that is well down on the 89% who had planned an internet Christmas in 2010. However, there is still a big appetite for smooth and reliable web-based shopping and 20% of consumers said they would have spent more online last year had it not been for experiencing frustrations with ordering and delivery.

Paul Hudson said: “While a lot of people had good experiences of online shopping last year, a large proportion had problems and this has put off a significant minority of shoppers. There is no doubt that internet retailing will show year-on-year growth, as it is coming from a relatively low base, but the more general question is whether online sales are actually falling short of what they should be if service was better.

“Quite simply, online stores have to get their act together this year and outperform to win back a sceptical public. If they do, they will pick up significant market share but, if there is a rerun of 2010, then the big winners are likely to be supermarkets and high street stores.”

In general, the Intersperience Christmas Shopping Survey found consumers are gearing up to spend an average of £307 per head, an increase of £7 compared to the forecast for 2010. The overall increase is despite 53% of shoppers expressing concern about the economic climate, up 8% on last year, and four out of ten saying they will have less money to spend.

Consumers over the age of 25, who were most cautious about their spending intentions in 2010, appear to have loosened the purse strings and are planning to spend £25 per head more than 12 months ago. Meanwhile those under 25, who were more bullish last year, intend to spend £4 less in 2011.

Another striking feature of consumers' intentions this year is a big move to start shopping earlier in the hope of seeking out bargains in pre-Christmas sales.

The most sought-after electronic gadget this year according to the survey is a Kindle – one in four people who plan to buy technology said they will be snapping up one or similar e-book reader, pushing last year's must-have gadget, the iPad, into sixth place.

Ends

NOTES TO EDITORS

Media Contact:
Valerie Darroch tel + 44 (0)7970 737708
Email valdarroch@googlemail.com

About the Intersperience Christmas Shopping Survey:

Intersperience conducted a comprehensive survey of shoppers in the UK on their spending plans and shopping habits in the run-up to Christmas. The survey used quantitative and qualitative research methods to predict shopping behaviour and includes consumers' views on the impact of economic conditions and favourite gifts for this year. It includes data on the impact of internet shopping on consumers and analysis of differences in the behaviour and preferences of consumers aged 18-24 and those aged 25 and above.

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; Scottish Power; and William Hill.

The most popular use of smartphones is as a price scanner rather than a purchasing tool. People go into different shops along a high street and record offers on products they like, storing them up for comparison later at home. Generally, the actual purchases are made in person at the shop or online using a desktop computer. Less than a quarter of respondents to our Digital Selves study said they would be comfortable using their phones to buy goods, although this percentage may rise considerably in the next decade.

Why don't people use their phones to purchase more, it is so convenient?

Although online shopping is growing exponentially, precisely because it is so convenient, purchasing via smartphones involves a different psychology. Consumers still think of the fixed line PC as secure, the more “untethered” the device, the more resistant they are to using it for sensitive activities. Only 11% of PC users hesitated to part with money, fill in their personal details and purchase goods online whereas the figure for mobile phone users was 37%.

There are a number of new smartphone payment apps - are they likely to catch on?

Buying online generally is hugely popular but has not actually grown as much as retailers initially hoped. There is a hesitation among consumers to use the internet for this reason because of concerns about products getting lost in transit, making errors while going through the purchasing steps, the online payment mechanism and how to return goods if they are faulty. All these are exacerbated with mobile phones. While 21% of respondents said they would be comfortable using their phones to buy, only 8% actually did. However, there is one glimmer of hope for online retailers: smartphone users represent the biggest growth area in the market and they are significantly more open to using their devices to buy than general mobile subscribers.

Do different age groups think differently about privacy implications of using smartphones?

Where fixed line internet connections are involved , the level of concern about security is fairly constant across all age groups. This indicates that, as the oldest form of technology in everyday use, we are all equally comfortable with it, not least because we know that we can protect our data by downloading the many forms of security software.

As the internet connection becomes 'untethered' – such as a smartphone or tablet – security concerns begin to rise. Again, this can be seen across all age groups but it is the older generation who tend to feel most uneasy.

So, as a general rule, privacy and security concerns rise with age. However, there is one glaring exception: 18 to 24 year-olds are more preoccupied with security across wireless and mobiles than 25 to 44 year-olds. We think this is because they are more aware of the risks but our next major research project, Digital Futures, will provide definitive answers.

British people place greater importance on teaching their children the value of enjoyment in life than the value of hard work, according to research by Intersperience into cultural differences across Europe.

Intersperience asked people from across Europe to indicate the relative importance they placed on teaching their children the value of hard work, enjoyment and religion.

Turkey emerged as the nation with the most citizens placing a high value on hard work, with 86% of respondents saying they regard teaching their children this value as 'very important'. Russia, Poland, Romania and the Ukraine, followed Turkey on this issue.

The UK came in sixth, ahead of other Western European nations. However, Brits still displayed a relatively strong work ethic, with 76% regarding teaching their children the value of hard work as 'very important.'

When it comes to teaching children the importance of enjoying life, Poland was top, with 87% of Poles regarding this as very important. Austria ranked second, while Germany and the UK tied at equal third.

A clear East/West divide emerged in the research, with Eastern nations placing more importance on working hard and Western nations placing emphasis on the values of enjoying life. The East/West divide was very marked on religious values, with Eastern Europeans overwhelmingly placing more importance on religion compared to Western nations.

Paul Hudson, Chief Executive of Intersperience commented:” Our research provides clear evidence of persistent and sharply contrasting cultural values across Europe. People often assume there is a simple East/West divide on cultural issues. But our research questions stereotypical beliefs on issues such as attitudes to work, play and religion across Europe.”

The research was undertaken as part of a wider project by Intersperience which created a unique 'cultural lens' comparing European cultural differences on six dimensions. Hudson said the cultural lens represents a powerful tool for companies looking for the most effective way to market their goods and services across Europe.

Many young people today have never known anything but the world of mobile phones and social networking. These digital natives will have a major influence on future products and services, but researchers can struggle to engage with them. paul hudson of intersperience shares some of the findings from the agency's Digital Futures study of 8- to 25-year-olds in the UK.

1. Just because they are online doesn't mean they only want to interact online

The continuing rise in the popularity of Facebook has led to the automatic assumption that the most effective way to engage with digital natives is online.

However, our research showed that this generation does not want to communicate solely online, with 67% of 18- to 25-year-olds saying they like to talk to friends face to face, while only 28% like to chat online. Among 8- to 18-year-olds, 55% said they like to talk face-to-face and 35% online.

When it comes to communicating with companies, 18% of 8-25s said they would not use any digital methods. The implication of this is that a wholesale shift by the business community to online communication would not be effective with this generation.

2. The mobile internet is important, but is used differently from the fixed internet

Some researchers see mobile as the best way of reaching digital natives, as their mobile use is ubiquitous and smartphone adoption is rising fast.

However, when we asked 18-25s what they would most like to use their mobiles for in future, the answers focused mainly on personal – not commercial – use. Half said their primary activity was social networking status updates. Playing games also scored highly, however – underlining an opportunity to engage with digital natives via surveys with an interactive gaming element.
Understanding how people use the mobile internet is also vital – it is characterised by short bursts of activity. Our research showed that ten minutes is the maximum most people spend using the mobile internet at a time, mainly for problem-solving, finding small pieces of information and location-based enquiries.

To read more see the feature in today's Research Live article - Going native

In a ground-breaking study Intersperience, the international consumer research specialist, has discovered the incredible extent to which the public are effectively saying: “I am my smartphone” – and the results have far-reaching implications for international brands and public policy makers.

Some 79% of the population now have a mobile phone but almost half, 44%, use a smartphone. Once almost exclusively the preserve of business users, these multi-functional mobile devices are now just as popular with teenagers and housewives thanks to the growth of the “app” download culture and the introduction of more aggressive pricing plans by phone companies.

One of the most striking facts about smartphone users revealed in the Intersperience study, Digital Selves, is the fact they are constantly connected. Some 56% of smartphone users are on their devices all the time and 65% say they would “feel lost” without them.

85% of smartphone users say they would miss them if they could no longer use them where a mere 8% say they are tired of being constantly available because of the greater connectivity their phones offer. In short, these people are willing prisoners of technology.

Although popularised initially as a handy emailing tool for busy executives on the move, smartphones are now mainly used for leisure and entertainment: smartphone users are 15 times less likely to use their phones for simply calling and texting.

It is easy to characterise these devotees as frantically texting teenagers but the attachment runs across age groups. In the Digital Selves study one 35-year-old mother admitted: “I sleep with it under my pillow so that I know where it is in the middle of the night.”

As the smartphone becomes ubiquitous, so the use of other electronic devices begins to fade. Unsurprisingly, the use of landline phones has dropped the sharpest but 27% of smartphone subscribers said they log on to their PC less also.

Laptop usage is down 25% but remains an important device across all age groups nevertheless. They are seen as the practical choice for online tasks, where smartphones are the emotional one. All this leaves the PC looking rather like an endangered species but rather, it could be a case of the PC is dead; long live the computer.

Emerging from Digital Selves is the picture of a population with an increasing attachment to mobile phones, laptops and other mobile devices. The implications of these continuing trends for business are significant.

In one sense they make life more complex: brands will need a presence across all devices to reach an increasingly atomised consumer base – and they may find it harder to predict which routes to market are likely to be most successful with different consumer segments.

The corollary of this, of course, is that brands can have more real-time interaction – and therefore a closer relationship – with consumers than ever before.

Digital Selves demonstrates for the first time how the always-on world is changing the way we live our lives in a very profound way. Those who embrace these changes and harness the power of the smartphone, tablet and laptop will be the success stories of the next decade.

Eastern Europe is widely regarded as an attractive homogenous trading bloc but Intersperience research into cultural differences reveals a complex picture, requiring marketeers to adopt a new strategic approach to wooing Eastern European consumers.

The international consumer research specialist conducted cross-border research, producing fresh insight into cultural differences and similarities and grouping countries into 'clusters' of nations with shared cultural behaviours.

Intersperience completed an extensive multi-lingual survey and applied a unique 'Cultural Lens' comparing behaviour on six dimensions and pinpointing nations with similar cultural traits. It identified five separate clusters, including an 'Eastern cluster' of four nations with shared underlying cultural behaviors - Russia, Turkey, Belarus, and the Ukraine.

A key implication of the research is that any attempt to group the former Soviet Union (FSU) countries together for marketing purposes will be unsuccessful as the four “Eastern Cluster' countries exhibit marked differences in cultural behaviour compared to nations such as Poland, Romania and Lithuania which belong outside the Eastern Cluster.

In fact, of the latter three, Romania emerges as more culturally similar to Spain and Italy, while Lithuanie emerges as a unique case.

The nations within the 'Eastern Cluster' share several cultural behaviours including:

- a long-term orientation which means they are more likely to save and value thrift

- a hunger for new products and learning new skills

- a preference for communication involving non-verbal cues

- a tendency to pay attention to social branding and personal recommendation

- a keenness on self-service.

However, there is a peculiarity to the Eastern Cluster compared with the other cultural clusters identified by the study.

“Russia, Turkey, Belarus and the Ukraine constitute a cluster - but only just - their common cultural behaviours are relatively weakly shared compared to other clusters. That emphasises the importance of understanding cultural differences at a national as well as group level,” Paul Hudson, Intersperience Chief Executive, explained,.

He added that the factors underlying shared cultural behaviours are multi-faceted, which explains why the Eastern cluster constitutes nations with common cultural behaviours despite not sharing common borders, language, history or politics.

Hudson commented: “Winston Churchill famously described Russia as a riddle, wrapped in a mystery, inside an enigma, and frankly he had a point. Too many organisations are oblivious to critical cultural differences and adopt an overly simplistic approach to dealing not only with Russia but Eastern Europe generally. Our research shows that a 'one size fits all' strategy for Eastern Europe is fundamentally flawed.”

He added: “Cultural behaviour is a complex issue which permeates every area of society. It influences brand perception and meaning and how people decode marketing messages. It influences whether people will relate to a brand which celebrates individualism and material wealth or which espouses more collective concerns. Marketing directors must grapple with these issues to communicate effectively with consumers in target markets.”

ITV to use TrendSpot to consult customers

London, UK, 26 October 2011 - ITV, the UK's biggest commercial television network, have commissioned Intersperience to run an ad hoc research community to help develop a new web service. The community will run for 3 months using a branded 'pop up' community within TrendSpot, Intersperience's syndicated online community.

Intersperience will recruit 130 members selected to represent ITV's customer segments to take part in the research project, which will use an iterative approach, including techniques such as forum discussions, diary studies, brainstorms, Smartboards and online focus groups, ensuring that ITV can incorporate their customers' views in the new product development process.

Paul Hudson, Chief Executive of Intersperience commented: “This is an exciting project for Intersperience and ITV. The branded 'pop-up' community functionality provided by TrendSpot allows us to gather in-depth, real time insight at speed. ITV will use this intelligence to ensure a service offering which they can be confident meets their customers' needs.”

Hudson added: “TrendSpot has proven to be a nimble and flexible part of our research toolkit with the ability to deliver valuable results for both short term ad-hoc projects and longer term strategic projects. We have used it effectively now with a number of leading UK and international brands to gain a deeper understanding of their customers' behaviours and viewpoints.”

Ends

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in research communities, consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

Rather than regarding the internet as simply a practical enabling technology, our new 'Digital Selves' research revealed the seductive appeal of 24 hour connections and the ability to reach anyone anywhere in the world for consumers. We found that the internet has begun to stake a claim in consumers' hearts as well as their minds.

Our Digital Selves project researched the impact of online and digital technology on people's everyday lives in the UK and we found that more than half of the people we surveyed would feel 'upset' at the prospect of being deprived of an internet connection even for a short time.

The extent of people's emotional dependency on technology in their everyday lives was surprising, with 40% avowing that they would feel 'lonely' if they were unable to go online or use other technological means of communication.

The project, which surveyed a nationally representative sample of more than 1,000 individuals aged from 18 to over 65, included a challenge to participants to get through one full day without using technology and to record their reactions to the experience. While the idea of no internet had prompted widespread anxiety, people reacted just as, if not even more strongly, to the prospect of foregoing technology altogether, even for 24 hours.

Giving up technology was considered by some to be as hard as quitting smoking or drinking, while one survey participant described it as “like having my hand chopped off.”

A significant number of people 'cheated' by switching on the television or radio as they did not regard them as 'technology gadgets', underlining the extent to which technology is now part of the fabric of people's lives.

Many participants found it extremely hard to resist the temptation to go online, especially those for whom online communication represents a large part of their social interaction. A total of 40% of people felt 'lonely' when not engaging in activities such as social networking, emails, texting or watching their favourite television channels.

Younger people, who tend to be heavier users of social media and text messaging, found giving up technology the most difficult while older people generally coped more easily when cut off from digital connections.

The clear message is that online and digital technology is increasingly pervasive, affecting all aspects of our lives. It is influencing our friendships, the way we communicate, the fabric of our family life, our work, purchasing habits and our dealings with organisations.

This stepchange has occurred faster than many of us had anticipated or realised as the true ramifications of living in the Digital Age only now become apparent and the implications for society both from a personal and commercial perspective are profound.

The fact that information (if not services) is digitally available 24/7 means that we increasingly expect organisations to respond to us if not 24/7, then a lot faster than they have ever been used to historically. In fact, we don't just want things soon - in the Now Culture we all want them 'now' and we're not prepared to settle for anything less.

Also, the more technically adept and digitally connected we become, the more opportunities and channels are open to us through which to make our wishes known. We can email an organisation, phone them, text them - and if we don't get the response we're looking for we can 'tweet' about it.

Organisations may have legitimate resource issues, technology issues or even deep-rooted cultural issues which make it difficult for them to respond adequately to this new breed of consumers (many of whom are extremely well-informed thanks to their ability to surf for information before they get in touch).

In the Now Culture the bar has been set higher in terms of consumer expectations of service while simultaneously there is a lower threshold for putting up with inferior service. In a separate poll we carried out recently, we found that poor service infuriates 27% of customers. In fact, the proportion of people who are angry about customer service has been consistently rising from 15% in 2003 to 17% in 2006, and 27% today.

This marked increase is linked to a dramatic and strategic shift in customer expectations which has taken place in tandem with a greater attachment to technology, the dawn of the Digital Age, and the emergence of the Now Culture.

However, there is no such thing as entirely homogenous consumer behaviour in the Digital Age, or indeed in any other. To formulate an effective strategy to deal with consumers in the Now Culture, requires a deeper examination of behavioural trends.

Our Digital Selves report highlights * five distinct segments of the population who exhibit different characteristics in relation to technology in general but in particular to the internet. Developing a familiarity with each segment is essential if organisations are to adopt the correct strategy for marketing and selling to consumers and for servicing their needs.

People were categorised based on a set of criteria which included: willingness and keenness to use the internet; skill level; propensity to explore and experiment online; confidence in using social media such as social networking sites; and also attitudes to privacy and security while online. Interestingly, the differential in terms of skill is not the key deciding factor between the segments, behaviour and attitude are also critical factors.

Most organisations are still taking baby steps in relative terms when it comes to understanding these different segments let alone getting to grips with how to engage with them. They have the additional headache of dealing with a plethora of contact channels.

The situation is already complex and multi-layered with a plethora of contact channels to deal with. What is clear is that while we have begun to get a good handle on the behaviour of adult groups in the Digital Age, including the distinct group of 18-25 year olds who constitute 'Digital Natives', today's 'technots' and 'tweenies' and teenagers will pose a whole new challenge.

We are about to embark on a 'Digital Futures' study looking exclusively at digital engagement and adoption in under-18s which we expect to highlight even more radical developments in children and teenagers.

* Detailed information on the five segments is contained within our Digital Selves report. For further information on this research contact Alison Little at alison.little@intersperience.com

Consumer confidence in the UK remains fragile but has rebounded from the desperate low of last year, according to the latest quarterly consumer survey from Intersperience.

While confidence in the UK economic outlook remains weak, the majority of people still feel secure in their jobs. Taken together, the two findings suggest that the country is not at risk of the “double dip” recession predicted by some economists.

Intersperience, the international consumer research specialist, has been accurately tracking confidence and spending patterns since the height of the boom and says the latest findings predict the UK is in for a long, slow recovery.

Chief executive Paul Hudson said: “These results show that the recovery has stalled from a consumers' perspective. However, with the sense of job security still relatively high compared to the beginning of the recession, we are not heading for a double-dip recession. A long, slow and frustrating recovery looks much more likely.”

Intersperience found that 65% of those questioned in the last three months considered economic conditions in the UK bad or poor, compared to 76% nine months ago. However, 56% said they felt secure in their jobs compared to 45% at the height of the recession.

It appears those in work are holding on to what they have. Some 42% described themselves as savers against 32% who considered themselves spenders.

• phone hacking fears prevalent among consumers
• 44% worry about lack of security software on mobiles
• only 17% of consumers want to use mobiles as wallets in future

London, UK, October 14 2011 - Phone hacking fears dominate consumers' security concerns about new 'mobile wallet' payment systems and are likely to hamper UK adoption of new 'swipe-and-pay' smartphone systems, according to the latest research from Intersperience.

The international consumer research specialist questioned UK adults on their attitudes towards using mobile phone payment systems and found that just 17% would like to use their mobile as a wallet in future. The top concern cited by consumers was a lack of security software, with 44% citing this as their chief worry.

Intersperience's Digital Selves project researched the views of more than 1,000 UK consumers and the results coincide with the trial of Google' s new mobile electronic wallet system in the United States ahead of an anticipated UK launch in 2012.

It revealed a mix of emotional and rational views on mobile payment security with 24% of people saying using a mobile for payment “feels less secure but I don't know why”, while a further 24% believe their mobile is more likely to be stolen than their wallet.

It also showed that many consumers feel vulnerable following high profile phone hacking scandals. One respondent said: “After the recent phone hacking scandals it's clear that mobiles can be hacked. I'd be worried criminals would learn to do it.”

Paul Hudson, CEO of Intersperience said: “There is no doubt that the phone hacking scandals have unnerved consumers. We also detected a marked rise in security concerns when people use devices with mobile internet access compared to fixed access via PCs. These beliefs will impact the pace at which UK consumers adopt mobile payment systems.”

The research showed that just 8% of adults currently use their mobile phone for payment although this is expected to increase as 21% said they would like to use their phone to buy something in future.

Digital Selves also looked at consumers' willingness to use PCs and mobiles to pay for goods or services ordered online. It found that while 11% of people would hesitate to make a purchase via PC, this more than trebled to 37% when it came to the proportion who would hesitate to buy via a mobile phone.

Hudson commented: “There is a common but not necessarily logical perception that as your internet link becomes 'untethered' your information is automatically less secure. The belief stems from the context of mobile usage which is generally when you are on the move in public places, although in reality there are far higher instances of security breaches over PCs than mobiles.”

The younger generation emerged as the keenest future fans of mobile commerce as one in three (33%) said they would like to use their mobiles to buy in future. Under 18s are also keener on mobile wallets or payment systems, with 25% happy to use one instead of a traditional payment method.

Hudson said: “Today's adults may be adopting a cautious stance on mobile payments but we expect the next generation to be more enthusiastic. Digital Natives will be in the vanguard of mobile commerce.”

Ends

As featured in today's Telegraph article - Majority of Britons are scared of 'wave and pay' 

NOTES TO EDITORS

Media Contact:
Valerie Darroch tel + 00 44 (0)7970 737708
Email valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University, which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

Ends

The favourite way to woo the opposite sex on Valentine's Day is over a candlelit dinner according to Intersperience's poll of British consumers' spending plans.

The poll showed that among people planning a Valentine treat for their loved one, the top spending choice was a romantic meal, with 44% intending either to go out to dinner or make a special meal at home.

Gift budgets are tight this year, with 89% restricting spending to £40 or less but there is good news if you want to say it with flowers - that will stretch to a dozen red roses and you will still have a penny change.

Flowers are the second most popular romantic treat, followed by chocolates. Surprisingly, perfume didn't get a mention in romantic spending plans this year and while diamonds may be a girl's best friend, ladies hoping for a surprise proposal on Valentine's Day may be in for a letdown as none of the respondents were planning to buy jewellery either.

Women are keener on using social networking sites than men according to new research which found that 72% of women use one or more social networking sites compared to just 55% of men.

The data emerged in a breakdown of social networking behaviour by gender carried out as part of a wider study into the social networking phenomenon by international consumer research specialist Intersperience.

Keeping in touch with friends and family was cited as the top reason for using social network sites by both genders, but for women, chatting was the second biggest reason (56%), whereas for men, chatting ranked third after sharing pictures online.

The data also showed that women are proportionately keener than men on using social network sites to make new friends, gain advice, or to share thoughts and feelings.

However, when it comes to the amount of time per week spent on social networking sites, Intersperience found a more even split between the sexes, with the only key difference being that 30% of women spend less than 30 minutes online per week compared to 23% of men.

Intersperience Chief Executive Paul Hudson said: “It may not come as a huge surprise that women like to chat more than men but on a serious note, the gender behavioural differences we detected raise interesting questions for organisations using social networking as a channel to communicate with specific customer segments.”

London, UK, 22 July 2011 - International consumer research specialist Intersperience has secured a contract from Virgin Atlantic, one of the world's most iconic airlines, to conduct research into how cultural differences impact on its passengers' perceptions of their journeys.

Virgin Atlantic has engaged Intersperience to carry out a wide-ranging study which will run over a 10 week period. It will include interviews with passengers and crew, diaries and observation on long-haul flights to Nigeria, China, Japan and India along with a post flight survey with a sample size of 1,000 passengers.

Intersperience will deploy its specially-trained team of multi-lingual researchers on the Virgin Atlantic project. The team, all highly skilled academics operate from a central UK location and comprise native language speakers spanning more than 60 foreign languages.

Paul Hudson, Chief Executive of Intersperience commented: “We are delighted to be working with a brand as dynamic as Virgin on such a unique project. The diverse backgrounds of our international team mean that they have an inherent understanding of their native cultural nuances guaranteeing accurate interpretation of research; adding tremendous value.”

He added: “Major brands are generally becoming increasingly conscious of the need to take cultural difference issues seriously. Intersperience's strong international research capability gives us an edge in servicing global brands on cross-border, multi-cultural and multi-lingual projects.”

One of Virgin Atlantic's key pledges is to provide consistent service delivery to its customers, which included six million business and leisure passengers last year. The airline currently flies to 32 destinations worldwide and it will add a 33rd in summer 2012 when it commences flights to Cancun in Mexico.

Ends

NOTES TO EDITORS

Media Contact: Valerie Darroch 07970 737708 E: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include:The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

For more information:

http://www.intersperience.com/

Tel: + 44 (0) 15395 65450

There is no denying that online sales growth is strong and will remain so for some time to come. At Christmas, the key period of the year, internet sales rose by 18% compared to the previous year and accounted for 10.6% of all retail sales. And yet, the nagging doubt remains that the impressively steep online sales curve masks a more discomforting truth.

Our TrendSpot project, which we conducted again either side of Christmas, delves deep into the psyche of consumers. Among other insights, it compares what and where they say they are going to buy with their actual behaviour.

Our analysis shows that retailers are actually falling down on the job, that web growth should actually be much stronger – and that it is fairly fundamental operational errors that are to blame.

The consequence is that while many more people feel emboldened to spend online, buying into the slick advertising and the prospect of bargains delivered straight to their doorstep, huge numbers are put off spending any more through having a bad experience.

One of the standout findings in TrendSpot this time was that while 81% of our survey sample bought online, the proportion that had indicated in November and early December they would be manning the mouse to buy presents was a significantly higher 89%.

This drop in people's actual purchasing patterns, compared to their own predictions, is all the more disconcerting because the bad weather in December encouraged consumers to spend more on internet sites rather than trudge around the snowbound high streets.

Of those who shopped on the internet, 68% experienced some kind of problem. That frustration prompted 1 in 4 people to spend less as a result. The list of major problems experienced is below…

	2009	2010
Stock shortages	29%	18%
Delivery delays	34%	52%
Presents not arriving	9%	17%
Wrong/unexpected item	5%	9%
No problems	48%	32%

Last year stock shortages were a major factor in disappointing online sales and were experienced by almost 30% of consumers. While stock planning improved this year, 18% still experienced the frustration of not getting what they wanted.

More than half of deliveries were late and, for 1 in 6, those delays meant at least one present did not arrive in time for Christmas Day. The number of people receiving the wrong gift almost doubled.

Of course, the atrocious December weather played its part in putting a spanner in the infrastructure works but this is an unconvincing explanation for the whole story. It should also be remembered that the whole attraction of online retailing is speed and convenience – undermine that with uncertainty over delivery and you undermine the whole raison d'être for going online.

The idea that consumers will put up with inconvenience and poor service in search of a bargain is a fallacy. Previous work by Intersperience on Digital Ageing shows quite clearly that the UK is not as “adapted” to the new internet age as other countries: many people are still uncomfortable navigating their way round websites and it does not take much to put them off. A product going astray or a poor response from a contact centre might be enough to tip the balance.

There are also lessons about real-life consumer behaviour and the interaction between physical stores and websites that many retailers are missing. They need to understand much more clearly the non-linear customer journey from browse to purchase to delivery, what works at each point along the way to bolster their reputation and what can go wrong that will undo all the good work.

These are the key areas in which online retail has to improve to fully realise its potential…

Fulfilment and customer satisfaction:

According to TrendSpot more than half of deliveries were delayed. This figure is simply too high – something like 5% is more within the bounds of acceptability.

Customer service:

Some high street brands are examplars in customer service, giving support when something is out of stock, making it simple to return or exchange, but that same focus on the consumer as an individual is missing in the online world.

Improve the customer experience:

Almost 70% report problems with online purchases and 25% of those are put off spending more as a result. That is a huge missed opportunity. Reducing those numbers by half would add hundreds of millions of pounds to the bottom lines of retailers.

Become truly multi-channel:

The silo structure of many large companies mitigates against them being able to take a rounded view to their entire offering on websites, on mobile devices and in stores. Those making the strategic decisions in one area have to work more closely with colleagues in others.

All of these are important issues to address now but they are about to be thrown in to even sharper focus by the emergence of the M-Agers, those emerging consumers born after 1997, who have only ever known the “always on” world and demand instant satisfaction.

They have an extraordinary sense of entitlement and what matters to them is fulfilment of promises. They have little patience and are not easily mollified by excuses. If goods start to go missing or service levels drop they are less likely to give online retailers a second chance than their more sanguine elders.

The first of these M-Agers will be looking to spend their first real disposable income in 2015 which means there are a mere 1,400 shopping days left for retailers to get their online operations sorted out.

Organisations should think twice before engaging in radical redesigns of their websites as new research shows that website users often become confused, disorientated and even distrustful of a brand when grappling with an unfamiliar new-look website.

The research conducted by international consumer research specialist Intersperience, found that navigating redesigned websites is an acute problem for a significant segment of the population defined as 'Late Starters' who represent 28% of the total online population.

As many as 27% of Late Starters said they would experience distrust or difficulty if a familiar website underwent restructuring, while 62% of them said they experience problems in navigating new websites.

One respondent described their emotions when tackling new websites: “To me it's like standing in a dark room, everyone else seems to know where the light switch is but I'm there with a rubbish torch...so you have this pinprick of light but there's this massive darkness everywhere else.”

The research, which is part of a wider study into 'Digital Ageing,' highlights the importance of recognising that online customers are not a homogenous group. Customers exhibit marked differences in behaviour, ability and preferences when conducting tasks online, according to Paul Hudson, Chief Executive of Intersperience.

Hudson said: “ There is a wide divergence in behaviour types which defies classification by standard simplistic measures such as age. Organisations need to fully understand this and to use this knowledge to inform their online strategy or they risk not just losing customers but damaging customer trust.”

Hudson added: “Decisions about online investment can be over-influenced by technology but technology advances at a faster rate than human behaviour. Successful strategies focus on helping customers through an online journey at their own pace.”

Close to 40% of Late Starters strongly believe that web pages generally are not logically structured and they are confused by what they regard as too much choice on the internet.

They exhibit rule-based behaviour online, preferring to follow step-by-step instructions. Consequently, they do not react well to what they see as 'deviation' from normal procedures such as unfamiliar layout or navigation tools and as one respondent said, are fearful of 'clicking the wrong box and doing something ridiculous like ordering 10 TVs.'

• 53% of Brits feel 'upset' when deprived of internet connection
• 40% of people surveyed feel 'lonely' when not able to go online
• Challenge of 24 hours without digital devices described as 'nightmare'
                                                                 
London, UK, July 22 - A new study into the impact of online and digital technology on people's lives in the UK found that more than half of the people surveyed felt 'upset' at the prospect of being deprived of an internet connection even for a short time.

The extent of people's 'digital dependency' in their everyday lives was revealed by international consumer research specialist Intersperience in a new project entitled 'Digital Selves'. The project, which surveyed a nationally representative sample of more than 1,000 individuals from age 18 to over 65s, questioned people about their 'digital lives' including their attitudes and use of the internet, smartphones and other connected devices.

The project also involved qualitative research, including challenging participants to get through one full day without using technology. Giving up technology was considered by some to be as hard as quitting smoking or drinking, while one survey participant described it as 'like having my hand chopped off' and another called it 'my biggest nightmare'.

A significant number of people 'cheated' by switching on the television or radio as they did not regard them as 'technology.' Others agreed to the challenge but turned their mobile phones to silent, regarding being completely disconnected even for one day as 'inconceivable'.

Many participants found it extremely hard to resist the temptation to go online, especially those for whom online communication represents a large part of their social interaction. A total of 40% of people felt 'lonely' when not engaging in activities such as social networking, emails, texting or watching their favourite television channels.

Younger people, who tend to be heavier users of social media and text messaging, found giving up technology the most difficult while older people (over-40s) generally coped more easily when cut off from digital connections. Only a minority of those surveyed reacted positively to the prospect of being without an internet connection, with 23% saying they would feel 'free'.

Paul Hudson, Chief Executive of Intersperience said: “Online and digital technology is increasingly pervasive. Our Digital Selves research shows how just dominant a role it now assumes, influencing our friendships, the way we communicate, the fabric of our family life, our work lives, our purchasing habits and our dealings with organisations.”

He added: “We have gathered clear evidence that the UK has fully entered the Digital Age. The resulting stepchange in the way we engage with technology has occurred faster than many of us had anticipated. This has profound implications for society both from a personal and commercial perspective. We are about to embark on a new study looking exclusively at digital engagement in Under-18s which we expect to highlight even more radical developments in the behaviour and attitudes of children and teenagers.”

Ends

NOTES TO EDITORS

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University, which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

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All too often when companies are conducting research into new technology devices they focus on the product itself: how it works, what it looks like, etc. These factors are clearly important but they do not establish how it might fit into consumers' everyday lives.

By fully understanding the lifestyles of their target customers and how they interact with technology in different situations, companies can better identify the needs of the market. Devices should be made to fit with a need. That, in turn, helps them focus their marketing efforts more effectively to maximise sales.

What insights are you looking for?

We are not merely interested in what people are doing or how many are doing it; we want to understand in detail how and why people use technology and how it influences their everyday lives.

The success of the iPad demonstrates why this is important. Most commentators said it would not catch on because they analysed the device, saying it was neither a phone nor a laptop and few people would see a use for it. At Intersperience we said publicly at the launch that it would succeed because our insight pointed strongly to a latent desire for just such a simple product that would fit with the lifestyles of families and be used in the home for leisure.

Others looking at the proposition could not see the market because they focused on the iPad's perceived lack of technical attributes: no camera, no USB port, etc. However, to the less technically literate over-25s, who are by far the biggest consumer group today and also the biggest buyers of iPads, this lack of complexity is its biggest selling point.

How do you do the research?

We are currently gearing up for a major piece of research, Digital Selves, which is a comprehensive attempt to understand how people live today with technology and how it influences their lives and behaviour.

This includes a four-week study in which participants will be asked to keep a comprehensive online diary about their technology usage. Alongside this we will be conducting longitudinal qualitative research which will involve people participating in a number of tasks that are often outwith their comfort zones and reporting back on how they feel. There will be face-to-face interviews at the beginning, middle and end of the period, each with a focus on different parts of their lives.

Another approach is an ethnographic study where we embed the research team in participants' lives. The academic purpose of ethnography is to experience someone's life without the researcher influencing the actual behaviour so, for instance, we might install cameras unobtrusively in people's homes (with their consent, of course) to see how they interact with each other and technology in various situations.

What application will the results of Digital Selves have for businesses?

All these techniques help us understand how people actually live their lives, rather than how they say or think they do. Observing how people actually behave in a range of real-life situations is more valuable than merely how they respond to a list of 50 questions on a clipboard.

With this kind of approach companies need to invest in exploratory research earlier in the product development lifecycle. This identifies customer needs, which then feeds into the creative and technical process.

This approach will narrow down the variables when developing new products much earlier, saving time and money. They can invest into what they know will work, not what they hope will work.

Nine months after the iPad's launch, Intersperience is midway into qualitative research for a major strategic study 'Digital Selves' which is looking at how modern technology is affecting the way we live.

We bring you a snapshot of some of our latest research straight from the field, delivering fascinating insights into how different generations from tiny toddlers to teens and parents are engaging with the iPad in different ways.

Mr R (a married father of four children including a newborn, a toddler, a 10 year-old and a 16 year old) shared his views and experiences on the iPad with our researchers as part of the upcoming wider 'Digital Selves' report.

Mr R comments: “We've had the iPad since September 2010. I wanted to know what it was all about..I suppose compared to most people I probably am quite up to speed on new things...We're already quite a 'connected' household - we have a wireless network, three Macs, two of the kids have iPods and I've got a laptop and iPhone.”

The R family however do not have a television and view TV progammes through their Macs, a decision based on a desire to limit the time the children spend watching television.

Mr R bought the iPad for himself but has shared it with his family and says he still uses it most, followed by his wife, and then his two and a half year old who has mastered the iPad with surprising ease. “He worked out how to use it quite quickly, the touch screen is quite intuitive, now we have to hide it away. The kids like the drawing Apps you can use to paint with your finger.” However, Mr R says there is a limited choice of Apps for Under-5s.

The older children use the iPad less, partly because they have to fight for their share but also because they are doing different things online, says Mr R. His 16 year old spends a lot of time on Facebook and prefers to do that in the privacy of his room while the iPad is used all over the house. “That's the really good thing about the iPad you can use it anytime, anywhere - I take it out with me too, I use it on the bus, it's easier than opening a laptop,” he says.

Mr R says the family mainly uses the iPad is mainly for leisure, although not for music. He uses it for photographs, writing, some reading, helping with homework and for family spreadsheets while his wife uses it mainly for online shopping. “One of the fun things is when we're having a conversation about something we can just pick it up to check facts We did that when we were talking about artists the other day.”

Mr R says he uses other hitech gadgets less as a result of having the iPad but he still uses mainly low-tech ways to communicate with friends, preferring to pick up the phone and have a chat. He is not a heavy Facebook user though he does use Twitter on the iPad, but generally finds his iPhone more convenient for sending Tweets when he is out and about.

One hindrance to all members of the family using the iPad equally is that it is not geared towards multi-users, says Mr R. “The iPad is optimised for an individual user, you need a password to update it and that makes it a really personal bit of kit. Even for a free App you need a credit card.”

See also: 'iPad highlights changing internet', 'This year's must-have'

When seeking to entice customers to shift from using a website to branded mobile apps, organisations often make the error of believing that a shrink-wrapped version of their existing online presence will meet the needs of people using internet-enabled handsets.

Intersperience, the international consumer research specialist, asked online users to rank the characteristics that were most important in a mobile internet service and found speed, reliability and security rated top – the least important was that a mobile internet service mirrored the main website.

Users turn to mobile devices for content that is appropriate to their needs and fits the situation that they are using them in. Mobile internet services are often accessed while people are travelling, in public spaces or other situations where they do not have the time or inclination to browse.

The reason why 'Apps' have been so successful for mobile internet is that they deliver bite sized content in a format appropriate for short bursts of online activity that is focused on specific tasks.

It is telling that our study found that almost 60% of users spend less than 10 minutes on mobile internet devices at any one time.

Intersperience chief executive Paul Hudson said: “Companies have to realise that simply launching an app does not constitute a mobile strategy, but nor does copying the internet strategy and renaming it your mobile strategy. Fixed line and mobile are used in entirely different ways and the successful brands understand how to ensure they dovetail.”

We are have also upgraded the platform's online focus group and survey facilities and are currently working on further international translations: Spanish, Greek, Italian and German are already available.

The HWY 3.7 Software Update

Facebook Integration

· Community members can link their account to Facebook: when logged into Facebook they are automatically logged into the HWY panel

· A list of live updates from the panel appear within our HWY Facebook app including invitations to research initiatives, task reminders and general activity notifications

· The app retains community panel login details allowing easy movement into community space

· Activity updates allowed into the Facebook news feed are selected and controlled by Intersperience on an individual panel basis

· The application is 'closed', i.e. only community panel members can see it within Facebook. It can be 'opened' if required

New Focus Group Features

· YouTube integration: videos can be streamed directly into focus groups

· New co-presence feature: group members can see who else is in the group and when they are typing enhancing the group dynamic

· Clients can now view demographic information about group participants within the group

New Question Types in Surveys

· Card sort feature for ranking of images/concepts

· Sliders for scale questions

New Members Area

· Community members can search for and message other members encouraging greater participation

Intersperience CEO Paul Hudson commented, “The Facebook app will increase user engagement and retention. Like it or not, Facebook is 'IN', particularly with the younger demographic who have historically been very difficult to research. We are extremely excited about integrating our platforms with Facebook and the benefits that this will provide.”

In the coming months we will be adding a custom Mobile App to the software, further increasing engagement with members and collecting real-time feedback. This app will complement the existing mobile functionality in the platform – at present it is possible to complete surveys and polls from a mobile and to add blog entries via SMS.

For more information please email paul.hudson@intersperience.com

The mobile phone operators, led by o2, have announced they are scrapping unlimited data plans for users of smart phones. This may appear a shrewd move to finally extract value from the billions they invested in 3G licences but the more likely consequence is to dampen demand for internet on the move.

The o2 announcement of new “tiered tariffs” came just before the launch of Apple's iPhone 4. Now fixed monthly payments will be supplemented by top-up fees for heavy users of web-based services, with other operators looking at similar structures.

“It has been the move to flat tariffs and bundles that has led to the take off of mobile internet,” said Paul Hudson, chief executive of Intersperience, the international consumer research specialist. “Most household bills for telephone, broadband and television are bundled and it is inconceivable that satellite and cable operators would consider going any other way now.”

Introducing a limit on mobile web use put the onus on a user to decide how much or how little data to consume – but most people have no concept of how much of their data allocation is used when they view websites or when apps connect to the internet.

It is highly likely that these multi-tiered tariffs will lead to uncertainty and a fear of consuming “too much” data. This in turn will limit the usage of mobile internet. Intersperience's research study, Internet on the Move, found that even among enthusiastic users of mobile internet, 43% already say they worry “a great deal” about cost.

Most importantly, it threatens to put off Undefined Followers, the group identified in the research as essential to driving higher traffic.

Undefined Followers admit to having being seduced by marketing and word of mouth into buying mobile internet devices but have yet to define or understand exactly why they 'need' them.

Uncertainty over costs adds a barrier in their minds, something else that they have to learn and understand about an already unfamiliar technology.

The danger of scrapping unlimited tariffs is that this group gives up before fully appreciating the practical benefits the mobile web can bring to their everyday lives.

The cost of mobile services has been a constraint to growth since the market started to grow significantly in 2007. The majority of lapsed handset users (59%) cited high tariffs as a reason for no longer using internet services on their phones.

The number of new relationships forged online is rising fast as a result of the social media explosion, resulting in a cultural shift which requires a new understanding both of security and etiquette, according to Intersperience.

The international consumer research specialist found that as many as 45% of social networks users have now 'met' new people online, turning strangers into acquaintances, friends, employees, or even partners.

Paul Hudson, Chief Executive of Intersperience, said:“There will always be legitimate concerns over security when 'meeting' strangers online. But there is another side to this - for example the World Cup demonstrated the power of social networks to allow people to share experiences in a powerful and positive way.”

During the World Cup literally thousands of fans enjoyed a feeling of 'instant intimacy' with fellow supporters via social media networks. They were able to share experiences even if they were viewing games at home alone.

“It demonstrated the power of social media to change and deepen someone's experience of the event, creating a sense of 'togetherness' and breaking down physical distance as never before.” Hudson explained.

The way people engage emotionally via social networks can be quite different from the way they behave in face-to-face situations. Online encounters create a sense of 'instant intimacy' among people whether they are fellow football supporters or would-be daters which can lead to a breakdown in psychological inhibitions.

Humans have honed their abilities to read behavioural clues over millions of years but they have only been trying to decode online behaviour for a relatively short time, creating the potential for greater misunderstanding when communicating solely in cyberspace.

“We're entering a new age for behavioural etiquette and social media is redefining the rules so fast it can be difficult to keep up,” Hudson said.

Summary objectives as follows:

1. Set out the expectations and behaviours of digital natives (those aged 25 and under);

2. Explain how social media is used and the influence it has within this age group;

3. Explain the roles that online media, mobile devices and social networking have on purchasing decisions for digital natives;

4. Explain the generational differences between digital natives and the rest of the population (see Digital Selves study) and predict the pace of future change.

All funding partners can input into the objectives and provide specific questions. All have the opportunity to input into the design of the research at every stage.

The survey by international consumer research specialist Intersperience found that 40% of consumers questioned in an online poll frequently treat themselves with 'comfort goods' although the majority said they restrict spending to small amounts.

Of the people who regularly buy treats, a total of 56% said they restricted spending to low-cost indulgences. The survey also found that a significant proportion of the public (41%) are keeping an extremely tight rein on household spending, allowing themselves either no money at all or barely any for treats.

Chocolate and alcohol featured heavily as the favourite feel-good treats. Britain's chocolate cravings were highlighted recently by data which showed that UK chocolate sales rose by more than 9% from 2007 to 2009 to £3.6 billion and sales are expected to rise further in 2010.

Although dining out emerged as the second most popular treat overall, when it comes to finding ways to save money, one-third of cost-conscious respondents still cited their top economy as foregoing restaurant visits.

Entertaining friends at home instead of going to the pub or restaurant proved a popular money-saving measure and people are also choosing to save on the cost of cinema and concert tickets by staying at home and watching a DVD instead.

Common cost-cutting measures also include healthier as well as cheaper lifestyle options such as taking a packed lunch to work, and cycling or walking instead of using public transport.

The survey showed a clear shift away from spending on personal grooming and household goods with only 3% of respondents choosing a visit to a spa or nail salon as their favourite treat and just 1% of respondents choosing to splurge on a nice item for their house.

Paul Hudson, Chief Executive of Intersperience said: “Our survey showed a relatively strong propensity towards people allowing themselves to spend money on treats despite the downturn but it is clear that the majority of them are restricting themselves to spending on smaller indulgences.”

Hudson added: “The implication is that discretionary spending on big-ticket items is either being deferred or ruled out currently as the economy is still a significant concern for consumers. It's more a case of a good night in than a good night out for most people just now with a box of chocolates, a bottle of wine and a DVD to cheer themselves up.”

Intersperience undertakes regular online consumer polls for corporate clients as well as for its own independent research projects, generating authoritative up-to-date snapshots of current consumer mood and spending habits and intentions in the UK.

Hudson said the finding in the latest survey that people are still generally cautious on spending, follows a previous survey on consumer attitudes in the summer which showed that people were overall more inclined to be savers rather than spenders.

“Consumer confidence generally remains fragile and that won't have been helped by heavy public sector budget cuts recently, persistent fears over job security and a looming VAT increase in January. There are clearly people struggling to afford even the bare necessities just now and even those who can afford a few treats are watching their pennies.”

The survey polled consumers' current views of the UK economy and asked whether the election had affected their confidence in the economy. It found that 72% of consumers questioned are more confident about the economy as a result of the General Election result - with 53% “a little more confident” and 19% “a lot more confident.”

However, the survey showed that attitudes towards household finances remain wary. It revealed there are still more savers than spenders - with 46% of respondents describing themselves as savers (barely changed from our Q1 2010 survey) and only a very slight increase in the percentage of spenders who currently account for 30% of the total.

Intersperience Chief Executive Paul Hudson said: “Our findings highlight the important role of consumption in our economy and how important it is to look beyond confidence indicators and to understand attitudes to spending. Consumer confidence remains relatively fragile and we have to yet to detect evidence of increased spending intentions.”

Consumers identified problems paying bills as a chief concern and also cited inability to find employment, problems in obtaining credit, and redundancy and the threat of redundancy among difficulties they have experienced during the economic downturn.

A total of 48% of respondents said their level of confidence in the economy had been influenced to some extent by the General Election. There was also a reduction in the percentage of people who view UK economic conditions as poor to very poor which now stands at 64%, down from from 76% when the survey was previously compiled in Q1.

Intersperience survey highlights Facebook generation gap

• Average 22 year old claims 1,000 or more social network friends
• Over-50s have least online friends
• Research highlights new social trends in Digital Age
• Open Ideas event May 26 to debate key changes

London, UK, 23 May 2011 – The average 22 year old in the UK boasts more than 1,000 online friends – more than 50 times as many as people in their early 50s, according to a new social networking study by international consumer research specialist Intersperience.

The research highlighted a clear link between age and the number of people social media users have registered as online friends, with evidence emerging that currently people hit the peak of social media popularity in their 20s.

Intersperience found that younger teenagers (those aged 13 to 16, a fast-growing social media demographic) have an average of 450 social network friends, with girls having slightly more online friends than boys. This compares to people in their 30s who have on average of between 100 and 200 friends, people in their 40s who have between 50 and 100 and over-50s who have fewer than 20

Intersperience is hosting an Open Ideas event at Altitude 360 in London on May 26 at which Chief Executive Paul Hudson will assess the significance of the technological changes of the last decade. He will outline how the rapid adoption and proliferation of social networking, smartphones, netbooks and tablets will impact on society in future.

Key topics will include 'The New Social' - examining how much of ourselves we are really willing to share on social networks and the concept of 'instant online intimacy'. The event will also discuss the implications of the rise of 'M-Agers' – young people born into a 'mobile world' who will account for 24% of the population by 2018.

Paul Hudson commented: “Our research underlines fundamental changes taking place in British society as a result of finally entering the Digital Age. Half the UK population are on Facebook now and the explosion in social networking activity is blurring lines. In a social media context, a 'friend' means something different to a 20 year old than to a 50 year old.”

Hudson added: “Social networking activity is just one example of how different groups are adapting to the Digital Age at different paces. In this case, age is the determining factor - however in other instances it is not. Our research shows consumers are regrouping on different lines, with a willingness and ability to master technology emerging as a key factor in determining how well individuals adapt to the Digital Age.”

Hudson said: “ We are no longer on the cusp of the Digital Age; it has arrived. The changes in the next decade will be as profound as those of the past 10 years and will permeate every aspect of our lives. Open Ideas will provide an excellent opportunity for organisations to benefit from Intersperience research into critical issues that will impact everything from communication channels to future customer service strategy.”

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NOTES TO EDITORS

Media Contact:

Valerie Darroch
Tel: 07970 737708
Emaill: valdarroch@googlemail.com

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team, which is headquartered in Cumbria, has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University, which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: The British Council; General Motors; Iceland; Samsung; ScottishPower; and William Hill.

About Open Ideas Event May 26, London

Intersperience is holding a special Open Ideas seminar examining critical changes taking place in society as the Digital Age gets underway in earnest. It will provide unique insights into consumer behaviour and examine consumer attitudes to issues such as grappling with technological change; the impact of 'always-on' internet access; engaging with social media; and rising expectations of

customer service. Intersperience has conducted ground-breaking research into these issues and the results make compulsive reading for business leaders seeking to understand and thrive in the Digital Age. Connectivity, integration and interaction are the watchwords for the Digitial Age.

Open Ideas takes place 0900 to 1400 on May 26 at Altitude 360; Millbank Tower, 21-24 Millbank, London, SW1P 4QP.

To learn more about the event view a Vlog by Intersperience CEO Paul Hudson www.intersperience.com/blog/author/paul-hudson

or for general information click this link www.intersperience.com/open-ideas

There are a limited number of media passes available for the event - to request a media pass please contact Alison Little at Intersperience

E: alison.little@intersperience.com

Tel: 015395 65450

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Intersperience has adopted a fresh analytical approach which sheds new light on this complex issue, making it possible to move beyond stereotypes and to develop a solid understanding of Europe from a cultural perspective.

We have created a 'cultural lens' which provides a unique perspective on European cultural values and behaviour. As part of a major international research project, we analysed attitudinal and behaviourial traits across Europe on the basis of six key dimensions.

We used our 'cultural lens' to develop a deeper understanding of cultural issues. Overlooking cultural differences can lead to cultural shocks. Business books contain salutory lessons on costly blunders as a result of marketing campaigns failing to take account of cultural differences.

Our unique analytical approach to cultural issues will benefit organisations seeking the best way to engage with the 500 million citizens in the European Union as well as those in neighbouring nations.

In simple terms, culture is a shared and learned system of values and beliefs that shape and influence perceptions and behaviour within society. Understanding which societies share common cultural traits can provide the key to unlocking lucrative growth opportunities.

The European Union represents an attractive market of 27 states, while non-EU nations such as Russia feature high on corporate growth agendas.

A desire to possess a share of these markets is a strong driver for overcoming barriers to cultural understanding but historically businesses have struggled to grapple with these issues in a systematic way.

We developed our 'cultural lens' to provide a robust framework to measure and compare culturally-defined behaviour. Our team of multilingual researchers conducted 2,600 surveys across Europe and used the lens to accurately pinpoint on an axis those nations which share similar cultural traits.

One dimension we examined closely is the concept of 'high context' and 'low context' cultures within Europe. It is a critical dimension because whether a nation belongs to a high or low context culture has implications for the best way to communicate with its citizens from a sales and marketing perspective.

Overall, Western European nations emerged as 'low context' cultures, more oriented towards the short term, more individualistic, and valuing assertiveness and material possessions. In contrast, Eastern Europe generally comprises 'high context' countries, more oriented towards the long term, more collectivist and valuing nurture within society.

'Low context' cultures tend to prefer explicit, direct and unambiguous communication which should be reflected in brand messaging whereas 'high context' cultures place a higher value on non-verbal forms of communication, focusing on how something is said as much as what is said.

Using our lens to obtain a unique measurement of the relative 'cultural distance' between nations enabled us to identify clusters of nations with not only shared behaviour but also common service expectations and preferences.

It threw up some surprising groupings of nations with striking cultural similarities. The main clusters we identified are:

- the North Sea cluster of the UK and Denmark

- the Nordic and Germanic cluster of Sweden, Germany and Austria

- the Latin cluster of Spain, Italy and Romania

- the Eastern cluster of Russia, Turkey, Belarus and the Ukraine

Although an East-West cultural divide clearly exists on some levels, we identified significant cultural differences between Eastern European nations - for example Russia, Turkey, Belarus and the Ukraine constitute a cluster but only just as their common cultural behaviours are relatively weakly shared.

We also uncovered evidence of many intra-regional differences within Western Europe. For example, Scandinavia is often viewed as a homogenous region but we found that Denmark shares more common cultural traits with the UK than its Scandinavian neighbours.

Likewise in Eastern Europe, Romania emerged as more culturally similar to Spain and Italy than its Eastern European neighbours, while in southwest Europe, there is significant cultural distance between Spain and Italy.

Pinpointing shared cultural behaviours has both practical and strategic implications for businesses operating across European borders as cultural behaviour influences brand perception and how people decode advertising and marketing messages.

It influences whether people will respond positively or negatively towards a campaign that celebrates individualism and material wealth or one which appeals to more nurturing collective values within a society.

There are also profound implications for the development of customer service networks both from an operational and strategic perspective because service expectations and preferences are culturally bound.

For example the Latin cluster of Spain, Italy and Romania (high context cultures) prefer highly personalised service and to engage with a 'real' person. By contrast, the UK and Denmark (low context cultures) place a higher value on efficiency and speed.

Also, some cultures are more open to disclosing personal data than others, even if the information is being sought in order to improve the service provided to them.

As a result, reorganisation or rationalisation of customer service operations across geographic lines for instance can be problematic if these issues are not fully understood. It can result in lower customer satisfaction or even customer alienation and defection - the bottom line implications are clear.

There are also implications for performance metrics used in customer service operations, as some cultures might not respond favourably to an organisation where staff are rewarded for the brevity of calls. (Average call handling times are common key performance indicators within customer contact centres).

Being aware of whether you are dealing with a high or low context culture is important when deploying self-service solutions which often entail greater use of technology such as webchat, SMS or automated voice response. These might be more cost-efficient, but could alienate customers in cultures which are less impressed with speedy service than personal engagement.

The key message from our research is that if the battle for the hearts and minds of European consumers is to be waged effectively, organisations need to put cultural issues at the heart of their strategic planning process.

Gadget geeks will be first in line at the UK launch of Apple's iPad but a critical demographic of entertainment-hungry family consumers holds the key to mass adoption, says international consumer research specialist Intersperience.

Intersperience Chief Executive Paul Hudson said: “Contrary to popular belief the key to mass adoption of the iPad will not be its role as a mobile device but its use in the home for leisure and entertainment. If Apple wins over the consumers we class as 'Optimistic Rangers', we believe the potential UK market for iPad and similar devices could exceed seven million by 2015.”

Intersperience has researched consumer attitudes towards the internet and online usage patterns and identified a group called 'Optimistic Rangers' which currently represents around 22% of the adult online population. They possess a relatively high degree of web literacy, are adept at multi-tasking, and embrace new technology challenges confidently.

Hudson said: “The iPad will mark a sea-change in how people access the internet in the home and Optimistic Rangers will be at the forefront of this change. Some analysts have predicted that the iPad will struggle because it's neither a PC, a laptop nor a mobile - but this is missing the point. The reason it will succeed is that it's the first device that truly fits with the lifestyles of families and the new ways they want to use the internet.”

Hudson added: "The iPad launch is part of a chain of events that is redefining how consumers interact with the internet. To predict which devices will gain mass adoption requires an understanding of how consumers are adapting to the evolving role of the internet and rigorous analysis of their behaviour, not just a technical review of the device."

Currently consumer behaviour when using mobile internet devices is characterised by extreme micro use in short sharp bursts for problem-solving, fact-checking or quick communication updates. Hudson believes the iPad could see a major shift in usage patterns to embrace a wider range of tasks, with a greater emphasis on entertainment.

Intersperience also identified a key consumer group it defines as 'Informed Rejecters' which could prove a hard sell for not only the iPad but other mobile internet devices. Ironically, this group is defined as being the most technically-literate, with a strong attachment to the internet and easy access to mobile internet devices.

Hudson said: “Informed Rejecters may appear to represent the ultimate marketing sweet spot for new mobile internet devices like the iPad but our research found that only 37% of this group find mobile internet useful with the majority showing a marked resistance to using mobile devices to go online. The real sweet spot is families looking for a device which delivers an enhanced entertainment experience in the home.

Consumers worry about the economic situation and are planning to rein in the amount of presents and food they buy this year. Spending expectations are much lower than we have seen before, with the average amount each person is prepared to commit dropping to £241.

Around 45% said that the general economic conditions had affected their spending plans, so it is clear that consumer confidence is still very fragile. This time last year, when the economy was firmly in a slump, only 38% said they would let the economic outlook influence their Christmas shopping.

How do spending plans compare to last year?

This year's figure is significantly down on Christmas 2009, when the average amount people were expecting to spend was £256.

If that pattern played out uniformly across each one of the 35 million or so people of working age in Britain, the result would be a drop in total high street spending of more than £500 million.

The biggest reduction in spending plans we see this time is among the over-25s, who are expecting to spend £287 per person, almost £35 less than 12 months ago.

On the other hand, the spending plans of 18- to 24-year-olds showed a marked increase, with an average predicted spend of £189 this year compared to £168 last Christmas.

But surely people always bust their budget?

That's certainly true. Last year 27% of people admitted they overspent and I would expect to see people spending more again when they start shopping in earnest.

Last year the actual average spend per person was higher than the prediction, at £263. That does not sound much of a difference but repeated across the country the cumulative effect made quite a difference to the bottom line of several big retailers.

The Christmas pattern is reinforcing what we at Intersperience have been witnessing in our quarterly surveys, where savers outnumber spenders and consumer confidence is fragile and remains at a stubbornly low level.

What will retailers do to respond?

They will have to do what they always do – offer deep discounts. The one thing we can say for sure is that this Christmas is going to be a time of terrific bargains. Retailers must hope that the younger group's apparent confidence and willingness to spend more makes up for the reluctance on the part of over-25s. It is a big ask.

What does this mean for the wider economy?

Retailers are going to have to make such deep discounts to attract shoppers that it is bound to have an effect on profits.

From a retailer's perspective it is really difficult to see how the younger generation, who have less money generally, can be expected to make up the predicted shortfall. If the over-25s stick to their spending guns.

Based on these spending expectations, consumer confidence is not bouncing back. The Christmas period this year will be a defining moment and will show us whether a wider economic recovery is possible in the first half of 2011.

What will people spend on this Christmas?

It looks as though the most popular gifts will once again be books, CDs and DVDs, followed closely by cosmetics and perfume. Electrical goods, clothes and lingerie are likely to be the other top gifts.

Will shopping online overtake the high street?

This is the first year when those who buy both in shops and online are predicting that they will spend more online. These people predict that 54% of their spending will be online.

The big impetus is coming from the younger generation, with the under-25 age group expecting to spend £123 online this year, almost 30% higher than a year ago. For them price is the main attraction for shopping online.

Will online retailers be able to meet demand?

I hope so, because they didn't do too well last year. There were big problems with stocking levels and delivering goods before Christmas Day which drove people back to high street stores. The problems meant that actual online spending was 20% lower than expected.

This year online demand will be significantly higher, so web-based retailers must have robust logistics and customer services systems to both manage and meet expectations.

Are there any other online trends emerging?

M-commerce – sales via mobile devices – are likely to be a bigger factor this Christmas. One in ten under-25s expect to buy presents using their mobile phones double the level of 2009. However, I would add a word of caution based on last year's experience. Despite what people said they were going to do, only 1% actually bought presents on their mobiles.

Intersperience, which conducted research into the use of social networks across all adult age groups, found that silver Surfers are an increasingly techno-savvy demographic who enjoy using social network sites to maintain contact with different generations of their family, exchanging news, chat and pictures.

The study found that a higher percentage of the 65 plus age group than any other age group use social networking sites to keep in touch with family compared to younger age groups where the emphasis is more on communicating with friends.

Intersperience Chief Executive Paul Hudson said:” It is evident that the social networking phenomenon has an increasingly cross-generational appeal. Simplistically, retired people may have more time for social networking but we also detect a 'push' and 'pull' effect, with older people keen to network with peers and younger generations encouraging older relatives to use their social networking sites.”

Facebook emerged as the top social networking site across all age groups, with 93% of all respondents using the site. However, Hudson said older people also use sites such as Friends Reunited as well as sites dedicated to an older demographic such as Saga zone (for over 50s), or special interest groups linked to sport or other hobbies.

People in the 65 plus age group are generally more wary of making new friends online than 18 to 24 year olds of whom 58% have made friends online whom they did not know 'in the real world' compared to just 46% of people aged 65 or older.

Overall, the 18-24 age group represents the biggest demographic in terms of use of social networking sites, with 86% of this age group participating regularly.

The research also contained a clear message to retailers that as far as young shoppers are concerned, the high street is here to stay as 33% of people aged between 18 and 24 said they found online shopping less enjoyable than shopping in stores.

The report found that 47% of people aged 25 and over derived more enjoyment from online shopping than shopping in stores, compared to just 37% of people in the 18 to 24 age category.

The study detected significant differences in the feelings people experienced while shopping, depending on the channel they used to make purchases. A significant number of younger shoppers still enjoy the physical shopping environment and experience.

Intersperience CEO Paul Hudson said: “The issue of customer enjoyment and preference is linked to both experience and also expectation. We should not be surprised that the older generation has embraced online shopping with such enthusiasm because for many of them, their reference points predate the online shopping explosion.”

Older people's positive view of online shopping is linked to feeling more relaxed and less distracted than when in stores. Hudson refers to a 'halo effect' because older people may have been shopping online for a shorter time and their status as new converts to its benefits makes them particularly positive.

However, Hudson warns that as people become more used to using different channels for shopping, their expectations will shift and the comparisons they make when gauging the quality of their retail experience are also likely to change. “In short, the halo effect diminishes over time,” Hudson said.

The report has implications for retailers when measuring satisfaction of the online experience. They must be alert to the possibility that satisfaction ratings from the older generation may drop over time, not necessarily because service levels or the product offering have deteriorated but simply because the halo effect has worn off.

Intersperience has completed an authoritative multi-national research project which not only delivers fresh insights into cultural differences and similarities across Europe but also provides a unique measurement of the 'cultural distance' between nations.

Corporate annals abound with cautionary tales of cultural blunders, many related to ill-thought-out advertising or marketing campaigns. Some gaffes stem from linguistic errors while others stem from ignorance of different meanings of body gestures, or more subtly, divergent social aspirations and cultural values.

Examples include US car giant General Motors launching a car called Chevy Nova into Spanish-speaking markets without realizing that 'no va' means won't go in Spanish, while a beauty firm launched a curling iron called 'mist stick' in Germany where 'mist' is slang for manure. European businesses have got it wrong too – eg Electrolux ran a campaign in the United States with the slogan 'Nothing sucks like an Electrolux.'

Linguistic differences however are only one aspect of cultural differences – there are deeper, less obvious issues which underpin cultural beliefs and behaviour. For example, a luxury goods advert which sells on the basis of standing out from the crowd may succeed in cultures where individual success is lauded but may fail in cultures where this is perceived as contrary to more 'collectivist' principles.

The key point is that ignoring cultural differences leads to 'cultural shock' which in turn can lead to alienated customers and lost sales.

German writer Hans Magnus Enzensberger commented: “Culture is like dropping an Alka Seltzer into a glass, you don't see it but somehow it does something.”

Intersperience's research offers an enhanced understanding of the complex nature of cultural differences. The project, which included 2,600 surveys with citizens across Europe, was designed to create a unique 'Cultural Lens' through which cultural behaviours can be viewed.

It provides a new framework for understanding how nations can most effectively be grouped for marketing purposes, based on a rigorous analysis of cultural values and beliefs and their impact on attitudes and behaviour.

Historically, views of Europe have either tended to lump European nations together as a homogenous group or divided it broadly into East and West, attributing shared cultures accordingly. Both approaches are fundamentally flawed as the reality is much more complex.

We identified five key groupings or clusters of nations with shared cultural behaviours and also customer service expectations and preferences. Our clusters include some perhaps surprising clusters of nations which our research revealed as sharing striking cultural similarities.

The five clusters we identified are:

- The Nordic and Germanic cluster of Sweden, Germany and Austria

- The North Sea cluster which includes the UK and Denmark

- The Latin cluster which groups Spain, Italy and Romania

- The Eastern cluster of Turkey, Russia, Belarus and the Ukraine

- Lithuania which counts as a cluster on its own as it is so different from the rest

When arriving at our clusters, our methodology was to group behaviours into six dimensions and to measure the “cultural distance” between nations based on these dimensions.

The five clusters which emerged demonstrate clearly that neither geographic proximity nor language are the determining factors when it comes to identifying nations with common cultures, nor is relative economic prosperity.

This is despite the fact that on several counts such as GDP, economic growth, life expectancy, and internet penetration there is a clear East/West divide. Notably, Eastern Europe is frequently treated as a single entity from a marketing perspective yet our research revealed significant differences between Eastern European nations when viewed through our cultural lens rather than a geographic perspective.

In general, Eastern European nations are focused on the long-term future, more collectivist, nurturance-oriented and embrace novel goods and services. Yet, within Eastern Europe Poland and Romania show marked differences on a number of dimensions, indicating that different approaches are needed in each market.

The implications of our research are potentially far-reaching and shatter many preconceived assumptions about effective international marketing, sales and customer service strategies.

Our findings suggest that in order to avoid potentially costly 'culture shocks', marketing teams, projects and campaigns should be structured on the basis of cultural clusters rather than on the basis of geographic lines. As global corporations wake up to the bottom line impact of cultural sensitivity they need to find new ways to 'think global but act local'.

For more information on the issues raised in this update, please email outi.dorsen@intersperience.com

A new study by Intersperience, the international consumer research specialist, found that 45% of people who regularly use social networking websites such as Facebook or Twitter, describe themselves as 'fans' or 'followers' of companies, although only 5% were fans of more than a few companies.

Entertainment and technology companies attract the most fans on social networking websites, followed by food and drink retailers, leisure and tourism, and footwear and fashion retailers.

Facebook, which has more than 400 million users, and Twitter which chalks up 50 million Tweets per day, are increasingly attracting corporate users as businesses try to find ways to harness the power and growing popularity of these sites.

However, Intersperience Chief Executive Paul Hudson warned that companies must be careful how they engage with customers on social networking sites. He said: “These are personal and social spaces, companies need to address critical questions on tone, identity, ownership and appropriate behaviour. ”

Hudson added: “Our research highlights the fact that customers have strong preferences on how and why they want to communicate with companies in this way. Businesses need to understand the rationale for having a presence on social network sites - whether it is for marketing, for research or for customer service reasons.”

Intersperience research showed that 80% of people following companies on social networking sites are seeking information on upcoming promotions while 75% want to find out about current price or product offers. The next most popular use was information on competitions.

“Social networking sites can be highly effective for marketing purposes but in our experience, from a customer perspective, Facebook and Twitter are not the routes to delivering customer service,” Hudson said.

For the vast majority of organisations measuring customer satisfaction is something of a misnomer. In reality, what they are doing amounts to little more than measuring their internal processes in dealing with customer queries and complaints.

More often than not the questions asked in customer surveys are designed to identify glitches in their technology or back-office systems rather than assessing the customer's actual experience.

Take the burgeoning online retailing sector, for example. In a recent study we identified a “halo effect” that surrounds online shopping, which appears to reduce over time. Essentially, this overstates customer satisfaction scores, particularly among new users.

We discovered this effect by asking a series of context-based questions about consumers' internet shopping history. Traditional customer satisfaction techniques focus purely on evaluating specific internal processes, in this case, the functionality of the website.

Shopping online is considered more satisfying and more involving by those newer to it. Older users buying online for the first time are also more enthusiastic because the internet is still something of a wonder to them.

When we asked people to consider their last shopping experience, the online supermarket scored higher in each of the key measurements such as value for money, range of products stocked and trustworthiness of the brand.

Interestingly, those new to online shopping are also less satisfied with buying their groceries in-store than those who have never shopped online – feeling less relaxed, more distracted and suffering a keener sense of frustration. Online shopping has effectively dismantled their satisfaction of store shopping.

In general, those who have not grown up with a PC in the house are significantly more optimistic about the benefits of technology and therefore respond much more positively to each new service and convenience they discover. Younger users are not quite so effusive because the internet has always been part of their lives.

However, whatever the level of internet enthusiasm or age group, the halo effect does not last long in either group. After little more than a year of doing the weekly grocery shop online, it has diminished for most people as they begin to judge the experience in its own right and make comparisons with other companies engaged in online retail activity.

Levels of excitement about the possibilities online grocery shopping holds drops off by around 25% by the time someone has been doing it for two to four years and the sense of frustration has crept up by 17%.

In most organisations, customer satisfaction surveys tend to be constructed to evaluate the processes involved in the shopping experience. Process-focused customer satisfaction surveys would not identify the halo effect which can only be uncovered by learning about the consumer's experience in context to their everyday lives and general internet history.

As the “halo effect” wears off, customer satisfaction with online shopping will fall. The danger of traditional measures is that organisations are led to believe the cause of the drop is an internal problem: the website's functionality or a process failing.

The tactical, process-driven response would be to redesign parts of the site. In actual fact there is a bigger strategic concern the company should be addressing, namely that over time online shopping becomes less positive in people's minds and less important to their brand experience. Solving that issue requires much more than a few new flourishes on a website.

More often than not the questions asked in customer surveys are designed to identify glitches in their technology or back-office systems. As for gathering data about “customer experience” most surveys ask very little. They only measure what is under their direct control – effectively assuming that nothing else influences behaviour or perception.

Customer behaviour and customer experience is rooted in context. At Intersperience we use a '5-step' context model to ensure that we always ask fundamental questions that allow us to evaluate the experience in full. We need to understand how familiar customers are with the internet, what they expect from interaction with a particular company, what frame of mind they were in when they contacted the organisation and how it responded to their needs. All five will have different affects on behaviour and perception.

This way we get round the distortion caused by the halo effect. If a retailer only asked new customers about their experience, the online store would outperform the physical stores by a massive margin. However, over time the online shopping experience would appear to deteriorate.

On traditional measurements of customer satisfaction a retailer taking the first year customer as the barometer of customer satisfaction would conclude the website is hitting the mark and working very efficiently. If the more experienced online shoppers are the benchmark, the findings might cause the organisation to consider wholesale changes to an “under-performing” site which is not under-performing at all.

How the customers' true perceptions of the brand were changing would hardly be noticed.

Customer satisfaction surveys are like the computers they are invariably compiled on. If you put the wrong information in at one end you will never get the right answer out at the other.

For more information on the issues raised in this update, please email outi.dorsen@intersperience.com

The team identified four distinct types of users, the most fascinating of which are the so-called Informed Rejecters. These are highly tech-savvy people who appear to be natural buyers of mobile devices but almost two-thirds of them steadfastly refuse to do so because they find them irrelevant to their daily lives.

Just under half the UK population (48%) is expected to be exploiting mobile internet by 2014 but Intersperience concludes the key to achieving that target (a doubling of the current level of penetration) – is for device developers to focus on another group, the Undefined Followers.

Undefined Followers are more tentative about technology than Informed Rejecters but enjoy using mobile internet. They are heavily influenced by peer pressure and slick advertising.

The two other groups identified in the study are Converts, a tech-savvy demographic that uses mobile internet devices enthusiastically on a daily basis, and the Self-Inhibited who have little interest in, or access to, the technology.

In general, mobile internet is utilised differently to broadband on a desk PC. Its use is driven by users' need for problem solving while out and about, hence the popularity of real-time information and location-based applications. The immediacy of social networking also works well on mobile devices. However, they are not viewed as purchasing tools, except perhaps for games and music, primarily because of security concerns.

A: That is a common misconception but we have carried out extensive research into cultural differences which shows that clear cultural differences exist and there is a real risk of 'culture shock' if differences are not properly understood and services tailored accordingly.

Q: How do service expectations and preferences differ ?

A: For example some European nations including Italy, Spain and Romania prefer highly personalised service and to engage with a 'real person'. By contrast, other nations including the UK and Denmark value efficiency and speed more highly. Some nations are less comfortable in disclosing personal data, even if the aim is to deliver a better service. Even simple things like whether people prefer a formal or informal form of address are culturally-bound. 'Have a nice day' will be acceptable in one culture yet will grate in another.

Q: Do neighbouring nations share the same beliefs and expectations ?

A: No. A key finding from our research is that geographical proximity is not a determining factor as to which nations share common cultural behaviour. For example Scandinavia is often regarded as a homogenous region in terms of cultural values etc - however we found more cultural similarities between Denmark and the UK than Denmark and its Scandinavian neighbours, while Sweden is more similar to Germany and Austria.

Q: Why do service expectations differ so much among nations and can you measure these differences ?

A: Expectations are culturally-bound and stem from deep-rooted value and belief systems which have evolved over centuries. We identified six crucial factors which contribute to shaping cultural values and expectations and we used these to create a 'Cultural Lens' which gives unique insights into cultural differences and similarities within Europe.

We looked at where differences and similarities lie and created a framework. In simple terms, we plotted on an axis how similar or different European nations are to each other.

Q: What are the implications for customer service operations in Europe ?

A: Businesses which organise customer service operations on the basis of shared language or proximity may have to rethink their approach. Many global organisations have adopted a 'one-size-fits-all' customer service model yet our research shows deep flaws in this approach. If they were to refocus their customer service operation according to our 'cultural lens' it could involve physical relocation of staff and resources, redrawing reporting lines, or a revised regime for training and standards.

Q: Any implications for performance metrics like Average Call Handing Times ?

A: Yes. Average Call Handling Times are widely used as a performance metric within customer contact centres yet the time customers expect to spend talking to an agent varies between cultures from two minutes to five. If an organisation counts two minutes as an efficient call, a supervisor might think the business was achieving a successful outcome if all agents achieved that. However, customers in some markets might feel short-changed by what they would regard as a rushed exchange.

Q: How will the rise of self-service solutions impact on customer satisfaction ?

A: Many organisations are turning to self-service solutions to reduce costs and there is often an underlying assumption that an identical self-service model can be applied globally. However we believe that it is a far from foregone conclusion that a universal self-service framework can be applied seamlessly across all nations and cultures. Customer expectations will be different depending on the culture you are serving.

Q: Are cultural differences relevant to technology-based self-service solutions ?

A: Yes because internet access is developing at different rates within Europe and different nations/cultures will adapt to using technology in different ways. For example, we identified a 'Latin' cluster comprising Spain, Italy and Romania, which expect highly personalised and longer phone calls and value speed and efficiency less. That means self-service solutions that harness technology to achieve greater speed and efficiency are likely to be less popular in these nations than in the UK, Denmark or Germany.

Q: Surely greater harmonisation within the European Union is reducing cultural differences ?

A: Our research does not support this theory. Cultural expectations stem from long-held and deeply rooted beliefs which means cultural change happens far more slowly than economic or political change.

Q: How can we improve understanding of cross-cultural issues ?

A:. We need to put 'customer expectations' back at the heart of discussions on customer service models and to ensure cultural differences are fully understood.

For more information on the issues raised in this update, please email outi.dorsen@intersperience.com

· Economy fears outweigh snow factor in festive sales drop

· Almost 1 in 6 Christmas gifts ordered online did not arrive

· 25% of online shoppers said problems made them spend less

London, UK, 12 Jan 2011 – Fears about the economic situation, rather than heavy snow, were the main reason for a fall in UK consumer spending in the run-up to Christmas, according to a new survey by Intersperience, the international consumer research specialist.

Four out of ten shoppers said economic uncertainty made them more cautious and contributed to them spending around £245 million less than they did last year.

Poor weather boosted internet sales, with 35% of shoppers spending more online than they had expected. However, 68% of people said they experienced some kind of problem with website purchases this Christmas.

Paul Hudson, chief executive of Intersperience, said: “Our survey clearly shows that economic confidence had a bigger negative influence on actual Christmas spending than snow. Harsh weather drove more people online but consumers told us even before the snow hit that they would spend less. People feel the financial situation is more negative than last year and that remains a key worry for the retail sector.”

Consumers over the age of 25, who account for the vast majority of retail sales, spent £313 per head, which was £7 per head less than last year.

Chief executive Paul Hudson said: “Over the years our surveys show that people always spend more than they intend to but this time 70% of shoppers who set a budget stuck to it, which is unusually high. It is clear that people are keeping a much tighter rein on their finances, even though the recession officially ended many months ago.”

Consumers told Intersperience in the run-up to Christmas that online shopping would be more important to them this year than ever. While 81% of consumers shopped online, this is a much lower proportion than had been anticipated.

One in six online shoppers, or 17%, failed to receive at least one present by Christmas Day, while 11% received a wrong item or something they were not expecting. And 25% of consumers spent less online as a result of such problems.

Chief executive Paul Hudson said: “The majority of those that went online looking for a bargain or to beat the snow had a problem of some kind. Overall, online retailing failed to live up to people's expectations and the problems they faced receiving orders put them off further internet purchases.”

This graph is based on ratings for the same calls and yet the Indian agents were judged 8% worse.

We took the recordings of six actual calls to a UK call centre and replaced the English voice with an Indian answering the query in exactly the same way, speaking exactly the same words. Then we took six calls to an Indian call centre and replaced the Indian operator's voice with an English one. Again, they answered the questions in exactly the same way and the call ended with the same outcome. This gave us two recordings of each call.

UK customers were asked to score each call and, on average, they thought that the calls with the Indian's voice were not as well handled – despite them being exactly the same call.

We did this same exercise two years ago and the perception gap between the actual and assumed effectiveness of Indian call centres has increased.

This means that Indian agents actually handle calls better than customer satisfaction scores suggest. Many British organisations that outsource their call centres to India or other offshore locations mistakenly believe they can manage away this perception gap while, in reality, all they can hope to do is reduce it. They must decide whether the financial savings associated with basing call centres offshore are outweighed by the “cost” of lower customer perception.

For more information on the issues raised in this update, please email outi.dorsen@intersperience.com

Summary objectives as follows:

1. Explain how technology is affecting the way we live today;

2. Explain the pace of behavioural change and forecast future consumer behaviour;

3. Explore the use and influence of social media;

4. Explore issues of privacy in a digital age.

All funding partners can input into the objectives and provide specific questions. All have the opportunity to input into the design of the research at every stage.

For more information click here

“We are particularly pleased to announce the addition of the 'Brainstorm' feature in HWY 3.5,” said Paul Hudson, Intersperience CEO. “Following on from the 'Smartboard' feature, an interactive image functionality launched via HWY 3.4 in May of this year, the 'Brainstorm' feature is tantamount to an online suggestion box and can be used with targeted groups of consumers,' he added.

The HWY 3.5 Software Update -

• New 'Brainstorm' tool added and enabled where Ideas can be uploaded by either client or user, rated and commented on. Ideas are listed in terms average rating. Users can mark Ideas as 'Favourites' and tag. Option to insert images within Idea text. My Activity and Personal page notifications.
• Core software updated in line with industry security standards 
• Checkbox added allowing users to request email updates every time a comment is added to a selected forum thread.
• Client search facility further improved
• Enhancements made to homepage 'widgets' adding greater flexibility

Purpose built a number of years ago in order to provide qualitative and quantitative research across both PC and mobile, HWY 3.4 already provides the latest in community and forum research, online diary studies, online surveys and online focus groups. “HWY 3.5 software update is just the latest in this constantly evolving software enabling us to add even greater depth to our client research with the obvious benefits of speed and efficiency,” said Hudson.

For more information please email paul.hudson@intersperience.com

Next software update scheduled for release in Q1 2011 will include several new tools and enhanced community features

The majority of people accessing the internet on mobile devices spend no more than 10 minutes online at a time, according to a key chart extracted from Intersperience's research into 'Internet on the move.'

Online sessions conducted via mobile devices are focused on highly specific activities including problem-solving, speedy fact checking and quick communication while out and about. This contrasts with fixed devices where online activity tends to be more general browsing.

Most people access internet on the move via smart phones or laptops while they are travelling, so speed of access and the ready availability of digestible data are vital. That explains the rising popularity of 'apps' and social networking sites such as Twitter designed to deliver bite-sized communication.

The survey found that 20% had spent less online than they had anticipated during the peak Christmas sales period.

They cited worries over products not being delivered on time as a key concern and one in two consumers who chose to buy goods online reported delivery or stock availability problems.

Paul Hudson, Chief Executive of Intersperience said: “Our research showed that although online shopping is still growing in popularity, retailers must address significant concerns over order fulfillment if they are to retain consumers' loyalty, attract new business and boost spending.”

The survey also found that the older age group were keenest on online shopping and reported higher use, higher spend, greater motivation and fewer problems with shopping online this Christmas than younger people. 

Overall, shoppers were evenly split on whether they prefer online or high street shopping, with 18 to 24 years olds showing a preference for in-store browsing and purchasing while the older generation were more likely to use the internet, particularly for goods such as books and DVDs.

Convenience, price and speed were cited as the main attractions of online shopping. Word-of-mouth rather than consumer review and price comparison sites remains the strongest influence on spending decisions.

The survey found that internet shopping is still regarded as cheaper than the high street – but the high street offered better value than people had expected.

Paul Hudson added: “For a long time online prices were regarded as considerably lower, providing a key driver for internet shopping. However, we are seeing signs that the price gap may be closing.”

Intersperience research also revealed that despite the recession, one in three shoppers who had intended to stick to a budget for Christmas failed to do so, busting their spending limits for gifts, food and drink.

For the first time an online insight community is used to continuously drive insight into consumer trends. TrendSpot forms part of our strategic insight programme, Future Thinkers, but can also be leveraged by any client for ad hoc qualitative projects.

At any time, for any client, we can create a branded 'satellite' community (or zone) within TrendSpot This gives you a great opportunity to involve a specific group of customers in an online qualitative project with the use of diaries, forums, online focus groups, brainstorms or smartboards, to inform either a strategic initiative or a new product.

For more information please email paul.hudson@intersperience.com

A: There is a sense of urgency about understanding Gen Y because we are on the cusp of major demographic change. We define 'Generation Y' as age 13 to 25 - those at the top of the bracket are either already in our workforce or among our customers. They need and demand a different approach which could necessitate major change in corporate culture and management systems. The way an organisation responds will directly impact on its bottom line in two important areas - staff retention and productivity and also customer retention and sales.

Q: Is there any difference between the behavior of younger and older members of Gen Y ?

A: Yes, our research support this theory. At the lower end of the category (the 13-18 age group), there is an even more marked divergence in behaviour between young teenagers and the majority of today's workforce. To them, the internet has always been there, and like electricity, is an invisible force in their lives which they take for granted. They are what we term 'i-Natives' or 'Digital Natives' and they view multimedia communication platforms as completely natural and convenient methods of communication for work and leisure.

Q: Does this have a bearing on what will happen in the workplace ?

A: Absolutely. When the younger members of Generation 'Y' enter the workplace in significant numbers within the next five to 10 years we will see unprecedented change in workplace dynamics and customer interaction. Factor in that they will be serving an ageing population and you begin to grasp the seismic change on the near horizon. It is essential to work out what makes this generation of i-Natives or Digital Natives tick or you won't understand a large swathe of your co-workers or customers.

Q: How do i-Natives differ from the rest of the population ?

A:There are fundamental differences between i-Natives born into a world of mobile phones, internet, SMS, and social networking, and the rest of the population whom we broadly categorise as 'Adapting Immigrants.' The latter category (the majority of the population currently) can master these technologies, but their underlying behaviour and attitudes remain quintessentially different. The biggest differences concern consumption of information, broadly characterised as a multi-tasking, multi-channel lateral approach exhibited by i-Natives; and a more concentrated, in-depth, task-oriented, linear approach exhibited by Adapting Immigrants.

Q: Do Gen Y have positive attributes and attitudes to bring to the workplace ?

A: Yes, very much so. There is a tendency (among older generations) to dismiss younger generations with different work patterns and attitudes as of less intrinsic value to an organisation - but this risks overlooking skills with real relevance in today's workplace and beyond. We believe that i-Natives possess valuable skills in efficiently sourcing, selecting and sifting data from multiple sources. That makes them precisely the kind of knowledge workers needed by progressive organisations.

Q: Why does this influx of 'i-Natives' matter so much to organisations?

A: Fundamental changes are taking place in the way people communicate and consume information and understanding what lies beneath these changes is important. Organisations must find ways to bridge a considerable communications gap which exists between i-Natives and Adaptive Immigrants. It is clear that i-Natives expect and respond to different styles and forms of communication and this must be taken into account by customer service operations which will need to adapt accordingly.

Q: What happens if the communications gap between the generations is not bridged ?

A: If no attempt is made to bridge this gap, or if efforts to do so fail because the wrong tactics were deployed, there is a risk that employers and managers will be left grappling with a factionalised, inefficient organisation which is ill-equipped to deal with customers.

Q: Are there any reasons to be optimistic ?

A: Happily, yes. The major positive is that the answers to tackling these issues already exist. The existing body of knowledge about organisational structure and culture can and must adapt. Engaging with people who truly understand these generational shifts is paramount to formulating an effective future strategy for recruiting and managing staff. What will mark out the excellent organisation from the average in future is the ability to effectively deploy both new technology and the unique skill sets of Generation Y. If this is done successfully, a dynamic, motivated and highly efficient workforce will emerge which is good news for employers and importantly, customers.

The project will explore how technology is affecting the way we live. How digital are your customers? How fast are customers adapting to new digital media? Is technology literacy confined to the internet only? How do you build trust online?

How significant is the generational difference between those 'born into' a digital age compared to the rest of the population? How different are digital behaviours of those under-16 compared to those 18-25? Are these behaviour differences significant enough to suggest a genuine generational difference?

What impact will these younger consumers have in the coming years? Building on all of our previous studies, we will explain digital lives in the UK.

Building on our previous projects of 'Digital Ageing' and 'Internet on the Move', we will create a universal segmentation and cluster analysis to explain digital lives in the UK in 2010.

Clients that get involved before the end of the year will receive an additional in-house debrief and an annual membership for a discounted rate.

For more information please email paul.hudson@intersperience.com

First created in the 1960s as a means of inter-disciplinary academic communication, the “internet” today has become defined not by the technology that underpins it but by the myriad activities it enables, from streaming live news to downloading music.

First with laptops, then smart phones and now the iPad, our physical connection to the “internet” has weakened but our interaction with the online world it provides access to has increased exponentially and changed the way people live their lives.

As the boundaries of the online world expand over the next decade we predict that the “internet” will merge into the background, becoming like electricity providing the power behind devices and tasks rather than being an entity in its own right. The iPad marketing spin, for example, promotes the fact the device is always connected to the online world without ever mentioning the internet specifically.

In short, our meaning and understanding of the internet is set to change beyond recognition. This is more than a philosophical debating point: the path to the “always-on” world will change the way we interact with large organisations on the web and even our friends and family.

It is already happening. Two pieces of research conducted recently by Intersperience, Digital Ageing and Internet on the Move, graphically show this change beginning to gather pace. The studies throw up exciting new possibilities for companies to reach these new digitally-active consumers – but also reveal that most organisations will fail to fully exploit the potential because their understanding of how customers are using their online services bears little relation to reality.

The iPad is a germane example of this disconnect between the perception and reality. While many technology reviewers have been lukewarm about the device, consumers have flocked to Apple stores. An estimated 500,000 iPads have been sold since it US launch in April, forcing the company to postpone its global roll-out until this month.

The “experts” have been far from enthralled in reviewing the iPad because it does not conform to one of their neat views of what constitutes a mobile device: it is not a phone or a laptop. However, customers do not think in those terms, they focus on the experience a product delivers.

The aspirations of internet users are changing in a way that, at present, only Apple of the big technology manufacturers seems able to read properly. The iPhone popularised use of the internet on the move, spawning many clones in the process, and the iPad represents a new assault on the home market.

Typically the home has been the preserve of fixed line internet accessed via a desk top PC. Its use was initially transaction based, mainly for paying bills or searching for very specific information, and online time was limited by high open-ended charges and slow dial-up connection speeds.

Entertainment and social networking are now favourite reasons for going online and being tied to a PC on a desk in an upstairs room is now seen as restricting. The old notion of “sessions” on a computer, completing one or two tasks then logging off, is being replaced by the desire to have the internet as a constant companion to link seamlessly to friends, check information, play games or watch movies.

Our Digital Ageing study identified this trend early and found 22% of the adult online population are 'Optimistic Rangers' who rely on wi-fi internet and multi-task with ease.

The iPad, and the numerous wannabe devices that are likely to follow if the experience of the iPhone is an accurate guide, will be popular with this group because it meets their desire for an entertaining and social experience online.

Another group of 'Undefined Followers', who emerged from our Internet on the Move research, are also likely to figure prominently in the next phase of internet development.

Undefined Followers are the biggest group of mobile internet users and offer the most growth potential for companies targeting new online consumers. They are more tentative about the technology but enjoy using mobile devices and are excited about what they could bring to their lives.

As Apple is proving, grasping the changing nature of internet use is not merely a philosophical talking point: it can mean commercial success for companies that “get it”.

We anticipate mobile internet will reach its predicted level of penetration of 48% in the UK by 2014 but to grow beyond that will require many organisations to rethink their online strategies.

Successful mobile internet applications solve problems – providing maps, finding nearby clothes stores or catching up with football results and train timetables. Social media works online because it has created a new form of communication that is both immediate and free.

However, mobile internet is used much less for purchasing, largely because of worries about security. People simply do not like keying in personal details while out and about for fear of losing their phones and having them hacked. For that they continue to rely on fixed line devices like PCs.

The lesson from these few examples is that the form of a company's online presence must be adaptable and change with the format. Simply shrink-wrapping a sprawling website onto a tiny smart phone screen will not work. It will be seen as impersonal, difficult to navigate and slow.

On the other hand, dedicated smart phone apps and pages on social networks provide a better fit with the realities of modern life and individuals' needs. By offering assistance in everyday lives brands can build trust with users and, over time, drive traffic to their fully-optimised websites where they can transact via fixed line devices.

The optimisation of this dual online world is not only reliant upon getting the format of the product mix right – understanding changing behaviour patterns becomes ever more important, as does providing exceptional customer service.

The internet is becoming central to many aspects of our lives, being used to access and present information across a wide range of situations and locations – all without a PC in sight. In years to come desktop computers will play an increasingly minor role at home, more probably confined to offices or studies.

The Internet will not be a device as such, but will become the equivalent of electricity running through many different types devices and applications as well as the glue binding together everyday lives at home at work and on the move.

The team conducted research among consumers in the UK, France and Sweden into attitudes towards products with environmental credentials and found that close to one-third of British respondents (28%) do not consider environmental credentials at all when making purchasing decisions.

This compares to just 14% of Swedish respondents, while French consumers proved to be the most eco-conscious, with only 6% saying that they do not consider a product's environmental credentials.

Meanwhile only 5% of Brits surveyed said they care passionately about environmental credentials, compared to 13% of Swedes and 13% of French respondents.

When it comes to making hard decisions to part with cash, 50% of French consumers said that if two products appeared similar they would evaluate their environmental credentials to make their choice, compared to just 34% of Brits and 19% of Swedes.

The findings pose interesting questions about cultural differences on green issues in Europe as the survey took place against a backdrop of increasing efforts by manufacturers and retailers to badge products as eco-friendly.

Although Britain trailed both France and Sweden in the Intersperience survey when it comes to eco-friendly purchasing habits, overall UK expenditure on ethical goods and services has grown over the past five years.

The overall UK ethical market is estimated to be worth more than £35 billion annually, with the fastest growth seen in food and drink and ethical financial products.

Unfortunately, this utopia painted in slightly pixilated colours by the apps developers fails to take account of what users of technology might actually want. Indeed, the most obvious audience for mobile devices appears to be the hardest to get through to.

The Rise of the App as a must-have marketing tool has been marked by the often diverging agendas of the software technicians on one hand, who are striving for ever more functionality, and marketeers on the other seeking to sell the killer micro-payments strategy to a global audience that will generate a significant volume of revenue for the P&L.

Around 24% of the UK adult population regularly use mobile internet and that is expected to double over the next four years. We recently completed a major piece of research into Internet on the Move and would concur with that consensus view – but we cannot see the figure growing significantly beyond that until organisations address a few fundamentals of consumer behaviour.

For exactly the same reason, we do not agree with those who predict that mobile internet will overtake fixed line. Our reasoning is based on two key findings from our study: namely that many of those most likely to understand the technological possibilities of mobile internet devices wilfully ignore them and the biggest users of apps cannot be considered loyal customers because they have very little idea why they use them.

The first group, who we have dubbed the Informed Rejecters, are fascinating, not least because they are a category that nobody realised existed.

At first glance Informed Rejecters would appear to be the ideal target market for mobile internet marketeers. They have a strong attachment to the internet and possess fully enabled smart phones. They are extremely knowledgeable about the latest gadgets and keep abreast of latest developments. They are intuitive, can navigate around websites with ease and 70% say they would have little difficulty using the internet on their mobile.

However, the reality is that they make very little use of the technology they know so well. When questioned, only 37% said mobile internet was useful to them.

We suspect the answer to this apparent dichotomy actually lies in the travel patterns of their everyday lives: they probably have a short commute or jobs that allow more freedom to work from home – where they use fixed line internet.

Either way, Informed Rejecters spend less time in “interspace” – the period of time it takes to get from one fixed point to another, such as home to an office or from one meeting to another in a different part of town. There is a correlation between the amount of time people spend in “interspace” and their enthusiasm for mobile internet.

Clearly, winning over this group in significant numbers would unlock a whole new market for mobile internet developers. Elsewhere on the spectrum of customer behaviour is another apparently dream demographic which poses problems of a very different sort.

Undefined Followers are the biggest group of users of mobile internet devices. They are more tentative about the technology than Informed Rejecters but enjoy using mobile devices and are excited about what they could bring to their lives. There is a sense of wonder about the computing power they hold in their hands but also uncertainty about how it is enhancing their lives.

Web literacy is modest, with 26% saying they would take a while to adjust when visiting a new website. That said, the net plays a key role in their lives and eight out of ten are prepared to learn by trial and error.

The issue is how committed Undefined Followers are to making mobile internet an integral part of their daily lives. As our tag suggests they are following a trend and being influenced by peer pressure and slick advertising.

However, with 5% of the UK population having tried mobile internet and subsequently given up, the challenge for developers and marketeers is to convince the Undefined Followers that it adds value to their lives.

In short, developers face a dilemma in trying to reach two demographics that are vital to growth of the whole market. At one end of the scale they must create highly sophisticated and distinctive devices that win over the non-plussed Informed Rejecters while, at the other, the Undefined Followers require applications that are pared back, incredibly simple to use, and – as importantly, in tune with the zeitgeist.

Concern about a 'digital divide' in which 33% of the UK population has no access to the internet is widely expressed but the debate is too narrowly focused. The divide actually encompasses many more millions of people – affluent, educated individuals who are using the internet frequently and effortlessly every day of their lives.

The problem is that these 'Adaptive Immigrants', who account for 68% of the population, interact with technology in a very different way than many policymakers appreciate.

Typically they go online to complete specific tasks, such as shopping or banking, then log off. Only 35% would think about sharing content and one-in-five engage in social networking. The vast majority of new web-based services that have developed in the last five years are of little or no interest to them, in sharp contrast to the younger generation who are immersed in the technology.

Adaptive Immigrants are excited by the benefits the web has delivered in terms of speed and convenience. However, at the same time as saying websites have simplified decision-making they complain of a confusing array of choice and are constantly worried about the security of their personal details. Both of these factors restrict the amount of information they are prepared to share and activities they are willing to undertake online.

They also place a much higher emphasis on customer service, price and quality than the younger generation and are reluctant to trust providers of services online unless they are established names.

The challenge for governments, therefore, is to balance technological innovation with face-to-face and telephone customer service, which is still highly valued by all but the very young. When dealing with Adaptive Immigrants, ie the bulk of taxpayers, the reality is that e-Government initiatives cannot actually be delivered entirely online.

The panel is built using Intersperience's proprietary online research platform, which combines the latest 'community-based' research with a range of qualitative, quantitative and mobile research techniques to create richer, faster and more dynamic consumer insight.

Matalan's Customer Insight Manager commented: "Intersperience have done a first-class job in creating an online platform from which Matalan can connect with and drive insight from its customer base."

The global sales phenomenon that is Apple's iPad is not merely a commercial success for one cool brand, it is a pointer to the fundamental way in which online communication is changing.

Some predicted that the iPad would struggle because it isneither a PC, a laptop nor a mobile but this is missing the point. The reason it will succeed is that it's the first device that truly fits with the lifestyles of families and the new ways they want to use the internet.

The iPad launch is part of a chain of events that is redefining how consumers interact with the internet. To predict which devices will gain mass adoption requires an understanding of how consumers are adapting to the evolving role of the internet and rigorous analysis of their behaviour, not just a technical review of the latest gadget.

First with laptops, then smart phones and now the iPad, our physical connection to the “internet” has weakened but our interaction with the online world it provides access to has increased exponentially.

As the boundaries of the online world expand over the next decade we predict that the “internet” will merge into the background, becoming like electricity providing the power behind devices and tasks rather than being an entity in its own right.

In short, our meaning and understanding of the internet is set to change beyond recognition. This is more than a philosophical debating point: the path to the “always-on” world will change the way we interact with large organisations on the web and even our friends and family.

It is already happening. Two of our recent pieces of research, Digital Ageing and Internet on the Move, graphically show this change beginning to gather pace. The studies throw up exciting new possibilities for companies to reach these new digitally-active consumers – but also reveal that most organisations fail to fully exploit the potential because their understanding of how customers are using their online services bears little relation to reality.

Typically, the home has been the preserve of fixed line internet accessed via a desk top PC. But for many current users, and especially the young, being tied to a PC on a desk in an upstairs room is now seen as restricting. The old notion of “sessions” on a computer, completing one or two tasks then logging off, is being replaced by the desire to have the internet as a constant companion to link seamlessly to friends, check information, play games or watch movies.

As Apple is proving, grasping the changing nature of internet can mean game-changing commercial success for companies that “get it”.

Successful mobile internet applications solve problems – providing maps, finding nearby clothes stores or catching up with football results and train timetables. Social media works online because it has created a new form of communication that is both immediate and free.

However, mobile internet is used much less for purchasing, largely because of worries about security. People simply do not like keying in personal details while out and about for fear of losing their phones and having them hacked. For that they continue to rely on fixed line PCs.

The lesson from these few examples is that the form of a company's online presence must be adaptable and change with the format. Simply shrink-wrapping a sprawling website onto a tiny smart phone screen will not work. It will be seen as impersonal, difficult to navigate and slow.

In short, we are witnessing the death of the internet as we have known it – but the rise of the internet as the glue that binds together every aspect of our everyday lives, often without us even realising it.

However, self-service has a hidden cost. Intersperience, the international consumer research specialist, warns that organisations which force customers down self-service routes and scrimp on customer support could see a negative impact on their bottom line as alienated customers defect.

Research from Intersperience highlights critical differences between the way organisations regard their customer service responsibilities and the service expectations which customers have of organisations.

The gap between the two is considerable and greater deployment of self-service options without careful consideration risks turning it into a chasm.

An analysis of words associated with 'self-service' and 'customer service' illuminates seemingly subtle but fundamental differences between the two concepts.

Self-service is associated with several positive factors, chiefly speed and convenience, while customer service is firmly associated with softer (but vital) elements such as support, care and personalisation.. Self-service is also regarded as less accountable than personalised customer service and less likely to result in a satisfactory experience.

Yet, organisations continue to invest heavily in self-service systems, deploying a plethora of technologies to equip customers with the means to serve themselves. These include automated call options where customers select a number depending on the nature of their enquiry; voice recognition systems; email responses; and web forms for delivering feedback or lodging complaints.

The prime attraction of self-service solutions is a perception that they will reduce or even replace the need for customer service staff, cutting running costs. There is often a concomitant expectation that customer satisfaction will automatically rise as a result of such investment.

However, this is a far from foregone conclusion, in fact it is unlikely for one fundamental reason: self-service is simply not the same thing as customer service.

An accelerated drive towards online self-service in particular stems partly from economic considerations. However, the broader context is that rising internet penetration and usage has led to assumptions that this will drive demand for more automated self-service and simultaneously reduce the need for customer support.

Issues of web access and literacy aside, it is true that more people are using the internet in different ways, but they still require high standards of customer support and a choice of channels when it comes to accessing help.

For example, more supermarkets are using self-service tills to help with queue-busting, but they still need staff on hand to help customers who struggle with their systems.

Organisations which make significant investments in self-service systems without determining to what extent customers are willing or able to use them, may make costly mistakes.

Channel choice is just one aspect of self-service. Customers have come to expect a choice of channels and see it as an organisation's duty to provide this – however they do not wish to be dictated to on this point.

Essentially, customers see themselves as 'channel neutral', opting for whichever channel they feel comfortable with or is most convenient or relevant to their needs at the time. Consequently, organisations which adopt a prescriptive approach to self-service channels do so at their peril.

The crux of the matter is that customers still need tailored support, especially with more complex problems. Customers naturally expect a high standard of support, help and advice when they engage with an organisation. It is an implicit assumption and at the heart of any world-class customer service strategy.

Self-service facilities cannot deliver this for the simple reason that they are not designed to do so. They should be regarded as supplementary to customer service rather than a substitute. Support is the real hidden cost of self-service.

The UK, which has internet penetration of 72%, is regarded as a leading digital nation, ranked third after Finland and the USA in a study of internet penetration of 10 western nations.

The UK, along with Germany and France, belongs to an 'advanced cluster'  of nations with high internet penetration rates and internet diffusion within the population. However, penetration rates only scratch the surface when it comes to understanding how well a nation has adapted to the Digital Age.

Paul Hudson, chief executive of international consumer research specialist Intersperience, argues that a rigorous analysis of behavioural patterns and deeper understanding of attitudes is necessary to accurately assess the UK's standing and forecast future trends.

Hudson said: “Our research clearly shows that in the UK we are not as 'adapted' as we think we are when it come to using the internet. There are wide variations in skill and confidence levels. There is a sizeable gap between the most advanced internet users and the least advanced and this is unlikely to narrow significantly in the next decade.”

Intersperience's authoritative Digital Ageing report identifies four categories of UK internet users: Late Starters; Emerging Clusters; Compartmentalised Classes; and Optimistic Rangers.  It delivers unique insights into the behaviour of each group and analyses how their online experiences define their perspective on the world.

The key behavioural traits determining to which group a person belongs include confidence and skill levels; whether they regard the internet as a tool or an integral part of their lives; the range of sites and services they access online; motivation to improve their skills; and whether they multi-task (blending internet use with other tasks and media).

The behaviour of the least advanced internet users is very linear and rule-based while more competent users perform more tasks online but remain relatively unadventurous in exploring new experiences.

By contrast, the more advanced user groups are highly web literate but can be divided into two distinct groups, one of which is mainly task-oriented, while the other is adept at multi-tasking and keen on using the internet for leisure activities as well as work.

Hudson says: “The pace of change in internet usage in the UK has been far slower than is widely believed. Many organisations have strategic plans predicated on the existence of a homogenous group of internet users. Our research demonstrates clearly that this is not the case and it has major significance for the way organisations structure current and future strategic communication with their customers.”

The Cumbria Partnership NHS Foundation Trust have announced that they will partner with Intersperience Research to create and run a two-year 'patient experience programme'.

The programme is designed to underpin the development of clinical services over the next two years. Intersperience have been chosen to create an innovative, creative and reliable source of information about the experience of people using the Trust's services.

The programme will provide the organisation with a rich mix of quantitative and qualitative data which will allow clinicians, managers, the Board of Directors and the Governors Council (who represent the local population) to understand how well the organisation is meeting the expectations of customers. The results will be a key part of the Trust's service improvement agenda.

Johnston Press, the regional newspaper group, have partnered with Intersperience Research since 2005 in running an annual 'customer care' programme. The programme combines mystery shopping of telephone and email enquiries together with a customer perception study, providing powerful information on the customer experience of its advertisers across its network of regional papers.

2010 will see the programme being extended to incorporate continuous mystery shopping measurement, increased customer perception feedback and consultancy support.

The panel is built using Intersperience's proprietary online research platform, which combines the latest 'community-based' research with a range of qualitative, quantitative and mobile research techniques to create richer, faster and more dynamic consumer insight.

· 1 in 3 shoppers exceeded Christmas budgets

· Older generation keener than younger people on internet shopping

· Half of online buyers experienced problems

One in three consumers confessed to blowing their Christmas shopping budgets in 2009, dashing their good intentions for a frugal celebration, according to a survey by international consumer research specialist Intersperience.

The survey, which analysed the shopping habits and attitudes of UK consumers, found that 33% of people who had intended to stick to a spending limit for Christmas gifts failed to do so. Food and drink proved a major indulgence, with 27% exceeding their pre-set budget for festive fare.

Intersperience, an expert in consumer behaviour, questioned shoppers on their spending intentions before Christmas and afterwards to discover whether they had stuck to their plans. The survey presents fresh insight into the dynamics of the retail sector following a string of positive Christmas trading statements from major store groups.

Intersperience Chief Executive Paul Hudson said: “Despite buoyant Christmas trading statements from many retailers, there is still a good deal of uncertainty over the mood of Britain's shoppers. Our survey delivers much-needed insight and really gets under the skin of customers. We analysed what drives them to make particular purchases and where and how they shop.”

The survey showed that fewer consumers spent money online than they had anticipated over Christmas, influenced by strong concerns over stock shortages and delivery delays. In fact, half of respondents reported delivery or stock availability problems with internet orders.

The survey also found that the older age group were keenest on online shopping and reported higher use, higher spend, greater motivation and fewer problems with shopping online this Christmas than younger people.

Overall, shoppers were evenly split on whether they prefer online or high street shopping, with 18 to 24 years olds showing a preference for in-store browsing and purchasing while the older generation were more likely to use the internet, particularly for goods such as books and DVDs.

Convenience, price and speed were cited as the main attractions of online shopping. Word-of-mouth rather than consumer review and price comparison sites remains the strongest influence on spending decisions.

The survey found that internet shopping is still regarded as cheaper than the high street – but the high street offered better value than people had expected.

Paul Hudson said: “For a long time online prices were regarded as considerably lower, providing a key driver for internet shopping. However, we are seeing signs that the price gap may be closing.”