Theme: Connections Between Marketing and Information Technology
THE MEDIA HABITS AND INTERNET PRACTICES OF THE NET GENERATION Napoli, Julie and Ewing, Michael T.
Address for all correspondence: Julie Napoli School of Marketing Curtin University of Technology GPO Box U1987 Phone: (618) 9266 7288 Fax:: (618) 9266 3937 Email:
[email protected]
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THE MEDIA HABITS AND INTERNET PRACTICES OF THE NET GENERATION ABSTRACT This study is a preliminary investigation into the media habits and internet behaviour of teenagers and young adults. The aim of this study is to determine whether use of traditional media is influenced by the level of internet usage and identify the characteristics considered important for web pages and advertising banners. Results show that use of broadcast and print media is similar amongst heavy, moderate and light users of the internet. The main features that attract users to web pages and advertising banners are information content, entertainment value, personal relevance and efficiency. Keywords: Net Generation; Internet Marketing
INTRODUCTION The communications industry has undergone revolutionary changes over the last 50 years. The advent of television brought about the concept of mass communication, enabling organisations to reach a large audience quickly, cheaply and effectively. Now, with the internet entering households almost as rapidly as television once did (Tapscott 1998), its use as a marketing communication tool is becoming increasingly popular. Many organisations, having recognised the potential of this media, are now promoting their products and services through internet web pages or advertising banners. The number of regular internet users in Australia has been estimated at 1.45 million people as at the end of September 1997 (Connors 1998). Of these, approximately 500,000 were classified as consumers or small office internet users, 350,0000 were general business users and 600,000 were classed as academic users (Connors 1998). However, this profile is rapidly changing particularly with the rise of the cohort labelled the Net Generation. It is potentially the largest group of consumers since the Baby Boomers, representing approximately 30% of the population in the USA (Tapscott 1998). Given that the cohort is growing up surrounded by digital media, the opportunity to reach this audience via the internet or email is far greater than with previous generations. As such, the challenge presented to marketers is how to harness this new technology.
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THE NET GENERATION The Net Generation is more than just a demographic group. One of the cohort’s distinguishing characteristics is that they readily assimilate new technology into their normal, everyday environment (Tapscott 1998). A significant proportion of school age children and university students now use the internet on a regular basis. In the USA alone, approximately 90% of college or university students have access to the internet compared to less than 10% of the population at large (Chidley 1996). As such, the digital revolution is producing a generation of technologically sophisticated people (Morrison 1997). Unlike Generation X, who have been described as being slackers, drifters, cynical, bitter and materialistic (Morrison 1997; Ritchie 1995; Hornblower 1997), the Net Generation have a strong sense of independence and autonomy, are assertive, self reliant, emotionally and intellectually expressive, innovative and curious (Tapscott 1998). With tools that enable them to question and challenge ideas, they are becoming a generation of critical thinkers. Furthermore, as the cohort ages, they will become more active and powerful as consumers (Tapscott 1998). They will want a greater array of products with the ability to customise and sample them to ensure they meet specific needs and perform as promised. This is largely a result of their fluency in the use of interactive media, giving them ready access to information that was previously unavailable. The internet and other forms of digital media, will therefore play a critical role in the marketing of products and services to the cohort.
MARKETING AND THE INTERNET The growth of the internet has been phenomenal. Although difficult to measure, it is anticipated that the number of internet users will reach 50 million in the USA within five years. This compares to television and radio which took 13 and 38 years respectively to reach the same milestone (Anonymous 1997). The internet is therefore quickly reaching the mass market as television once did, with both younger and older users embracing the new technology (Hickman and Levin 1996; Bruner 1997). As people migrate towards this media, advertisers are encountering both problems and opportunities in targeting their audience. One issue affecting advertisers is the impact of the internet on traditional media. It has been suggested that heavy users of the internet spend less time watching television than casual users, with television being sacrificed to make more time available for internet use (Bunker 1995; Mediaweek 1997). Other findings give little credence to this notion and suggest that the internet will simply complement traditional marketing media (Coffey and Stipp 1997; Kassaye 1997; Cartellieri, Parsons, Rao and Zeisser 1997). With the rise of the Net Generation, however, a decline in the use of broadcast and print media may occur in the future.
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Having recognised the potential of this media, many organisations are not only establishing their own web sites but also increasing their advertising presence on the internet (Hyland 1998). One of the benefits of advertising on the internet is that a large audience can be reached at a relatively low cost (Maddox and Mehta 1997; Boyce 1998). The web offers marketers the ability to make available full colour virtual catalogues, provide on screen order forms and readily elicit feedback from their customers (Berthon, Pitt and Watson 1996). Furthermore, it allows marketers to target high income, well educated audiences and assists in building relationships with those people who respond to their advertising efforts (Boyce 1998; Bunker 1995; Rubin 1996; Shereshewsky 1997). The interactive nature of the internet enables communications to be tailored to individual customers, allowing organisations to serve clients more effectively, project a favourable corporate image and create stronger brand identities (Hoffman, Novak and Chatterjee 1995; Berthon, Pitt and Watson 1996; Ducoffe 1996). As a marketing medium, however, it is still in its infancy (Berthon, Pitt and Watson 1996; Silverstein 1996). Little is known about the effectiveness of internet advertising due to the difficulties associated with measuring web traffic and exposure patterns (McDonald 1997; Rubin 1996; Silverstein 1996; Sacharow 1997; Taylor 1997; Dreze and Zufryden 1997). The nature of the medium itself, highlights another problem that advertisers face. Unlike broadcast advertising, internet advertising is not intrusive and requires the audience to be active in seeking out and viewing the message (Briggs and Hollis 1997; McDonald 1997; Tapscott 1998). As such, targeting specific audiences is more difficult for advertisers to control.
STUDY OBJECTIVES AND HYPOTHESES This study examines the media habits and internet behaviour of the Net Generation, their feelings towards advertising in different media and their views on web pages and internet advertising banners. Specifically, it is proposed that significant differences exist between heavy, moderate and light users of the internet with respect to: P1 :
tasks performed on the internet
P2 :
usage of traditional media
P3 :
feelings towards advertising in various media, such as television, print, radio and the internet
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METHODOLOGY The data collection instrument was partly derived from prior research and modified for the purpose of this study. A review of the literature revealed key variables to be measured including web page design (Teo, Lim and Lai 1997; Tapscott 1998), attitudes towards advertising (Ewing and Caruana 1997), media habits and internet practices (Teo, Lim and Lai 1997; Burnett and Paul 1996; Keillor, Parker and Schaefer 1996; McCarty and Shrum 1993). The questionnaire was administered to a 154 university students in Western Australia. A convenience sample was used to select the subjects for the research. In analysing the results, Factor analysis was used to identify the important attributes of web pages and internet advertising banners. A One-Way Analysis of Variance was also used to assess the statistical significance of observed differences between light, moderate and heavy users of the internet with respect to their current media habits and feelings towards advertising.
FINDINGS Profile of Respondents Respondents were primarily second and third year university students (37% and 59% respectively), aged between 19 and 25 years, of which 65% were females. 35% of the respondents were of Australian origin, 20% Malaysian, 16% Chinese and the remainder (29%) were Anglo-Celtic, Indonesian, Singaporean or ‘others’. Internet Access and Behaviour The respondents were asked questions in relation to their current use of the internet. Overall, 47% had access to the internet at home and 98% at university. The majority of respondents (62%) had been using the internet for between one and three years, with 18% having used it for more than three years. 16% of respondents indicated that they had been using the internet for less than one year whilst 3% said they had never used it. With respect to how frequently respondents accessed the internet, approximately 30% did so less than a few times per month, 38% accessed it a few times per week and 32% once or more per day. When asked how many hours they spent on the internet in any one day, 41% of respondents spent less than one hour, 39% between one and three hours and 20% for three hours or more. Based on these figures, the sample was divided into three groups, namely light, moderate and heavy users of the internet. Heavy users were classified as those respondents who accessed the internet at least once per day and spent more than three hours using it. Moderate users were those who accessed the internet a few times per week for between one and three hours and light users were those who spent less than one hour on the internet and accessed it less than a few times per month.
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Internet Use Respondents were asked to rate, on a five point Likert scale ranging from “1” (Never) to “5” (Always), how frequently they used the internet to perform various tasks. The results are shown in Table 1. As can be seen, respondents most frequently used the internet to obtain information for educational purposes, emailing overseas and local friends, obtaining information on specific organisations or on leisure or hobby activities. Respondents rarely purchased products or applied for jobs on-line. Given the nature of the sample, in that it was comprised largely of students with a significant overseas component, these results are not surprising. However, the purpose for which the internet is used may change as they enter the work force. The findings of Teo, Lim and Lai (1997) partially support this notion. With a sample consisting largely of Singaporean respondents aged between 21 and 35 years and in full time employment, the major use of the internet was to obtain information relating to technology and leisure, communicate with local and overseas friends and obtain free resources or samples. Interestingly, activities relating to purchasing products or on-line job applications were also carried out infrequently, suggesting that the security aspect of internet transactions was a concern (Teo, Lim and Lai 1997). It is interesting to note that heavy users of the internet rated most tasks higher than both moderate and light users. Significant differences were found to exist between heavy and light users of the internet along all dimensions except when using the internet to search for information relating to education. Also, heavy users rated activities such as communicating with local and overseas friends, obtaining free samples, applying for jobs and purchasing products on-line significantly higher than moderate users. Table 1 Tasks Performed on the Internet All Three n=152
Find information for education Email overseas friends Email local friends Find information on a company Find information for leisure or entertainment Find information on
Mea n 3.83 * 3.33 ** 3.33 ** 3.14 ** 2.98 ** 2.89
SD 0.9 6 1.6 0 1.4 4 1.0 6 1.1 0 1.1
Light Users n=45 (a) Mea SD n 3.49 1.1 b 6 2.13 1.3 bc 1 2.31 1.2 bc 0 2.64 1.0 bc 7 2.24 1.1 bc 5 2.18 0.9
Moderate n=59 (b) Mea n 4.0
SD
0.8 7 3.36c 1.5 9 3.44c 1.3 5 3.24 0.9 9 3.13 0.9 2 3.02 0.9
Heavy Users n=48 (c) Mea SD n 3.94 0.7 8 4.42 0.9 6 4.14 1.6 7 3.50 0.9 9 3.48 0.8 9 3.42 1.0
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products ** 1 bc 8 7 Find information for others 2.43 1.1 1.82 0.9 2.47 1.0 2.96 ** 3 bc 1 9 Obtain free samples 2.13 1.2 1.24 0.5 1.93c 1.0 3.19 ** 9 bc 7 6 Apply for jobs on-line 1.52 0.9 1.33 0.7 1.37 0.7 1.87a ** 3 9 6 b Purchase products on-line 1.34 0.7 1.07 0.2 1.19 0.5 1.77a ** 3 5 4 b + Along a scale of 1 (never) to 5 (always) ** results of ANOVA significant at p < .01 * results of ANOVA significant at p < .05 a/b/c subscript represents significantly different user group means for variable at p
