Monday - August 14, 2000

Families Build Most Websites

Homestead, an Internet communications company that offers a comprehensive resource for building free Websites, has announced the results of a research study, which show that families are the largest and fastest growing segment of people building Websites.

Conducted by Cheskin Research, the study reveals that the "Family Connector" segment, largely comprised of women who are newcomers to the Web, is creating Websites to keep in touch with family and friends, finding the Internet more immediate and interactive than traditional mail and less expensive than the telephone.

According to the study, Family Connectors represent 29% of the Website building category, which is defined as Internet users who have built Websites or are considering doing so. The study shows that their main concern is privacy, rather than driving Website traffic. Family Connectors perceive their Website as a creative opportunity to share with family and friends, and use their Websites for activities such as sharing news and photos, announcing new births, tracing family genealogy, and planning special events. In addition, the study shows that Family Connectors' Websites are being driven by the ease-of-use, time savings and cost savings afforded by current Web building technologies. Because of existing tools on the Internet, Website builders no longer need to learn HTML or receive other technical training to create Websites. Moreover, Website builders can create feature-rich sites quickly with free tools.

"This survey shows that Website building is moving toward the mainstream, as people who have little experience with the Internet have become the largest Web building segment," said Busy Burr, president and chief marketing officer of Homestead. "As Homestead has seen through its own member base, Website tools and building blocks such as electronic photo albums, sound, message boards and guest books are broadening the power and depth of communication between extended groups of family and friends. Websites allow consumers to share news and information across all distance and time boundaries."

The study reveals that California, a bellwether in Internet usage, has a relatively high percentage of Family Connectors. This point suggests that personal Website building will expand throughout the country, imitating other technology trends that move from west to east. Homestead commissioned the study to gain a better understanding of Website builders and their sites. After conducting a series of small focus groups of adults and teens, an online survey polled more than 2,330 respondents to verify the focus group findings. Cheskin Research, a strategic market research and consulting firm, specializing in new media product development, positioning and emerging markets, conducted the Homestead survey to analyze the behaviors, perceptions and attitudes of Website builders. The study also defined the market segments that correspond to user characteristics and motivations.

In addition to identifying Family Connectors as a growing Website building segment, the Cheskin Research study defined four other categories of Website builders. The top-ranked, core need for all Website builders was to create a site that would ultimately serve as a time-saving tool. Many respondents also expressed the desire to drive traffic to their sites, maintain privacy, and save money. The four other categories of Website builders, according to the survey, are outlined below:

-- Biz Outsourcers: The second largest segment of the Web site building population, Biz Outsourcers represent 23% of the category and are business professionals, who want to use the Internet to make money, sell products, or provide customer support for their clients. They are slightly older and motivated by business needs, but do not know where or how to begin to build a Website. Biz Outsourcers primarily represent small business owners of restaurants, boutiques, and specialized services agencies seeking to create an Internet presence in a cost- and time-effective way.

-- Netrepreneurs: Representing 19% of the category, Netrepreneurs are entrepreneurs who want to make money on the Internet as well as be creative, but they are looking for help in developing their business ideas. They are Web enthusiasts, skew slightly male, are mostly mid to late 30's, and security and privacy are their main hurdles. Netrepreneurs often express their passion through a Web site selling products, ideas or advice to others in their Web circle. The group includes everyone from full-time moms seeking to contribute to the family income to fashion enthusiasts using their Web sites as their store fronts.

-- Networkers: Networkers represent 19% of the category, are interested in social networking, and want to use technology to share their interests. They are tech-savvy, skew younger, and represent the largest population of Web-building teens. For this group, time is the biggest hurdle. This diverse group can be found building Web sites for activities such as ski vacation planning, posting scores and game schedules for sports clubs, or offering a dedication to their favorite rock band to share with their closest group of friends.

-- Technophiles: Technophiles are motivated by their passion for technology. They, like Netrepreneurs, desire to make money through an Internet business, but their technical expertise is the driving force of their pursuits. Technophiles represent 10% of the category, are in their mid to late 30's, skew male and are often self-employed.

"Personal Web site building is allowing individuals to be creators of content," said Dr. Lynn Rampoldi-Hnilo, research manager at Cheskin Research. "By empowering the consumer with choice and control, it enables personal expression, business opportunities and social networking. This is a liberating time for Internet users, and we see the trend making its way across the globe."

Study Tackles Online Trust
Cheskin Research, a leading strategic market research and consulting firm, has announced its second comprehensive study investigating online trust. This study is unique in that it highlights the cultural similarities and differences in Internet attitudes and behaviors between the US, Spanish-speaking Latin America, and Brazil.

The online survey was conducted among 2,681 Internet users including 1,837 from the US and 770 from Latin America and Brazil. A description of the study and a copy of the full report are available free of charge at www.cheskin.com.

"Trust in the Wired Americas" was undertaken to extend the learning from the initial trust study released in January 1999 by Cheskin Research and Studio Archetype/Sapient. Objectives of this study included exploration of online trust and privacy issues in the US and Latin America, identification of the most trusted websites and online security symbols, and e-commerce purchase behavior.

The study provides the following key insights:

1. A sense of anarchy permeates attitudes about the Web. Developing trust online requires minimizing risk, including identity risk - the misuse of personal information. People consider security of their identity as important as the security of their money.

2. Most people believe that the government, "Big Brother," is able to easily monitor their activities, but they do not see this as a big threat.

3. Hackers who steal personal information are considered the biggest threat. Websites are generally thought ineffectual in the face of hackers, but have the potential to boost trust by stressing their use of effective security technologies.

4. Most people are wary of providing more personal information to websites ("Little Brothers" to government's "Big Brother") in exchange for a better price, however…

5. expert Internet users age 19-25 are willing to make this trade.

6. Cultural differences require different actions to increase trust, and a global market requires universal symbols of security.

"Trust continues to be the key issue influencing the growth of e-commerce," explains Davis Masten, Principal of Cheskin Research. Assuring online consumers recourse against privacy breaches will be crucial. Add to this the fact that the Internet is creating truly global cultures, and the need for transcultural security icons becomes obvious."

"This study reveals the real heroes and culprits in the journey toward establishing online trust," says Steve Diller, Partner, eBusiness and Media Strategy. "Brand will continue to be an important enabler of trust, and for those people making their first foray into the e-commerce environment, recognized symbols such as credit card icons have strong trust value. It's encouraging that in spite of consumers' belief that absolute privacy is impossible, they still participate in e-commerce. However, it's also apparent that they'll only tolerate this invasion up to a certain point."

The Trust in the Wired Americas Study also tested recognition and trust factors of the five most trusted "seals of approval" from last year's eCommerce Trust Study. Credit card symbols were the clear winners in Latin America, while TRUSTe was favored in the US. Ironically, few respondents have actually read the information statements associated with these symbols.

In addition, the study identified the most trusted websites. Yahoo! rated at the top in the US and ranked closely with MSN/Hotmail in Latin America, while the bank, Bradesco, website rated highest in Brazil.

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