Americans Not Taking Advantage of New Smart Phone Capabilities Younger adults and men are most comfortable with new functions

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1 Press Contact: Corporate Communications Harris Interactive Americans Not Taking Advantage of New Smart Phone Capabilities Younger adults and men are most with new functions NEW YORK, N.Y. March 7, 2012 Smart phones can perform countless functions, but how many people take advantage of the time-saving and paper-saving capabilities that are offered? According to a recent Harris Poll, very few are taking advantage. Smart phones today can store information to make our lives more efficient information that can be scanned to make a purchase, or displayed as a ticket for admission, allowing us freedom from printed confirmations or carrying bulky wallets. However, when asked about a list of items that one could scan their mobile or smart phone for, only small minorities report having done so in each case. These are some of the results of The Harris Poll of 2,056 adults surveyed online between February 6 and 13, 2012 by Harris Interactive. Only 5% of Americans say that they have scanned their phone for admission to a movie or as an airline ticket, and fewer say they have done so to pay for clothing or electronics (3%), admission to a concert, live theater or performance (3%), to pay for a convenience item such as coffee (3%) or something else (7%). Two in five say they have never scanned their mobile or smart phone for any reason (40%) and slightly more say they do not have a mobile or smart phone with this capability (45%). Although Echo, aged 18-35, are most likely to have scanned their phone for all of the items listed, even they are not doing this at remarkable rates (between 5% and 10% for each item). While few may be actively engaging with these functions, there is also a divide on the levels of comfort associated with these behaviors as well. Just under half of Americans (47%) say they are using a mobile scan as an admission ticket to movies, concerts or live theater performances, while 38% are not with it with 25% not at all ; 15% are not sure. About the same number of people are (41%) and not (43%) using a mobile scan as an airline, train or other transportation ticket; 15% are again, not sure. Slightly fewer are using a mobile app that would allow them to make purchases at a retailer or company as they would with a gift card (39%) while 47% are not with this and 14% are not sure. The only item where a majority opinion is seen, is with using a mobile app that would store credit card information, allowing people to make purchases at a retailer or company as they would with a credit card; 63% are not with this with over two in five (45%) not at all. Only one quarter (24%) of Americans are with this, and 13% are not sure. Looking at those who are with the various items, several noticeable trends emerge: There is comfort in youth younger adults are more than those older with each item listed; Men are more with each item than are women; and, Those who have scanned their smart phone for any one of a number of reasons are more with each capability than are those who have never scanned their phone, or do not have a phone with that technology. This month, the United States celebrates the 150 th anniversary of its paper money. With that in mind, the Harris Poll sought to learn when, if ever, people think that information stored on mobile phones will eclipse cash 2012 Harris Interactive All rights reserved.

2 payments for a majority of purchases. While very few people think that will happen within the next year (3%), over one in ten think it will happen in 1 to less than 3 years (13%) and 18% think it will happen between 3 and 5 years. One in five (21%) say it will happen in 5 to less than 10 years and 15% say it will happen in 10 years or more; 30% say it will never happen. There are only slight differences in opinion by age, although women think that this will happen in less than 3 years significantly more than men do (20% versus 13%). Men, on the other hand, are more likely to say it will happen in 10 years or more (17% versus 12%). So What? It seems at the moment technology capabilities outpace changing behavior there are many new functions available that most people either haven t tried or admit to being un with. This presents an interesting conundrum it seems people like having the latest in technology, as the wait lists and lines for newly released products indicate, yet beyond early adopters, many people don t take advantage of the new functions available to them. As some of this technology becomes more commonplace, it will be interesting to see how Americans begin to incorporate it into their lives. TABLE 1 SCANNED MOBILE PHONE FOR VARIOUS ITEMS "Please say which of the following, if any, you have ever scanned your mobile or smart phone for." Base: All Adults Total Echo (18-35) Gen X (36-47) Generation Baby (48-66) Matures (67+) % % % % % Admission to a movie As an airline ticket To pay for a purchase such as clothing or * electronics Admission to a concert, live theater or performance * To pay for a convenience item, such as coffee Something else I have never scanned my mobile or smart phone for any reason I do not have a mobile or smart phone with this capability Note: Percentages may not add up exactly to 100% due to rounding; * indicates less than.05%. 2

3 Base: All Adults TABLE 2A COMFORT WITH MOBILE PHONE CAPABILITIES "Please say how you are, if at all, with each of the following." Comfortable (NET) Very Somewhat Not (NET) Not very Not at all % % % % % % % admission ticket to movies, concerts or live theater performances airline, train or other transportation ticket allows you to make purchases at a retailer or company like you would use a gift card would store your credit card information and allow you to make purchases at a retailer or company like you would with a credit card Note: Percentages may not add up exactly to 100% due to rounding. Not at all sure 3

4 Base: All Adults TABLE 2B COMFORT WITH MOBILE PHONE CAPABILITIES - DETAIL "Please say how you are, if at all, with each of the following." Summary of those saying very or somewhat Total Echo (18-35) Gen X (36-47) Generation Baby (48-66) Matures (67+) Gender Male Female Has Has scanned phone % % % % % % % % % admission ticket to movies, concerts or live theater performances airline, train or other transportation ticket allows you to make purchases at a retailer or company like you would use a gift card would store your credit card information and allow you to make purchases at a retailer or company like you would with a credit card Note: Percentages may not add up exactly to 100% due to rounding. Has not TABLE 3 4

5 PREDICTION OF TECHNOLOGY REPLACING CASH PAYMENTS "Thinking ahead, please say when, if ever, you think information stored on mobile phones will replace cash payments for a majority of purchases." Base: All Adults Generation Gender Total Echo (18-35) Gen X (36-47) Baby (48-66) Matures (67+) Male Female % % % % % % % Within the next year year to less than 3 years years to less than 5 years years to less than 10 years years or more Never Note: Percentages may not add up exactly to 100% due to rounding. Methodology This Harris Poll was conducted online within the United States between February 6 and 13, 2012 among 2,056 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents propensity to be online. All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words margin of error as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal. Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated. These statements conform to the principles of disclosure of the National Council on Public Polls. The results of this Harris Poll may not be used in advertising, marketing or promotion without the prior written permission of Harris Interactive. J41216 Q830, 835, 840 The Harris Poll #25, March 7, 2012 By Samantha Braverman, Sr. Project Researcher, Harris Interactive 5

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