Insights Into the Lives of Digital Natives in the United States Ad hoc research conducted for Ericsson by Jacklyn Lee January - March 2008

Background and Objectives To understand Digital Natives’: financial mentality and price sensitivity to various technologies attitudes towards current technology preferred method of communications interaction levels within various media and communications platforms dependency level on mobility and the Internet To compare technology practices and opinions between smartphone users and mobile phone users

To understand Digital Natives’:

financial mentality and price sensitivity to various technologies

attitudes towards current technology

preferred method of communications

interaction levels within various media and communications platforms

dependency level on mobility and the Internet

To compare technology practices and opinions between smartphone users and mobile phone users

Target Market The Digital Native: A person who has grown up with digital technology such as computers, the Internet, mobile phones and mp3s. Primary demographic target: 18-24 year-old college students Secondary demographic target: 21-24 year-old recent college graduates and working professionals Source: Wikipedia

The Digital Native: A person who has grown up with digital technology such as computers, the Internet, mobile phones and mp3s.

Primary demographic target:

18-24 year-old college students

Secondary demographic target:

21-24 year-old recent college graduates and working professionals

Source: Wikipedia

Sample 1: Quantitative Research 88 online survey respondents (39 males; 49 females) Median age: 21.7 years National representation of respondents from 14 states and Washington DC 67% full-time students 89.8% college undergraduates 10.2% graduate students 41.4% full-time students not working 26.4% full-time students working at least part-time

88 online survey respondents (39 males; 49 females)

Median age: 21.7 years

National representation of respondents from 14 states and Washington DC

67% full-time students

89.8% college undergraduates

10.2% graduate students

41.4% full-time students not working

26.4% full-time students working at least part-time

Sample 2: Qualitative Research Methodology Newspaper classified advertising on SMU, Richland College, and UNT campuses (1) Facebook event (1) Online listing at dallascraigstlist.org (2) Fliers posted at UTD, SMU, Richland College, and CCCC Spring Creek campus (10) Word of mouth (16) 30 focus group participants ( 17 males; 13 females) 90% are graduate and undergraduate students from UT Dallas (14), SMU (4), Collin County Community College (CCCC) (7), UT Austin, University of Dallas, EMTS and Vanderbilt Median age: 22.4 years

Methodology

Newspaper classified advertising on SMU, Richland College, and UNT campuses (1)

Facebook event (1)

Online listing at dallascraigstlist.org (2)

Fliers posted at UTD, SMU, Richland College, and CCCC Spring Creek campus (10)

Word of mouth (16)

30 focus group participants ( 17 males; 13 females)

90% are graduate and undergraduate students from UT Dallas (14), SMU (4), Collin County Community College (CCCC) (7), UT Austin, University of Dallas, EMTS and Vanderbilt

Median age: 22.4 years

Where Do Digital Natives Reside? 43% live with one or more roommates in an apartment or house 20.5% live with parents/guardians 19.3% live in campus housing 14.8% live alone in an apartment

43% live with one or more roommates in an apartment or house

20.5% live with parents/guardians

19.3% live in campus housing

14.8% live alone in an apartment

Digital Natives Are Financially Dependent… 22.2% of working professionals are financially dependent on their parents 82.4% of students and those not working are financially dependent 60% of students do not work 75% have 1 debit card 40.5% have 1 credit card

22.2% of working professionals are financially dependent on their parents

82.4% of students and those not working are financially dependent

60% of students do not work

75% have 1 debit card

40.5% have 1 credit card

Digital Natives’ Spending Habits Online… …In-Store 90.0% (9) 10.0% (1) Portable DVD player 83.3% (10) 16.7% (2) Video recorder 94.1% (16) 11.8% (2) Television 63.6% (14) 45.5% (10) Other computer software 81.8% (18) 36.4% (8) Gambling 82.6% (19) 26.1% (6) Digital camera 79.2% (19) 25.0% (6) Newspapers 68.0% (17) 44.0% (11) Computer games 82.1% (23) 28.6% (8) Flowers 83.3% (25) 40.0% (12) DVDs/video cassettes 87.5% (28) 18.8% (6) Gift cards 63.6% (21) 51.5% (17) Computer accessories 88.2% (30) 14.7% (5) Magazines 97.3% (36) 8.1% (3) Home accessories (furniture, lamps, etc.) 30.8% (12) 74.4% (29) Concert tickets 65.9% (27) 43.9% (18) Music hardware (mp3 player, headphones, etc.) 62.2% (28) 60.0% (27) Music (mp3s, CDs) 65.2% (30) 50.0% (23) Computer electronics 84.0% (42) 36.0% (18) Books (for leisure) 92.0% (46) 14.0% (7) Accessories (handbags, wallets, etc.) 82.5% (47) 38.6% (22) School-related textbooks 94.9% (56) 5.1% (3) Alcohol 32.8% (20) 77.0% (47) Airline tickets/hotels/bus fares 92.4% (61) 19.7% (13) Shoes 95.7% (67) 14.3% (10) Movie tickets 94.5% (69) 11.0% (8) Personal products (cosmetics, skincare products, cologne, perfume, etc.) 93.3% (70) 28.0% (21) Clothing 94.9% (74) 5.1% (4) Groceries In-Store Online

What is a Fair Monthly Price to Pay for Technology? $43.11 for unlimited mobile voice communications Mode: $50 $28.88 for high-speed wireless Internet connectivity Mode: $20 $20.13 for Web TV (including sports) Mode: $20 $8.45 for unlimited text messaging Mode: $5 $6.60 for mobile instant messaging Mode: $5 Digital Natives are not willing to pay for services and/or are unaware of some of the latest technology available

Family Plans Make More Sense Who’s paying the bill? Parents: 73.2% Digital Native: 26.8% Brother: 3.7% Boyfriend: 1.2% Most students (61%) are under a family plan 34.1% of students pay for their own phone bills Over half (55.8%) of full-time working professionals are under a family plan 65% of full-time working professionals pay for their own phone bills

Most students (61%) are under a family plan

34.1% of students pay for their own phone bills

Over half (55.8%) of full-time working professionals are under a family plan

65% of full-time working professionals pay for their own phone bills

Digital Natives Dislike 2-Year Contracts Cost is the primary factor in purchasing frequency and in choosing the quality of mobile technology Many families bound to a 2-year contract 87.5% of smartphone users have a 2-year contract as opposed to 71.2% of mobile phone users

Cost is the primary factor in purchasing frequency and in choosing the quality of mobile technology

Many families bound to a 2-year contract

87.5% of smartphone users have a 2-year contract as opposed to 71.2% of mobile phone users

Satisfaction of Carriers and Service 34.9%

Brand Leaders Among Digital Natives 39.6% Blackberry is the most popular brand of smartphone, with 50% penetration followed by Apple with 22.2% and then Samsung with 16.7% 45.5% of Samsung owners have T-Mobile as their carrier 80% of Sony Ericsson owners have AT&T as their carrier (This research was conducted prior to the introduction of the 3G iPhone or the G1)

Blackberry is the most popular brand of smartphone, with 50% penetration followed by Apple with 22.2% and then Samsung with 16.7%

45.5% of Samsung owners have T-Mobile as their carrier

80% of Sony Ericsson owners have AT&T as their carrier

(This research was conducted prior to the introduction of the 3G iPhone or the G1)

What Do Digital Natives Look For in a Mobile Device? A Trustworthy Brand “ I have a Sony Ericsson W910i. Well, one thing was the brand. I've had good experiences with previous SE phones. It also had a lot of features that I made the phone very multi-featured. I like the slide form-factor too and the way it looked.” –Ryan, 23 “ I have a Samsung. I liked the look and it had all the features I wanted. I knew that Samsung is a good quality brand from previous experience compared to other phone brands.” – Jae, 22 “ I have a Sony Ericsson I got for $50 from a buddy. It’s the first time I’ve used one, but its okay. I believe I went for this phone because it was cheap and it had a Bluetooth feature. And that's all I needed, which was probably 2 years or more ago.” – Chris, 24 Something Cool and Trendy “ I got a Razr because it was soooo cool 2 years ago when I got it.” – Tom, 22 C o l o r and Personalization “ I got my Razr because I wanted a pink phone. My dad also had Verizon and it was free.” – Ginny, 23 Durability Something that will last at least two years until the contract is up 81% of respondents do not have insurance on their phone – phones are an investment and should withstand everyday wear and tear Rely on Previous Experience

A Trustworthy Brand

“ I have a Sony Ericsson W910i. Well, one thing was the brand. I've had good experiences with previous SE phones. It also had a lot of features that I made the phone very multi-featured. I like the slide form-factor too and the way it looked.” –Ryan, 23

“ I have a Samsung. I liked the look and it had all the features I wanted. I knew that Samsung is a good quality brand from previous experience compared to other phone brands.” – Jae, 22

“ I have a Sony Ericsson I got for $50 from a buddy. It’s the first time I’ve used one, but its okay. I believe I went for this phone because it was cheap and it had a Bluetooth feature. And that's all I needed, which was probably 2 years or more ago.” – Chris, 24

Something Cool and Trendy

“ I got a Razr because it was soooo cool 2 years ago when I got it.” – Tom, 22

C o l o r and Personalization

“ I got my Razr because I wanted a pink phone. My dad also had Verizon and it was free.” – Ginny, 23

Durability

Something that will last at least two years until the contract is up

81% of respondents do not have insurance on their phone – phones are an investment and should withstand everyday wear and tear

Who’s in the Smartphone Market? 40% of full-time working professionals carry a smartphone 14.7% of students carry a smartphone Males more likely than females (61.1% v. 38.9%) 21.4% of respondents carry a smartphone

40% of full-time working professionals carry a smartphone

14.7% of students carry a smartphone

Males more likely than females (61.1% v. 38.9%)

21.4% of respondents carry a smartphone

Smartphones: A Love/Hate Relationship 56.3% of smartphone users are extremely likely to purchase another in the future v. 15% of mobile phone users 23.5% of working professionals are extremely likely to have their next phone be a smartphone: the biggest hindrance is price

56.3% of smartphone users are extremely likely to purchase another in the future v. 15% of mobile phone users

23.5% of working professionals are extremely likely to have their next phone be a smartphone: the biggest hindrance is price

Smartphone Dislikes 26.7% are satisfied with the download speeds on their smartphones 53.3% are neither satisfied nor dissatisfied 20% are dissatisfied … ..is this a NETWORK ISSUE? 0.0% I wish I could change the color of the plate 6.3% I don't have an mp3 player integrated into it 12.5% There is nothing I don't like about my phone. 12.5% It's too heavy 12.5% The sound quality isn't very good 18.8% There isn't enough memory 18.8% The visuals aren't clear 18.8% It's too fragile 25.0% I wish the screen was bigger 31.3% It's too expensive to maintain 68.8% My Internet is too slow

26.7% are satisfied with the download speeds on their smartphones

53.3% are neither satisfied nor dissatisfied

20% are dissatisfied

… ..is this a NETWORK ISSUE?

Advanced Capabilities are Important Current smartphone owners are more likely to find it more IMPORTANT to have to have one device that offers advanced capabilities Most smartphone users (50%) find it appealing and 43.8% find it extremely appealing 46.7% 6.1%

Current smartphone owners are more likely to find it more IMPORTANT to have to have one device that offers advanced capabilities

Most smartphone users (50%) find it appealing and 43.8% find it extremely appealing

What Capabilities Do Digital Natives Want? IPTV “ I think the only thing left is IPTV. “ – Jignesh, 24 “ If [TV] were to be live, though, the idea that that I could be watching House and during commercial break, drive to the grocery store, walk around and then finish it up, that would be really nice.” – Adam, 22 “ TV…” “ Television shows and live-feed.” Higher Resolution Cameras “ A better camera.” “ 10m pixel camera with 30x zoom in/out capability, anti-shake capability, and auto focus.” Radio/Phone Integration “… an mp3 player that works with car radio.” “ Ability to control radio console in the car, to be able to connect to my network drive or my home computer.” Miscellaneous Full keyboard, Radio, movie downloads, real (not mobile version) internet, bigger screen (or better yet projection technology), “ Scan to use as a credit card, video conferencing.” “ Skype integration. ” “ GPS, Instant Messaging and MP3 Player with video.” “ I would like international calling and prices while overseas to be lower. There's no real reason it can't be - I have a friend in Germany paying 3.95euro/month for unlimited calls to the US. There's no reason it should be $1/min while in another country to call.” “ I’d like to scan my phone to a vending machine.” – Rose, 21

IPTV

“ I think the only thing left is IPTV. “ – Jignesh, 24

“ If [TV] were to be live, though, the idea that that I could be watching House and during commercial break, drive to the grocery store, walk around and then finish it up, that would be really nice.” – Adam, 22

“ TV…”

“ Television shows and live-feed.”

Higher Resolution Cameras

“ A better camera.”

“ 10m pixel camera with 30x zoom in/out capability, anti-shake capability, and auto focus.”

Radio/Phone Integration

“… an mp3 player that works with car radio.”

“ Ability to control radio console in the car, to be able to connect to my network drive or my home computer.”

Miscellaneous

Full keyboard, Radio, movie downloads, real (not mobile version) internet, bigger screen (or better yet projection technology),

“ Scan to use as a credit card, video conferencing.”

“ Skype integration. ”

“ GPS, Instant Messaging and MP3 Player with video.”

“ I would like international calling and prices while overseas to be lower. There's no real reason it can't be - I have a friend in Germany paying 3.95euro/month for unlimited calls to the US. There's no reason it should be $1/min while in another country to call.”

“ I’d like to scan my phone to a vending machine.” – Rose, 21

Technology Usage Among Mobile Phone Users Most (87.9%) do not have an Internet plan for their mobile phone 46.1% never utilize the MMS function on their phone 38.2% text as much as they call 42.4% send 1-10 texts per day

Most (87.9%) do not have an Internet plan for their mobile phone

46.1% never utilize the MMS function on their phone

38.2% text as much as they call

42.4% send 1-10 texts per day

What Do Mobile Phone Users Dislike About Their Devices? 1.5% It's too heavy 1.5% It's too expensive to maintain 1.5% It's too small 3.0% Low battery life 3.0% The buttons are too small 4.6% Bad reception 6.1% Low camera resolution 9.1% The visuals aren't clear 9.1% It's too big 10.6% I wish the screen was bigger 12.1% It's too bulky 13.6% My Internet is too slow 15.2% I wish I could change the color of the plate 18.2% I don't have an mp3 player integrated into it 18.2% It's too fragile 22.7% The sound quality isn't very good 25.8% There is nothing I don't like about my phone. 27.3% There isn't enough memory

Multimedia Usage More Prevalent Among Smartphone Users Most respondents do not use MMS (46.1%) Picture quality is better on a smartphone usage is more prevalent 20% of smartphone users utilize MMS 3-5 times per month as opposed to 4.5% of mobile phone users

Most respondents do not use MMS (46.1%)

Picture quality is better on a smartphone usage is more prevalent

20% of smartphone users utilize MMS 3-5 times per month as opposed to 4.5% of mobile phone users

Video Recording is a Nice Option A majority of phones (60% of smartphone users and 95.5% of mobile phone users) have the video recording option on their phone 22.4% utilize it once every few months 27.6% never utilize it Most respondents (95.9%) do not post their video recordings online “ I’ve done it maybe twice to test it out. I don’t use it often but it’s a nice option.” – Lucas, 22

A majority of phones (60% of smartphone users and 95.5% of mobile phone users) have the video recording option on their phone

22.4% utilize it once every few months

27.6% never utilize it

Most respondents (95.9%) do not post their video recordings online

“ I’ve done it maybe twice to test it out. I don’t use it often but it’s a nice option.” – Lucas, 22

Digital Natives Prefer Texting Most claim to talk on their phone less than one hour per day (50% of smartphone users and 62.1% of mobile phone users) All smartphone users and 89.4% of mobile phone users text Most send 1-10 messages per day Text when low on minutes, informally and to avoid voice communication Voice calls made when urgent and if texting becomes tedious Most prevalent functions utilized (in order): Voice calls Text messaging E-mail Instant messaging

Most claim to talk on their phone less than one hour per day (50% of smartphone users and 62.1% of mobile phone users)

All smartphone users and 89.4% of mobile phone users text

Most send 1-10 messages per day

Text when low on minutes, informally and to avoid voice communication

Voice calls made when urgent and if texting becomes tedious

Voice Messages are… … a thing of the past … a waste of time!!! Video clip

Smartphone Users Embrace Newer Forms of Communication 52.9% of digital natives do not believe it is acceptable to text someone on a date 47.2% of males and 57.1% of females 14.9% do believe it is acceptable 8.3% of males and 18.3% of females Of those who believe it is acceptable, 75% were female 18.2% of mobile phone users believe it is acceptable to text someone to ask them out on a date 42.9% of smartphone users believe it is acceptable

52.9% of digital natives do not believe it is acceptable to text someone on a date

47.2% of males and 57.1% of females

14.9% do believe it is acceptable

8.3% of males and 18.3% of females

Of those who believe it is acceptable, 75% were female

18.2% of mobile phone users believe it is acceptable to text someone to ask them out on a date

42.9% of smartphone users believe it is acceptable

Social Implications of Mobile Communication Question: Would You Ask Someone Out on a Date Via Text? Maybe “ Depends on how they come about it. But if its hinted or asked via text, it should be followed up with a proper phone conversation.” No “ I’d rather use voice and make the effort to call.” “ As a first date, especially no, because it's like giving a letter to someone in middle school - it's immature and it shows absolutely no confidence. And for a couple, a text message invitation to a date is not romantic at all!” “ It’s fine, but not the first date.” “ Texts are too impersonal. Emotions don't come across at all, it would be hard to tell how sincere a person is through a text.” Yes “ If there was someone who you had just met the night before whose number you got, and you were at work, having a text conversation with them, it would not be strange to ask them out on a date during that text conversation.” “ It's 2008, no big deal. Personally, I'd rather receive a real invitation, but text messaging is a start. It's also less embarrassing if the person you asked rejects your date proposal!” “ Texting has become more common as calling. It is considered much less impersonal nowadays.” Answer:

Maybe

“ Depends on how they come about it. But if its hinted or asked via text, it should be followed up with a proper phone conversation.”

No

“ I’d rather use voice and make the effort to call.”

“ As a first date, especially no, because it's like giving a letter to someone in middle school - it's immature and it shows absolutely no confidence. And for a couple, a text message invitation to a date is not romantic at all!”

“ It’s fine, but not the first date.”

“ Texts are too impersonal. Emotions don't come across at all, it would be hard to tell how sincere a person is through a text.”

Yes

“ If there was someone who you had just met the night before whose number you got, and you were at work, having a text conversation with them, it would not be strange to ask them out on a date during that text conversation.”

“ It's 2008, no big deal. Personally, I'd rather receive a real invitation, but text messaging is a start. It's also less embarrassing if the person you asked rejects your date proposal!”

“ Texting has become more common as calling. It is considered much less impersonal nowadays.”

Free Service in Exchange for Ads? “ Google announced last August that it plans to offer consumers free subscriptions by bundling advertisements with its search engine, e-mail and Web browser software applications. Would you be willing to deal with ads on your mobile phone if it meant that you would receive free service?” 45.5% of mobile phone users said yes 62.5% of smartphone users said yes Why yes? Smartphones are expensive to buy and multimedia service is expensive. Depends where the ad would be placed Why not? Ads are annoying! Customer satisfaction

“ Google announced last August that it plans to offer consumers free subscriptions by bundling advertisements with its search engine, e-mail and Web browser software applications. Would you be willing to deal with ads on your mobile phone if it meant that you would receive free service?”

45.5% of mobile phone users said yes

62.5% of smartphone users said yes

Why yes?

Smartphones are expensive to buy and

multimedia service is expensive.

Depends where the ad would be placed

Why not?

Ads are annoying!

Customer satisfaction

Video

How Important is Mobility? Mobility is important to 57.1% of Digital Natives 35.7% believe it to be extremely important Most respondents (62.3%) are VERY likely to purchase a laptop for their next computer as opposed to a desktop Desktops are preferred when watching movies because of the bigger screen Most (64.9%) have not replaced their laptop

Mobility is important to 57.1% of Digital Natives

35.7% believe it to be extremely important

Most respondents (62.3%) are VERY likely to purchase a laptop for their next computer as opposed to a desktop

Desktops are preferred when watching movies because of the bigger screen

Most (64.9%) have not replaced their laptop

The Importance of Mobility Laptops are more prevalent than desktops: Most respondents own a laptop (81.8%): 35.7% Dell 25% Apple 21.4% HP Half of respondents own a desktop (50.6%): 42.9% Dell 28.6% HP 25%, or 8.8% of respondents custom built their own desktop 10.7% Apple and 10.7% Toshiba 32.5% of respondents own both

Laptops are more prevalent than desktops:

Most respondents own a laptop (81.8%):

35.7% Dell

25% Apple

21.4% HP

Half of respondents own a desktop (50.6%):

42.9% Dell

28.6% HP

25%, or 8.8% of respondents custom built their own desktop

10.7% Apple and 10.7% Toshiba

32.5% of respondents own both

Laptop Dependency Most respondents (44.7%) say they are extremely dependent on their laptops Most students (37%) carry their laptop to almost every class College students have easy access to public computers

Most respondents (44.7%) say they are extremely dependent on their laptops

Most students (37%) carry their laptop to almost every class

College students have easy access to public computers

Mobility and Integration of Multiple Devices If given the choice, most (55.8%) want their mp3 player integrated into their phone Not necessarily one device but the ability to work on multiple platforms Most (70.6%) smartphone users want their mp3 player integrated, while only 16.9% of mobile phone users want their mp3 player integrated Women more likely to prefer separate devices as opposed to men

If given the choice, most (55.8%) want their mp3 player integrated into their phone

Not necessarily one device but the ability to work on multiple platforms

Most (70.6%) smartphone users want their mp3 player integrated, while only 16.9% of mobile phone users want their mp3 player integrated

Women more likely to prefer separate devices as opposed to men

Video clip

What’s in a Name? Of the 93.8% of respondents who have an mp3 player, 86.4% have an iPod 67.5% of respondents would consider an Apple for their next computer “ With a Mac, I have nothing to worry about…in terms of credit card information and passwords, I feel more secure having an Apple than a PC.” - Sam “ I like PC because internationally its more accepted and I don’t think international font is as compatible on a Mac.” – Tim “ I have an LG Chocolate and had to buy a separate thing to customize my ringtones. And it doesn’t even run on a Mac. (2)

Of the 93.8% of respondents who have an mp3 player, 86.4% have an iPod

67.5% of respondents would consider an Apple for their next computer

“ With a Mac, I have nothing to worry about…in terms of credit card information and passwords, I feel more secure having an Apple than a PC.” - Sam

“ I like PC because internationally its more accepted and I don’t think international font is as compatible on a Mac.” – Tim

“ I have an LG Chocolate and had to buy a separate thing to customize my ringtones. And it doesn’t even run on a Mac. (2)

Addicted to the Internet Majority of respondents (41.6%) average 3-4 hours per day on their computer 33.8% are on the computer 5-8 hours a day Not at all dependent 1.3% 10 2.6% 9 3.9% 8 5.2% 7 2.6% 6 1.3% 5 2.6% 4 13.0% 3 22.1% 2 45.5% 1 Extremely dependent

Majority of respondents (41.6%) average 3-4 hours per day on their computer

33.8% are on the computer 5-8 hours a day

Where Do Digital Natives Get Current Information From? By media: 100% from Internet 26% from radio 22.1% from network TV 20.8% from cable TV 13% from mobile phone By website: 55.8%: cnn.com 41.6%: yahoo.com 31.2%: GoogleNews 22.1%: BBC News 14.3% Perez Hilton 10.5%: nytimes.com 10.4%: RSS feeds

By media:

100% from Internet

26% from radio

22.1% from network TV

20.8% from cable TV

13% from mobile phone

By website:

55.8%: cnn.com

41.6%: yahoo.com

31.2%: GoogleNews

22.1%: BBC News

14.3% Perez Hilton

10.5%: nytimes.com

10.4%: RSS feeds

What Do Digital Natives Spend Their Time Doing on the Internet? On average, the majority of time spent on the Internet is spent: Checking e-mail (23.4%) Checking and updating social networking sites (19.34%) Chatting on instant messaging programs (12.7%) Researching information and/or shopping online (12.6%) Watching videos/shows on the Internet (12.3%) … ..it’s all intertwined 32% check their personal e-mail 2-5 times per day Over 50% check it 6 or more times per day

On average, the majority of time spent on the Internet is spent:

Checking e-mail (23.4%)

Checking and updating social networking sites (19.34%)

Chatting on instant messaging programs (12.7%)

Researching information and/or shopping online (12.6%)

Watching videos/shows on the Internet (12.3%)

… ..it’s all intertwined

32% check their personal e-mail 2-5 times per day

Over 50% check it 6 or more times per day

Online Social Networking 98.7% of respondents have a facebook account Over half of respondents log in and the check social networking sites they are members of 2-5 times a day 10.4% 6-10 times a day 14.3% once a day 41.6% of respondents have a MySpace account 42.9% are bloggers 32.5% having a Xanga account “ I probably check facebook about 2 or 3 times a day…if I’m studying, 5 or 6. If I’m on my computer, like every 30 minutes to an hour I’ll check it. But if I’m not at a computer I’ll find one.“ “ Mine’s probably about 5 to 10, once I get home chillin’ out, I have my cycles of pages I check, stuff like cnn and facebook…just over and over again in this loop.” “ With me having an iPhone, I’m on it too many times to count.”

98.7% of respondents have a facebook account

Over half of respondents log in and the check social networking sites they are members of 2-5 times a day

10.4% 6-10 times a day

14.3% once a day

41.6% of respondents have a MySpace account

42.9% are bloggers

32.5% having a Xanga account

Video clip

Online Dating 96.1% of respondents do not participate in online dating Online dating has crossed a vague line – not just match.com and eharmony.com anymore Digital Natives more likely to use social networking sites to meet people as opposed to paid online dating sites 16.7% of focus group participants reported meeting someone online Why? Less obligation; people are willing to reveal more over the Internet than in person “ The online process takes longer.” – Oneta, 19

96.1% of respondents do not participate in online dating

Online dating has crossed a vague line – not just match.com and eharmony.com anymore

Digital Natives more likely to use social networking sites to meet people as opposed to paid online dating sites

16.7% of focus group participants reported meeting someone online

Why? Less obligation; people are willing to reveal more over the Internet than in person

“ The online process takes longer.” – Oneta, 19

Video clip

Connectivity and Speed 75.3% never pay for Wi-Fi at locations outside of the home 32.5% utilize FREE Wi-Fi at least once a week Many don’t see the financial rationale in paying for it 18.2% are very satisfied with their Internet download speeds 61% of respondents are satisfied 10.4% are dissatisfied

75.3% never pay for Wi-Fi at locations outside of the home

32.5% utilize FREE Wi-Fi at least once a week

Many don’t see the financial rationale in paying for it

18.2% are very satisfied with their Internet download speeds

61% of respondents are satisfied

10.4% are dissatisfied

Peak Time for Internet Usage “ Right after work and before dinner.” – Alex, 21 “ 1-3 am. You wake up you go to class, hang out, go to dinner, watch a movie, hang out, when you’re back in your dorm it’s quiet time where you’re not hanging out with anyone. It’s time for yourself.” – Tim, 21 “ My peak leisure time would be between 6-10 pm. That’s my time because I try to shut it off around 11 to get ready for bed. I think now that a lot of my friends, we’re working, that’s when we’ll be on. We try not to stay up from 1-3 am since we have work.” – Lucas, 23 “ All day. I go to work from 8-5…and I’m home from about 5:30-9, so a long time.” – Chander, 24

“ Right after work and before dinner.” – Alex, 21

“ 1-3 am. You wake up you go to class, hang out, go to dinner, watch a movie, hang out, when you’re back in your dorm it’s quiet time where you’re not hanging out with anyone. It’s time for yourself.” – Tim, 21

“ My peak leisure time would be between 6-10 pm. That’s my time because I try to shut it off around 11 to get ready for bed. I think now that a lot of my friends, we’re working, that’s when we’ll be on. We try not to stay up from 1-3 am since we have work.” – Lucas, 23

“ All day. I go to work from 8-5…and I’m home from about 5:30-9, so a long time.” – Chander, 24

Video clip

The Television is Antiquated Big Event? Big Screen Necessary. “ The screen (TV) has better quality and the screen is bigger.” – Oneta, 20 “ Online, it freezes up a lot. It’s irritating…blurry sometimes too.” – Monica, 19 “ The good thing about it it’s mobile and if you’re going out on a road trip or something and you wanna watch your favorite show you can download it and knock off a few hours.” – Arthur “ The TV is more comfortable to sit around.” – Steven TV is the New Radio “ If I do something on the computer, I’ll do a lot of things at once. I’m typing something, I’m watching a movie…there has to be a lot of stuff going on.” – Evan, 20 “ If I have a paper I have to have something going on.” – Vince, 23 “ I devote my full attention to TV probably 3 hours a week. It’s almost always just background noise.” – Steven “ If I try to type a paper, I have to have something going on. Otherwise I start dozing off.” – Arthur, 25 41.6% of respondents watch 2 hours or less of broadcast television per week 22.1% do not have cable television Of those who do, 28.6% watch 2 hours or less of cable television

The Television is Antiquated Online TV Content Accommodates Active Schedules “ I watch maybe 2 hours of TV a week. I'll watch The Office and How I Met Your Mother on the computer because I always miss it on TV. But when I watch TV, I'm just like sitting and eating dinner in front of it or something.” – Patricia, 22 Statistics 39% watch less than 2 hours of television shows on the Internet per week 29.9% do not watch television shows on the Internet 68.8% of respondents never download movies from the Internet 16.9% download movies once every few months 77.9% never order movies from Netflix or other movie content providers

Online TV Content Accommodates Active Schedules

“ I watch maybe 2 hours of TV a week. I'll watch The Office and How I Met Your Mother on the computer because I always miss it on TV. But when I watch TV, I'm just like sitting and eating dinner in front of it or something.” – Patricia, 22

Statistics

39% watch less than 2 hours of television shows on the Internet per week

29.9% do not watch television shows on the Internet

68.8% of respondents never download movies from the Internet

16.9% download movies once every few months

77.9% never order movies from Netflix or other movie content providers

The YouTube Sensation Free Entertainment Anytime, Anywhere “ You can find out everyone else’s business. Everything’s on YouTube. I mean, even though people don’t want their stuff out, it’s out there. And it’s free.” - Monica, 19 “ It gives you the freedom to watch whatever you choose as opposed to TV, where you have to flip through the channels.” – Arthur, 23 “ I pretty much YouTube every time I get an e-mail.” – Sam, 19 For the Latest Information “ If I see something interesting out, like a new car or whatever, I go to YouTube first to see what it’s all about.” – Daniel, 24 “ I watch music videos and recorded music by artists.” – Dani, 22 “ I usually keep YouTube up to listen to music or watch music videos.” – Lucas, 23 Sharing User-Generated Content “ Before YouTube there was no way to send my videos other than through email.” - Diane, 20 “ I don’t really get on YouTube unless someone tells me to watch something. I don’t go on there and search for stuff.” – Nikki, 20

Free Entertainment Anytime, Anywhere

“ You can find out everyone else’s business. Everything’s on YouTube. I mean, even though people don’t want their stuff out, it’s out there. And it’s free.” - Monica, 19

“ It gives you the freedom to watch whatever you choose as opposed to TV, where you have to flip through the channels.” – Arthur, 23

“ I pretty much YouTube every time I get an e-mail.” – Sam, 19

For the Latest Information

“ If I see something interesting out, like a new car or whatever, I go to YouTube first to see what it’s all about.” – Daniel, 24

“ I watch music videos and recorded music by artists.” – Dani, 22

“ I usually keep YouTube up to listen to music or watch music videos.” – Lucas, 23

Sharing User-Generated Content

“ Before YouTube there was no way to send my videos other than through email.” - Diane, 20

“ I don’t really get on YouTube unless someone tells me to watch something. I don’t go on there and search for stuff.” – Nikki, 20

VOD Not Mainstream Yet 24.7% of respondents have video on demand at their current place of residence 35% never utilize it 25% use it 2-5 times per month Time Warner Cable was the most popular (30%) followed by Verizon FiOS and Comcast (15%) “ You don’t have to build your schedule around the TV.” “ The selection is terrible. The content is not that good, YouTube is better.”

24.7% of respondents have video on demand at their current place of residence

35% never utilize it

25% use it 2-5 times per month

Time Warner Cable was the most popular (30%) followed by Verizon FiOS and Comcast (15%)

“ You don’t have to build your schedule around the TV.”

“ The selection is terrible. The content is not that good, YouTube is better.”

Technology as a Substitute of Face-To-Face Interaction With Friends Most respondents (53.2%) do not think they have substituted physical interaction with friends as a result of technology 40.8% think they have 5.3% don’t know “ ...in some ways. Certainly its easier to keep up with a larger number of friends, despite everyone's busy schedule, utilizing technology. In this way, you are not so much "substituting" as you are compensating.”

Most respondents (53.2%) do not think they have substituted physical interaction with friends as a result of technology

40.8% think they have

5.3% don’t know

“ ...in some ways. Certainly its easier to keep up with a larger number of friends, despite everyone's busy schedule, utilizing technology. In this way, you are not so much "substituting" as you are compensating.”

Digital Natives are Globally Connected 85.7% of respondents have traveled outside of the United States 64.9% have vacationed with family 42.9% have vacationed with friends 33.8% have studied abroad 80.5% of survey respondents have friends or family abroad

85.7% of respondents have traveled outside of the United States

64.9% have vacationed with family

42.9% have vacationed with friends

33.8% have studied abroad

80.5% of survey respondents have friends or family abroad

Global Communication via the Internet When keeping in touch with friends, e-mail and social networking sites are more common When keeping in touch with family, traditional communication methods are more common

When keeping in touch with friends, e-mail and social networking sites are more common

When keeping in touch with family, traditional communication methods are more common

Conclusions Smartphone users are more likely to embrace and utilize new technology as opposed to mobile phone users. They are also more likely to demand better technology. While the overall trend indicates a growth of usage of basic data communication services such as text messaging, more advanced data communications services such as MMS, video recording, and video on demand (VOD) have not penetrated the market as of yet. Cost is the main constraint of Digital Natives in switching to higher technology. There is the general belief primarily (among mobile phone users) that additional features are not necessary other than voice calls and texting. However, Digital Natives are more willing to accept new technology if it is given to them (for free).

Smartphone users are more likely to embrace and utilize new technology as opposed to mobile phone users. They are also more likely to demand better technology.

While the overall trend indicates a growth of usage of basic data communication services such as text messaging, more advanced data communications services such as MMS, video recording, and video on demand (VOD) have not penetrated the market as of yet.

Cost is the main constraint of Digital Natives in switching to higher technology. There is the general belief primarily (among mobile phone users) that additional features are not necessary other than voice calls and texting. However, Digital Natives are more willing to accept new technology if it is given to them (for free).

Conclusions, cont’d. Digital Natives want connectivity whenever, wherever but are not willing to pay for services including mobile connectivity and VOD. Most Digital Natives are extremely well connected at their local campuses or at the workplace and do not feel the need to have a smaller device with a smaller screen. However, when away from daily routine, these devices have more meaning. The Internet: Whenever Digital Natives are bored or need to relax, Internet surfing provides hours of entertainment. At the same time, it is considered a distraction. Television content is declining, and online content is increasing at a slow rate because of convenience and easy access to specialized interests. Students and working professionals are busy and often miss television programming.

Digital Natives want connectivity whenever, wherever but are not willing to pay for services including mobile connectivity and VOD.

Most Digital Natives are extremely well connected at their local campuses or at the workplace and do not feel the need to have a smaller device with a smaller screen. However, when away from daily routine, these devices have more meaning.

The Internet: Whenever Digital Natives are bored or need to relax, Internet surfing provides hours of entertainment. At the same time, it is considered a distraction.

Television content is declining, and online content is increasing at a slow rate because of convenience and easy access to specialized interests. Students and working professionals are busy and often miss television programming.

Suggestions for Future Research Responses among college students differ from high school students, young working professionals who have graduated from college within the last 5 years, and current graduating college students; therefore, it is recommended that a separate study be conducted The qualitative research conducted is not a national representation; attitudes and behaviors among respondents in other areas of the country may differ

Responses among college students differ from high school students, young working professionals who have graduated from college within the last 5 years, and current graduating college students; therefore, it is recommended that a separate study be conducted

The qualitative research conducted is not a national representation; attitudes and behaviors among respondents in other areas of the country may differ

Summary Slide Background and Objectives Target Market Profile and Demographics Quantitative Research Qualitative Research Where Do Digital Natives Reside? Digital Natives Are Financially Dependent Spending Habits What’s a Fair Price to Pay? Family Plans Make More Sense Digital Natives Dislike 2-Year Contracts Satisfaction of Service and Carriers Brand Leaders Among Digital Natives Phones are an Investment What Do Digital Natives Look for in a Mobile Device? Who’s in the Smartphone Market? Smartphones: A Love/Hate Relationship Smartphone Dislikes Advanced Capabilities are Important What Capabilities Do Digital Natives Want? Technology Usage Among Mobile Phone Users Mobile Phone Dislikes Multimedia Usage More Prevalent Amongst smartphone Users Video Recording is a Nice Option Digital Natives Prefer to Text Video: Voicemails Smartphone Users More Likely to Embrace Newer Technology Social Implications of Mobile Communication Free Service in Exchange for Ads? Video: Opinions on the Google Phone The Importance of Mobility ( 2 ) Laptop Dependency Mobility and Integration of Multiple Devices Video: Separate or Together? An Apple-centric Generation Addicted to the Internet Where Do Digital Natives Get Current Information From? What Do Digital Natives Spend Their Time Doing on the Internet? Online Social Networking Video: Online Social Networking Dependency Online Dating Video: Opinions on Online Dating Connectivity and Speed Peak Time for Internet Usage Video: Internet Dependency The Television is Antiquated ( 2 ) The YouTube Sensation Video on Demand Technology as a Substitute of Face-To-Face Interaction With Friends Digital Natives are Globally Connected Global Communication via the Internet Conclusions ( 2 ) Suggestions for Future Research

Background and Objectives

Target Market

Profile and Demographics

Quantitative Research

Qualitative Research

Where Do Digital Natives Reside?

Digital Natives Are Financially Dependent

Spending Habits

What’s a Fair Price to Pay?

Family Plans Make More Sense

Digital Natives Dislike 2-Year Contracts

Satisfaction of Service and Carriers

Brand Leaders Among Digital Natives

Phones are an Investment

What Do Digital Natives Look for in a Mobile Device?

Who’s in the Smartphone Market?

Smartphones: A Love/Hate Relationship

Smartphone Dislikes

Advanced Capabilities are Important

What Capabilities Do Digital Natives Want?

Technology Usage Among Mobile Phone Users

Mobile Phone Dislikes

Multimedia Usage More Prevalent Amongst smartphone Users

Video Recording is a Nice Option

Digital Natives Prefer to Text

Video: Voicemails

Smartphone Users More Likely to Embrace Newer Technology

Social Implications of Mobile Communication

Free Service in Exchange for Ads?

Video: Opinions on the Google Phone

The Importance of Mobility ( 2 )

Laptop Dependency

Mobility and Integration of Multiple Devices

Video: Separate or Together?

An Apple-centric Generation

Addicted to the Internet

Where Do Digital Natives Get Current Information From?

What Do Digital Natives Spend Their Time Doing on the Internet?

Online Social Networking

Video: Online Social Networking Dependency

Online Dating

Video: Opinions on Online Dating

Connectivity and Speed

Peak Time for Internet Usage

Video: Internet Dependency

The Television is Antiquated ( 2 )

The YouTube Sensation

Video on Demand

Technology as a Substitute of Face-To-Face Interaction With Friends

Digital Natives are Globally Connected

Global Communication via the Internet

Conclusions ( 2 )

Suggestions for Future Research

Please contact Jacklyn Lee at jacklynjlee@gmail.com for any questions, feedback or to request focus group video clips.

Please contact Jacklyn Lee at jacklynjlee@gmail.com for any questions, feedback or to request focus group video clips.