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Roy Morgan Research - Online Shopping in Australia
- 1. Online Shopping in Australia -
A Generational View
Roy Morgan Research Single Source Survey
January 2011 - December 2011
Please direct any queries to andrew.braun@roymorgan.com
Roy Morgan Research – 401 Collins Street, Melbourne VIC 3000
Telephone: 03 9224 5116
© Roy Morgan Research
- 2. About Roy Morgan Research Single Source
The Roy Morgan Single Source Survey is a continuous survey of 50,000+
respondents aged 14+ per annum (and has been running for over 20 years). Single Source 360 degree consumer profile
It is an Australia-wide survey of both city and country areas and thus is
representative of the entire Australian population 14+. Business decisions
Sports & Leisure
Travel & Tourism
Automotive
From this survey we gain a 360 degree profile of an individual, by collecting Retail stores
Home services
information about their demographics, shopping behaviour, technology and
Retail products
media consumption, financial situation, household composition, as well as Utilities
1000’s of attitudinal statement about who they are and what makes them tick. Beverages
Personal Care
Groceries
Of relevance to this report, is the Retail Monitor, where we ask respondents: Healthcare
Fast Food
Telecommunications
1. What products have they purchased in-store in the last 4 weeks, how much Consumer Banking & Finance
have they spent and with whom; electronics
2. What products have they purchased online in the last 4 weeks, how much
have they spent and with whom; and
Demographics, My Home, Attitudes to life
3. A number of attitudinal statements about why they shop and what
influences their shopping habits. Media consumption – TV, Print, Radio, Internet,
Cinema, Outdoor, Catalogue, Mail
Product/service ownership & consumption
All data in this report is from the Single Source survey period January 2011 to
December 2011.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 3. Online Shopping in Australia – An overview
The Single Source Retail Monitor provides us with the following high-level insights for the year ending
December 2011:
• 53.7% of Australian’s 14+ have ever purchased something over the internet
• In an average four week period in 2011
• 30.7% of Australian’s 14+ shop online
• $1.6b* is spent online
• eBay is the top shopping website with 31.2% of Australian’s 14+ visiting it
• 6.6% of Australian’s 14+ have used group buying websites
• Generation Ys are the most likely to shop online with 40% having shopped online in an average four
week period
* This includes expenditure on the following categories: Books/Magazines/Newspapers; Music to Download using the Internet; Shows, Movie tickets,
Events etc; Travel product (tickets/accommodation); Computer Software; Computer Hardware; CDs; DVDs; Women's Clothing; Men's Clothing; Children's
Clothing; Underwear, Socks & Hosiery; Shoes & Footwear; Babywear & Goods; Cosmetics/Skincare; Jewellery & Watches; Fragrance/Perfume; Sports
Equipment; Toys or Games; Adult Entertainment; Supermarket Shopping; Alcohol; Health products; Home Entertainment equipment; Large Electrical
Goods; Small Electrical Goods; Communications Equipment; Homewares & Manchester; Furniture; Hardware; Plants & Garden; Pets & Pet products; Car
parts & Accessories; Other products
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 4. Online shopping categories
Outlined below are the top 10 online shopping categories (from a list of 35):
Category Number of Australian’s 14+ Average spend per category in
purchasing online in an average 4 an average 4 week period ($)
week period
Books/ Magazines/ Newspapers 1,072,000 $67.90
Music to Download 1,033,000 $22.40
Shows, Movie tickets, Events etc 1,026,000 $153.80
Travel Products (Tickets/ Accommodation) 859,000 $489.60
Computer Software 529,000 $87.40
DVD’s 519,000 $60.30
Women’s clothing 495,000 $112.40
Toys or games 469,000 $88.40
CD’s 405,000 $45.70
Small Electrical Goods 357,000 $118.40
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 5. Introduction to this report
This report examines online shopping through the lens of different Generations. We examine how
Generations compare in their take-up of online shopping, what product categories they buy online and
their online expenditure.
This report also investigates the digital and traditional media which different Generations consume. This
is useful for retailers so they can develop targeted marketing programs to grow and retain online shopping
customers.
We also examine a number of technology and shopping attitudes by Generation. These include: a
person’s willingness to adopt new technologies, their attitudes to security and privacy, whether they go out
of their way for bargains and whether shopping is a major part of their lifestyle. This section also considers
some technologies that underpin online shopping, such as broadband penetration and Smartphone
adoption.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 6. Online shopping in Australia by Generations
This section of the report focuses on the online shoppers within each Generation, examining how their
different demographics impact on their online shopping spend, the categories in which they purchase
online, whether they prefer Australian online retailers, their mobile shopping habits and whether they
participate in group buying.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 7. Generations
Generation Z, also known as Generation M A pre-boomer is a person
(for multitasking), Generation C (for who was born before the
Connected Generation), the Net Generation, Post-World War II baby
Generation X is the largest of or the Internet Generation). This is a common 1,833,000 boom, i.e. pre 1946.
name for the group of people born from 1991. 2,975,000
the Generations with 27% of
the Australia population 14+
(or 5,027,000 people). Gen X
9.9%
have had a marginal increase
16.0%
of almost 1% point since
2008, from 26.1% A Baby Boomer is a person who
was born during the Post-World
4,580,000 War II baby boom between the
years 1946 and 1960.
Generation Z is the smallest 24.6%
but fastest growing segment, Generation Y, also known as the 22.5%
having grown from 5.9% of Millennial Generation, Generation 4,187,000
the population (14+) in 2008 Next, are the demographic cohort
to 9.9% of the population in following Generation X. Roy
Morgan Research defines Gen Ys
2011. as having a birth date from 1976 27.0%
to 1990.
Since 2008, Baby Boomers
have been in decline, now Generation X, is the generation born after the
representing 22.5% of the World War II baby boom ended. Roy Morgan
Research defines Gen Ys as having a birth date
population (14+) compared to 5,027,000
from 1961 to 1975.
25.8% in 2011.
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
Note: Generational definitions are sourced from Wikipedia
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 8. Online shopping versus In-store shopping
We have identified three types of 50%
shoppers:
1. Those who have shopped 45% 44%
online in the last 4 weeks 40%
41%
(who may also shop in- 40%
38%
store and research online)
2. Those who do not shop 35%
33%
33%
online, shop in-store, but % of Australians 14+ 31%
do research online 30%
28% 28%
3. Those who do not shop
online, shop in-store and 25% 24%
do not research online 20%
20%
20%
18%
40% of Gen Ys are online
shoppers, compared to 38% of
15% 13%
Gen Xs, 28% of Baby Boomers 12%
and 24% of Gen Zs..
10%
Gen Zs are the most likely to
shop in-store but research online 5%
(41%).
0%
Only 13% of Gen Ys shop in- Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
store only and do not research Generation
online, compared to 44% of Pre-
Boomers. Online Shoppers Research Online, Shop In-store In-store only
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 9. Online shopping expenditure
100%
5% 5% 4% 4%
7% 1%
6%
7%
The average online 90% 9% 6%
14%
expenditure by online
shoppers in a four week 11% 17%
80%
17%
period* is: 18%
% of Australian Online Shoppers 14+
17%
• Pre-Boomer = $265 70% 13%
11%
• Baby Boomers = $313 12%
60% 15%
• Gen X = $308 21%
24% 19%
• Gen Y = $259 50%
22%
• Gen Z = $203 21%
40% 11%
16%
15%
34% of Gen Zs spend less 30% 13%
than $50 in online shopping 12%
in an average four week 20%
period. 34%
25% 27%
10% 19% 22%
0%
* This is for an average four week Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
period in 2011. Generation
Less than $50 $50 - $99 $100 - $199 $200 - $299 $300 - $799 $800 - $999 $1000 or more
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 10. Online shopping activities
80%
There is not much difference
between Generations when it 71%
comes to only buying from 70%
66% 66%
Australian online stores. 63%
61%
% of Australian Online Shoppers 14+
60%
Trust is important when
49%
choosing a retailer (Australian 50% 48%
45%
or not) with over 61% of all 44%
the Generations only buying
40% 38% 39% 39% 37%
from retailers they know; with
71% of Gen Z online
30%
shoppers agreeing with this 30% 27%
statement.
21% 21%
20% 20% 20%
20% 18%
17%
Group buying websites, such 11%
10%
as Cudo and Scoopon are 10% 7%
most popular with Gen Y
online shoppers .
0%
I only buy from Australian I only buy from online Visited Group Buying Used online payment/money Paid for purchases using
online stores retailers I know Website in average 4 week transfer system in average 4 credit card online in average 4
PayPal is more popular with
period week period week period
Gen Z online shoppers than a Generation
credit card when paying for
online shopping. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 11. Online shopping activities (continued)
80%
70% 68%
eBay is the most popular
65%
shopping website, followed
by Amazon. 65% of Gen Y
% of Australian Online Shoppers 14+
60%
online shoppers visited eBay 55%
and 16% visited Amazon in
an average 4 week period. 50%
42%
40%
In terms of researching
online, price comparison 32%
websites, ratings and reviews 30%
and online catalogues are all 23%
21% 21%
popular sources of 19% 19%
21%
19% 19% 20% 20%
20%
information. 16% 17% 16%
14% 14% 15% 14% 15% 14%
9%
10%
Baby Boomer online
shoppers are the most likely
0%
to have read an online
Visited ebay.com.au Visited amazon.com Read ratings/reviews of Used price comparison Read online catalogues
catalogue in an average 4 products/services before websites
week period (21%). purchase
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 12. Smartphones and Mobile shopping
70%
64%
60%
Gen Y online shoppers are
the most likely to own a 52%
51%
% of Australian Online Shoppers 14+
Smartphone (64%), of which 50%
only about half are iPhones.
41%
40%
33% of Baby Boomer online
33%
shoppers have a 32%
Smartphone. 30%
29%
27%
25%
21%
Gen Y online shoppers are 20%
also the most likely to use 15% 15%
13% 14%
their phone to download an
application (41%) and 10% 8%
9%
research a product or service 6% 6%
to buy on their mobile phone 2%
0%
(14%) in an average four 0%
week period. Have a Smartphone as main mobile Have an Apple iPhone as main Downloaded an application in average Researched a product or service to
phone mobile phone 4 week period via main mobile phone buy in average 4 week period
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 13. Online shopping categories
Outlined below are the top 20 online shopping categories (from a list of 35) for each Generation:
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
#1 Rank Books/Magazines/New spapers Books/Magazines/New spapers Music to Dow nload Music to Dow nload Music to Dow nload
a Travel product (tickets/accommodation) a Travel product (tickets/accommodation) Books/Magazines/New spapers Show s, Movie tickets, Events etc Show s, Movie tickets, Events etc
Alcohol Show s, Movie tickets, Events etc Show s, Movie tickets, Events etc Books/Magazines/New spapers Women's Clothing
Show s, Movie tickets, Events etc DVDs a Travel product (tickets/accommodation) a Travel product (tickets/accommodation) Computer Softw are
DVDs Music to Dow nload Toys or Games Women's Clothing Shoes & Footw ear
Music to Dow nload Alcohol Computer Softw are Toys or Games CDs
CDs Computer Softw are Women's Clothing Computer Softw are Books/Magazines/New spapers
Computer Softw are CDs DVDs DVDs Computer Hardw are
Health products Women's Clothing Alcohol Small Electrical Goods Men's Clothing
Women's Clothing Homew ares & Manchester Shoes & Footw ear CDs Toys or Games
Small Electrical Goods Small Electrical Goods Sports Equipment Babyw ear & Goods Small Electrical Goods
Computer Hardw are Computer Hardw are Homew ares & Manchester Men's Clothing a Travel product (tickets/accommodation)
Homew ares & Manchester Cosmetics/Skincare Cosmetics/Skincare Shoes & Footw ear DVDs
Shares or financial information Health products CDs Cosmetics/Skincare Jew ellery & Watches
Toys or Games Jew ellery & Watches Supermarket Shopping Computer Hardw are Sports Equipment
Cosmetics/Skincare Shoes & Footw ear Small Electrical Goods Supermarket Shopping Home Entertainment equipment
Pets & Pet products Men's Clothing Men's Clothing Homew ares & Manchester Supermarket Shopping
Jew ellery & Watches Toys or Games Computer Hardw are Jew ellery & Watches Car parts & Accessories
Supermarket Shopping Car parts & Accessories Car parts & Accessories Car parts & Accessories Cosmetics/Skincare
#20 Rank Large Electrical Goods Shares or financial information Pets & Pet products Sports Equipment Underw ear, Socks & Hosiery
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 14. Acquiring and retaining online shoppers
The section of the report investigates the digital and traditional advertising channels and marketing tactics
retailers could use to acquire and retain online shoppers. Again we will look at this through the lens of
different Generations.
This section examines the different digital marketing tactics of social media, display advertising and
search. It looks at the use of traditional media by the different Generations and examines a number of
advertising attitudes, such as the adoption of coupons or competitions.
What is clear is that each Generation is unique, requiring different programs of marketing activities to
attract and retain them to an online shopping offering.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 15. Overall media consumption
Arguably, digital marketing 100% 93%93%
works best as part of a multi- 94% 91%
89% 87%
channel campaign. To this 90% 86%
87% 87%
83%
end it is worth investigating 81%
76% 79%
77%
the different media 80% 76%
75%73%
73%
consumption patterns the 69% 70%
68%
70% 67%
Generations have. 63%
% of Australians 14+
60%
60% 60%
59%
60% 57%
Clearly a large proportion of 51% 51%
each Generation watch 50% 46% 47% 46%
44%
commercial TV on weekdays;
the Internet is also widely 40% 36%
adopted, although Pre- 31%
30% 25%
Boomers exhibit lower 22%
24%
22%
21% 20% 17%
adoption rates (51%). 20% 14% 16% 16%
15% 17%
13%
9%
There however is a clear 10%
trend that the older
Generations are more likely 0%
Internet at least
Watched Pay TV in
Commercial Radio
Been to Cinema in
Read Newspaper in
Newspapers in the
Read any Magazine
Read any Catalogue
Directory at least
WatchedCommercial
Used the Yellow
Local/Community
Accessed the
last 7 days (excl.
to read newspapers, local
the last 7 days
in last 4 Weeks
TV on weekday
last 4 Weeks
Newspapers)
on weekday
Listened to
last 7 days
monthly
Community
(last issue)
monthly
community papers and
Read
magazines.
Cinema and commercial
Radio seem to be more
Generation
popular amongst younger
Generations. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 16. Online advertising
60%
Gen Zs are the most likely to
take notice of digital 49%
50%
advertising when watching
online videos (39%) or when 42%
44%
surfing the net (49%).
40% 39%
% of Australians 14+
35%
33% 34%
Gen Ys are the most likely to
respond to advertising with 30% 28% 28%
11% of them often clicking on 25%
online ads and 7% of them
clicking on sponsored links in
20% 19%
search sites. 17%
15%
14% 13%
13%
11% 11%
Gen Xs are the most likely to 10%
7% 8% 7% 7% 8%
6%
read an email newsletter 5% 5%
4% 3%
(15%); whilst Gen Y would be 3% 2%
more responsive to 0%
personalised emails as 44% I often notice advertising I often notice advertising I often click on ads when Clicked on sponsored Read an email I'm happy to receive
of them would be “happy to when I watch videos while I surf the net using the Internet links on search sites newsletter email advertising that is
receive email advertising that online (eg. Google) relevant to me
is relevant to me.” Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 17. Social media
80%
74%
73% Visited the website in a four week period
Social media is currently 70%
favoured mostly by Gen Ys 63%
and Gen Zs. This trend drops
60%
away as the age of the
Generation increases. 52%
49%
50%
% of Australians 14+
73% of Gen Ys have visited
Facebook , 52% have visitied 40%
YouTube and 10% have 33%
visited Twitter in an average
29%
four week period. 30%
20% 18%
Gen Ys are also most likely to 15%
14%
have read or contributed to a 11% 12%
10% 10%
blog in an average four week 10%
6% 7%
period (15%). 5%
4%
2% 3%
2%
1% 0% 1% 1%
0%
Facebook YouTube Twitter Chat rooms Participated in blog activity
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 18. Portals
60%
Visited the website in a four week period
53%
52%
50% 48%
When it comes to usage of 45%
the major portals in an 43%
41%
average four week period, 40%
40%
there is quite a difference in 37% 37%
% of Australians 14+
35%
Generation behaviour. 35% 35%
30% 30%
30%
27%
NIneMSN (excluding hotmail 26% 26%
25% 25%
24%
and MSN messenger) is the
most popular for Gen Zs 20%
(53%), Gen Ys (52%) and 20%
17%
Gen Xs (48%).
11% 11% 11%
10%
However Telstra/Bigpond is
the most popular for Baby
Boomers (41%) and Pre-
Boomers (26%). 0%
ninemsn (excl hotmail & news.com.au (Portal) Telstra/Bigpond Fairfax Digital (Portal) Yahoo!7
MSN messenger)
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 19. Search
90%
84% 83%
81% Visited the website in a four week period
80%
71%
70%
It is no surprise that Google is
the most widely used search 60%
engine.
% of Australians 14+
50%
The largest users of Google 42%
are Gen Ys (84%). It is worth 40%
noting here that Facebook
has almost caught Google in
30%
terms of penetration of Gen
Zs and Ys.
20%
10% 11%
The largest users of Bing are 10% 7%
9%
7%
8% 8%
6%
Gen Zs (11%). 4%
3%
0%
Google Search Bing Search Yahoo!7 Search
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 20. Advertising attitudes
60%
57%
53%
In terms of special 49% 50%
50% 48%
offer/discount coupons, Gen 47%
Ys (41%) and Gen Zs (39%)
are most likely to redeem 41%
them. 40%
39% 39%
% of Australians 14+
36%
33%
Gen Ys are also the most 30%
likely to regularly enter 30% 28%
competitions “on packets of 24%
labels on products” (20%).
20% 20%
20%
16%
Over 47% of the Generations
13%
“like to try free samples they 11%
offer in supermarkets”, with 10%
7%
Gen Zs the most likely (57%).
This is supported by the fact
that Gen Zs are also the most
likely to “look for new 0%
experiences every day” I often redeem coupons to get I like to try the free samples they I often enter competitions which are I look for new experiences every day
discounts or special offers offer in supermarkets on packets or labels on products
(50%)
Generation
Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 21. Tailoring your offering
This section of the report examines a number of attitudinal statements relevant to technology and
shopping. The reason we have chosen these two is obvious, because online retail is where technology
meets shopping. We also look at technology adoption of certain technologies that underpin online
shopping, such as broadband adoption, Smartphone ownership and tablet ownership.
This section will provide businesses a deeper understanding of what people are looking for when they
shop and use technology. Ultimately this should provide businesses with new knowledge to help them
tailor their online shopping offer and experience to the different Generations.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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- 22. Technology attitudes
90%
Gen Ys and Zs have the 85%
greatest proportion of 80%
80%
technology adopters, with
42% of each group saying “I 70% 70%
go out of my way to learn 70% 66%
67%
64%
everything I can about new
technology.” 60%
55% 56%
% of Australians 14+ 52%
50%
Almost 1/3rd of Baby 50%
Boomers are technology 42% 42%
adopters, but 80% believe 40% 38%
that “technology is changing 34%
so fast, it’s difficult to keep up 28% 29% 29%
30%
with it.” Not surprisingly only 26%
24%
1/3rd of Gen Zs who have 19%
grown up with the internet 20%
15%
agree with this statement.
9%
10% 8% 8%
Interestingly over half of all
Australians 14+ are worried 0%
about invasion of privacy I go out of my way to learn Computers and technology I'm worried about invasion of I find technology is changing I would like to use the
everything I can about new give me more control over my my privacy through new so fast, it's difficult to keep up Internet, but I am intimidated
through new technology; with technology life technology with it by the complexity of it all
70% of Baby Boomers and Generation
Gen Xs agreeing with this
statement. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
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