Compiled by Vicky Nolan
Gambling's Benefits vs. Costs
Gambling costs too much for too many people, say many gambling foes, yet governments continue to benefit from revenues that it generates. This dichotomy has led to much howling on the both sides of the issue. To settle the argument, the federal government has studied the issue, using the seaboard gambling haven, Atlantic City, NJ, as its case study.
While the study, proposed by gambling opponent Rep. Frank Wolf and conducted by the General Accounting Office (GAO), was able to verify the financial benefits--i.e. jobs created and taxes paid by the gaming industry--researchers were unable to document gambling's social costs. At the most, researchers only found anecdotal reports that linked gambling to a variety of social ills.
"We found no conclusive evidence on whether or not gambling caused increased social problems in Atlantic City," the GAO reported.
Additionally, in a cover letter for the report, New Jersey Casino Control Commission Chairman James Hurley wrote, "We clearly believe that the positive impacts that casinos have generated far outweigh the perceived negative impacts."
Gambling opponents, like Kay James, who chaired a national gambling commission, remain unconvinced. She believes the GAO study should "serve as a further reminder that additional research must be undertaken at the federal, state and local level" to gauge gambling's true impact.
The GAO, meanwhile, is hard at work on another study of gambling's costs and benefits- this time on convenience gambling, such as slot machines and video pokers found in various stores and neighborhood bars.
The Internet is More Popular Than Other Media
It's official. The Internet has replaced TV and newspapers in its users' affections. It's grown so popular, according to ScreamingMedia's Survey on Internet Attitudes and Usage, that it has become an indispensable source of information and news. The survey found that not only has the Internet become indispensable, it's also a widely trusted source of information.
"These survey findings demonstrate that the Internet is no longer a 'new' or 'emerging' medium," said ScreamingMedia's CEO. "It's mainstream, not just in the number of people who use it, but in how much they trust it and depend on it."
Where the Money is Being Spent
Thanks to the rapid growth of various interactive devices like interactive digital TV and mobile phones, the online retail market should see tremendous growth over the next five years. A report by Forrester Research's U.K. branch, Fletcher Research, predicts that 7.5 percent of the U.K.'s retail sales will move online by 2005, a sharp increase over the 0.25 percent in 1999.
A researcher points out that "weak, unclear buying processes remain a barrier to online shopping adoption. Best-practice offerings show users how far through the buying process they are, but only 17 percent of sits offer this feature."
www.forrester.com
Speed's the Thing
Nearly three-quarters of all home computers use 56K modems to go online, up from first quarter 1999's 36 percent. Additionally, the share of homes going online via high speed connections like ISDN, DSL and cable modems has increased from nearly zilch in early 1998 to 4.5 percent in first quarter 2000, reported Media Metrix.
"The growth in 56kbps modem ownership has been fueled by a number of factors, including a demand for faster Internet access, the low cost of the modems themselves, ubiquitous bundling of 56kbps modems in PCs, as well as universal usability with practically any telephone line," explained a Media Metrix representative.
"On the other hand," the rep pointed out, "broadband has been slower to rise, due to limitations in geographic availability and higher cost. While we believe the broadband market will grow, media companies, advertising agencies and web developers need to ensure that their content provides a satisfying experience over 56 kbps environments for the foreseeable future."
Customer Service Issues
Internet shoppers are suffering from "post transaction anxiety order" after dealing with poor service and hidden extra charges, according to findings from management consultants Shelley Taylor & Associates. Their research found, among others, that less than half of online receipts include total charges for products or services, with high delivery charges tacked on after the fact.
Additionally, online purchases were frequently lost or arrived late without any receipt or return instructions enclosed. The researchers were astonished to learn that only 45 percent of all goods arrived when expected, with some companies' service ending in the report's "horror stories" section, reported Vnunet.com, which wrote about the study.
The study's conclusion was that most online sites need to "grow up" before more shoppers would frequent their sites.
Another study of customer service, this one by Greenfield Online in conjunction with Modem Media, reports that nearly one out of every two online customers are disappointed by customer service while shopping on the Web.
"The sad fact is that marketers who spend millions to create a great online user experience, and millions more to drive customers to their site, are missing the most obvious lower-cost, high reward area of customer retention -- great customer service," explained a Modem Media Internet customer service solutions specialist.
The study found a number of "satisfaction gaps" including money-back guarantees; fast, responsive service; sites paying for returning items; availability of knowledgeable customer service and real-time advice and interactive customer service.
www.greenfieldonline.com or www.modemmedia.com