Letters to the Editor

[Re: Loose Cannon: Beefing Up Sales Through Broadband, DIRECT Newsline, Nov. 4, 2002]

Several things that bear consideration in this whole idea. The first is that it is the broadband [access] at work that is driving online sales. Online sales by broadband users may be more a function of being employed and being employed in a higher income position (most dock workers don’t have access to broadband at work) is associated with white collar jobs. Employment, and more importantly the type of employment drives discretionary income, a more revealing factor in sales in general.

The second and probably equally important issue is consumer behavior. Your proposition begs the question of whether consumers shop at work because of “downtime” or because of broadband. In order to truly evaluate your idea one also needs to consider whether workers will come home and shop online just because they now have broadband access.

I do not believe the identified increase in online sales is a function of broadband access, but rather a function of available time at work. I submit that unless employers crack down on online shopping at the workplace, this activity will remain in the workplace. I also submit the observed difference in online spending is more a function of the type of employment, on average, for those who have broadband access at work. Although I do agree bulk purchase of “packages” for discounted broadband is possible, I think it is of little consequence in the big scheme of things. The bottom line, I don’t think the idea is a cost effective, viable approach.

Dan Gajewski
Director of Marketing Research
PlanetPortal.com
Durham, NC