CIO Magazine Study Shows Many Consumers Clueless About Year 2000 Computer Glitch
Those in the Know Forecast Possibility of Dramatic Economic & Political Backlash
FRAMINGHAM Mass., June 12 /PRNewswire/ -- IDG's CIO magazine today released the first-ever consumer awareness study on the Year 2000 computer problem. The CIO Year 2000 Consumer Awareness Study shows that many Americans do not know about the Y2K computer glitch, and are unaware of possible consequences on such everyday concerns as personal finances and utilities. However, study results also show that if it becomes apparent a Year 2000 calamity is
inevitable or Y2K disaster does strike, there will be serious economic and political repercussions (i.e., money withdrawn from banks, Gore's presidential aspirations jeopardized, etc.; details below).
Many computer systems, now set up to read years by their last two digits, will lose track of dates when the year 1999 turns to 2000 if the systems are not reprogrammed before the turn of the century. According to CIO magazine editor in chief Abbie Lundberg, "Many of America's brightest technology and business executives are struggling to find solutions to the Year 2000 computer problem. Although some organizations do have a conversion plan in
place, some computers will not be free and clear of millennium bug snafus. Right now, it looks like we will suffer some distress. The big question is: How bad will it be and will consumers be knowledgeable and prepared to deal with it?"
Level Of Awareness
A total of 643 individuals were contacted for the study. More than a third (38% or 243 people) admit they're not aware of the Year 2000 problem while 62% (400) do know about the computer dilemma. The findings that follow are based on interviews with Y2K-aware consumers.
Interestingly, the 400 respondents with a working knowledge of the problem are not all alarmed by it. Half (50%) are 'not at all concerned' about it affecting them personally; and eight out of ten (80%) are confident the problem will be fixed before the dawn of the millennium. Conversely, earlier surveys conducted by CIO magazine among technology and business execs charged with fixing the problem indicate only 17% have confidence the glitch will be
fixed on time(A).
Says CIO magazine publisher Gary J. Beach, "What strikes me about this research is that too many Americans do not know about, let alone comprehend the magnitude of, this problem...the extent to which technology interacts with their daily lives...their ATM transactions, their computerized health care records, their ability to fly safely on airplanes. Between now and January 1, 2000, government officials and media organizations must actively inform
and educate the general public about the technology challenges we may all face in 18 months."
How Y2K Will Personally Affect Consumers On January 1, 2000, 53% of respondents say they will fly on a commercial airline (as opposed to 28% of technology and business executives(A)); 56% will have major surgery; 59% will ride an elevator to the top of a high building; and 69% say they will have faith in the country's defense system.
On a scale of 1-10 (10 being most serious), 19% of respondents rank the Year 2000's impact on their utilities (e.g., gas, water, electricity, oil, etc.) as either 8, 9 or 10. One in four respondents (25%) rank its impact as a 1 ("least serious"). When asked to rate the seriousness of the Y2K dilemma by selected topics, they rate 'Dealing with the IRS, Social Security, Medicare, etc.' as the most serious concern, followed by 'National Security.'
Consumers who are worried about experiencing some sort of personal impact from the computer snafu (50%) rate their top three concerns as follows:
1: computers will crash/records will be lost (38%);
2: financial/credit/banking problems (30%);
3: government will shut down/problems with social security/IRS (8%).
If it becomes apparent in mid-1999 that companies will not solve the Year 2000 problem by January 1, 2000, over half of the respondents will relocate their money:
-- One out of four (25%) will take their money out of the bank and put it under their mattress or hide it in their house; among those with above average household incomes ($50,000), this rises to 47%;
-- 16% will put all their money in one bank or investment vehicle that
is Year 2000 compliant;
-- 11% will deposit their money in several different banks or investment vehicles to minimize the chance of encountering any Year 2000 problems.
Just Who's Responsible For This Mess?
As for who created the Year 2000 problem, 22% blame the technology industry in general, 19% blame software programmers, 12% blame the government and 5% put the blame on private business. In spite of the lack of consensus on where to place blame, the research indicates consumers want manufacturers to take responsibility to address or fix the Year 2000 problem. In fact, more than three-quarters of those surveyed (78%) indicate if their electronic
products malfunction at the turn of the century, they will insist manufacturers fix or replace them. In addition, 46% say they will look into a lawsuit against the product manufacturer if they are injured as a result of a millennium malfunction.
More than a third of those questioned say the government should monitor and report on progress solving the Year 2000 problem (with private business second at 23%). Respondents gave the Clinton/Gore administration an average grade of 'C' for its efforts to address the problem (on a scale of A, B, C, D, or F). This less than stellar review follows a federal government report card released last week by U.S. Rep. Stephen Horn (R-CA) that served up an
overall "F" for Uncle Sam's efforts. The government work on millennium conversion declined in the last quarter. Horn reports the government's rate of progress on bringing mission critical systems into compliance dropped from 9.4 percent to 7.9 percent for the period ending May 15.
Furthermore, 55% of those surveyed in the consumer awareness study say the presidential aspirations of the Clinton administration's 'Technology guy,' Vice President Al Gore will be jeopardized if Year 2000 software glitches cause crashes all around us. By comparison, 43% of technology and business executives express the same sentiment(A).
Consumers Volunteer To Solve Computer Glitch
Upon learning that fixing the Y2K problem requires a person to re-key dates and search for dates on computer systems, 45% say they would volunteer their personal time to help fix the problem.
Respondents were evenly split between male (50%) and female (50%). The average age of respondents is 44, and on average, their total household income is $55,600.
Methodology & Margin Of Error
Respondents were selected on a random basis from a representative sample of digit dial numbers from the 48 contiguous U.S. states. Telephone interviews were completed between May 13-18, 1998 by First Market Research of Austin, Texas. Respondents had to be 18 years of age or older to participate. IDG Research Services Group was responsible for questionnaire design, coding, keypunch, and tabulation/analysis of the data.
Projectability
The margin of error for a base of 400 respondents is plus or minus 2.2-5.0% at the 95% confidence level. Chances are 95 in 100 that a census of the entire population would yield results within 2.2-5.0 percentage points of those shown in this study. |
