CHRISTMAS SHOPPING AND BUYING: WHAT'S IN THE WINDOW, AND HOW PEOPLE WILL PAY FOR IT

Half (51%) of Canadians Say They're "Much Less" Likely to Use Non-Customer Bank Machines if Fees Increase

Toronto, ONTARIO- With the holiday retail season upon us, a new Ipsos-Reid/Globe and Mail/CTV poll probes the gift giving habits of Canadians. While a companion poll looks at the way Canadians expect to pay for purchases this holiday season.

Overall, Canadians indicate that `personal' items (21%) top the list of gifts that they will purchase for loved ones. This list includes items such as jewelry (9%), clothing (9%), watches (2%) and perfume/cologne (1%). `Lifestyle' (11%) and `electronic' (10%) items are the next most popular gifts, followed by `items for the home' (6%).

`Personal' items (25%) also top the list of gifts that Canadians desire for themselves. `Personal' items such as clothing (12%) and jewelry (10%) are the top items Canadians would like to receive this holiday season. Other `personal' items mentioned include perfume/cologne (2%), and watches (1%). In general, `electronic' (11%) and `lifestyle' (11%) items are the next most popular gifts on Canadians' personal `Wish List', followed by `gifts for the home' (8%).

As for how they will pay for gifts this holiday season, four-in-ten (37%) Canadians indicate they will make purchases using a debit card. While a plurality (37%) of Canadians are more likely to purchase items with a debit card than by cash (33%), credit cards (30%) or cheque (1%), collectively two-thirds (64%) will use these other methods.

At the same time, Canadians appear to be riled by additional charges by banks for non-customers at bank machines in retail locations. Half (51%) of Canadians indicate that they would be much less likely to use another bank's Automatic Teller Machine this season, after learning that at least one major bank has increased the fee it charges non-clients who use its ATMs by $1.00, in addition to the $1.50 Interac network fee that is already charged.

One-third (35%) indicate that they would be much less likely to use their debit card to make purchases this holiday season after learning that one of the major banks has added a 15 to 25-cent surcharge on purchases using a debit card. A further one-in-five (20%) say they would be somewhat less likely to use their debit card for such purchases. Currently, three-quarters (76%) of Canadians report that in a typical month they use their debit card for purchases.

These are the findings of Ipsos-Reid/Globe and Mail/CTV polls conducted between November 20th and 22nd , [Gift Giving] and between December 4th and 6th, 2001 [Debit Card]. Each poll is based on a randomly selected sample of 1,000 adult Canadians. With a sample of this size, the results are considered accurate to within 177 3.1 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 1996 Census data.

Top Gifts to Give or Receive from Loved Ones this Holiday

Overall, Canadians indicate that `personal' items (21%) are the top gifts that they will purchase for loved ones this holiday season. This includes items such as jewelry (9%), clothing (9%), watches (2%) or perfume/cologne (1%).

• Men (14%) are more likely to plan on purchasing jewelry for their loved one, than women (3%).
• Residents of Atlantic Canada (18%) are more likely to mention the purchase of clothing as a gift than those in any other region. While Albertans (6%) and Quebecers (6%) are the least likely to mention this gift.

`Lifestyle' (11%) and `electronic' (10%) items are the next most popular, followed by `gifts for the home' (6%). `Lifestyle' items mentioned include a trip or vacation (3%), sporting goods/equipment (2%), toys (2%), books (2%) and money (2%).

• More affluent Canadians, those in the highest household income bracket (5%), are more likely than those in the middle (2%) or lowest (2%) income bracket to mention the purchase of a trip or vacation.
• Regionally, residents of the Prairie provinces of Alberta (7%) and Saskatchewan/Manitoba (7%) are the most likely to mention a vacation or trip. This compares to only 1% of those in Quebec.

The items mentioned as part of the `electronics' (10%) umbrella, include electronics (5%), computers (2%), television (1%), video game player/video games (1%) and camera/camcorder (1%).

• Canadians in the highest household income group (7%), residents of British Columbia (8%) and younger (8%) Canadians are more likely to mention electronics.
• Women (7%) are more likely to plan on purchasing electronics as a gift for their loved one than men (3%).

`Gifts for the home' (6%) include appliances (2%), hardware/tools (2%) and vehicles (2%).

• Residents of Atlantic Canada (6%) are more likely than those in other regions to cite appliances as the gift they plan on purchasing for a loved one.
• Females (5% versus 0% of men) are more likely to want to give hardware/tools as a gift this holiday season.
• Residents of Alberta (5%) are more likely to want to purchase a vehicle as a gift this season.

One-quarter (26%) did not have an answer, 10% mentioned other items, and 14% do not plan on purchasing gifts.

As for the gifts that Canadians place on their own `Wish List', `personal' items (25%) are at the top. Clothing (12%) and jewelry (10%) are the main items in this area that Canadians would like to receive from their loved ones. Other `personal' items mentioned include perfume/cologne (2%), and watches (1%).

• Females are more likely to wish for clothing (15% versus 10% of men) and jewelry (17% versus 2% of men).
• Residents of Atlantic Canada are more likely than those in other regions to desire clothing (22%) or jewelry (15%) as gifts this Holiday season.
• Canadians in the lowest household income (13%) group are slightly more likely to desire jewelry as a gift this year when compared to those in the highest household income (9%) group.

In general, `electronic' (11%) and `lifestyle' (11%) items are the next gifts on Canadians' `Wish List', followed by `gifts for the home' (8%). Items mentioned under the `electronics' umbrella include electronics (6%), computers (2%), TV (1%), video game player/video games (1%), camera/camcorder (1%).

• Electronics are most desired this holiday season by residents of Atlantic Canada (10%), younger Canadians (9%) and men (8%).

Under the general `lifestyle' (11%) title, a trip or vacation (4%) was the most popular answer, followed by sporting goods/equipment (3%), books (2%) and money (2%).

• More affluent Canadians - those in the highest household income group (5%) and middle income group (4%) are more likely to mention a trip or vacation as a gift that they would like to receive this holiday, when compared to Canadians in the lowest income group (1%).

Household (8%) items that Canadians desire as gifts this holiday, include hardware/tools (3%), appliances (2%), a vehicle (2%) and furniture (1%).

• Residents of Atlantic Canada (7%) are more likely to mention hardware or tools as a gift they would like to receive than those in other regions.
• Men (5% versus 0% of women) are more likely to want to receive hardware or tools as a gift this season compared to women. This is good news, since women (5% versus 0% of men) are more likely to plan on purchasing these items as gifts this season.

One-in-five (19%) could not come up with an answer, while 12% mentioned other gifts, and 14% indicated that they will not be receiving gifts this holiday season.

37% Expect to Use Debit Card for Purchases During Holiday Season, While 64% to Use Traditional Means of Cash, Credit and Cheques

As for how Canadians will pay for gifts this holiday season, four-in-ten (37%) indicate they will make purchases using a debit card. While a plurality (37%) of Canadians are more likely to purchase items with a debit card than by cash (33%), credit cards (30%) or cheque (1%), collectively two-thirds (64%) will use these other methods.

• Residents of Saskatchewan and Manitoba (47%) are more likely than those in other regions to say that they will use their debit cards this holiday season, while Quebecers (40%) are the most likely to pay for purchases with cash.
• While there is no variation among household income groupings in regards to anticipated debit card usage this holiday season (37% for each group), there is variation regarding other forms of payment. Canadians in the lowest household income bracket (46%) are more likely to say that they will use cash [versus the middle (34%) or highest (21%) household income groups]. Those in the highest bracket (41%) are the most likely to anticipate using a credit card [versus middle (28%) or lowest (15%) household income brackets] for purchases.
• In terms of age groups, debit cards are most popular with the youngest group (47%) and least popular with the oldest group (25%). However, cash (37%) and credit cards (36%) are most popular with the oldest age group.

Half (51%) of Canadians Say They're "Much Less" Likely to Use Non-Customer Bank Machines if Fees Increase

At the same time, Canadians appear to be riled by additional charges by banks for non-customers at bank machines in retail locations. Half (51%) of Canadians indicate that they would be much less likely to use another bank's Automatic Teller Machine after learning that at least one major bank has increased the fee it charges non-clients who use its ATMs by $1.00, in addition to the $1.50 Interac network fee that is already charged.

• Regionally, those more likely to hold this view are located on either coast, British Columbia (56%) and Atlantic Canada (55%), while residents of Saskatchewan and Manitoba (39%) are less likely to express this view.
• In terms of household income groups, those in the highest bracket (61%) are more likely than Canadians in the middle (48%) or lower (44%) household income brackets to say they would be much less likely.
• The most riled age group appears to be those between 35 and 54 (58%). This compares to 18-34 year olds (50%), and Canadians 55 or older (43%). However, one-in-ten (10%) of the oldest group report not having a bank card, compared to only one percent of the other age groups.

And one-third (35%) indicate that they would be much less likely to use their debit card to make purchases this holiday season after learning that one of the major banks has added a 15 to 25-cent surcharge on purchases using a debit card. A further one-in-five (20%) say they would be somewhat less likely to use their debit card for such purchases. Currently, three-quarters (76%) of Canadians report that in a typical month they use their debit card for purchases.

• Canadians in the highest household income group (39%) are more likely to say that they are much less likely to use their debit card than their counterparts in the middle (32%) or lower (30%) income groups.
• Residents of British Columbia (44%), and Ontario (41%) are more likely to express the strongest view about not using their debit card this holiday season if fees increase. Followed by those in Alberta (39%), and Atlantic Canada (37%), while Saskatchewan/Manitoba (29%) and Quebec (21%) fall below the national average.
• Middle aged (39%) Canadians are more likely to express this view, compared to their younger (29%) counterparts.

Just over one-third (35%) of Canadians report using ATM's that are operated by a private firm and not by a bank, located in a retail store, during a typical month. Typically, private ATM's charge a fee for use in addition to the Interac service fee and the regular bank charge. This compares to one-half (53%) who have used an ATM, located in a retail store, that is operated by a bank other than their own, over the same time frame.

• Older Canadians are least likely to report either of these types of transactions. In fact, eight-in-ten (80%) of this group report not using a private ATM, compared to less than half (47%) of the youngest group who claim this.
• Three-quarters (74%) of the oldest group also report that they never use an ATM other than their own banks'. This compares to only one-quarter (24%) of the youngest group who say they never do this.

To view the complete media release and tables, please download the PDF files.

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For more information on this news release, please contact:

Janet Lazaris
Senior Vice-President
Ipsos-Reid
(416) 324-2900