CARI: Center for Applied Rural Innovation

 

Date of this Version

October 2000

Comments

Published by the Center for Applied Rural Innovation, University of Nebraska – Lincoln. Copyright © 2000 by J. Allen, R. Vogt, and S. Cordes.

Abstract

Retailing activity in small rural communities has declined over the past few decades. More and more retail sales are occurring in the state’s larger retailing centers. In addition, the use of the Internet to purchase goods and services also has the potential to change the retailing activity of these communities. Given that, are rural Nebraskans purchasing the majority of their household goods and services in their own community or are they spending more of their money in larger retail centers? Have rural Nebraskans begun to buy and sell goods and services using the Internet? Does their purchasing behavior differ depending on their region, age, income or size of their community?

This report details results of 4,536 responses to the 2000 Nebraska Rural Poll, the fifth annual effort to take the pulse of rural Nebraskans. Respondents were asked a series of questions about their purchasing behavior. Based on these analyses, some key findings emerged:

• Two-thirds of rural Nebraskans purchase at least one-half of their household goods and services in their own community. Almost one-half (48%) purchase at least 70 percent of their goods and services in their community.

• Households in larger communities were more likely than those in smaller communities to purchase the majority of their goods and services in their own community. Seventyseven percent of those living in communities with populations of 10,000 or more purchased at least 70 percent of their goods and services in their community. Only 23 percent of those living in communities with less than 500 people purchased at least 70 percent of their goods and services in their community.

• Older respondents were more likely than younger respondents to purchase the majority of their goods and services in their community. Fifty-nine percent of those age 65 and older purchased at least 70 percent of their household goods and services in their community, compared to only 39 percent of those age 19 to 29.

• Of the respondents living near a larger community, over one-third (37%) purchased over one-half of their goods and services in the larger community. Sixty-three percent purchased less than one-half of their goods and services in the nearby larger community.

• Households living in smaller communities were more likely than those in larger communities to rely on the nearby larger community for a majority of their goods and services. Thirty-six percent of those living in communities with less than 500 people purchased at least 70 percent of their household goods and services from this nearby larger community, compared to only five percent of those living in communities with populations of 10,000 or more.

• Less than one-third (29%) of rural Nebraska households had purchased goods or services using the Internet during the past year. The groups most likely to have purchased online during the past year include: those with higher incomes, younger respondents, those living in larger communities, persons living in the Panhandle, the married respondents, those with higher educational levels, and those with professional/technical/administrative occupations.

• The goods and services purchased online include: music and books (48%), computer hardware or software (38%), and clothing (34%).

• One-half (50%) of those making online purchases last year only made such purchases several times a year. Twenty-eight percent had purchased only once a year or less. Only one percent had made purchases more than once a week.

• Over one-third (35%) had spent less than $100 on online purchases in the past three months. An additional 14 percent had not made any online purchases in the past three months. Seventeen percent had spent more than $500.

• Over one-third (37%) of rural Nebraskans believe their household will make online purchases next year. Those that had purchased online before were more likely than those who had not to be planning to purchase online next year. Eighty-nine percent of those who had purchased online last year anticipated making more online purchases next year. Only 14 percent of those who had not made any online purchases last year planned to purchase online next year.

• Of those planning to purchase online next year, twenty-two percent anticipate spending less than $100. An additional 41 percent plan to spend between $100 and $400.

• Only four percent of rural Nebraskans have sold any products or services using the Internet. Of those who had sold something online, 61 percent said it was an infrequent event as opposed to a regular business practice.

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