"Survey on Consumption Tax" Consumption tax increase is just around the corner! Consumer attitudes towards the consumption tax increase

2014.03.17 Press Releases
Culture Convenience Club Co., Ltd.

-New things I want to do other than saving money: 1st place "Look at flyers," 2nd place "Use point cards," 3rd place "Check price comparison sites"-

Culture Convenience Club Co., Ltd. is pleased to announce that it has conducted a "Survey on Consumption Tax" using the "T Survey," an online awareness survey, targeting 1,262 male and female T members who use T-CARDs.

Digest of survey results on consumption tax

●What else would you like to do after the consumption tax increase other than saving money?
　1st place: "I want to look at flyers to find great deals" (29.9%)
　2nd place: "I want to use my point card more frequently" (24.3%)
　3rd place: "I want to check the prices of products I've never seen before on price comparison sites" (17.0%)
●What would you like manufacturers and stores to do after the consumption tax increase?
　1st place: "I want to be able to use point cards" (37.3%)
　2nd place: "I want more new services" (30.9%)
　3rd place: "I want the quality of the products to be improved" (25.9%)
●What would you like the increased 3% tax to be used for?
　1st place: "Pensions" (21.3%), 2nd place: "Debt repayment" (10.9%), 3rd place: "Employment measures" (9.9%)
●When was the last time the consumption tax was increased from 3% to 5%? Correct answer rate: 16.4%
●What do you think about the consumption tax being raised from 8% to 10% in October 2015?
　1st place: "I think it would be good if the tax increase was limited to specific products (such as luxury goods)" (29.7%)
　2nd place: "I can understand it depending on how the tax increase is used" (27.1%)
　3rd place: "I'm against it, but it can't be helped considering the situation in the country" (18.4%)

Q: Is there anything else you would like to start doing after the consumption tax increase, other than saving money?
*Response method: Multiple answers, n=1,262

There are just about two weeks left until the consumption tax is increased from 5% to 8% on April 1, 2014. With the consumption tax hike looming, we conducted a "survey on consumption tax" among T members.
Recently, there has been a lot of attention on sales and last-minute demand before the consumption tax increase, as well as saving money after the tax increase. However, when asked what new things other than saving money that ordinary consumers would like to start doing after the tax increase, the top answer was "looking at flyers to find good deals" (29.9%), followed by "frequently using my point card" (24.3%) and third place was "checking prices on price comparison sites for products I have never seen before" (17.0%), showing that there is a strong desire to take up new activities that will allow them to obtain good deals and services. When these results were examined by gender and age group, "Avoid using public transport and try to walk as much as possible" ranked fourth for men in their teens and 20s and women in their 50s and 60s, "Invest" ranked fifth for men in their 30s and 40s, and "Keep a household budget" ranked fourth for women in their 20s and 30s and women in their 40s and 50s, revealing that there were distinct differences between genders and age groups.

Q: How would you like manufacturers and stores to respond after the consumption tax increase?
*Response method: Multiple answers, n=1,262

Next, we asked consumers what they would like manufacturers and stores to do after the consumption tax increase. Requests to stores ranked highly, with the top answer being "I want point cards to be available" (37.3%), followed by "I want more new services" (30.9%). Next came requests to manufacturers, with third place being "I wish they would improve the quality of their products" (25.9%), fourth place being "I wish they would increase the quantity of their products" (20.2%), and fifth place being "I wish they would increase the product lineup" (16.2%). From the consumer's perspective, this represents a de facto price increase, and the results show that they are expecting improved services and products in return.

Q: What would you like the increased 3% tax to be used for?
*Response method: Single answer, n=1,262

It has been announced that the increased revenue from the consumption tax hike will be used for social security, but when asked what ordinary consumers would like the increased revenue to be used for, the top answer was "pensions" (21.3%), followed by "debt repayment" (10.9%) and "employment measures" (9.9%). Looking at the results by age group, the top three issues for teenagers were "education" (13.7%) and "reconstruction" (11.8%), while those in their 20s and 30s ranked "measures to combat the declining birthrate" (20s: 11.7%, 30s: 13.6%), and those in their 40s, 50s, and 60s ranked "nursing care and welfare" (40s: 10%, 50s: 16.4%, 60s: 20.3%). These results show that each generation is making requests to the government and local authorities to address issues they see as important.

Q: When do you think the consumption tax was last increased from 3% to 5%?
*Response method: Single answer, n=1,262

Consumption tax was introduced in Japan 25 years ago, in 1989. The consumption tax was then increased from 3% to 5%, and will be increased from 5% to 8% this spring. When asked when the tax was increased from 3% to 5%, only 16.4% chose the correct answer, "1997."Currently, many people are concerned about the tax increase, but as the saying goes, "Once it's past your throat, you forget the pain," and the results show that memories are fading as time passes.

Q: The consumption tax is scheduled to increase from 8% to 10% in October 2015. What are your thoughts on this?
*Response method: Single answer, n=1,262

The consumption tax is scheduled to increase from 8% on April 1, 2014 to 10% in October 2015. At present, it is expected that the gradual tax increase will have a two-stage impact on the spending psychology of ordinary consumers. When asked how they felt about the tax increase to 10%, there were surprisingly few opposed opinions, with the most popular response being "I think it would be fine if the tax increase was limited to specific products (such as luxury goods)" (29.7%), followed by "I could understand it depending on how the increased tax revenue was used" (27.1%) and "I'm against it, but it can't be helped considering the situation in the country" (18.4%). Only 17.7% of respondents answered that they were "opposed at all costs."

■ Survey Overview
Survey method: Internet (T Survey)
Survey period: March 3rd (Mon) to March 6th (Thu), 2014
Survey area: Nationwide
Survey subjects: Men and women aged 16 to 69 (T members)
Sample size: 1,262 people
10～20代    30～40代    50～60代    合計
男性    182人    280人    150人    612人
女性    181人    301人    168人    650人
合計    363人    581人    318人    1,262人

■What is the T Survey?
This is one of the largest online research services in Japan, with 8 million T-CARD users registered. All members who complete research and surveys will be rewarded with T-POINT. In addition, the responses you provide will be processed as statistical information and used by companies and media outlets for product development and service planning. Each and every opinion we receive from our members will be an important key point in creating a bright future for people, companies, and Japan.
CCC offers marketing solutions to companies, from planning surveys through "T Surveys" to compiling and analyzing them as a research program tailored to their needs.

Materials related to this matter

"Survey on Consumption Tax" Consumption tax increase is just around the corner! Consumer attitudes towards the consumption tax increase

Inquiries regarding this matter
■Inquiries regarding the press release:
Culture Convenience Club Co., Ltd.
Public Relations Officer: Ando
TEL: 03-6800-4464

■Inquiries regarding the T Survey:
Sales representatives: Kosaka, Yoshida, Nagayama
MAIL: dbwatch@ccc.co.jp
TEL: 03-6800-4561