IDC Says a Trip to the Grocery Store Could Help Fund Your Child’s College Education

FRAMINGHAM, MA — NOVEMBER 13, 2000 — The Internet is putting more power into merchants' rewards and rebate programs. According to IDC, the Web is facilitating merchants' and consumers' involvement in microrebate investing programs, which reward consumers for their loyalty by moving a percentage of their purchases directly into investment accounts.

 

"These loyalty/rebate programs are a good fit with consumers who recognize they aren't saving enough and want to participate in the potential returns of the stock market, yet continue to incur large discretionary spending," said Shaw Lively, online investing analyst for IDC's eInvesting program. "The Web has facilitated development of these offerings by providing easy enrollment, ongoing program information, and 24×7 feedback on investment balances and performance."

IDC estimates in 2004, at least 50% of every U.S. income segment will be online. As a result, microrebate investing programs have a huge pool of potential customers at every income level. Nevertheless, traditional savings vehicles, such as mutual fund, brokerage, and bank accounts will offer viable competition – especially for consumers with high incomes. According to IDC, a determining factor of the success of microrebate investing programs will be how easy they are to sign up for and use, how many merchants participate, and the ability of microrebate investing companies to sustain consumer participation.

IDC's eInvesting program's new bulletin New Microrebate Investment Programs Enable Consumers to Save While Spending (IDC #B23115) explains microrebate investing in detail, analyzes the opportunity for microrebate programs, and assesses current players. The bulletin ends with recommendations for providers and merchants involved in microrebate programs. To purchase the bulletin, contact Demetra Georgakopoulos at 1-800-343-4952 extension 4496 or demetra@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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