KEY FINDINGS NEWSLETTER
Winter 1999/2000 Issue

Law Firms Fighting Costly Turnover
In America’s 250 largest law firms, an average of 18% of associates left their firm during 1999. This translates to one attorney walking out every 15 billable minutes. Some law firms experiencing these high attrition rates are responding with successful measures such as awarding large longevity bonuses, sabbaticals and improved part-time policies. Mentoring programs geared to help newer associates have also proven useful in reducing turnover.

How can these firms justify the expense of these programs? Losing one midlevel associate can cost between $200,000 and $250,000. Proponents also point out that these programs increase morale, assist in recruiting and lead to better client service.

Top Ten Online Toy Stores

1. eToys
2. KBKids
3. Toysmart
4. SmarterKids
5. ZanyBrainy
6. WorldsBestToys
7. Toys ‘R’ Us
8. FAO Schwarz
9. Toytime
10. Netoy

Effective Sales Promotions
According to the Marketing Science Institute, sales promotions offer consumers hedonic and/or utilitarian benefits. Hedonic benefits include things such as enhancement of self-esteem, stimulation and entertainment. Utilitarian benefits include savings, quality and convenience. When promoting utilitarian products such as photographic film and garbage bags, monetary promotions (discounts, rebates) are more effective than non-monetary promotions (free gifts, sweepstakes). Non-monetary promotions are most effective when promoting hedonic products such as ice cream and champagne.

Nine Stages of Philanthropy
According to Independent Sector, philanthropists go through nine stages of giving. Givers typically begin by donating just enough to satisfy the solicitor and end their giving with bequests upon their death. The chart below describes each of these nine stages.

Americans Take Control of Their Healthcare
Almost seven in 10 American adults have been more active in controlling their health during the past five years than they were previously. Most (58%) have used one or more alternative treatments in the past two years, compared to 26% in 1997. Twenty-five percent have used three or more different alternative treatments. Of those who try alternative medicine, one-half say they do so because traditional treatments are not working for them.

Juror Attitudes Affected by Prior Jury Experience
Recent research shows that those who have served as jurors before are less likely to be prejudiced, less skeptical about the jury system and more willing to be fair in reviewing the case information than people who have never been a juror. This may be because serving as a juror changes a person’s views or because attorneys are effective at excusing closed-minded individuals during the jury selection process.

View Comparison of Prior Jurors to Non-Jurors

Patients Want E-Health Information
The number of Internet health users increased 45% from last year to reach 24.8 million adults as of July 1999. One-half of all online users say they would like to use a web site operated by their own doctor’s office, but only 9% are aware that their doctor has a site.

About 29% of online health users who are interested in using a doctor’s web site said they would be likely to switch to a doctor who has a web site. Thirty-three percent who are interested in e-mailing their doctors said they would be likely to switch to a doctor who uses e-mail. Seventy-four percent of all online health users say they would be more likely to trust a web site recommended by their doctor or pharmacist.

Minority Presence in Legal Industry
About 28% of the American population is black, Hispanic, Asian or another minority. However, only 2% of the Fortune 500’s top lawyers and only 9% of all attorneys on corporate legal staffs are members of a minority. The picture in law firms is comparable. A 1998 survey of the 250 largest firms showed only 3% of partners and 13% of associates as members of a minority.

 Online Shoppers Abandon Cart
A recent survey shows that 75% of online consumers abandon the shopping process before completing their purchase. Twenty-four percent say they thought the shipping and handling charges were too high; 31% said they just changed their mind.

Of those who went on to complete the sales process, 74% said they were very satisfied with their purchase.

Online Shoppers' Behavior After Abandoning Cart

Prospective Home Buyers Seek Better Information
Prospective home buyers say they are unhappy with the information available to them. Some don’t think they are seeing all the homes available in their price range and complain about how difficult it is to find detailed information about the homes they are interested in buying. The chart below lists the top fears of homeowners and renters who are planning to buy a home in the next year.

Prospective Home Buyers’ Fears

• Hidden / unknown costs
• No control over the real estate process
• Lack of information on financing options
• No objective resource on the real estate process
• Confusing terminology

Most Felons Plead Guilty; Many Set Free
According to the Bureau of Justice Statistics, state courts convicted 997,970 adults of felonies during 1996. Thirty-five percent of these were for drug offenses, 30% for property offenses, 17% for violent offenses, and 18% for weapons offenses and non-violent crimes. Only 9% went the trial route; the other 91% plead guilty. Thirty-one percent received probation without jail or prison time.

Bullets

• Less than 10% of customers regularly give feedback to businesses about how they are doing.
• Young adults aged 18 to 24 are more likely than persons in other age groups to read literature and attend non-musical plays, jazz performances and dance performances. They are also more likely than others to visit art museums and attend musicals and operas.
• The world’s top five busiest airports are: Atlanta, Chicago O’Hare, Los Angeles International, London Heathrow and Dallas-Fort Worth International.
• About 28% of Americans have bowled at least once during the past year.
• Twenty-five percent of women and 12% of men would consider having cosmetic surgery to improve their appearance.
• Research shows that in 1999, 48.2% of American households owned stocks or mutual funds, up from 19% in 1983. Three in 10 of these households acquired equities from employer-sponsored retirement plans. About 35% own equities outside of these plans.
• One-third of Americans say they believe in ghosts.
• Over one-half (55%) of recipients will take time to examine a four-color direct mail piece, compared to 17% who look at two-color pieces and 14% who inspect one-color pieces.
• By age 62, 44% of men and 24% of women still work full time.
• Three out of five Fortune 500 companies hire a general counsel from outside the company. The person is usually a partner at a large law firm.
• Three out of five people believe that expert witnesses give the testimony they are paid for instead of saying what they believe.
• Over 40% of the federal criminal justice provisions enacted since the Civil War have been enacted during the past 20 years.
• Only 56% of associates in large law firms (firms with over 100 attorneys) said that attaining partnership was an incentive for them. By gender, 75% seeking partnership were male; 47% female.
• The 34 million American households who have Internet access spend 65 million hours online per day at home.
• Fifty percent of companies with 10 or more employees have a web site. Only 25% of companies with fewer than 10 employees have one.
• A recent survey shows that 85% of catalogers now have their offerings online. This includes 79% of catalogs targeting consumers, 71% of business-to-business catalogs and 94% of catalogs marketing to both consumers and businesses.
• About one-third of households that own a computer, own more than one.
• During 1998, the average price increase of the 50 most prescribed drugs for older Americans increased 6.6%, which equates to four times the rate of inflation. The median profit for drug manufacturers was 20%. This profit was 4.5 times larger than the median net profit of all Fortune 500 companies.
• Six percent of Americans say they are vegetarians.
• Most Americans (81% of men and 71% of women) are satisfied with the way they look according to a recent Gallup survey. However, 17% of men and 29% of women wish they were more attractive.
• One in six (18%) Americans had difficulty paying medical bills in 1999; 17% say they did not fill at least one prescription because of the cost.

[Back to Index]