BELLEVUE, Wash.--(BUSINESS WIRE)--Aug. 8, 2006--While debate over
the future of the penny has been heating up with new legislation aimed
at eliminating the coin, data shows increasing support for keeping the
one-cent coin in circulation. Coinstar, Inc. (Nasdaq:CSTR) announced
today new poll results that reveal 79 percent of Americans favor
keeping the penny, up from 66 percent just a year ago.
"When people become educated about the issues around the penny,
such as new solutions to lower production costs and rounding at the
cash register, they appear to be more inclined to keep the penny as
evidenced by the 13 point increase over last year," said Alex Camara,
senior vice president and general manager of Coinstar's worldwide coin
business.
Penny support now extends beyond romantic notions about penny
candy and penny loafers.
-- 31 percent support keeping the penny if alloys are changed to
reduce rising production costs and 48 percent say leave the
penny as is (79 percent support). Only 15 percent favor
discontinuing use of the Lincoln cent.
-- 51 percent are concerned about price rounding to the nearest
nickel if the penny disappears.
-- Almost two-thirds of Americans (63 percent) still feel the
penny should be retained as an important symbol of American
culture, history and the economy.
While support for the penny is stronger, there also is more
evidence that its value as daily tender is fading. Sixty-nine percent
of people will pick up pennies off the ground compared to 79 percent
just a year ago.
The Coinstar study also revealed that -- if the penny does
disappear -- more respondents would not change their payment behaviors
to avoid "rounded up" pricing. Forty-six percent of respondents report
they wouldn't change how they pay for things compared to 37 percent
who would use debit/credit to avoid rounding up.
Coinstar estimates that about 11 percent of the $10.5 billion of
coin out of circulation in the United States is pennies.
Other findings from the survey include:
-- 58 percent are not very concerned or not at all concerned that
the penny costs more to produce than its value.
-- While support for picking pennies up off the ground is
eroding, the practice varies widely by age group (60 percent
ages 18 to 34 compared to 89 percent for seniors 65+).
-- 23 percent of people who pick up pennies still respect
superstition (only pick up heads), and 27 percent of this
group actually turn over a bad coin (tails) to benefit the
next person.
About the Poll
In its ninth year, the Coinstar National Currency Poll was
launched in April 1998 to provide information to better understand
coin and currency habits in America, and track trends, behaviors and
attitudes toward currency -- both traditional and new forms, as well
as related topics. Poll results are compiled by an independent market
research firm through a telephone research study. Each edition of the
Coinstar National Currency Poll contains a nationally representative
sample of more than 1,000 Americans age 18+, with a margin of error of
+/- 3.1 percent.
About Coinstar, Inc.
Coinstar, Inc. (Nasdaq:CSTR) is a multi-national company offering
a range of 4th Wall(TM) solutions for the retailers' front of store
consisting of self-service coin counting, electronic payment
solutions, entertainment services and self-service DVD rental. The
company's products and services can be found at more than 60,000
retail locations including supermarkets, drug stores, mass merchants,
convenience stores, and restaurants. For more information, visit
www.coinstar.com.
CONTACT: Coinstar, Inc.
George White, 425-943-8181
gwhite@coinstar.com
or
Porter Novelli
Moka Pantages, 512-241-2257
moka.pantages@porternovelli.com
SOURCE: Coinstar, Inc.