STUDY SHOWS BUYER PREFERENCES FOR NEW CONSUMER ELECTRONICS

With the plethora of new consumer electronics equipment coming on the market, the Consumer Electronics Manufacturers Association (CEMA) conducted a study to see what consumers really thought of the new devices. Surprisingly, the research showed consumers aware of the new options, and are willing to buy the products for various functions, especially the combination television and personal computer.

“ In recent weeks, several major television and computer companies have announced they will ship products this fall combining all the home entertainment features of a big screen television with a fully loaded home PC,” said Gary Shapiro, CEMA president. “Consumers are greeting these products positively, and like the home theater convergence of the early 90’s, they are looking at these products as another way to enhance their lives.”

The new hybrid PC/TV, combines large screen TV monitors with CD players, radios, high-speed CD-ROMs and Internet access capability, all in one box. The Internet connection provides interaction for users who want to access information or play computer games. Almost 50% of those surveyed said they would purchase a PC/TV.

In addition, almost 80% of the 752 adults surveyed said they would watch cable and network programs on a PC/TV. Over 60% said they would use the system for word processing while 52% stated they would use the system for Internet browsing and playing games. Surprisingly, half said they would use the system for e-mail.

Why do consumers want a combined product? Respondent cited convenience and ease of use as reasons. They also preferred a modular system that can be easily upgraded, thus creating a large aftermarket for accessories and add-on products. The study found 70% of potential buyers cited expandability and upgradeability as major concerns. Finally, users also wanted wireless connection options such as keyboards, trackballs, joysticks, etc.

Another interesting finding from the study is where the combined PC/TV will be located within the home. Conventional wisdom placed the unit in the family room where the TV is today. However, the survey found users expecting to place the unit in the office, den, as well as living room or family room.

Who do consumers expect to purchase these new hybrid products from? Not the traditional television suppliers, the study found. Almost half, 50% expected to buy their system from PC companies. Indeed, PC companies have been the first to debut these new products. In April, Gateway 2000 of Sioux City, S. D. rolled out the first such unit (see DSR April, 1996, p. 3 for more).

Consumers have a realistic perception of the costs associated with a PC/TV product. The survey found they would expect to pay about $3,700 for one of the first big screen PC/TVs this fall. They expect the first PC/TVs to be sold in electronic superstores such as Best Buy or Circuit City. The CEMA survey also showed that over 90% of consumers report they shop for consumer electronics products year round.

The survey was designed by CEMA and fielded by the Verity Group of Fullerton, Calif. Results have a margin of error of plus/minus four percentage points.

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