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Consumer Behavior Report HDTV Shopping Trends


									 Consumer Behavior Report                                                                              V7. 11/06

 HDTV Shopping Trends


     Consumer Behavior Report

           The Consumer Behavior Report tracks behavior of online shoppers and is designed to give merchants,
           media and industry analysts insight into current shopping trends, pricing and market share. This month’s
           topic is on HDTV shopping trends.

     What is the HDTV Shopping Trends data?

           HDTV Shopping Trends data was compiled from a survey of 2,186 online shoppers conducted in August
           2006. In addition to the survey responses, data from Market Reporter, a statistical database that tracks
           actual consumer shopping behavior on, is also included. This report captures current
           shopping trends for high definition TV including consumers’ shopping interest, sources they use before
           making a purchase, and consumers’ anticipation of future online purchases. The report also examines
           current HDTV owners and their attitudinal preferences when using HD broadcasting. is a
           major shopping comparison engine with more than 21 million unique users per month and up-to-date daily
           pricing of products supplied by more than 11,000 merchants.

     Report Highlights
           Owning an HDTV is becoming more commonplace, with 30% of those surveyed already owning a set, and
           21% of the respondents who do not currently own one expecting to buy an HDTV in the next 12 months.

           LCD TVs are indicated as the leading choice for respondents that already own an HDTV set, and the
           preferred choice for those expecting to buy.

           The average selling price of the top-10 most popular LCD and plasma TVs listed on is
           $1,881, while the average price of the top-10 projection TVs (DLP and LCoS) is $1,877.

           For consumers that already own an HDTV, 29% are strongly considering another HDTV purchase in the
           next 12 months, and 21% made their purchase online.

           Pricing remains a key factor for respondents, with 62% stating that significant price drops would be the main
           motivating factor in purchasing an HDTV. Forty percent stated that they would not purchase an HDTV
           online due to costly shipping prices.

           Additional report data included below highlights the most popular HDTV screen sizes, brand preferences,
           actual types and percentages of HD hook-ups, overall satisfaction with HD programming, viewing habits and

           For additional information on the Consumer Behavior Report data, to schedule phone interviews, or for
           journalists who would like to recommend a custom survey for their needs, please contact Trisha Mitra at
                                                                                                 CONSUMER BEHAVIOR
                                                                                               NOVEMBER 2006 REPORT

HDTV Consumer Market Trends

     Owning a high definition TV set is becoming a growing trend, with an abundance of deals at brick-and-mortar stores
     and an even greater amount of low-priced deals offered by online retailers. Currently, 30% of online consumers own
     an HDTV set.

  Consumer Preferences – What Type of HDTV Do Consumers Own?

     Even with all the deals in the market, making a decision on the right HDTV set comes as no easy task for consumers.
     Consumers are still faced with deciphering between the different features, types of HDTVs, various price points, and
     even down to which type of service to use to view HD programming broadcasts. LCD TVs are considered the most
     popular type of HDTV set with 34% of consumers owning one. Projection TVs featuring DLP and LCoS technologies
     come at a close second to LCDs with 32% owning projection HDTVs. Only 22% own a plasma HDTV, and 13% own
     a tube HDTV. (See graph)

                                    Display Type Consumers Own

                                      13%                                   22%



                             Plasma     LCD        Projection (DLP, LCoS)      Tube

      Source: HDTV Shopping Survey 2006

     In terms of screen size, consumers are ready to make the huge leap and invest in a large-sized, big-screen HDTV,
     with the greatest amount owning a TV set ranging from 50” to 59”, which is priced over $2,000 (29%), indicating that
     screen size is of major importance during the decision process making. The next big group owns an HDTV set with
     an average screen size in the 40” to 49” range (27%).

                                      Screen Size Consumers Own

                                       12%                       9%




                            < 30"      30" - 39"     40" - 49"    50" - 59"    60" +

      Source: HDTV Shopping Survey 2006

                                                                                                      CONSUMER BEHAVIOR
                                                                                                    NOVEMBER 2006 REPORT

Consumer Preferences: Sources Used to Purchase an HDTV

   Forty-two percent of respondents made in-store visits as their primacy source in researching for a new HDTV before
   making a final purchase, while 37% used online websites. A small minority sought advice from friends and family as
   the primary source before making a purchase (9%). When finally making their HDTV purchase, 52% chose to go to a
   consumer electronics store, and another 18% chose a major mass retailer to make their purchase. Twenty-one
   percent made their purchase online.

Current Market Trends and Average Prices

   According to the top 10 lists for HDTVs, the average price of either a plasma or LCD TV is $1,881, while an average
   projection TV costs $1,877.

   Top 10 Plasma and LCD TVs
    Rank    Plasma and LCD TVs                                           Avg Price       Launched
      1     Samsung LN-S3251D 32" LCD                                        $1,156          Mar-06
      2     Panasonic TH-50PX60U 50" Plasma                                  $2,410          Mar-06
      3     Samsung LNS4095D 40" LCD                                         $2,012           Jul-06
      4     Sony Bravia KDL-40XBR2 40" LCD                                   $2,483          Aug-06
      5     Sharp AQUOS LC-37D90U 37" LCD                                    $1,634          May-06
      6     Sony KDL46S2000 46" LCD                                          $2,015          Apr-06
      7     Samsung HP-S5053 50" Plasma                                      $2,292          May-06
      8     Westinghouse LVM-42W2 42" LCD                                    $1,608          Feb-06
      9     Samsung HP-S4253 42" Plasma                                      $1,626          Apr-06
     10     Sony KDL-40S2000 40" LCD                                         $1,569          Mar-06
   Source: Market Reporter 2006
   *Top 10 Plasma and LCD TV rankings based on clickthrus to merchant, 9/11/06 through 9/25/06
   **Launch date based on first appearance on

   Top 10 Projection TVs
     Rank     Projection TVs                                             Avg Price       Launched
       1      Sony KDS-60A2000 60" LCOS                                        $2,479         Jul-06
       2      Samsung HLS5687W 56" DLP                                         $1,898        May-06
       3      Samsung HL-S6187W 61" DLP                                        $2,187        Apr-06
       4      Sony Grand WEGA 50" Rear                                         $1,985         Jul-06
       5      Toshiba 62HM195 62" DLP                                          $1,644         Jul-05
       6      Samsung HL-S5087W 50" DLP                                        $1,699        Apr-06
       7      Sony Grand WEGA KDS-R60XBR1 60" LCOS                             $2,992        Aug-05
       8      Sony Grand WEGA 42" LCD                                          $1,392        Aug-05
       9      Sony KDF-50E2000 50" LCD                                         $1,322        Jun-06
      10      Samsung HL-S4266W 42" DLP                                        $1,168        May-06
   Source: Market Reporter 2006
   *Top 10 Projection TV rankings based on clickthrus to merchant, 9/11/06 through 9/25/06
   **Launch date based on first appearance on

                                                                                                    CONSUMER BEHAVIOR
                                                                                                  NOVEMBER 2006 REPORT

HDTV Broadcast Trends

     Consumers not only face the challenge of choosing the right HDTV, but also have to adjust to using their HDTVs with
     specific channels broadcasted in high definition. Surprisingly, 17% do not have any broadcasts set-up. Over half of
     HDTV owners chose Cable TV service to watch HD programming broadcasts, compared to Satellite TV service
     (23%) and over-the-air antenna (9%).

     Eighty-three percent of consumers that own HDTVs find the visual quality of HD broadcasts to be substantially more
     appealing and noticeable. Only 17% indicated that the difference between shows broadcast in HD and non-HD to be
     only marginally noticeable. It’s plausible to note that respondents that indicated a marginal difference with high
     definition could possibly be attributed to the 17% above who admitted to not having any HD broadcasts set-up.

     With the majority of online consumers that do see a significant difference between HD broadcasts and non-HD
     broadcasts, 42% of HDTV owners will specifically watch a TV show because it is being broadcast in HD, that they
     otherwise would not have watched.

                         I will specifically watch a show because it is being
                      broadcast in HD that I otherwise would not have watched




                                               True          False

      Source: HDTV Shopping Survey 2006

     A closer look at what type of HD broadcasts are of interest for consumers, particularly due to its quality of high-
     definition broadcast, reveals that full-length movies (29%), sports (26%), and nature, outdoor, and travel shows (19%)
     are the three favorite types of HD broadcasts.

               Which types of HD broadcasts do you consider your favorite to watch
                 specifically because of the quality of high-definition broadcast:
                                          16%                     26%

                                           7%                  29%

                  Full-length movies
                  Netw ork TV show s
                  Nature, outdoor, travel show s
                  None - I don't find the type of broadcast influences w hat I choose to w atch

      Source: HDTV Shopping Survey 2006

                                                                                                 CONSUMER BEHAVIOR
                                                                                               NOVEMBER 2006 REPORT

     Consumers were also surveyed to see if they watched more TV since owning an HDTV set. Nineteen percent said
     they watch more TV now than before owning an HDTV, 80% watch about the same amount, and only 1% said they
     watch less TV than before.

                                Since owning my HDTV set, I watch:


                                      More TV than before I ow ned one
                                      Less TV than before I ow ned one
                                      Watch about the same

      Source: HDTV Shopping Survey 2006

HDTV Future Shopping Trends
     So what do consumers look for and consider most important when shopping for an HDTV? Almost a quarter thought
     brand name was important (24%), while only 16% of survey respondents said that screen size was a determining
     feature. Not surprisingly, price is cited as a feature of greatest importance when looking for an HDTV (60%). Fifty-
     eight percent also claim that they have not purchased an HDTV yet, because they feel the price is still too high.
     Another 19% are holding off on making an HDTV purchase now because of concerns that HD standards are still

                Which feature is of greatest importance when looking for an HDTV?



                                  Screen Size   Brand Name     Price

      Source: HDTV Shopping Survey 2006

                                                                                               CONSUMER BEHAVIOR
                                                                                             NOVEMBER 2006 REPORT

                             Which of the following reasons best describes why
                                     you have NOT purchased an HDTV?

           Concern that HD
           standards are still                     19%

        There is not enough
         HD programming                      11%
          available today

      Would like one, but the
       price is still too high

       I do not feel there is a
        major picture-quality
      difference between HD
            and non-HD

                              0%       10%     20%       30%   40%    50%     60%      70%

    Source: HDTV Shopping Survey 2006

Future Shopping Preferences and Motivations

   Survey respondents that do not currently own an HDTV set have different preferences from early adopters that
   already own an HDTV. This segmented group of online shoppers showed a strong interest in LCDs and Plasma TVs,
   with almost half considering buying an LCD (47%) and a larger portion considering plasma TVs (39%) when
   compared against current owners (22%). Correspondingly, the stated screen size preference of this group was also
   smaller than the current owners HDTVs. While almost a third prefer an HDTV screen size ranging from 40”-49”, an
   additional 36% said they would consider buying an HDTV in the 30”-39” range.

                                  Display Type Consumers Would Consider Buying

                                        10%          4%



                                    Plasma    LCD    Projection (DLP, LCoS)   Tube

    Source: HDTV Shopping Survey 2006

                                                                                                          CONSUMER BEHAVIOR
                                                                                                        NOVEMBER 2006 REPORT

                      Screen Size Consumers Would Consider Buying

                                         7%                   12%


                         < 30"     30" - 39"    40" - 49"   50" - 59"    60" +

 Source: HDTV Shopping Survey 2006

Price continues to be the main factor for online consumers when considering the purchase of their first HDTV set.
Perceived high shipping costs was cited as the most important reason for not purchasing an HDTV from an online
retailer (40%). Sixty-two percent overwhelmingly said that significant price drops would be the main motivating factor
in purchasing an HDTV. Another 21% felt that improved picture and audio quality from switching to standard
definition to HD programming was a main factor. Only 13% were concerned that standard analog TV will be obsolete
in the next coming years.

                         What is the main factor that would motivate
                                  you to purchase an HDTV?

 30%                         21%
 20%                                                    13%
 10%                                       4%

       Improved picture and audio quality from sw itching from standard definition to high-definition
       View ing specifically sports games at unmatched image quality

       Standard analog TV w ill be obsolete in the next coming years

       Significant price drops

 Source: HDTV Shopping Survey 2006

                                                                                           CONSUMER BEHAVIOR
                                                                                         NOVEMBER 2006 REPORT

           Do you expect to purchase an HDTV set within the next 12 months?

   80%                                      71%
   60%                                                                 Already have an
   50%                                                                 HDTV
   40%                                                                 Do not ow n an
                 29%                                                   HDTV
   30%                 21%
                    Yes                        No

 Source: HDTV Shopping Survey 2006

Twenty-one percent of those surveyed that do not own an HDTV, indicated that they expect to purchase an HDTV set
in the next 12 months. Interestingly, current owners of HDTV sets are even more likely to buy a second HDTV set,
with 29% stating they expect to buy an additional HDTV in the next 12 months. Overall 22% of those surveyed
expect to make their purchase on an HDTV set through an online retailer.

                                                                                              CONSUMER BEHAVIOR
                                                                                            NOVEMBER 2006 REPORT


     The information, data trends and analysis in this report were prepared by Data included in this
     report is sourced by results from the HDTV Shopping Survey. The survey was conducted from August 17, 2006, to
     August 22, 2006, with 2,186 respondents. The confidence interval for all results is 95% with a margin error of
     approximately +/-3 percentage points for the entire sample.

     This report may not be reproduced, distributed or published by any person for any purpose without’s prior written consent. Please cite source when quoting.


     Supporting data and information is available upon request.


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