Holiday Season May Surprise Electronics Retailers

Lower Prices, Special Promotions And Interest In Luxury Entertainment Offerings Should Boost Sales, Says Ipsos-Insight

New York, NY - While consumers are still most interested in small-ticket, home electronics items, more of them are eyeing big-ticket entertainment offerings, such as home computers, home theater systems and high-definition televisions, according to Ipsos-Insight, the global survey-based marketing research firm. "I think it's fair to say that electronics retailers should have a happier holiday sales season this year," said Lynne Bartos, a leader with the company's Cable, Media and Entertainment research division. "Consumers seem to be shedding their cautious nature and taking a greater interest in big-ticket items." For a second consecutive year, Ipsos-Insight surveyed a nationally representative sample of 1,000 U.S. adults in late October to determine their likelihood of buying specific electronics over the next three months, including the prime December-early January buying period. The company asked consumers to choose from a list of 15 home electronics items. Among the survey's highlights:
  • Interest levels in big-ticket entertainment items, such as home theater systems and HDTV, have jumped significantly -- from 10% last year to 15% this year. The increase for HDTV can probably be attributed to falling set prices and additional HD programming content available, Bartos said.
  • Interest in buying personal computers is on the rise -- at 26%, up from 20% last year. Why? Lower prices and special promotions, heavy advertising, and consumer willingness to upgrade or buy an additional home computer, she added.
  • Again this holiday season, DVD players and digital cameras are among the most sought after items (24% and 22%, respectively, levels unchanged from last year).
  • Meanwhile, 31% of U.S. consumers say they are likely to buy wireless telephone, up from 26% last year - a rise partly driven by interest in wireless telephones with built-in digital cameras, she said.
  • And, 13% of respondents say they are likely to buy a portable MP3 player, up from just 8% last year.
Americans' Near-Term Purchasing Intentions for Home Technologies* "Thinking of technologies for your household, over the next 3 months, how likely do you think you are to buy each of the following?" October 2002 Source: Ipsos U.S. Express. Dates: October 28-31, 2002. Sample size: 1,000 American adults October 2003 Source: Ipsos U.S. Express. Dates: October 24-26, 2003. Sample size: 1,000 American adults For more information on this release, please contact: Lynne Bartos Cable, Media, Entertainment Research 312.665.0556 About Ipsos-Insight Ipsos-Insight is a member of the Ipsos Group, a leading global survey-based market research company. As the company's flagship marketing research division in the U.S., Ipsos-Insight provides custom and tracking research to domestic clients as well as U.S.-based multinationals. Ipsos-Insight specializes in research for the Consumer Products, Technology & Communications, Financial Services, and Health industries, to name a few. It also acts as the portal to other Ipsos specializations including advertising research, forecasting, modeling, global research, public opinion research, and customer loyalty research. Let Ipsos-Insight client service representatives help you access more than 4,000 Ipsos research professionals and field staff located coast-to-coast, and around the world. To learn more, visit: About Ipsos Ipsos is a leading global survey-based market research group, with revenues of 538.5 million euros in 2002. It offers a full suite of research services, guided by industry experts and bolstered by advanced analytics and methodologies in advertising, marketing, public opinion and customer loyalty research, as well as forecasting and modeling. Member companies also offer a full line of custom, syndicated, omnibus, panel, and online research products and services. To learn more, visit: Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP

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