Consumers confused by HDTV

[Gregg Lengling]

Ipsos-Reid Survey Says
Technologies With Clear Benefits Will Win This Holiday Season

Edited by Charlie White
 
  NEW YORK, Nov. 27, 2002 -- According to market research firm Ipsos-Reid, technologies such as HDTV have many consumers confused. Also, findings from a recent Ipsos-Reid survey show that consumers may be holding their purse strings much tighter this holiday shopping season than last, making larger items less feasible.

While the industry estimates that over 4 million HDTVs have been sold so far in the U.S., new demand for this item and related home theater products seems to be relatively limited among the broad population. Tom Neri, President of Ipsos-Reid Marketing Research in the U.S. attributes part of this lack of demand to the industry's struggle to communicate the value and benefits of getting HDTV right now. "Given that an integrated roll-out of the hardware, programming, and broadcasting for high-definition television has not yet occurred, HD-ready TV manufacturers are understandably challenged in persuading consumers of HDTV's worth at this time."

The Ipsos-Reid survey found that about three-quarters (74%) of Americans are aware of HDTV. But of those who are aware, only 10% are "very familiar" with it and 36% are "somewhat familiar". Meanwhile, the largest percentage of consumers who are aware of HDTV "have heard of HDTV but don't know anything about it" (54%).

Even respondents who said they are familiar with HDTV (46%) are confused about some of its features and benefits (see table on next page). They believe that the HDTV set delivers a great picture (90% "agree"), that HDTV comes with digital quality surround sound (84%), and that they get to watch content on a full widescreen picture (86%). The problem is that they're not sure how they might actually receive HDTV programming. Sixty percent of those who said they are familiar with HDTV said they think they'd need a special set-top or converter box; but 29% don't think they would. Forty-eight percent think that HDTV signals are widely available; but 41% disagreed.

Wireless cellular phones, digital still cameras, and DVD players look poised for relative success this holiday season, according to Ipsos-Reid. Findings from the survey indicate that smaller-ticket items that have already attracted positive word-of-mouth will appeal to consumers who may be more cautious this season.

"It comes as no real surprise, given the economy now compared to the economy just two years ago, that the newness of a technology has become much less important than its practicality-the way it fits into a person's life, how easy it is to use, and whether its cost matches its perceived benefit," said Ipsos-Reid Marketing Research's Tom Neri. "Price will be an issue, but also important will be how well the benefits of a given technology have been communicated to the public. We're already seeing this in some of the early-season sales figures that have been released."