5 technology consumers to watch, frontiers 2008, colby & molina

Rockbridge Associates, Inc.www.rockresearch.com

Five Technology Consumers to Watch:

Consumer Technology Purchase Behavior by Gender, Ethnicity and Age

Presented to:

October 30, 2004

13th Annual13th AnnualFrontiers in Services ConferenceFrontiers in Services Conference

Presented by:Charles Colby & C. Mariel Molina

Rockbridge Associates, Inc.


Background

Sponsored by the Consumer Electronics AssociationConducted by Rockbridge Associates, Inc.Telephone Survey of 1522 Households in November 2003, including over-samples of:– African Americans – Hispanic Consumers (Spanish translation)– TeensAlso analyzed samples of Women and Seniors (Random-digit-dialing)


Thanks to CEA

CEA has generously allowed us to share the findings from this study at FrontiersThe complete report is available free to CEA membersNon-Members can purchase the report through www.ebrain.com


Overview

Technology SegmentsDifferences by GroupsHighlights on:– Women– African Americans– Hispanics– Teens– SeniorsImplications for Managers and Researchers


CE Technology Personas

All consumers can be categorized into one of 5 Technology Personas based on beliefs*

Confident, innovative, biggest users of CE products

Sophisticated, careful shoppers, big users of information technologyConstrained by

lack of $ and lack of confidence

Moderate users of CE, brand conscious

See no benefit to CE

*Principal Components Technique

Tech-Savvy22%

Potential Converts

16%

Repressed21%

Tech-Resistors

20%

Tech-Optimists

21%

Five Technology Personas


Age is a Major Correlate of Tech Beliefs

17 22 17

38

9

21

2824

29

19

19

1825

22

22

21

15 19

6

22

2416 16

5

28

0%

20%

40%

60%

80%

100%

Females African-Americans

Hispanics Teens Seniors

Tech Resistors

Potential Conv

Repressed

Tech-Savvy

Tech Optimists

Most Common Segment

Resistors Tech-Savvy

Repressed Tech-Optimists

Resistors


Connectivity by Segment

Home Internet Access by Demographic Group

61% 59%

45%40%

45%

84%

All Adults(18+)

Householdswith Women

AfricanAmericans

Latinos Seniors Teens

Another measure of techno-readiness is connectivityThis study is consistent with anecdotal evidence and other research


Ownership by Segment

CE Ownership Index (100 = Average)

10091 91 85

72

146

All Adults(18+)

Householdswith Women

AfricanAmericans

Latinos Seniors Teens

Ownership varies most by ageOther markets have latent potential, particularly as they grow in income and connectivity


The Women Market for Consumer Technology


Common Ground with Men

Common Beliefs between Women and Men about Technology

- % Agreement with Statement -

69%

85%

90%

65%

84%

88%

Technology has the potential to help peopleovercome economic and social

disadvantages

New technology gives you access toinformation that improves your life

Electronic technologies designed forentertainment are also a good medium for

learning new things

WomenMen

Women and men both see consumer technology as a tool for learning and a positive social force


Differences from Men

Important Differences between Women and Men in Beliefs About Technology

- % Agreement with Statements -

49% 46%30%

56%68% 68%

43%65%

You often ask lots ofpeople you know for

advice whenpurchasing

electronics products

You can usuallyfigure out new high-

tech productswithout help from

others

You enjoy thechallenge of figuring

out high-techgadgets

Other people cometo you for advice onelectronics products

WomenMen

Women are more prone to seek adviceThey are less interested in taking technology apart


CE Purchase Patterns for Women

When they buy CE, women stress:– Reliability (so do men)– Price (more so than men)– Ease of Use (more than men)Women care more about warranties, space, portability and stylingWomen want to avoid wires in entertainment productsThey care more about sound quality in communications productsWhen they buy CE, they depend more on friends and family for information than men


The African-American Market for

Consumer Technology


Common Ground with the General Population

Common Beliefs between African-Americans and the General Population about Technology


75%

84%

89%

75%

85%

88%

You do a lot of price shopping when buyingelectronics products



learning new things

AfricanAmericans

All Adults

Like other Americans, African Americans do a lot of price shopping for CE


Differences from the General Population

Important Differences between African-Americans and the General Population


80% 76%

46%

69% 64% 65%

36%

85%

Entertainment products, suchas TV, create opportunitiesfor families and friends to

spend time together

New security technologiesmake you feel a lot safer

Electronic entertainmentproducts, like TV and games,

help you relieve stress

Other people come to you foradvice on electronics

products

African AmericansAll Adults

African Americans see more potential for electronic entertainment to bring together families and reduce stress


CE Purchase Patterns for African Americans

When African Americans buy CE, their top priority is a good warranty (much more important than to other groups)– They also emphasize price, reliability, ease of

repair and a trusted brand nameAfrican Americans care more than others about CE not taking up a lot of space and being portableAfrican Americans are more interested in interactivity in entertainment productsWhen they shop for CE, they rely much more than others on in-store sources such as package info, displays and salespersons


The Latino Market for Consumer Technology


Common Ground with the General Population

Common Beliefs between Latinos and the General Population about Technology


69%

75%

76%

89%

71%

73%

78%

87%

Technology gives people more control overtheir daily lives

You do a lot of price shopping when buyingelectronics products

Technology gives you more freedom ofmobility


learning new things

Latinos

All Adults

Like other Americans, Latinos see the power of CE to educate and provide freedom


Differences from the General Population

Important Differences between Latinos and the General Population in Beliefs About Technology


49% 55% 48%71%69%

31%45% 40%

84%76%

Products that usethe newest

technologies aremuch more

convenient to use

In general, youare among the

first in your circleof friends toacquire new

When it comes toelectronics, you

prefer to buycomponents

individually rather

The companiesthat designelectronics

products havetrouble

New technologygives you accessto information thatimproves your life

LatinosAll Adults

Latinos believe “new” CE is more convenientThey perceive themselves as early adopters of CE


CE Purchase Patterns for Latinos

Latinos stress product warranties along with reliability and durabilityThey have as much faith in CE as other groups, but see a limit to its benefitsThey are less confident in their ability to use CECE beliefs, experiences, and ownership vary by degree of English/Spanish acculturation, gender and education


The Teen Market for Consumer Technology

13 to 17 Year Old Consumers


Common Ground with other Age Groups

Common Beliefs between Teen and the General Population about Technology


69%

84%

89%

68%

84%

87%

You find new technology to be mentallystimulating



learning new things

TeensAll Adults

Teens are similar to other age groups in their belief that CE is good for learning They find it equally stimulating


Differences from other Age Groups

Important Differences between Teens and the General Population in Beliefs About Technology


55% 52% 49%57%36%

69%

33%

75%



Other people cometo you for advice onelectronics products

You are able to getalong fine withoutmany electronicproducts other

people find essential

If you see a newelectronics productyou really like, youmay go ahead andbuy it right away

TeensAll Adults

Teens are more confident with technologyTo them, CE is a “necessity”


CE Purchase Patterns for Teens

Teens use CE to make a “personal statement”Teens have more confidence in their ability to use CE and in CE itselfTeens focus on price and reliability when purchasing CETeens have the highest purchase incidence and ownership of CE, particularly:– Audio products– Connectivity (Internet access)About half believe they have at least “equal” influence in CE decisions within their household


The Senior Market For Consumer Technology

Consumers Age 55+


Differences from other Age Groups

Important Differences between Teens and the General Population in Beliefs About Technology


41%69% 60%57% 59%

78%52%

39%



You can usuallyfigure out new high-

tech productswithout help from

others

You are able to getalong fine withoutmany electronicproducts other

people find essential

Advertisements forelectronics productsfail to communicateto you in a language

you understand

SeniorsAll Adults

Seniors are less interested in CEAdvertising does not speak to them


CE Purchase Patterns for Seniors

Top purchase priorities are reliability, ease of use, and warrantyProducts should not take up space or have lots of wires and connections Major information source for CE is recommendations from friends/familyOwnership and interest in consumer technology drops off steadily with age after 55The Issue: They lack interest in CE, but CE has the ability to improve their lives (e.g., sensory enhancements)


Implications for Research and Marketing


Important Segments

African Americans– EducationLatinos– Acculturation (Spanish Only, English

Only, Bilingual)Teens– 13-14, 15-17Seniors– 55-64, 65-74, 75+


Marketing Implications

Segment Communications themes

Channel/Product Issues

Women Electronic Hearth Relationship Channels

African Americans

Stress Reducer Warranties, in-store info

Latinos Family Connections Warranties, bilingual packaging

Teens Status, Necessity The Internet

Seniors Unrecognized Needs Reliability, simplicity

5 technology consumers to watch, frontiers 2008, colby & molina

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