SOURCE: DigitalAdvisor

November 19, 2007 09:03 ET

Survey: HDTV Buyers Expect to Pay Over $1500 for Their TV and Accessories

Survey Also Finds Procrastination Among Buyers - "Timeframe to Buy" Grows Longer as Holidays Approach

CAMBRIDGE, MA--(Marketwire - November 19, 2007) - DigitalAdvisor.com, a research site for consumer electronics, announced today the results of a new survey on HDTV buying trends. Conducted online at DigitalAdvisor.com, the survey sought to determine in what timeframe would-be buyers expected to make a purchase, what they expected to spend, and which factors were most important in their decision-making process.

1895 responses were received in total over three separate survey periods: Sept. 11-16, 2007; Oct. 3-9, 2007; and Oct. 24-29, 2007.

Conclusions from the survey:

--  HDTV buyers expect to pay $1440, on average, for their television and
    plan to spend an additional $88 on extras such as extended warranties,
    installation and upgraded cable service.
--  Buyers plan to purchase 1.7 extras on average.
--  The most important factors in their decision-making process were:
    Specifications (38.5 percent), Price (26.3 percent) and Size (19.3
    percent). Only 5.3 percent of respondents identified Brand as the top
    consideration.
--  Just over half of would-be buyers (50.8 percent) reported already
    having HDTV cable service - which means big upside for cable operators, as
    most of the remaining respondents would presumably upgrade to HDTV service
    after purchasing their new televisions.
--  It appears consumers' purchase timelines are lengthening rather than
    shortening as the holidays approach. The number of respondents planning to
    buy within one week shrank from 40 percent in the Sept. 11-16 period to
    just 31 percent in the Oct. 24-29 period.
    

Aside from shortening purchase timelines, no other significant trends emerged among the three time periods, so all other figures are averages over the entire survey period.

Consumers are under-budgeting for extras, and delaying their purchases

"Three things jumped out at me as we analyzed the survey data," said DigitalAdvisor expert Mike Brady. "The first is how low expectations are for the cost of extras like warranties, cables, installation and HDTV cable service -- you'd be hard pressed to find pricing that low. We think consumers will be disappointed on that front. The second surprise was we'd expected purchase timetables to accelerate as the holidays approached -- that we'd see more of a sense of urgency. Instead, it seems like buyers are procrastinating more and more, perhaps hoping to see some last-minute deals between Thanksgiving and Christmas."

But spending plans holding steady even as holidays approach

The third surprise, according to Brady, was that consumers' price expectations held steady throughout the seven-week survey period. "I would have expected price expectations to go down throughout the fall, as retailers promoted heavily on price before the holidays," said Brady. "It bodes well for retailers and manufacturers that spending plans have held firm."

Full details of the survey are available at www.DigitalAdvisor.com.

About DigitalAdvisor LLC

Digital Advisor LLC is a privately owned company that runs DigitalAdvisor.com and DigitalCamera-HQ.com, two online resources that offer unbiased information and recommendations for consumers making consumer electronics purchases. The sites combine the efforts of editors, owners and professional reviewers around the web to give buyers a complete, unbiased review of each product. DigitalAdvisor LLC is based in Harvard Square, Cambridge, Mass. More information can be found at www.DigitalAdvisor.com and www.DigitalCamera-HQ.com.

Note to editors: Mike Brady from Digital Advisor is available for one-on-one interviews to provide advice on holiday shopping for consumer electronics. Mike can be reached at mbrady@digitaladvisor.com.

DigitalAdvisor is a trademark of DigitalAdvisor LLC in the United States and other countries. All other trademarks contained herein are the property of their respective owners.

Contact Information

  • For information, contact:
    Michelle G. Faulkner
    Big Swing Communications
    (617) 510-6998
    Email Contact