2. Comparison of
User Perceived Value:
Apple TV Vs. Google TV
28th February 2012
Business Intelligence
Technology Evaluation (BITE) Team 8A:
Ahmed Ali Asad
Umer Shaheen Malik
Syed Sohail Javaad
3. Our Objective
โข To perform a head-to-head comparison of
Google TV vs Apple TV with a focus on 'user-
perceived value'
โข Methodology for planning, gathering and
summarizing the end-user evidence
โข Analysis
3
5. Google TV
โข Available as a stand alone device and integrated with major TV brands like
SONY
โข Supports up to 1080p resolution
โข Wi-Fi, Ethernet, HDMI and Blu-ray player
โข Picture-in-Picture (PIP)
โข Wireless controller
โ QWERTY based keyboard
โ Android devices and IPhones
โข Android based (open source) platform
โข 5.1 and 7.1 audio supported to give a real surround sound experience
โข Supports One Touch DVR recording
โข Browser with full HTML and flash support
โข Costs around USD 400
5
6. Apple TV
โข Launched in March 2006; 2nd Generation introduced in 2010
โข No hard drive; but cloud based storage available
โข AIRPLAY and Mirroring technology
โข Wi-Fi, Ethernet, HDMI port and โstylishโ wireless controller
โข Smaller size with iPhone as remote control
โข Ad-free HD 720p movies and TV shows from iTunes
โ Rental from ITunes: For an HD movie from iTunes - 4.99 USD and a TV
show 0.99 USD
โข Music and Pictures can be accessed through icloud or other iOS devices
โข Apps for YouTube, Vimeo, Flickr
โข Apple TV does not support Flash
โข Cost: USD 100
6
8. User Perceived Value
โข โconsumerโs overall assessment of the utility of a product
(or service) based on perceptions of what is received and
what is given.โ (Zeithaml, V. A. 1988)
โ Implies: โQualityโ and โPriceโ
โข โsuperior value to the buyer in terms of product quality,
special features, or after-sale service.โ (Porter, M. E.
(1990))
โ Implies: User perception is much more than quality and price
โข A four-dimensional conceptualization of user value is
adapted from other studies (Sweeney Jillian C, S. G.
(2001); Wang Yonggui, L. H.-P. (2004); Zeithaml, V. A.
1988); and applied to internet TV
8
9. User Perceived Value: Dimensions
Functional
The utility a market offering provides through its expected
performance and perceived quality
9
10. User Perceived Value: Dimensions
Economic
The utility an offering provides in proportion to
the overall costs
10
11. User Perceived Value: Dimensions
Emotional
The utility an offering creates through feelings
or affective states
11
12. User Perceived Value: Dimensions
Social
The utility a market offering provides through
its ability to enhance the individualโs social
self-concept
12
13. Methodology
โข Approach used by Sweeny and Soutar (2001)
โ Focus groups for variable identification for measuring
User Perceived Value
โ Survey administration
โ Use of statistical techniques (Principal Component
Analysis) for identifying four dimensions for measuring
perceived value:
โข Functional
โข Emotional
โข Economical
โข Social
13
14. Our Methodology โ Step 1
Variable selection:
โข Used Internet Research for identifying variables
โข Examined about 3000 comments from:
โ Selected YouTube videos of Apple and Google TV
โ Selected blogs from websites like wired.com, pcmag.com
โข From these comments, identified about 40 different
aspects that the users valued
โข Converted these 40 aspects into 17 variables
14
15. Variables
Var 1 Overall this product is value for my money
Var 2 The content on this product is going to be very expensive
Var 3 This device is expensive
Var 4 Superior design
Var 5 Overall content being offered is great
Var 6 Faced/likely to face technical problems
Var 7 I will buy this product because I like this company
Var 8 Portability - Seamless Integration with other home devices
Var 9 Adequate live TV programming is available
Var 10 Open source / Software portability
Var 11 Better quality and performance
Var 12 This product is more like a real TV
Var 13 This product is more like a computer; I can do anything that I want to do
Var 14 This product is easy to use
Var 15 This device has more features
Var 16 It is cool to own this product
Var 17 I want this product because this company is a leader and an innovator
15
16. Methodology โ Step 2: Survey
โข Questionnaire:
โ Likert Scale (1-5): 1 strongly disagree and 5 strongly
agree
โ Respondents were asked:
โข To rate their preferences for Apple TV and Google TV
โข To identify their intent of purchase
โ Apple TV, Google TV or Other Product
โ No personal information was collected
16
17. Methodology โ Step 2: Survey
โข Survey Administration:
โ In store: selected randomly across Ontario
โ Respondents who showed their interest in either
Apple TV or Google TV were approached before they
left
โ 200 responses were gathered
17
18. Methodology โ Step 3: Analysis
โข Data Analysis
โ Basic Statistics
โ Principal Component Analysis (PCA) to identify
underlying factors
โข PCA is a an statistical technique that identifies underlying
dimensions based on correlations within variables
โข First PCA was done using SPSS software to identify and
verify dimensions related to user perceived value;
separately for Google and Apple TV
โข Then PCA was performed on combined responses to
identify product-related trends
18
19. Results: Basic Statistics for Apple TV
I want this product because this company is a leader and an innovator
It is cool to own this product
This device has more features
This product is easy to use
This product is more like a computer; I can do anything that I want to do
This product is more like a real TV
Better quality and performance
Open source / Software portability
Live TV programming is available
Portability - Seamless Integration with other home devices
I will buy this product because I like this company
Faced/likely to face technical problems
Overall content being offered is great
Superior design
This device is expensive
The content on this product is going to be very expensive
Overall this product is value for my money
0 5 10 15 20 25 30 35 40 45
Strongly Agree Agree Neutral Disagree Strongly Disagree
19
20. Results: Basic Statistics for Google TV
I want this product because this company is a leader and an innovator
It is cool to own this product
This device has more features
This product is easy to use
This product is more like a computer; I can do anything that I want to do
This product is more like a real TV
Better quality and performance
Open source / Software portability
Live TV programming is available
Portability - Seamless Integration with other home devices
I will buy this product because I like this company
Faced/likely to face technical problems
Overall content being offered is great
Superior design
This device is expensive
The content on this product is going to be very expensive
Overall this product is value for my money
10 20 30 40 50 60
Strongly Agree Agree Neutral Disagree Strongly Disagree
20
21. Results: Intent to Purchase
Apple TV Other
29% 16%
Will not buy
any thing
15%
Google TV
40%
Almost 16% said that they will buy other devices like Xbox, Wii, PS, Boxee
etc
21
23. Results: PCA for Apple TV
Variance
Variable Component Explained
Overall this product is value for my money
The content on this product is going to be very expensive Economic 11.6%
This device is expensive
Superior design
Overall content being offered is great
Emotional 16%
Faced/likely to face technical problems
I will buy this product because I like this company
Portability - Seamless Integration with other home devices
Adequate live TV programming is available
Open source / Software portability Functional 23%
Better quality and performance
This product is more like a computer; I can do anything that I want to do
This product is more like a real TV
Personal 11.2%
This product is easy to use
It is cool to own this product
Social 8.6%
I want this product because this company is a leader and an innovator
23
24. Perception: Apple TV
โข Functionality is most important
โข Has an emotional attachment with apple
โข Attaches equal importance to personal and
economic reasons
โข Economic reasons are at a lower level
24
26. Results: PCA for Google TV
Variable Component Variance
Explained
Overall this product is value for my money
The content on this product is going to be very expensive Economic 14%
This device is expensive
Superior design
Overall content being offered is great
Emotional 16.2%
Faced/likely to face technical problems
I will buy this product because I like this company
Portability - Seamless Integration with other home devices
Adequate live TV programming is available
Open source / Software portability
Better quality and performance
Functional 33%
This product is more like a real TV
This product is more like a computer; I can do anything that I want to do
This product is easy to use
This device has more features
It is cool to own this product
Social 9.4%
I want this product because this company is a leader and an innovator
26
27. Perception: Google TV
โข Functionality is most important
โข Showed an emotional attachment with Google
โข Attached more importance to economic reasons
as compared to Apple users
โข Social reasons are at a lower level
27
28. Results: Comparison*
Google TV Apple TV
Variable Disagree Neutral Agree Disagree Neutral Agree
Overall this product is value for my money 65 34 - 5 31 64
Economic The content on this product is going to be very expensive 64 35 - 4 35 62
This device is expensive 7 32 60 78 18 5
Superior design 69 30 - - 35 66
Overall content being offered is great - 18 82 34 33 34
Emotional
Faced/likely to face technical problems 16 36 47 70 30 -
I will buy this product because I like this company 38 33 28 - 13 87
Portability - Seamless Integration with other home devices 100 - - - 39 62
Live TV programming is available - 47 53 63 38 -
Open source / Software portability - - 100 82 18 -
Better quality and performance 48 40 11 - 36 64
Functional This product is more like a real TV 78 21 - 12 15 74
This product is more like a computer; I can do anything that I want to do - 39 60 77 23 -
This product is easy to use - 38 62 6 45 50
This device has more features - 33 67 43 26 32
It is cool to own this product 31 39 29 - 28 72
Social I want this product because this company is a leader and an
68 32 - - 14 87
innovator
*1-5 scale transformed to 1-3 scale for better comparison; comparison based on
Principal Component Analysis of combined cases 28
29. Perception about Apple TV
โข Functionality is most important:
โ Quality and performance of Apple TV is better
โ It integrates well with other (Apple) home devices (probably Airplay)
โ While the device has less features, it is more closer to TV and is easier to
use
โ Adequate live programming is not available
โข Has an emotional attachment with apple
โข Apple TV has superior design and they are less likely to face technical problems
โข And they will buy this product because they like Apple brand!
โข Economic reasons are at a lower level but think that:
โ Apple TV is value for money!
โ While the device is not expensive the content is!
โข It is socially cool to own this device
โข Want Apple TV because the company is a leader and innovator!
29
30. Perception about Google TV
โข Functionality is most important
โ The device is like a computer with more features
โ It is easier to use
โ Software is open source and more live TV content can be accessed (probably
because of HTML and Flash)
โ But the device may not be superior in quality and performance
โ The device is not portable with other home entertainment devices
โข Showed an emotional attachment with Google
โ Content is better than Appleโฆ
โ โฆbut design is not great and they are more likely to face technical issues
โ Brand โGoogleโ is less likely to play a significant role in purchase decision
โข Attached more importance to economic reasons as compared to Apple users
โ More people thought that the device is very expensive but the content is not!!
โ However, two-third think that the device is not value for money (and one third
remained neutral)
โข Social reasons are at a lower level
30
31. Apple TV Vs Google TV
โข Apple is a stronger โbrandโ than Google
โข Apple TV is more likely to perform better than
Google TV
โข Apple TV is more like a TV but Google is more like
a computer (strategic intent!!)
โข The cost of content (software, movies, TV shows
etc) on Apple TV is more than Google TV
(probably Google will be free!!)
31
32. What Google is doing?
โข Released Improved version 2.01
โข Updating its TV Software2
โข Will shortly release its new app for You Tube3
โข Partnering with more TV manufaturers4
โข There are even โrumorsโ that Google is introducing
new hardware changes (Tungsten) that would serve
as a hub for integrating all Android devices5
1. http://techcrunch.com/2011/11/03/google-tv-v2-review-its-getting-closer/
2. http://www.bloomberg.com/news/2012-01-12/google-readies-next-version-
of-tv-software-for-2012-release.html
3. http://googletv.blogspot.com/
4. http://www.forbes.com/sites/elizabethwoyke/2012/01/10/lg-on-google-tv-
beating-samsung-and-sales-targets-for-oled-tv/
5. http://www.pcmag.com/article2/0,2817,2400159,00.asp 32
33. Recommendation โ 1:
โข Steps in the right direction
โข But Google need to spread the word better!!
โข Improve availability of in-store device
information
โข Improve brand image
โข Reduce cost and improve perceived economic
value!!
33
34. Recommendation โ 2:
โข TV live (and time-recorded) content will be the
most important factor in the war of IP-TVs
โข becauseโฆ
34
35. Market Analysis: TV Viewing US
Source: http://www.slideshare.net/genarobardy/nielsen-crossplatform-report-q1-2011
35
36. Market Analysis: US
Source: http://www.slideshare.net/genarobardy/nielsen-crossplatform-report-q1-2011
36
37. A Threat and a Weakness:
โข Huge opportunity for Google in TV
Market butโฆ.
โข Only about 50% of the respondents think
that adequate live TV programs are
available on Google TV as compared to
Apple TV
โข Worse: About ยพ of respondents think
that Apple is more like a TV as compared
to Google
37
38. Recommendation - 2
โข Content is the KEY!!!1
โข Google TV just canโt rely only on You Tube
โข It has to enter into strategic partnerships with
(major) studios for live content including sports
โข But it might not be an easy task2
โข More importantly it has to use its core
competency (aka โAdSenseโ) and provide ad-
free content to consumers at even lesser cost
than Cable TV or (or even Apple TV)
1. http://www.pcmag.com/article2/0,2817,2364068,00.asp
2: http://www.wired.com/epicenter/2011/02/cable-google-tv-revolution/
38
39. Recommendation - 3
โข Remember: Almost 15% of respondents
think that they will buy other devices
(Xbox, Wii, Play Station)
โข Gaming is important too!!
โข Consider strategic partnerships with
gaming companies too
โข Provide Gaming hardware too but only
as an add-on option
39
40. Work Cited
Porter, M. E. (1990). The competitive advantage of nations. New York: MacMillan
Press.
Sweeney Jillian C, S. G. (2001). Consumer perceived value: The development of a
multiple item scale. Journal of Retailing, 77(2), 203-220.
Wang Yonggui, L. H.-P. (2004). An Integrated Framework for Service Quality, Customer
Value, Satisfaction: Evidence from China's Telecommunication Industry. Information
Systems Frontiers, 6(4), 325-340.
Zeithaml, V. A. (1988, July). Consumer Perceptions of Price, Quality, and Value: A
Means-End Model and Synthesis of Evidence. The Journal of Marketing, 52(3), 2-22.
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