Consumer Behavior - Changing Value Proposition

1. TiVo in 2002 : Consumer Behavior
– CASE ANALYSIS

2. Market
Stimuli
•Products and
Services
•Price
•Distribution
•Communicati
on
Other
Stimuli
•Economic
•Technologic
al
•Political
•Cultural
Consumer
Psychology
•Motivation
•Perception
•Learning
•Memory
Consumer
Characteristic
s
•Cultural
•Social
•Personal
Buying
Decision
Process
•Problem
recognition
•Information
Research
•Evaluation of
alternatives
•Purchase
decision
•Post-
purchase
behavior
Purchase
Decision•Product
choice
•Brand
choice
•Dealer
choice
•Purchase
amount
•Purchase
Timing
•Payment
method

3. Stimuli
Products and Services
• Standalone Blackbox
oSatellite TV
oCable TV
• Two-Tuner System
• Series 2
Price
$12.95 per month
bundled for PVR +
DirectTV
Distribution
Retailers: Best Buy
Communication
• Advertisements
• Gaps in
communication
while creating buzz
and awareness
Technological
• ‘Pauseplay’
•‘Trickplay’
• Statusbar

4. Consumer Psychology
Motivation
• Watch anytime
o Kids
o Social Gathering
• Content filtering
• Replay live events
Perception
Meant for
• Gadget freaks
• Upper middle
class and rich
Memory
• User logs(Perceived
Negatively)
Communication
• Advertisements
• Gaps in
communication
while creating buzz
and awareness
Technological
• ‘Pauseplay’
•‘Trickplay’
• Statusbar

5. Consumer Characteristics
Cultural
• Nuclear Families
• Working households
• Habits governed by
TV viewing
Social
• Marital Status
• Age
• Education
• Income
Personal
• Activities
• Interests

6. Buying Decision Process
Problem Recognition
• Consumer missing TV
Programs due to busy
Schedule.
• Dependent on TV schedule
• Content filtering
• Absence of online channels
Alternatives
• Satellite TV
• Cable TV
• Replay TV
Purchase Decision
• Easy to use
• Flexibility
• Positive word of
mouth
• Product Features
• Price
Post Purchase
Behavior
• Satisfaction level
• Evangelism
• Subscription renewal

7. Problems
•Slow start
•Disparity between survey report & Actual Growth
•Financial Problems – Overall Net Loss
•Narrow Profile of Subscribers
•Pricing
•Perceived risk of new entrants

8. Proposed Solutions
• Survey target should also include non-buyers
• Product diversification / penetration
• Free Trials
• Referral Bonus
• Collaboration with Sports Café