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

Five Technology Consumers
Presented by:
Charles Colby & C. Mariel Molina
Rockbridge Associates, Inc.
13th AAnnnnuuaall
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www.rockresearch.com
to Watch:
Consumer Technology Purchase Behavior
by Gender, Ethnicity and Age
Presented to:
October 30, 2004

Background
Sponsored by the Consumer Electronics
Association
Conducted by Rockbridge Associates,
Inc.
Telephone Survey of 1522 Households
in November 2003, including over-samples
of:
– African Americans
– Hispanic Consumers (Spanish translation)
– Teens
Also 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
Frontiers
The complete report is available free
to CEA members
Non-Members can purchase the
report through www.ebrain.com

Overview
Technology Segments
Differences by Groups
Highlights on:
– Women
– African Americans
– Hispanics
– Teens
– Seniors
Implications 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
See no benefit
to CE
Five Technology Personas
Tech-Savvy
22%
Tech-
Resistors
20%
Constrained by technology
lack of $ and lack
of confidence
Moderate
users of CE,
brand
conscious
*Principal Components Technique
Potential
Converts
16%
Repressed
21%
Tech-
Optimists
21%

Age is a Major Correlate of
Tech Beliefs
17 22 17
38
9
21
28
24
29
19
19
18
25
22
22
21
15 19
6
22
24 16 16
5
28
100%
80%
60%
40%
20%
0%
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
Another measure of techno-readiness is connectivity
This study is consistent with anecdotal evidence and other research
Home Internet Access by Demographic Group
61% 59%
45% 40% 45%
84%
All Adults
(18+)
Households
with Women
African
Americans
Latinos Seniors Teens

Ownership by Segment
Ownership varies most by age
Other markets have latent potential, particularly as they
grow in income and connectivity
CE Ownership Index (100 = Average)
100 91 91 85
72
146
All Adults
(18+)
Households
with Women
African
Americans
Latinos Seniors Teens

The Women Market for
Consumer Technology

Common Ground with Men
Women and men both see consumer
technology as a tool for learning and a
positive social force
Common Beliefs between Women and Men about
Technology
- % Agreement with Statement -
69%
88%
90%
85%
65%
84%
Electronic technologies designed for
entertainment are also a good medium for
learning new things
New technology gives you access to
information that improves your life
Technology has the potential to help people
overcome economic and social
disadvantages
Women
Men

Differences from Men
Women are more prone to seek advice
They are less interested in taking
technology apart
Important Differences between Women and Men
in Beliefs About Technology
Women
Men
- % Agreement with Statements -
49% 46%
30%
56%
68% 68%
43%
65%
You often ask lots of
people you know for
advice when
purchasing
electronics products
You can usually
figure out new high-tech
products
without help from
others
You enjoy the
challenge of figuring
out high-tech
gadgets
Other people come
to you for advice on

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 styling
Women want to avoid wires in
entertainment products
They care more about sound quality in
communications products
When 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
Like other Americans, African Americans
do a lot of price shopping for CE
Common Beliefs between African-Americans and
the General Population about Technology
88%
84%
75%
89%
75%
85%
learning new things
You do a lot of price shopping when buying
African
Americans
All Adults

Differences from the
General Population
African Americans see more potential for
electronic entertainment to bring together
families and reduce stress
Important Differences between African-Americans and
African Americans
All Adults
the General Population
80% 76%
46%
69% 64% 65%
36%
85%
Entertainment products, such
as TV, create opportunities
for families and friends to
spend time together
New security technologies
make you feel a lot safer
Electronic entertainment
products, like TV and games,
help you relieve stress
Other people come to you for
advice on electronics
products

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 name
African Americans care more than others
about CE not taking up a lot of space and
being portable
African Americans are more interested in
interactivity in entertainment products
When 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
78%
76%
73%
75%
69%
89%
71%
87%
learning new things
Technology gives you more freedom of
mobility
You do a lot of price shopping when buying
Technology gives people more control over
their daily lives
Latinos
All Adults
Like other Americans, Latinos see the
power of CE to educate and provide
freedom

Differences from the
General Population
Latinos believe “new” CE is more convenient
They perceive themselves as early adopters
of CE
Important Differences between Latinos and the
General Population in Beliefs About Technology
Latinos
All Adults
76% 84%
69% 71%
49% 55% 48%
31% 45% 40%
Products that use
the newest
technologies are
much more
convenient to use
In general, you
are among the
first in your circle
of friends to
acquire new
When it comes to
electronics, you
prefer to buy
components
individually rather
The companies
that design
electronics
products have
trouble
New technology
gives you access
to information that
improves your life

Latinos
Latinos stress product warranties along
with reliability and durability
They have as much faith in CE as other
groups, but see a limit to its benefits
They are less confident in their ability to
use CE
CE 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
Teens are similar to other age groups in
their belief that CE is good for learning
They find it equally stimulating
87%
Groups
Common Beliefs between Teen and the General
Population about Technology
69%
89%
84%
68%
84%
learning new things
You find new technology to be mentally
stimulating
Teens
All Adults

Differences from other Age Groups
Teens are more confident with technology
To them, CE is a “necessity”
Important Differences between Teens and the
Teens
All Adults
57% 55% 52% 49%
36%
69%
33%
75%
You enjoy the
out high-tech
gadgets
Other people come
to you for advice on
You are able to get
along fine without
many electronic
products other
people find essential
If you see a new
electronics product
you really like, you
may go ahead and
buy it right away

Teens
Teens use CE to make a “personal
statement”
Teens have more confidence in their ability
to use CE and in CE itself
Teens focus on price and reliability when
purchasing CE
Teens 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
Seniors are less interested in CE
Advertising does not speak to them
Important Differences between Teens and the
57% 59% 69% 60%
Seniors
All Adults
41%
78%
39% 52%
You enjoy the
out high-tech
gadgets
You can usually
figure out new high-tech
products
without help from
others
You are able to get
along fine without
many electronic
products other
people find essential
Advertisements for
fail to communicate
to you in a language
you understand

Seniors
Top purchase priorities are reliability, ease
of use, and warranty
Products should not take up space or have
lots of wires and connections
Major information source for CE is
recommendations from friends/family
Ownership and interest in consumer
technology drops off steadily with age after
55
The 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
– Education
Latinos
– Acculturation (Spanish Only, English
Only, Bilingual)
Teens
– 13-14, 15-17
Seniors
– 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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