BRODEUR STUDY REVEALS TOP TECHNOLOGY PICKS FOR CONSUMERS IN 2005

Data Pinpoints Where Consumers Gather Information, What’s Confusing and How They’ll Shop For Electronics

BOSTON and LAS VEGAS, January 5, 2005 – Communications consultancy Brodeur today released results from a recent survey that puts Digital Cameras, DVD Recorders, HDTV, Digital Camcorders and Wireless routers/modems at the top of a list of more than 15 product categories consumers say they will buy in 2005.

The proprietary study of more than 2,500 Americans, conducted in November for Brodeur by Forrester Custom Consumer Research, probed Americans’ attitudes about more than 80 brands, 35 consumer electronics manufacturers, 20 cable/satellite and wireless service providers, a dozen online service companies and more than 15 retailers, both traditional and online.

“This study clears up many of the blind spots marketers have when trying to target communications to consumers about technology products and services,” said Michael Brewer, executive vice president, Brodeur. “We now have a much better picture of who exactly is going to buy all the new technologies out there, but more importantly, how they go about gathering information about technology. This will help us develop communications programs for our clients that have more impact in the market.”

Mass Confused?

The study follows the various sources consumers use to gather information about technology – from news articles to advertising to web sites to in-store interactions with retail sales people. It also identifies how confused consumers feel about nearly 20 activities considered every day use of technology. A “Confusion Index” created by Forrester for Brodeur puts the average consumer confusion at .277 on a zero to 1 scale with one representing “extremely confused.” The activities consumers find most confusing: adding memory to a digital camera and sending text messages from their mobile phones.

Nearly 50 percent of consumers who rate themselves as “extremely confused” say they have delayed the purchase of a new technology product by more than a year from the time they first considered it. While 20 percent of this group says they delayed their purchase because they were confused by it, 25 percent say they bought the product even though they were still confused.

“Consumers are still buying technology products even when they are confused about what the technology is and does,” said Brewer, “Establishing new communications techniques with the 30 percent of Americans who say that they learn how new technology works by ‘figuring it out themselves’ may provide marketers with a new way to convert sales and build brand loyalty.”

The Brodeur survey found that consumers may be tiring of learning about new technologies on their own. Fifty-two percent of the most confused said they would find professional in-home installation and training very helpful, indicating a strong market for manufacturers, retailers and service providers to offer after-market help. Even a full third of those who rank as the “least confused” say they would find in-home installation and training to be very helpful.

Where People Get Information

The survey also revealed several insights into consumers’ experiences shopping for and buying consumer technology products and services, for example: At Retail:

• Consumers perceive electronics stores as doing a much better job than specialty retailers at communicating information about technology, and a full 70 percent of consumers will tell friends if they have a bad experience with a retailer.

Among Consumer Electronics Categories:

• Consumers think wireless companies are better than cable providers at conveying information.

About Information Gathering:

• Advertising recall for consumer technology products is highest among internet portals; beating out other web sites (retailer, manufacturer, comparison and CE review sites), as well as all traditional forms of print media.
• However, local newspapers top even internet portals as the place consumers most often read articles about consumer technology.

On Specific Products:

• Consumers who say they plan to buy a DVD Recorder in the next twelve months are twice as likely to read articles about technology in home magazines and national newspapers, and 60 percent more likely to shop at specialty electronics stores.
• Those planning to buy an HDTV are four times as likely to read digital lifestyle magazines and nearly 2.5 times as likely to use manufacturers’ web sites and comparison shopping sites to learn about technology.
• Consumers who say they plan to buy a Digital Camera in 2005 are twice as likely to read women’s magazines.

For additional information, companies can call 1.800.BRODEUR or send an email to info@brodeur.com. Founded in 1985, Brodeur (www.brodeur.com) is a leading strategic communications group with offices and partners around the world. Brodeur specializes in public relations, marketing and corporate communications in sectors such as technology, finance, health care and consumer. Brodeur is a recent PR Week Agency of the Year, part of Omnicom Group Inc. (NYSE: OMC), and is headquartered in Boston, Mass.

Contact

Tracey Collins
Mirror Group Consulting
970.352.0888
traceyanncollins@gmail.com

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