WESTLAKE VILLAGE, Calif., July 21 CA-J.D.-Power
WESTLAKE VILLAGE, Calif., July 21 /PRNewswire/ -- At a rate of more than
three to one, retail electronics salespersons are recommending liquid crystal
display (LCD) flat screen TVs instead of sets using plasma technology to
shoppers who are seeking to purchase big screen televisions (sets with screens
measuring 40 inches or larger), according to the J.D. Power and Associates and
Market Force Information 2008 Television Retail Insights Report(SM) released
today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
The report, produced jointly by J.D. Power and Associates and Market Force
Information, compiles the findings of more than 2,000 trained mystery shoppers
who shopped during the past six months. The mystery shopping research measures
the product knowledge of salespersons and investigates the types of
recommendations they make to customers.
"While we see that salespeople are aggressively pushing shoppers to LCD
sets, it is important for consumers to understand that plasma technology also
offers a number of unique advantages, not the least of which is that inch for
inch, plasma sets cost less than LCD sets," said Larry Wu, senior director of
the technology practice at J.D. Power and Associates. "In addition, compared
with most LCD sets, plasma TVs also display deeper blacks and show fast-moving
objects better."
The report finds that the high proportion of recommendations of LCD sets
is primarily due to retail salespersons' lack of knowledge regarding recent
improvements in plasma technology. For example, more than one-third (38%) of
salespersons told their customers that LCD sets last longer. Also, 37 percent
of salespersons warned their customers that images may be permanently burned
onto the screens of plasma TVs.
"Although burn-in was once a problem with the first plasmas to hit the
market, this has not been a serious issue for several years," said Wu. "In
addition, the durability of plasma sets is now on par with that of LCD TVs,
with many of today's plasma sets rated to operate for 50,000 hours or more
without failure."
While many salespeople focused on problems with plasma technology that
have already been resolved, most failed to tell their customers about some of
the advantages of LCD sets. Fewer than one-fourth of salespersons mentioned
that LCD sets weigh less, use less energy, and produce less heat than plasma
sets. In addition, salespersons often told customers about a current and
actual concern with plasma sets -- their shiny glass screens can reflect
unwanted light in brightly lit rooms (mentioned by 68% of salespeople).
Although LCD TVs are recommended much more often than plasma sets, the gap
is narrowing. The recommendation rate for plasma TVs increased from 17
percent in the first quarter of 2008 to 23 percent in the second quarter. In
addition, among salespersons who recommend LCD rather than plasma technology,
many are described as being less emphatic in their recommendation than they
were just three months ago.
"The growing rate of plasma recommendations means that plasma TV
technology is not likely to fade away anytime soon-as HD DVD technology did
recently in favor of Blu-ray Disc(TM) technology," said Wu.
During the second quarter of 2008, among LCD TV brands, Samsung and Sony
were recommended by salespersons 35 percent and 28 percent of the time,
respectively. Vizio sets were recommended approximately 7 percent of the time.
No other LCD brand received a recommendation rate of more than 2 percent.
Among plasma television brands, Panasonic was recommended by salespersons
37 percent of the time, while Samsung and Pioneer were recommended 14 percent
and 12 percent of the time, respectively.
"At most retail stores, large-screen television shoppers face an array of
flat panel sets that all look essentially the same to the untrained eye, which
is why recommendations from salespersons carry so much importance," said Wu.
"If customers have not established a clear brand preference by the time they
begin to shop, they are more likely to purchase the brand their salesperson
recommends."
The report finds that television shoppers are likely to encounter very
different levels of service and expertise, depending on the type of retailer:
a big-box electronics retailer (such as Best Buy or Circuit City); a specialty
television retailer (such as Ken Crane's, MyerEmco); a mass merchant (such as
Target or Wal-Mart); or a warehouse store (such as Costco or Sam's Club). On
average, specialty retailers provide more comprehensive and accurate answers
to shoppers' questions. Big-box stores also perform well in providing customer
service, but product knowledge tends to be less consistent among individual
salespersons. Salespersons at mass merchants, however, are often unable to
provide answers to basic technical questions or make definitive product
recommendations at a commensurate level, compared with other retail outlets.
"Television shoppers who visit mass merchants may be more concerned with
obtaining a low price and may not be seeking expert advice," said Wu. "However,
television shoppers should be aware that the lower prices they find at mass
merchants are primarily due to the fact that these stores tend to carry
second-tier brand TVs, rather than major brands such as Sony or Panasonic.
When pricing for a specific television model is compared at each type of
retailer, the prices are surprisingly similar. In addition, many specialty
retailers and big-box stores provide price match guarantees. Even though
shoppers may perceive that TV prices tend to be higher at certain types of
retailers, it is important that they consider shopping at retailers where they
can obtain product information and technical support that will allow them to
be comfortable with their purchase decision. High-definition televisions can
be complicated to set up and operate, which means that consumers should not
underestimate the importance of sound advice."
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually. For
more information on car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more, please visit JDPower.com. J.D. Power and
Associates is a business unit of The McGraw-Hill Companies.
About Market Force Information
Market Force Information, Inc. is the leading global customer experience
information and insights company for multi-location businesses including major
retailers, restaurants, grocery and convenience stores, financial institutions,
entertainment studios and consumer packaged goods companies. With over 120
years of combined industry experience, Market Force Information has pioneered
the industry with a suite of customer experience information solutions -- from
300,000 mystery shoppers, to real customer surveys, to expert evaluation --
that provides actionable insight into the customer's 'moment of truth' and
gives its clients a holistic view of their customer's in-store experience. For
more information, please visit: http://www.marketforce.com.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2007 were $6.8 billion. Additional information is available at
http://www.mcgraw-hill.com.
J.D. Power and Associates Media Relations Contacts:
John Tews Syvetril Perryman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119(805) 418-8103
john.tews@jdpa.comsyvetril.perryman@jdpa.com
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates
