Why We Buy: Motivations for New TV Purchases
The final post in our display series examines consumer buying patterns for new TVs and what motivates them to pull the trigger on a new flat screen.
To conclude our display survey series, I will focus on consumer buying behaviors for new TVs. In my earlier post, I discussed how events like the NFL Super Bowl or Lunar New Year often serve as a catalyst to upgrade one’s TV, but what else motivates consumers? It turns out it’s a combination of factors, ranging from price discounts to viewing behavior to newly-available technologies.
Surprisingly, in the U.S., buying behavior appears to be more price-driven, according to our survey. When asked what would influence consumers to make a new purchase, the largest portion (37%) of U.S. respondents said that “a special sale or great price” would be the greatest motivator. In China and India, a “new TV model, brand, or size increase” was the largest motivation (China 57%; India 28%). These sentiments combined with the current trend of high quality displays at consumer-friendly prices are expected to drive 4K UHD TV adoption to more than double, increasing to over 30 million units worldwide this year.
Another reason for buying a new TV is keeping up appearances and demonstrating one’s socio-economic status. A significant number of survey participants in India, China and the U.S. all agreed with the statements “I like to have the biggest television in the neighborhood” and “I like to purchase the newest technologies to show off to my peers.”
How consumers access video content is another interesting variable that comes into play, as more consumers stream video and TV programming on mobile devices. Three-fourths (78%) of Americans and Indians (75%) agreed with the statement, “I watch a lot of TV, movies and streaming videos on my mobile device,” compared to only 41% of Chinese consumers.
Considering this, some consumers may purchase a tablet instead of a new flat-screen TV. For example, tablets have become a second television according to 85% of the respondents in China and 80% in India. This trend has not caught on as strongly in the U.S., where just 51% reported using their tablet as a second TV. U.S. households typically have three times as many flat screen TVs and watch more hours of television per day than India or China.
This shift in how TV content is consumed can be attributed to several factors, including:
- Explosive growth rates in residential broadband installations. A report from the White House indicates that 94% of U.S. homes now have broadband bandwidth to stream HD video. Broadband is also readily available in China and quickly gaining adoption in India, which saw a CAGR of 117% between 2005 and 2010.
- Widespread availability of Wi-Fi. Recent reports show 61% of U.S. homes now have Wi-Fi. In China, 80% of Wi-Fi traffic is consumed by online video. And in India, while availability may be limited, Wi-Fi demand remains high – it’s even a campaign promise in governmental elections.
- Streaming video services. Services like Netflix (more than 57 million subscribers globally) or Amazon Prime, offer agnostic mobile apps for both Android and iOS and are growing. Similar services are also gaining popularity in India.
Regardless of how content is consumed, one thing is for sure: Applied Materials will continue to enable the amazing state-of-the-art displays that consumers demand.
What do you look for when shopping for a new TV?