Commentary

Mass And Discount Retailers Top Tech Shopping

According to Scarborough Research, examining households planning holiday purchases of HDTVs, Smartphones and MP3 players, Best Buy and Walmart are neck-and-neck for household technology shopper penetration.

Scarborough's analysis of retail data shows that 40% of households planning purchases of HDTVs, Smartphones or MP3 players shopped Best Buy for home technology products during the past year, and:

 

  • 39% shopped Walmart
  • 23% shopped Target
  • 12% shopped Radio Shack
  • 10% shopped Sam's Club
  • 10% shopped Sears
  • 9% shopped Kmart
  • 9% shopped Costco

 

Gary Meo, senior vice president of digital media services, Scarborough Research, notes that  "... mass retailers, and even discount retailers... all are important in the home technology ecosystem... "

Scarborough Research focused its home technology shopper analysis on consumers planning HDTV, Smartphone or MP3 player purchases because the firm's data shows a sharp increase in household ownership of these items since 2007. During this timeframe HDTV tripled, Smartphones and MP3 Players doubled.

Technology Penetration (% of Households, except cell phone: Individual)

Technology

2007 Penetration

2010 Penetration

% Increase

HDTV

16%

48%

200%

Smartphone

7

14

100

MP3 player

18

36

100

Cell phone

70

82

17

Monthly cell phone bill (over $150)

5

10

100

Broadband (cable modem or DSL)

45

61

36

DVR

26

34

31

Source: Scarborough Research, November 2010

Mr. Meo points our the importance of localism in examining technology adoption: "... across 77 major local markets... local penetration households that own one or more MP3 players... range from a high of 53% in Salt Lake City to a low of 29% in Ft. Myers, Little Rock, West Palm Beach, and Harrisburg... localism is an important attribute when creating targeted marketing campaigns... "

Almost three-fourths of adults now access the Internet, as broadband penetration in the home has increased from 45% in 2007 to 61% in 2010.

 

  • DVR adoption in the home also increased from 26% in 2007 to 34% in 2010.
  • 82% of American adults now use a cellular phone, compared to 70% in 2007. But, while device ownership is flattening, spending is increasing.

 

10% of U.S. adults spent $150 or more monthly on cellular services in 2010.

When it comes to emerging digital trends and technologies, Scarborough plans to track adoption of several new technologies and services on a local and national basis. New measurements include:

 

  • Hulu: 7% of Internet users visited Hulu during the past month
  • E-Readers: Nationally, four million households (nearly 4%) currently own or plan to buy an e-reader device
  • Instant Messaging: 25% of Internet users IM'd during the past month
  • Social Networking: 40% of Internet users used a social networking site during the past month
  • Online Gaming: 14% of Internet users downloaded or played video games online during the past month

 

Wireless phone feature usage: 51% of wireless users texted on their cell phones; 16% emailed; Nine% accessed a map or GPS navigation service

Please visit Scarborough Research here for additional information and the PDF file of the study.

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