The point-of-sale is often the best opportunity TV retailers have to influence buyers of accessories and service add-ons.
Port Washington, New York (PRWEB) December 13, 2011
With the holiday shopping season in full swing, TV deals are poised to get consumers buying and spending, but according to leading market research company The NPD Group’s TV Market Basket Study, closing the sale for accessories is an untapped opportunity for retailers. Nearly 20 percent of the total TV sales dollars are spent on accessory products. The report found that consumers spent $681 on a TV with an additional $135 on accessories for their TVs, but more than half of that accessory spending was done after the consumer left the store.
According to the study, $76 per TV is spent on accessories after the original sale. With just 38 percent of buyers returning to the same retailer for these purchases, TV sellers stand to miss out on a substantial amount of video accessory dollars if they don’t convert more purchases in-store.
“The point-of-sale is often the best opportunity TV retailers have to influence buyers of accessories and service add-ons,” said Ben Arnold, director of industry analysis at NPD. “After this time, the main box retailer is forced to compete with messaging and sale offers from other sellers vying for those dollars. To keep these sales in-house, retailers must use all of the tools at their disposal.”
One-in-three accessory buyers indicated store personnel were the most influential source of information in making their purchase, even more persuasive than in-store signage (15 percent) and recommendations from friends and family (10 percent).
“Better leveraging sales associates to help sell accessories could allow retailers to capture more of these purchases,” said Arnold.
Among those who purchased accessories at the time they bought their TVs, HDMI cables were the top accessory, followed by universal remotes. Consumers who purchased accessories once they left the store most often bought HDMI cables and Blu-ray players.
Price is the primary factor driving consumers elsewhere. In fact, half of shoppers do not buy from the original retailer because they can get accessories “cheaper from somewhere else”.
NPD’s recent Anatomy of Black Friday holiday shopping study affirms the strong consumer focus on value. Two-in-three shoppers who made a tech purchase on Black Friday specifically searched for deals on electronics prior to shopping and nearly half made a purchase that day because they were unlikely to find lower prices at a later time.
“I expect to see this quest for the lowest prices continue beyond the holiday season,” said Arnold. “As more consumers use sale and comparison shopping services, retailers will be challenged to match their competitor’s price or risk losing the sale altogether. The importance of converting a shopper already in your store then becomes paramount.”
This report is based on a follow-up online survey of nearly 1,100 consumers who recently purchased a television. Sample participants were identified as reporting a TV purchase in NPD’s Consumer Tracking Service survey; they were invited to complete this follow-up survey.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, entertainment, fashion, food, home and office, sports, technology, toys, video games, and wireless. For more information, contact us, visit http://www.npd.com/, and http://www.npdgroupblog.com or follow us Twitter at @npdtech and @npdgroup.