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Report

September 2003

How To Sell Consumer Electronics
	Today, consumers buy devices based on price. But the coming wave of devices will give some manufacturers and retailers a way to differentiate. Device sellers will divide into two camps: discounters or teachers.
by Jed Kolko with Chris Charron, Sheila Baxter

CONSUMER LANDSCAPE

Only 17% of consumers buy devices on impulse.
Price influences retailer choice for 82% of consumers.

ANALYSIS

No retailer can compete on both price and advice.
Retailers must teach consumers by demonstration.

WHAT IT MEANS

Retailers consolidate.
Device brands choose semi-proprietary platforms.

Figure 1. Price Dominates The Consumer Device Purchase Process
Figure 2. Consumers Pick Different Retailers For Entertainment And Computing
Figure 3. Price Drives Consumers' Choice Of Retailer
Figure 4. Successful Device Retailers Polarize Into Discounters And Teachers
Figure 5. The Device Retailer Scorecard

Companies Interviewed For This Report
Related Research

ENDNOTES

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