Consumer Behavior Analysis
| Published in Papers
Slingbox.com
Excerpted from a consumer behavior, product analysis, and market strategy report:
In order to formulate a mainstream market strategy for the Slingbox, one must first understand current media consumption habits, specifically with respect to television and Internet usage, in addition to trends related to purchasing, placeshifting, and multi-tasking.
TELEVISION AND INTERNET CONSUMPTION
While broadcast television programming shows no sign of obsolescence, the rapid expansion of cable programming, combined with the emergence of the Internet, provides consumers with more entertainment options than ever. The U.S. Census Bureau’s Statistical Abstract, released in early 2007, reports that Americans will spend 65 days this year in front of the television and over a week on the Internet, an increase of 2.5 days across both mediums from 2006. Slingbox marketers should be aware of growing television and Internet usage in order to more effectively convey the value of the product.
PURCHASING HABITS
The cable and satellite television markets have become increasingly competitive over the past few years. Offerings sold by both types of providers have expanded in breadth to include more extensive channel line-ups, premium channels, digital and hi-def options, and communications services, such as broadband Internet and telecommunications plans. The practice of combining such services under one umbrella provider is known as ‘bundling’. Through bundling, cable and satellite providers can attract more customers and sell more services to existing customers; customers, in turn, can reap the benefits of a single payment and potential savings. Slingbox may capitalize on new distribution channels should consumers elect to purchase bundled services in growing numbers.
PLACESHIFTING
The emergence of placeshifting, the practice of watching live or recorded media on a remote device with Internet capability, further demonstrates the high level of demand for digitally distributed media. One in ten consumers currently watches television broadcasts via the Internet. ABC, in particular, reported 30 million “starts” (viewers who clicked on a show to view at least the beginning) last fall. While 30 million viewers on the Internet pales in comparison to the number of viewers tuning in to traditional broadcasts every week, the statistic indicates that consumers are more than willing to watch television on their personal computers.
Despite the emergence of placeshifting, broadcast television ratings reached an all-time high last year. It can be inferred that digital distribution channels are merely supplementing consumers’ traditional television viewing habits. The marketers of Slingbox should plan accordingly and cater to the audience already embracing the practice of placeshifting.
MULTI-TASKING
As consumers demand and absorb information from an increasing number of media sources, they often do so in concert with other activities. An eMarketer survey estimates that a total of 25-30% of total media time is spent multi-tasking. Of the potential multi-tasking activities surveyed, Internet users are most likely to watch television simultaneously—an estimated 103 million of 147 million adult internet users watched TV while they went online last year. The Slingbox was designed to cater to multi-taskers: the product allows one to multi-task both within and away from the computer desktop.
A thorough understanding of the current media landscape lays the foundation for in-depth consumer research and further analysis, with the ultimate goal to increase the awareness of Slingbox and communicate its value.
– Developed as part of a Consumer Behavior course, University of Michigan.