One In Six Consumers Will Pay For TV-Based E-Commerce Services

Is Current Consumer Demand Sufficient To Sustain The Market?

15-Feb-01

TechTrends, Inc. has found that only one-sixth of all cable and satellite subscribers are willing to pay a monthly fee for TV-based e-commerce (t-commerce) applications. TechTrends has published these findings as part of a detailed report that will guide companies to make the right decisions concerning features and pricing for t-commerce applications.This recent study, entitled ""TV-Based E-Commerce: An Investigation Of Consumer Interest, Pricing And Payment Preferences,"" examines critical issues and emerging trends in consumer demand for these leading t-commerce applications:- Investing and banking - Ordering groceries - Ordering restaurant meals for immediate delivery - Printing product information or coupons - Shopping for products typically found at retail stores The study explores factors that consumers consider when making t-commerce transactions, such as cost, convenience, security and ease of use. Additional analysis reveals consumers' preferred payment methods for TV-based transactions, including automatic billing to a cable/satellite statement, typing credit card information and smart card or credit card swiping. The primary benefit of the study is that it helps t-commerce service providers understand the differences in interest level and price sensitivity among specific categories of consumers.Some key findings from the study include:- The majority of consumers prefer to have t-commerce transactions billed to their monthly cable or satellite statements, while only one in six consumers prefer to type their credit card information on-screen. - More than half of non-online shoppers consider a transaction's ""security"" to be the most important consideration. - Although 1 in 3 consumers show an interest in TV-based banking and investing, only 1 in 17 would pay more than $3 per month for this type of service. - Consumers who access the Internet on their PC while watching TV (simultaneous users) have very different levels of interest and price sensitivity for most t-commerce applications than consumers who engage in both activities separately (non-simultaneous users). - Nearly one-fourth of simultaneous users would pay a monthly fee to order restaurant meals for immediately delivery, compared to about one-sixth of non-simultaneous users. ""TV-Based E-Commerce: An Investigation of Consumer Interest, Pricing And Payment Preferences"" identifies which groups of U.S. consumers are interested in various t-commerce applications, how much they will pay per month, how they prefer to pay for purchases, and their most important concerns about t-commerce transactions. With more than 60 charts and tables, this study analyzes consumers across 11 variables, including demographics, number of TV sets and set-top boxes, type of cable or satellite service, Internet access, TV and Internet usage behavior, and frequency of shopping online and from TV shopping networks. Published in December 2000, this 43 page report is available for $1,295.For more information, visit www.techtrends.net.

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