Consumer Purchase Of Flat-Screen Monitors, PDAs/Palmtop/Handheld Computers, And MP3 Players On The Rise According To Millward Brown IntelliQuest's 9th Annual CIMS Study

Business Wire, Nov 5, 2002

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Nov. 5, 2002

Although the current state of the overall technology market remains uncertain, Millward Brown IntelliQuest's recently released study measuring the product purchase behavior and media habits of technology influencers (CIMS v9.0) indicates increased plans for purchasing within several technology categories.

The CIMS study is the industry standard to measure behavior of technology influencers in both the home and business categories.

Despite the downsizing of many companies, the decrease in business technology influencer positions, and the hesitancy to purchase on the consumer side, this year's data showed pockets of plans for increased purchasing in select product categories. For example, on the consumer side, newer technologies such as flat-screen monitors showed increased intent to purchase with 6 million planning to purchase in the next 12 months as opposed to the 3.7 million intending to purchase reported in the 2001 study (CIMS v8.0).

Desktop-driven video/photo add-on technologies such as digital cameras and video editing software showed purchase increases in the past twelve months. MP3 players, notebook/personal computers, multifunction printers, and PDAs/palmtop/handheld/computers show increase purchase intent from study to study. On the business side, wireless technologies such as Bluetooth and hardware such as laptop/notebook computers showed higher plan-to-purchase intent over the previous study, with 5.1 million influencers planning to purchase laptop/notebook computers in the next 12 months.

Also on the consumer side, although the number of home technology influencers showed a 3.8 percent decrease (from 64.7 million to 62.2 million), the number of female influencers within the market continued to grow, increasing by 5.8 percent over 2001 reported data. And while male consumers continue to make technology purchase decisions across more technology categories, females show increased decision-making roles in fewer but selected areas such as the software category. This is particularly true among the fastest growing segment of influencers, which according to the data, is women age 50 plus. This segment saw an increase of more than 1.1 million influencers, up from 8.7 million in the 2001 study.

The study also showed that consumers are reluctant to purchase and/or replace their desktop computers/systems as evidenced by the 2002 data, which indicates 4 percent fewer influencers intend to purchase desktops in the next 12 months when compared to intent to purchase levels in the 2001 data. Whether this is due to putting off large expenditures or a lack of interest in the current offerings remains to be seen.

However, it is clear that home users are interested in faster connectivity to the Web. DSL and cable are on the rise by 6 percent and 3 percent respectively, while telephone (modem) connections are on the decline -- dropping from 68 percent to 61 percent. The number of influencers who access the Web frequently is on the rise -- with half a million more home users accessing 5+ times in the past week.

"The technology market has seen both extraordinary growth and change in the nine years we have been conducting the CIMS study," said Barbara Graham, vice president of media for Millward Brown IntelliQuest. "This year's findings are not surprising given the current outlook of the technology market and the overall economy."

On the business side, this year's findings showed that the number of those who make technology purchase decisions decreased by 10.3 percent when compared to findings from last year's study. Along with the shrinking of the market from 52.6 million to 47 million, the study shows a shift in responsibilities of those who survived downsizing. As a percentage, both the MIS/IT and senior management segments seem to now be shouldering more responsibility, perhaps reflective of tighter budgetary controls at top levels or the elimination of positions/layoffs of influencers at the departmental level. In line with belt-tightening strategies, the study notes that technology influencers expect that 7.5 percent of their hardware expenditures will be for refurbished desktop/notebook computers. This has doubled since last year.

About Millward Brown IntelliQuest

Millward Brown IntelliQuest, with offices in Austin, Texas, and New York City, is the technology research practice within the Millward Brown Group. As a leading provider of marketing research to technology companies and Internet marketers, Millward Brown IntelliQuest provides marketing research services enabling clients to understand and improve the strategic position of their brands, products, media or channels. It offers custom research solutions, market and brand tracking, media research and business-to-business online marketplace tracking. Millward Brown is a member of The Kantar Group, the research and consultancy arm of WPP.