Knowledge, not sales, up in PCs

Discount Store News, June 23, 1997 by Carolyn E. Setlow

Home PC sales are leveling off, and computer-industry trendwatchers are divided these days on how much home computer penetration will continue to grow. Roper research shows that there still seems to be plenty of room for growth, especially for software and peripherals aimed at current users.

While the market has been slow to expand recently, current owners are becoming more deeply involved with their home PCs. In addition, non-owners can be won over if manufacturers and retailers speak more directly to consumers' specific needs and interests.

Since 1993, among Americans who do not currently own a home PC, there has been a substantial increase in the percentage who say they would "very much" like to own one (19%, up from 10%). This has been accompanied by a sharp drop in the percentage saying they don't want one (26%, down from 14%). More than half of all Americans (63%) now say they know how to operate a computer (up 18% from 1993). About one in five say they would like to learn. Only 22% say they "want no part of" computers (down from 33%). And nearly half the population (46%) say they have used a computer in the past 30 days.

Of course, interest and knowledge do not guarantee purchase. Our figures reveal that while an average of 40% of Americans say they are interested in using computers for 16 surveyed tasks, only an average of 7% have actually done so in the past four weeks. People with a computer at home are obviously more likely to have used a computer for the surveyed tasks (an average of 22%), and they also have higher levels of interest (an average of 57% across the 16 tasks). These gaps suggest that while the industry has made strides in generating interest, they have not always converted interest into sales.

For the majority of Americans, the most popular uses for computers are word processing, keeping track of personal records, using it as a learning or teaching tool for children, games and household bookkeeping. Marketers take note: the biggests gains in usage are noted in sending and receiving e-mail and faxes (37%, up 12%), accessing news and other up-to-the-minute information (40%, up 10%), creating graphic designs and art (38%, up 8%) and accessing bulletin boards and chat rooms (31%, up 8%). Remember these figures as you work up your next promotion.

There's more. The top objectives for PC-owners are to simplify routine tasks, followed by teaching children, the growing necessity of working at home and doing new things such as electronic banking. Not surprisingly, three quarters of people with children list teaching kids as the top attraction. Interestingly, 47% of people who do not own PCs indicate that teaching their children would be a prime reason to buy a computer.

One thought about other new technologies: Products such as video phones, VCR plus, direct broadcast satellite TV and hand-held TVs or VCRs enjoy high awareness among a majority of consumers.

However, knowledge has not yet translated into an interest in buying. Most interest (which is still under 10%) is for big-screen PC-TVs, CD-ROMs and recordable CD players. When allocating marketing dollars, we suggest giving all these areas a careful look.

Despite the fact that computer sales appear flat ample opportunities exist for retailers that can craft their messages and design their product offerings and services to appeal to consumers' specific needs, interests and desires. This approach should work to attract PC-owners and non-owners alike.