Consumers uneducated about 2009 digital TV transition

There is growing awareness of the nation’s February 2009 transition to digital television (DTV) by TV broadcasters, yet the group of Americans with the lowest level of awareness about the transition includes those that are most deeply affected – households that receive television programming exclusively over the air.

These are among the results from the CTAM Pulse, a nationwide survey of more than 1,000 U.S. consumers conducted by the Cable & Telecommunications Association for Marketing (CTAM), an Alexandria, Va., association of cable industry marketing executives. CTAM is a member of the DTV Transition Coalition, a group created to educate consumers about the digital transition.

After February 17, 2009, the nation’s broadcast television stations will begin broadcasting exclusively in digital. This means that any consumer receiving broadcast TV over the air on an older analog TV set must take some action for that TV to continue receiving programs from the local TV stations. Those options include obtaining a new digital-to-analog converter, subscribing to cable TV or other multichannel video service or replacing the analog TV set with a new one equipped with a digital TV tuner.

Findings from the CTAM survey include the following:

Forty-eight percent of U.S. households are aware of the digital TV transition, compared to just 29 percent from a survey taken in July 2005. Groups most familiar with the transition are subscribers to broadband services (45 percent), digital cable service (40 percent) and basic cable service (39 percent).

Seventeen percent of survey respondents – representing more than 19 million homes – don’t have any televisions connected to a video service provider. At 31 percent, households that don’t have any televisions connected to a video service provider were least familiar with the transition.

The survey also indicates how much work remains in educating American consumers about the transition. Forty-seven percent of respondents said they do not know when the digital transition will occur, and 26 percent believe it will take place sometime other than the designated year 2009.

Other key findings:

Of those who are aware of the DTV transition, 38 percent said they’d learned about it from TV; 26 percent had read of it in the newspaper; and 20 percent had heard about it from friends or family.

Fifty percent of households that watch TV exclusively over the air said they don’t know where to turn for information about the transition.
The majority of households that currently receive cable, satellite or any other TV service have all their TV sets connected to some type of TV service and therefore are unlikely to need digital-to-analog converters to keep their analog TV sets working. However, 25 percent of these “connected” households – or 23.3 million homes – said they also have at least one or more “unconnected” sets in their homes.

Two-fifths (40 percent) of households with an unconnected television set said they use those sets to watch broadcast TV programs only; 22 percent use them to watch DVDs; and 16 percent use them for video games. For more information visit www.ctam.com.

Easy return process crucial for direct shoppers

As reported by Catalog Success, a survey conducted during the 2007 holiday season found that 90 percent of direct shoppers cited a convenient returns policy as very important, important or somewhat important in deciding to shop with a new or unknown online or catalog retailer. The Harris Interactive poll surveyed 1,017 American adult shoppers during the Black Friday/Thanksgiving weekend (November 23-25).

“Customers are concerned that if it doesn’t fit right or if for whatever reason it’s not exactly what they thought it was going to be, they need to be able to feel comfortable that they can make a return,” says Ken Johnson, vice president of sales and marketing at Newgistics, an Austin, Texas, returns management provider. “They don’t want to have to fight with the retailer to get their money back.”

Survey findings that reinforce the importance of a convenient, easy and efficient return policy for multichannel merchants include:

  • 69 percent said they’re not likely to shop again with a direct retailer if the returns process is inconvenient; and
  • 68 percent of respondents said the ability to make a return from home was very important or important when deciding whether to shop with an online or catalog retailer.

    The survey also confirmed the growing trend of consumers looking to buy direct:
  • 79 percent said they shop direct (through catalogs or online);
  • 64 percent reported they shop online, a 10 percent increase from last year and a 20 percent increase from 2004;
  • 69 percent said they shop specifically through catalogs; and
  • 94 percent said they shop in stores.

As more consumers use the catalog as a support mechanism to Web ordering, the catalog must be as accurate as possible to avoid returns, Johnson says.

Still, with returns being a fact of life, the process has to be as easy as possible for customers. “It’s been identified numerous times that the return is the number-one inhibitor to shopping online or through a catalog,” Johnson says. “So make it as pleasurable a process as possible. It helps keep customers and improves loyalty.” For more information visit www.newgistics.com.

Money woes lead consumers to create ‘delinquency budgets’

Online Resources Corporation, a Chantilly, Va., provider of Web-based financial services, released the results of a survey of U.S. households and billers regarding the effect of the current mortgage crisis on bill payment and collection patterns. The survey shows that fallout from the mortgage sector is spilling over into the broader economy, impacting companies across industries and their ability to collect payments.

The survey of more than 1,000 nationally-representative U.S. households finds that Americans are increasingly being forced to prioritize among their bills by creating a “delinquency budget” to determine which bills get paid. While the mortgage bill tends to be the one that households are most likely to pay, businesses across other industries are facing a decreasing share of that delinquency budget. Specific findings include:

  • One out of four households report being delinquent on at least one bill by 30 days or more.
  • If forced to choose between which bills to pay, 98 percent of households would likely pay their mortgage first; while credit card, phone, health care, utility and loan payments are among the groups of bills that are least likely to be paid.

Online Resources also surveyed a cross-section of clients from its biller end-point network of banks, credit unions, utilities, card issuers and mortgage companies. A majority of the respondents (across all industries with annual revenues ranging from less than $1 million to more than $20 billion) reported feeling a negative impact from the consumer credit crunch already. Only 2 percent expect it to be easier to collect payments in 2008, and 84 percent expect to spend more on collections in 2008.

Both surveys found that the majority of consumers prefer the Web channel for making delinquent payments, for convenience and for the Web’s non-confrontational nature. However, only 8 percent of billers offer online collections services that go beyond accepting payments that would allow consumers to resolve their delinquency.

Prior Online Resources studies show that a significant number of late-stage delinquent account holders that were previously unreachable by phone accessed the collections Web site and made payments on their accounts. For more information visit www.orcc.com.

Mintel outlines menu trends for 2008

When dining out, be sure not to fill up on bread and butter. Mintel Menu Insights, a Chicago-based restaurant-tracking service, has identified eight American menu trends for 2008.

1. The superspice. Superspices are the new superfruits. 2007 created a superfruit frenzy. With such high antioxidant content, superfruits such as pomegranates, blueberries and açaí berries flourished on the restaurant menu. This year, expect to see “superspices” seasoning American menus. Research suggests that superspices like cumin, ginger, cinnamon and tumeric may boast more antioxidant power and medicinal benefits than their superfruit cousins.

2. Snack attack. This year, plan on satisfying that snack attack. Restaurants hope that small portions, big flavors and low prices will lure in hungry snackers. Mini burgers and wraps caught on late in 2007, but look for restaurants to add more “mini” favorite foods this year. From fast food to fine dining, restaurants may soon compete to create the fastest and most filling snacks.

3. Fine fast food. Fast food is going gourmet. Popular celebrity chefs are branching out with convenient, fast-casual restaurants that promise high-quality food, fine cooking and bold flavors - all on a 30-minute lunch break. Bobby Flay, Rick Bayless and Wolfgang Puck have invested in fast-casual operations, bringing their culinary flairs to the masses. Expect more celebrity chefs to get in the mix this year.

4. Grain goodness. With the health benefits of whole grains becoming more widely known, certain nutritious grains will grow on the American restaurant menu. Kamut, quinoa, barley and millet pack a worldly punch along with healthy, essential nutrients. These grains are the ideal backdrop for tomorrow’s innovative ethnic flavor and health trends.

5. Ingredient provenance. Food safety and ecological issues have made headlines recently, causing many Americans to rethink where their food comes from. As concerns over ingredient origins rise, restaurants have responded with more local ingredients, more natural and organic menu items and more sourcing information on the menu. Expect all types of restaurants to take some of the “science” out of dining out this year.

6. Bulking up the bar. Watch closely as restaurants flex their bar muscles. Enhancing menus with more flavorful cocktails and savory appetizers than ever before, restaurants want diners to linger, lounge and just have fun in the bar. Look for beverage lists to grow longer than entrée lists, while appetizers occupy more of the menu in coming months.

7. The return of the classic cocktail. Once the preferred choice of Hollywood sophisticates, classic cocktails fell behind flashy, froufy new favorites in recent years. But no more. In 2008, expect a rebirth of cocktails such as the Sidecar, Manhattan, Bellini and Tom Collins. Classic and glamorous, these old-fashioned choices are sure to shake things up.

8. Mocktails rock. Ice-cold lemonade with strawberry puree, fresh ginger, crushed mint leaves and - no alcohol? Rising demand for better non-alcoholic drinks created the mocktail. Boasting the same premium flavors as the cocktail menu, alcohol-free mocktails are a sophisticated alternative for non-drinkers and drinkers alike.

Mintel Menu Insights tracks restaurant menus across the country to identify flavor, preparation, menu item and pricing trends. For more information visit www.mintel.com.

Altruism drives online reviewers

Bazaarvoice, an Austin, Texas, technology and consulting firm, released the findings of a new survey conducted by the Keller Fay Group, a New Brunswick, N.J., research firm. The joint study surveyed over 1,300 online reviewers to discover what moved them to share their opinions. Overwhelmingly, the survey found reviewers are motivated by goodwill and positive sentiment. Fully 90 percent write reviews in order to help others make better buying decisions and more than 70 percent want to help companies improve the products they build and carry. The study also found that 79 percent write reviews in order to reward a company, and 87 percent of the reviews are generally positive in tone.

The new survey data provides additional insight into previous analysis from Bazaarvoice, which revealed that positive reviews outweighed negative reviews eight to one. When charted, review distribution follows a “ratings J-curve” across many Bazaarvoice clients in diverse industries.

The survey also found that reviewers are active online participants who post reviews as a way of giving back to the review community (79 percent). Reviewers also purchase products online (84 percent), send more than 10 e-mails a day (77 percent) and engage in social networks (25 percent). Additionally, 20 percent of reviewers post messages on other people’s blogs or chat rooms. The study also showed that nearly 60 percent of reviewers have told friends and family about their product experience.

The survey provided new insight into the places where consumers post online feedback. While 19 percent of reviewers post on independent product review sites such as Epinions or CNET, significantly more post directly on a retailer’s own Web site. Highlighting the prevalence of multichannel shopping, the survey also found that over 65 percent of reviewers have returned to the retailer’s site to leave an online review about an offline purchase.

Survey data on over 1,300 reviewers who posted one or more reviews to Bazaarvoice client Web sites was collected online using the Inquisite Survey System. The online survey ran from August to October 2007. For more information visit www.kellerfay.com.

Most-trusted organizations not always the most powerful

Among all adults who are familiar with them, Consumer Reports, the American Red Cross, AARP, the Nature Conservancy and the U.S. Chamber of Commerce are the most trusted among 16 large organizations that influence politics and business in Washington, according to a nationwide Harris Poll of 2,455 adults surveyed online between November 7 and 13, 2007 by Harris Interactive, Rochester, N.Y.

Moveon.org, the American Enterprise Institute (AEI), the ACLU, the NRA and the AFL-CIO are the least trusted. However, even these organizations are trusted “a great deal” or “a fair amount” by 45 percent or more of all adults.

The first question asked the public how familiar they are with these 16 organizations.

The organizations that are familiar to the largest number of people are:

The American Red Cross ................... 96%

Consumer Reports ............................. 86%

The AARP ............................................ 85%

The National Rifle Association ........... 83%

The U.S. Chamber of Commerce....... 79%

 

The organizations on the list that the fewest people are familiar with are:

The American Enterprise Institute .... 12%

The Brookings Institution ................... 22%

The Environmental Defense Fund ..... 24%

Moveon.org ......................................... 30%

The Heritage Foundation ................... 33%

National Assoc. of Home Builders..... 39%

 

Among those who are familiar with them, the most trusted organizations (based on those who trust them “a great deal” or “a fair amount”) are:

Consumer Reports ............................... 91%

The American Red Cross .................... 86%

AARP ..................................................... 83%

The Nature Conservancy ...................... 83%

The U.S. Chamber of Commerce ....... 73%

 

The least trusted organizations on the list are:

Moveon.org ......................................... 45%

The American Enterprise Institute ..... 48%

The ACLU ............................................ 50%

The NRA .............................................. 52%

The AFL-CIO ....................................... 52%

It is noteworthy that all of these five organizations take strong and often controversial positions on political issues.

The organizations listed that are believed to have the most power, based on the number of people who are thought to have “a great deal” or “a fair amount” of power (as percentages of those who are familiar with them) are:

The AFL-CIO .......................................... 84%

The NRA ................................................. 83%

The U.S. Chamber of Commerce ....... 81%

The ACLU .............................................. 81%

The Brookings Institute ......................... 78%

The American Enterprise Institute ........ 77%

 

The organizations thought to have the least power are:

Greenpeace ........................................ 45%

The Nature Conservancy ................... 45%

Consumer Reports ............................ 48%

Moveon.org .......................................... 50%

The Sierra Club .................................... 54%

There is a great difference between the organizations that are most trusted and those that are believed to be the most powerful. However some well-trusted organizations are also seen as having power in Washington, specifically the American Red Cross, the AARP and the U.S. Chamber of Commerce. On the other hand three organizations that are not highly trusted are widely perceived to be powerful: the American Enterprise Institute, the AFL-CIO and the NRA. For more information visit www.harrisinteractive.com.

Mobile marketing predicted to boom by 2013

Mobile marketing, which was born in countries such as Japan and South Korea, has taken off in Western Europe and is beginning to grow in North America. As consumers move to flat-rate data plans and adopt mobile messaging and as new platforms for advertising-supported mobile search, video and gaming content services arrive, mobile marketing is expected to grow to over $24 billion worldwide in 2013. This is an increase from $1.8 billion in 2007.

A recent survey by ABI Research, Oyster Bay, N.Y., found that while consumers are initially leery of mobile marketing, their perspective largely depends on whether they see some advantage for themselves. While 54 percent of survey respondents indicated they were totally opposed to mobile marketing messages, 70 percent of those same respondents said that an incentive such as a ringtone or a free song might make them receptive to mobile marketing.

“The clear difference in this market over the past 12 months has been the embrace of mobile marketing as an integral part of cross-media brand campaigns,” says ABI Research Director Michael Wolf. “Mobile is no longer off-limits in the minds of advertisers, but is instead seen as a very personal way to reach consumers who can be incentivized through information services and compelling content, as well as through more directly relevant and targeted messaging.”

The market, however, is still very much a “Wild West” environment and will take time to develop. Hundreds of mobile marketing platform providers have sprung up, and larger players such as Google, Yahoo and Nokia have made significant investments in this fast-changing market.

For more information visit www.abiresearch.com.