Introduction
This report presents a comprehensive analysis of consumer buying behavior and preferences in ACME’s three primary markets, including the U.S., UK, and Germany. Generally, understanding customer preferences is an essential aspect of any business. It entails studying factors that influence the consumer buying behavior process, including personal aspects such as individual preferences and attitudes; psychological ones, such as motivation and perception; social factors, such as family and peer influence; and cultural, including norms and values of people (Palalic et al., 2021). Besides, external aspects such as marketing efforts, advertising, and promotions are also integral in understanding consumer purchasing behavior. ACME’s knowledge of its major markets allows it to develop effective marketing strategies and tailor products to meet the demands of these diverse clients (Gotham et al., 2021; Tong et al., 2020). In particular, this report assesses smart TV market for ACME, where they try to understand some of the notable consumer buying habits and product demand that are driven by different needs, preferences, and demographics of their clients (Solomon, 2017). With effective market strategies, ACME is positioned to compete favorably as they enter smart TV market. The analysis of consumer purchasing behavior on ACME’s three markets is shown below:
The United States
In the assessing the U.S. market, ACME focuses on the consumer factors such as consumer preferences, features needed to fulfill the needs, and benefits that come along with the product. Precisely, the U.S. citizenry purchasing smart TVs focus on features that meet the quality of their preferences. The market search for qualities such as high accessibility to media content and internet, aesthetics, innovation, and their financial needs (Pierce, 2018). In Hub Entertainment Research’s report, more than 70 percent households use smart TV since its adoption in 2010 (Advanced TV, 2021). On the same note, 52 percent of all TV sets sold in various supermarkets are smart ones. This market niche inclines ACME to explore it intensively and assess the specific needs that the product need to satisfy in the U.S. market.
The needs that smart TVs strive to satisfy in the U.S. market include entertainment and content consumption. On this note, Americans purchase smart TVs primarily to meet their need for entertainment and content consumption (Sharma, 2021). Smart TVs offer access to a wide range of content, including streaming services like Netflix, Amazon Prime Video, Hulu, and YouTube. Consumers can watch movies, TV shows, sports events, and even play games on these TVs. Besides, smart TVs provide convenience by integrating various functions into one device. This aspect fulfils the needs of the U.S. market (Gotham et al., 2021). They can access the internet, stream content, and connect to other smart devices in the home. This meets the need for a seamless and integrated entertainment experience in the U.S. market (Wilcox, 2019). ACME should strive to supply smart TVs that offer communication and social interaction, where clients can interact with their families and friends through platforms such as Zoom or Skype.
The benefits that smart TVs offer to the U.S. consumers include access to the vast content library due to numerous streaming platforms available. With this benefit, it gives clients with immense flexibility in choosing what and when they want to watch (Wolk, 2023). Smart TVs often come with user-friendly interfaces and remote controls, making it easy for consumers of all ages to navigate and enjoy their favorite content. This simplicity enhances the user experience among the U.S. consumers (Pierce, 2018). Many smart TVs can be integrated into a broader smart home ecosystem, allowing consumers to control other devices like smart speakers, lights, and thermostats through voice commands or a central interface. This aspect enhances the convenience of home automation. ACME’S smart TVs typically offer high-definition or even 4K Ultra HD displays, providing consumers with a superior visual experience. This benefit is especially important for those who value image and sound quality.
The U.S. has a unique market for smart TV sets, which inclines ACEM to incorporate a specific marketing strategy that suits their needs. It is evident that a majority of homes in the U.S. with children and young adults are more likely to own a smart TV compared to these that consists of older people (Kotler & Keller, 2015). On this note, homes with children under age 18 and those where the oldest person is under age 35 form a significant clientele for smart TV, a factor that ACEM must consider to exploring the U.S. market. Besides, families with children and adults below 35 years have a high tendency of using a smart TV due to the availability of social media features that the TV offers (Kotler & Keller, 2015). The streaming services attract young adults more than it does to older adults. It is worth noting that during the onset of COVID-19 pandemic, the consumption of smart TV increased in the U.S. market since many individuals opted for streaming and watching as the only form of entertainment (Verma & Naveen, 2021). Using the built-in power of a smart TV or a connected device, streaming to TV has climbed to 77 percent of US homes from 74 percent in 2020 (Lancaster & Massingham, 2018). According to Advanced TV (2021) “overall, 56 percent of all homes say they stream using a smart TV at least once a month, up from 48 percent in 2020.” Finally, the epidemic has had a significant impact on how consumers choose to buy smart TVs. In 2019—the year before the pandemic—only 27% of consumers intended to make their smart TV purchase online, while 42% wanted to do so through a big local electronics retailer (Advanced TV, 2021). Prior to the launching of new models, Black Friday and the month of March saw the majority of smart TV purchases. Assessing these trends in the consumption of smart TV will enable ACEM to tap from the U.S. market effectively.
In regards to influencers, friends and family are significant influencers in the consumer’s decision to purchase a smart TV. These individuals exhibit immense experience with specific brands or models and can provide valuable insights. On the same note, consumers themselves are the primary buyers in the smart TV purchase process. They are the ones who make the final decision and transaction (Mason et al., 2020). Their preferences, needs, and budget considerations play a central role in the purchase. Customers who purchase smart TVs are also the end users. They are the ones who will use the TV for entertainment, information, and other purposes. Their satisfaction with the product is essential for brand loyalty and positive word-of-mouth in the U.S. market. The distribution channels for smart TVs include electronics retailers such as ACEM with physical stores. They also incorporate online platforms. since many consumers prefer to purchase smart TVs online through e-commerce platforms and websites.
United Kingdom
The market for smart TVs has grown in the UK, just like it has in the US. Compared to American consumers, English consumers are more concerned with the availability of streaming services and the ability to browse the internet, while those who favor similar characteristics are also more concerned with screen size and sound quality. In the UK, only 11% of households reported possessing a smart TV in 2014; by 2021, that number had increased to almost 67% (Vailshery, 2021). A projected 32.8 million UK citizens will have a smart TV by 2020, and that number is expected to rise yearly. Smart TVs have rapidly gained popularity and have replaced traditional TVs as the norm in UK households. The Guardian reports that when the first smart TVs were introduced in 2008, adoption was comparatively low (Gotham et al., 2021). Even though the popularity of smart TVs in the UK market was low compared to the U.S., it is gaining dominance with time, which makes it a potential market for ACEM to explore.
The ability for the smart TV to access social media platforms and other web-based services such as YouTube, Twitter, Google, and Skype, among others has increased the popularity of smart TVs in the U (Brilot, 2012). A study by Gracenote gathered a picture of the UK, Germany, and Sweden as consumer behavior connected to TV viewing is changing quickly across Europe. In order to create new products and services that increase TV viewership and engagement, smart TV makers study the demands, behaviors, and attitudes of TV viewers. They pay particular attention to how viewers access movies, programs, and new TV material. The research found that TV streaming has become an intricate process for European audiences who juggle multiple services to obtain all the video content they want and must access those services across multiple devices (Bae & Chang, 2012). Nearly two thirds of customers in the UK and Sweden continued to watch paid-for TV in 2012, while a majority of eight out of ten viewers in Germany watched free-to-air television (Bae & Chang, 2012). The rapid uptake of online TV was highlighted by research done in 2019. According to Bae and Chang (2012), online TV is currently the second most popular source behind pay-tv, with usage ranging from just under 40% in Germany to more than 50% in the UK and Sweden (Wolk, 2023). In a remarkably short period of time, online TV has risen to the position of second most popular TV entertainment source, and the majority of online viewing currently occurs on smart TV platforms. In order to keep up with the demand for the constantly evolving online streaming TV services, UK customers are turning to online-based streaming networks via TV consoles.
In the UK, the purchase process of smart TVs involves multiple stakeholders, each contributing to the decision-making process. For instance, friends and family form the main influencers, and colleagues play a significant role in influencing consumers’ smart TV purchase decisions. Recommendations from trusted sources and personal experiences often shape preferences. Besides, consumers themselves are the primary buyers in this context. They make the ultimate choice based on their preferences, needs, and budget constraints. Their decisions are influenced by various factors, including brand reputation, features, and price (Mason et al., 2020). Since the influence of friends and family members remains strong in the UK’s smart TV purchase process, it is dependent on personal recommendations, discussions, and word-of-mouth play a pivotal role in shaping consumer perceptions and choices. In addition, online reviews, tech forums, and social media also serve as influential platforms, allowing consumers to gather information and seek advice from a broader online community. Smart TVs in the UK are distributed through a variety of channels, catering to the diverse preferences of consumers. For instance, traditional brick-and-mortar electronics retailers are popular choices for purchasing smart TVs. These stores provide customers with the opportunity to view and compare products in person. Online platforms and websites are also incorporated in the UK’s distribution of smart TVs.
The purchase of smart TVs in the UK exhibits various buying patterns. While some consumers replace their existing TVs when they become outdated or malfunction, others may upgrade to take advantage of the latest features and technologies. Back-to-school and holiday seasons often see spikes in sales, driven by promotions, discounts, and gift purchases (Sharma, 2021). Additionally, major sporting events, such as the FIFA World Cup or the Olympics, can boost smart TV sales as consumers seek larger screens for immersive viewing experiences.
Germany
Germany appreciates convenience and accessibility for their media viewing, as shown in the U.S. and UK markets. Between 2014 and 2020, about 17.2 million German households (up from 15.12 million households in 2014) owned a linked smart TV (Statista, 2021). Germans appreciate methods for quickly and independently accessing video information via TV and talk about the appeal of consuming media content in the comfort of their own homes. In comparison to 2013, when 11% of German households had an internet-enabled TV, in 2019 more than 56% had a smart TV. Germans buy smart TVs because of the larger screen, better image quality, and lower price. The German population’s TV viewing habits have evolved over the past few decades as technology has advanced even more, particularly as a result of the pervasive effects of growing digitalization across media and viewers. The percentage of internet-enabled TVs in Germany’s total TV population from 2010 to 2020 is shown in this statistic. The market share of smart TVs was at 89 percent in 2020, and more than half of people in the U.S., UK, Germany, Norway, Finland, Denmark, and Sweden, have access to one in their home (Bae & Chang, 2012). Further, the value proposition is a critical aspect used to assess the benefits offered to satisfy customer needs and wants. With a stylish, premium smart TV, ACME offers accessibility, convenience, and technical innovation (Khaniwale, 2015). The linked media experience offered by ACME smart TVs will be available to household viewers in a range of sizes and visual quality. The ACME will make switching to a smart TV simple and enable customers to concentrate on the advantages of having a smart TV in their home thanks to its intelligent features, a variety of size and picture quality options, and stylish design.
Generally, Germany is known for its strong economy and tech-savvy population, exhibits distinctive consumer behavior when it comes to the purchase of smart TVs. Understanding the nuances of the purchase process, the role of influencers, and the distribution channels is essential for both manufacturers and retailers. The assessment of key players involved, influencers, buyers, end users, distribution channels, purchasing patterns, and potential seasonality in smart TV sales is vital. The purchase process of smart TVs in Germany involves friends, family, colleagues, and experts in the field of technology who play significant roles in influencing. German consumers rely heavily on recommendations from trusted sources and expert reviews when making purchase decisions. Consumers themselves are the primary buyers, responsible for the final decision and transaction. Their choices are influenced by factors such as brand reputation, product features, pricing, and personal preferences. Moreover, the end users of smart TVs in Germany are typically the same individuals who make the purchase (Mason et al., 2020). These individuals use the smart TVs for various purposes, including entertainment, information, and connectivity.
In Germany, influencers, both online and offline, wield considerable influence over consumer choices. Expert reviews in reputable technology magazines and websites, as well as recommendations from tech-savvy friends and family members, hold significant weight. Influencers on social media platforms like YouTube, who provide in-depth product reviews and demonstrations, also play a crucial role in shaping consumer perceptions.
In regards to the Smart TVs distribution channels in Germany, a range of channels are incorporated to cater to diverse consumer preferences. Foer instance, traditional electronics retailers such as MediaMarkt, Saturn, and Conrad offer consumers the opportunity to physically view and test smart TVs before making a purchase. E-commerce giants like Amazon and specialist electronics online stores provide a vast selection of smart TVs, often complemented by user reviews and ratings. However, some smart TV manufacturers operate their own e-commerce platforms, offering consumers direct access to their products and providing exclusive offers and support. The purchase of smart TVs in Germany displays various buying patterns. Consumers may replace older TVs when they become outdated or faulty, but many also upgrade to take advantage of the latest technological advancements. Seasonality in sales can be observed during promotional periods, such as Black Friday, Cyber Monday, and the holiday season, when retailers often offer discounts and bundle deals. Additionally, major sporting events like the FIFA World Cup can stimulate smart TV purchases as consumers seek larger screens for immersive viewing experiences.
Overall, the Germany’s consumer behavior regarding smart TV purchases is influenced by recommendations from trusted sources, expert reviews, and personal preferences. The purchase process involves multiple stakeholders, including influencers, buyers, and end users. Distribution channels encompass both physical stores and online platforms, catering to diverse consumer needs. Smart TV purchases in Germany exhibit various buying patterns, with seasonality often tied to promotional events and significant sporting competitions . Recognizing these trends and nuances is essential for manufacturers and retailers looking to navigate and thrive in the dynamic smart TV market in Germany.
Recommendation and Conclusion
Understanding user behavior and market trends allows ACME to adjust its marketing approach in accordance with regional differences, specialized interests, and customer demands. It is suggested that ACME provide a smart TV with an emphasis on German consumers’ needs for portability, convenience, technical innovation, and high picture quality. Germany is advised as the major entrance market due to its superior growth prospects. It may be argued that smart TV is over-popular and saturated in the US and the UK. In the meantime, the use of streaming services and internet browsing is rising in Germany, giving ACME the opportunity to tap into this industry and satisfy consumer demand as a top supplier of smart TVs. Recommend ACME offer consumers the product through a reliable distribution channel. While the COVID-19 pandemic has encouraged people to use home streaming media services, it has also sparked an increase in sales of smart TVs (Verma & Naveen, 2021). Unfortunately, manufacturing and distribution have been impacted by the pandemic. In this industry, ACME can prosper if it can address this problem and offer online shopping options with prompt shipping. In the German market, there is now a solid need for a practical, reachable, user-friendly, and technologically innovative smart TV with encouraging development potential.
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