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J.D. Power and Associates Reports: Providing Shoppers With Brand-Specific Recommendations Differentiates Big Box Electronics Retailers From Mass Merchant Stores During the Big Screen TV Shopping Process

Posted on: Thursday, 12 March 2009, 08:00 CDT

WESTLAKE VILLAGE, Calif., March 12 /PRNewswire/ -- Shoppers who visit big box retailers for big screen televisions (sets with screens measuring 40 inches or larger) are more likely to receive recommendations of specific TV brands than are shoppers at mass merchandise stores, according to the J.D. Power and Associates and Market Force Information Television Retailer Insights(SM) report.

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The report, produced jointly by J.D. Power and Associates and Market Force Information, compiles the findings of more than 8,000 anonymous mystery shoppers who shopped at more than 4,500 electronics retailers during 2008. The mystery shopping research investigates salespersons' product knowledge and the types of recommendations they make to customers.

The report finds that salespersons at big box retailers (such as Best Buy and HH Gregg) tend to provide brand-specific recommendations to big screen TV shoppers much more often than do salespeople at mass merchandisers (such as Walmart and Target). A wide majority of salespersons in big box retail stores will recommend a specific TV brand, with an average of 86 percent of salespeople providing recommendations for LCD-type sets and 77 percent providing brand recommendations for plasma TVs. However, even when shoppers specifically request brand recommendations, a high percentage of salespersons at mass merchant stores fail to provide any type of brand-specific recommendation to shoppers. Among salespersons at mass merchandise stores, 51 percent declined to recommend a specific brand of plasma TV and 22 percent declined to provide a brand recommendation for an LCD set.

Among salespersons who provide shoppers with brand recommendations for LCD televisions, 37 percent recommend Samsung, while 30 percent recommend Sony. Among salespersons who provide brand recommendations for plasma TVs, 36 percent recommend Panasonic sets.

"Manufacturers and retailers can both benefit from increasing employee training to make their salespersons more knowledgeable about the features and benefits of each brand, which, in turn, will make sales staff better able to address the needs and questions of shoppers--ultimately leading to a more satisfying shopping experience," said Lawrence Wu, senior director of the technology practice at J.D. Power and Associates. "The fact that many salespersons fail to provide any brand recommendations to big screen TV shoppers represents an opportunity for manufacturers to increase their brand recognition."

The report also finds that recommendations of plasma display sets by salespersons increased considerably between the first and fourth quarters of 2008. During the first three months of 2008, approximately 17 percent of salespersons recommended plasma big screen televisions to shoppers. This increased to 26 percent between October and December 2008.

"During the past year, there has been a considerable increase in the frequency of salespeople articulating key advantages of plasma TVs, including smooth motion of fast-moving objects, better color and deeper blacks," said Wu.

The report finds that sales staff at big box retailers are far more likely to inform big screen television shoppers of services the store offers--such as delivery and installation--as well as other competitive advantages. For example, nearly 60 percent of salespersons at big box retailers mention that the store offers television installation services. In contrast, 45 percent of television salespersons at mass merchants do not mention to shoppers any extra services or advantages of making a purchase at their store.

The top five reasons for purchasing a big screen TV at a big box store, as mentioned by salespersons, are installation services, financing, special sale pricing, price matching and delivery. Although salespersons at mass merchants mention advantages of purchasing at their stores infrequently, when advantages are mentioned they tend to center around low prices, flexible return policies and low sales pressure.

"Although low prices are important to shoppers, the importance of good customer service cannot be overlooked, particularly in the current economic environment," said Karl Maier, chief executive officer of Market Force. "While mass merchant chains often have a reputation for having the lowest prices, shoppers who are looking to receive the greatest value for their money may turn to big box retailers, where they can also receive delivery, installation and financing services as well as price-matching guarantees."

About Market Force Information

Market Force Information Inc. is the leading global customer experience information and insights company for multi-location businesses including major retailers, restaurants, grocery and convenience stores, financial institutions, entertainment studios and consumer packaged goods companies. With more than 120 years of combined industry experience, Market Force Information has pioneered the industry with a suite of customer experience information solutions - from 300,000 field associates, to real customer surveys, to proprietary decision support tools - that provides a holistic view of the customer's on-site experience and identifies the actions required at the store level to increase customer loyalty and improve financial performance. For more information, please visit: www.marketforce.com.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.

Media Relations Contacts: John Tews; J.D. Power and Associates; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com Rushton McGarr; Market Force Information; Boulder, Colo., (303) 402-6916; press@marketforce.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates

Source: PR Newswire

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