Appeal of Discounts and Coupons Increases among Home Electronics Consumers; New Vertis Customer Focus Study Reveals Shopping Trends Among Home Electronics Consumers.

BALTIMORE -- Vertis today announced the results of its proprietary Customer Focus(R) 2006 Home Electronics study, which reveals brand names are becoming less influential when consumers are deciding where to shop for home electronic products. According to the study, 29 percent of adults consider brand name the most important factor, after price, when deciding where to make a purchase, compared to 40 percent in 2004.

"Since consumers are always looking to upgrade their home electronics products, it is not surprising to learn that special offers like discounts and coupons are one of the most important factors for 19 percent of consumers, compared to 15 percent in 2004," said Jim Litwin, vice president, market insights at Vertis. "Findings from the study show circulars are an effective medium to reach home electronic consumers, therefore marketers looking to communicate offers to consumers should consider advertising inserts."

Scott Marden, director of marketing research at Vertis, added, "The widespread accessibility of major name brands at home electronic stores has lessened its impact among consumers when deciding where to shop. Results from the study show that offering consumers a discount or rebate can influence their shopping decisions."

While men are most likely to be the chief shoppers of home electronic products, the study found women are taking a more active role in deciding which electronics to purchase. Particularly, 91 percent of women 35-49 claim they are the chief shoppers or equally share the home electronic purchasing decisions, compared to 86 percent of women 18-34 and 86 percent of women 50 and older. On the other hand, 94 percent of men 18-34 and 94 percent of men 35-49 claim to be chief shoppers or equally share in the decision making process, compared to 92 percent of men 50 and older.

The Vertis Customer Focus 2006: Home Electronics study, which surveyed respondents for the first time via the telephone and Web, also revealed the following:

Consumers Less Influenced by Brand Names When Deciding Where to Shop

--33 percent of home electronic decision maker men 35-49 consider brand name an important deciding factor of where to shop for home electronics, compared to 39 percent in 2004 (See Figure A)

--Similarly, 27 percent of women home electronic decision makers 35-49 are among those who consider brand an important deciding factor, compared to 35 percent in 2004

--31 percent of home electronic decision maker men 18-34 consider brand name the most important factor when deciding where to shop, compared to 48 percent in 2004; interestingly this group has seen an increase in special discounts or offers as a deciding factor from 14 percent in 2004 to 18 percent in 2006

--30 percent of home electronic decision maker men 50 and older state brand name is the most important factor, compared to 46 percent in 2004; 15 percent of this group considers product availability at time of purchase the most important factor, compared to 10 percent in 2004

--29 percent of home electronic decision maker women 18-34 consider special offers such as discounts or coupons the most important deciding factor behind price when shopping for home electronics; this number has increased 10 percent since 2004

Advertising Inserts/Circulars Continue to Influence Home Electronics Shopping Decisions

--30 percent of adults surveyed turn to advertising inserts first for assistance when purchasing home electronic products (See Figure B)

--Additionally, 30 percent of adults and 40 percent of online circular readers read all advertising inserts/circulars for services they need

--Since 2004, there has been an increase in adults who turn to the Internet first when making a decision to purchase home electronics from 15 percent to 21 percent

--According to the study only 8 percent of adults turn to television first when making a home electronics purchase decision

Computers are still a Hot Item off the Shelf

--According to home electronic decision makers surveyed, 28 percent of adults plan to purchase a notebook, laptop or desktop computer in the next 12 months, compared to 21 percent in 2004 (See Figure C)

--More specifically, 32 percent of home electronic decision maker women 35-49 have plans to purchase a notebook, laptop or desktop computer, compared to 22 percent in 2004

--Similarly, 21 percent of home electronic decision maker men 18-34 plan on purchasing a notebook or laptop computer, while 21 percent of men 35-49 have plans to buy a desktop computer

--Large screen or HDTV purchase plans among home electronic decision makers have increased from 14 percent to 17 percent since 2004, while digital camera purchases have decreased from 20 percent in 2004 to 18 percent in 2006

--Particularly, 24 percent of home electronic decision maker men 18-34 have plans to purchase a large screen or HDTV, compared to 24 percent of home electronic decision maker women 18-34 who plan on purchasing a digital camera

Consumer's Shopping Behavior

--78 percent of online circular readers, research products by circular and then purchase at store (See Figure D)

--25 percent of online circular readers, research by circular and then purchase online

--55 percent of online researchers, research by circular and then make the purchase at store, compared to 14 percent of online researchers who research by circular and then purchase online

--89 percent of men home electronic ad insert readers 18-34, usually compare circulars for price, compared to 82 percent in 2004

--Additionally, 84 percent of men home electronic ad insert readers 35-49 read advertising inserts from various stores and then decide where to shop for home electronics products (See Figure E)

About Customer Focus

Customer Focus is Vertis' proprietary annual study tracking consumer behavior across a wide variety of industry segments -- home improvement, furniture, grocery, sporting goods, home electronics, optical, insurance, credit cards, nonprofit, financial, retail, office supplies, and discount stores -- and media including advertising inserts, direct marketing, and the Internet. The survey was first conducted in 1998 and, in subsequent years, has been expanded and modified to identify emerging consumer behavior patterns and track shifts in consumer practices and motivations.

Since its inception, Customer Focus has proven to be one of the nation's most comprehensive examinations of consumer behavior. The survey of 3,000 adults -- conducted via phone and Web by one of the nation's leading field research companies in August/September 2005 -- measures both general and industry-specific shopping trends, and Vertis provides the significant data as a value-added service to its clients.

To acquire a customized Customer Focus 2006: Home Electronic study or speak to a Vertis executive, please contact Emily Agan or Maria Amor at 619-234-0345.

About Vertis

Vertis is the premier provider of targeted advertising, media, and marketing services. Its products and services include consumer research, audience targeting, media planning and placement, creative services and workflow management, targeted advertising inserts, direct mail, interactive marketing, packaging solutions, and digital one-to-one marketing and fulfillment. Headquartered in Baltimore, with facilities throughout the U.S., Vertis combines technology, creative resources, and innovative production to serve the targeted marketing needs of companies worldwide. To learn more about Vertis, visit www.vertisinc.com.

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