2004 Digital Camera Satisfaction Study

2004 Digital Camera Satisfaction Study
December 2004 Presented to: Hewlett-Packard Company Presented by: George Owens Director J.D. Power and Associates © 2004 J.D. Power and Associates Study Name. All Rights Reserved.

Methodology Web-based survey 4,260 respondents
Respondents had to have either purchased or received a new digital camera between November 2003 and June 2004 Camera models were targeted to 2003/2004 where possible Data collection began on May 12, 2004 and ended on June 28, 2004 Survey length: approximately minutes Individuals were sent an invitation with a link to the survey A screening process was implemented to ensure that respondents met the following study criteria: Acquired a new digital camera in the last 8 months Are the primary user of the new digital camera Based on camera selected, respondents were classified into four price segments - $0-$199, $200-$399, $400-$599, $600 or more

Sample Composition and Counts
Sample was drawn from a variety of consumer-based panels including Greenfield Online The final counts per brand by each of the four price segments are noted below. Sample target was 100 per brand per price segment Counts by Price Segment $0-$199 $200-$399 $400-$599 $600 or more TOTAL Canon 125 204 141 151 621 Casio 6# 75* 81 Fujifilm 127 160 133 63* 483 HP 178 123 43* 344 Kodak 126 195 135 2# 458 Konica Minota 16# 138 82* 38* 274 Nikon 30* 124 440 Olympus 142 111 536 Panasonic 70* 4# 0# 74 Pentax 10# 41* 5# 167 Samsung 74* 8# 3# 85 Sony 119 103 533 Toshiba 62* 62 Vivitar 101 1# 102 * Denotes small sample size. # Denotes insufficient sample size.

Digital Camera Study Highlights
Most digital camera buyers conduct research prior to purchase Digital camera usage varies by segment Buyers will gladly pay a premium for products that meet their needs. Satisfaction scores higher for more expensive cameras because they deliver a better overall experience Customer loyalty is directly linked to camera performance Price, megapixels, features/functions and ease of use are top reasons for purchase. There are significant differences by customer segment Few owners experienced a problem; however, when issues do occur it is important to have a customer service representative available Ease of Use and Connectivity are emerging as critical needs

Segment Performance Highlights
© 2004 J.D. Power and Associates Study Name. All Rights Reserved.

Best In Segment $0-$199 Sony $200-$399 Kodak $400-$599 $600 or more
Canon

$0-$199 Price Segment: Sony Ranked Best in Segment
*Caution: Small sample size.

$200-$399 Price Segment: Kodak Ranked Best in Segment

$600 or more Price Segment: Canon Ranked Best in Segment

Digital Camera Index Model

Note: Percentages may not sum to 100% due to rounding.

Performance and Connectivity Most Important
Functions 54% Clarity of LCD 18% Speed to first shot 14% Speed of shutter delay 13% Shot-to-shot speed 12% Optical zoom 12% Battery life 11% Audio/Video 11% Digital zoom 10% Features 46% Camera buttons 18% Camera menus 16% Viewing LCD screen 15% Owners manual 14% Additional memory 13% Text on LCD screen 12% Set-up 12% Connectivity 26% To Electronic Devices 48% To Accessories 52% Downloading from camera 29% Printing pictures 21% Sharing pictures 19% Using software 17% Installing software 14% Cost 17% Appearance 13%

Digital Camera Measures for HP - Focus on Performance and Cost

Digital Camera Measures for Kodak – Focus on Performance and Cost
Stronger Weaker

Why Performance Matters

Why Performance Matters ~ Satisfied Customers are Likely to Repurchase ~

…it is simply not enough to “Please” your customers
…it is simply not enough to “Please” your customers. Loyalty almost triples moving from “Pleased” to “Delighted”

Design camera to meet different owners needs…
$0-$199 Disappointed: “Too many settings” Delighted: “Easy to use” $200-$399 Disappointed: “Hard time figuring out how to use it” Delighted: “The design and small size”, “The price and the look of it” $400-$599 Disappointed: “cumbersome” Delighted: “…solid compact shape, weight and feel… It takes beautiful shots and is easy to use” $600 or more Disappointed: “Hard to understand controls for setting camera/lens (F-stop, shutter, etc)” – problems understanding how to use the advanced functions/features high-end digital cameras are purchased for Delighted: “The design is wonderful, with all functions easy to understand and use. Very easy to manipulate and take advantage of the functionality” Note: Industry-level verbatims.

Segment Profile: $0-$199 Best in segment - Sony

$0-$199 Price Segment Highlights: HP
Above average on Performance, Cost and Connectivity Below average on Appearance High ratings on Features and Cost SEGMENT: Least likely to research prior to purchase Most influenced by point-of-sale marketing Rely mostly on the advice of salesperson Take pictures of more static objects Expect less from their camera HP owner: “Ease of use. It is easy to understand and use. I was able to take it out of the box and start using without a bunch of hassle. From the first to the last photo I have taken the photos come out perfect.”

$0-$199 Price Segment: Sony Ranked Best in Segment

$0-$199 Price Segment: Performance is generally “on par” with other brands in this segment (Green – performance better than segment; Yellow – performance same as segment; Red – performance worse than segment)

$0-$199 Price Segment - Features: Focus on Using menu/controls, Understanding manual, Reading/seeing text and icons

$0-$199 Price Segment - Functions: Continue to perform well on Clarity of image

$0-$199 Price Segment – Connectivity: Focus on Printing pictures, Sharing pictures, Using software

Segment Profile: $200-$399 Best in segment - Kodak

Above average on Performance, Connectivity and Cost Below average on Appearance High ratings on Features and best in segment on Cost SEGMENT: Less likely to research prior to purchase Most influenced by point-of-sale marketing Rely more on the advice of salesperson Take pictures of more static objects Expect less from their camera HP owner: “It's ease of use in a casual way. No need to worry about setup. Camera retains settings when shut down. Is ready to use at power up with no adjustment or menu manipulation. Power zoom is smooth and is a variable rate operation.”

$200-$399 Price Segment - Features: Focus on Using menu/controls and Understanding manual
Greater Priority Lesser Priority Stronger Weaker

$200-$399 Price Segment - Functions: Continue to perform well on Clarity of image

$200-$399 Price Segment - Connectivity: Focus on Printing pictures, Sharing pictures, and Using mfr. software

Segment Profile: $400-$599 Best in segment - Kodak

Above the average on Connectivity and Cost Below the average on Performance and Appearance SEGMENT: More likely to research prior to purchase Point-of-sale marketing less of an influence More likely to use consumer and trade publications for information Take more pictures compared to lower price segment owners Heightened awareness of style, focused on appearance, interested in size Expect more from their camera “I simply love using it. I find a lot of pleasure in taking photos with it & working with them on my computer. It is a great camera.”

$400-$599 Price Segment - Features: Focus on Using camera buttons, Using menu/controls, Understanding manual

$400-$599 Price Segment - Functions: Focus on Speed of shutter delay
$400-$599 Price Segment - Functions: Focus on Speed of shutter delay. Continue to perform well on Clarity of image

$400-$599 Price Segment - Connectivity: Focus on Printing pictures, Sharing pictures and Using mfr. software. Continue to perform well on Downloading pictures

Segment Profile: $600 or more
Best in segment - Canon © 2004 J.D. Power and Associates Study Name. All Rights Reserved.

$600 or more Segment Highlights: HP
Insufficient Sample (No products in this segment) SEGMENT: Most likely to research prior to purchase Least influenced by point-of-sale marketing Rely on consumer and trade publications Take the most pictures Expect more from their camera Will pay for features and functions No verbatims available for HP in this price segment.

$600 or more Segment Highlights: Canon Ranked Best in Segment

Higher-end and Lower-end buyers purchase for different reasons
Higher-End Camera Buyers ($600 or more price segment) Less price sensitive Purchase for resolution/megapixels Purchase for features/functions Purchase for optical zoom MESSAGE: Include many features/functions Lower-End Camera Buyers ($0-$199 price segment) More price sensitive Purchase for ease of use Purchase for ease of connectivity MESSAGE: Don’t over engineer lower-priced digital cameras

High-end camera buyers want megapixels and features, and will pay for them
$0-$199 $200-$399 $400-$599 $600 or more Total Price 48% 23% 12% 8% 25% Resolution/Number of megapixels 7% 17% 27% 26% Brand's reputation 14% 15% 13% Features/functions 5% 11% 18% 10% Ease of use 9% 6% Camera size 4% 2% Optical zoom 1% Quality of camera workmanship 3% Style/design Easy to print pictures from camera Digital zoom Most Influential Reasons Digital Camera Purchased Overall* *Based to exclude “Other” Note: Size of LCD viewing screen, Ability to record video, Manufacturer’s warranty, Ability to record audio and Retailer’s extended warranty are not shown. Each was mentioned less than 2%.

High-end camera buyers want megapixels and features, and will pay for them
$0-$199 $200-$399 $400-$599 $600 or more HP Total Price 47% 28% 14% # 41% Brand’s reputation 18% 13% 16% Ease of use 12% 6% Features/functions 5% 11% 7% Easy to print pictures from camera 3% 8% Optical zoom 2% Digital zoom Quality of workmanship 9% Most Influential Reasons HP Purchased* *Based to exclude “Other” # denotes insufficient sample size. Note: Ability to record video, Manufacturer’s warranty, Ability to record audio, Easy to print pictures, Camera size, Resolution/Number of megapixels, Size of LCD screen, Style/design and Retailer’s extended warranty are not shown. Each was mentioned less than 2%.

Usage (based to the whole market)
Usage differs between higher-end and lower-end camera owners © 2004 J.D. Power and Associates Study Name. All Rights Reserved.

Usage Profile Higher-End Camera Owners ($600 or more price segment)
More frequently take pictures while on vacation More pictures of outdoor settings and metropolitan settings Take the most amount of pictures Much more likely to print pictures Twice as likely to print via an online photo site More likely to post pictures to a personal Web site or to an online service Lower-End Camera Owners ($0-$199 price segment) More pictures of holidays and birthday gatherings and pets Take the fewest amount of pictures Much less likely to print pictures More likely to print at retailer location Less likely to view on TV, post to personal Web site or to an online service

High-end camera owners take more pictures
$0-$199 $200-$399 $400-$599 $600 or more Total 1-24 pictures 38% 32% 23% 21% 25-44 pictures 26% 25% 17% 24% 45-89 pictures 18% 90 pictures or more 22% 29% 42% Number of Pictures Taken

Low-end owners take more pictures of Holiday, Birthday and Pets High-end owners take more pictures of Nature and while on vacation $0-$199 $200-$399 $400-$599 $600 or more Total Pictures of people 71% 67% 62% 63% Vacation 39% 48% 58% 53% Holiday 35% 31% 28% 26% Birthday 32% 21% Nature/Outdoor 24% 40% 27% Events 25% Pets/Animals 30% 20% School Function 12% 8% 9% 11% Wedding/Anniversay 6% Buildings/Cities 4% 5% 10% Auction Sites 3% 1% Religious Function 2% Types of Pictures Taken* *Based to exclude “Other”

Most Picture Printing Done at Home
$0-$199 $200-$399 $400-$599 $600 or more Total Print at home 61% 56% 57% Use online photo site to print 5% 9% 12% Print at a retail location 16% 19% 18% Do not print 13% 8% Picture Printing* *Based to exclude “Other”

Picture Sharing and Saving
$0-$199 $200-$399 $400-$599 $600 or more Total Save on computer 85% 86% 83% View on computer 82% 84% them 81% 78% Save on CD 50% 56% 63% 67% Post to personal Web site 22% 28% Post to Online service 15% 16% 18% 19% View on TV 10% 14% 17% Picture Sharing* *Based to exclude “PrintThem”, “Other”, “None of the Above”

Shopping and Buying Process (based to the whole market)

Shopping and Buyer Profile
Higher-End Camera Buyers ($600 or more price segment) Much more likely to research on the Internet prior to purchase Most likely to consult consumer and camera trade publications Spend more on accessories Lower-End Camera Buyers ($0-$199 price segment) Much less likely to use the Internet to research prior to purchase More likely to rely on point-of-sale marketing – salesperson, in-store promotional materials More likely to be influenced by print and media advertisements

Most Digital Camera Buyers Conduct Research Prior to Purchase
$0-$199 $200-$399 $400-$599 $600 or more Total Internet site 48% 67% 74% 78% 65% Information found in the store 39% 38% 32% Family/friends recommendations 30% 40% 35% Consumer product publications 15% 43% 31% Relied on salesperson 21% 25% 22% 19% 23% Advertisements 18% 20% Camera trade publications 5% 13% 27% Did not research prior to purchase 16% 6% 3% 7% Digital Camera Research Sources* *Based to exclude “Other”

Low-end buyer most influenced by point-of-sale marketing
$0-$199 $200-$399 $400-$599 $600 or more Total Brochures 11% 12% 13% Digital camera placement cards 9% Camera hang tags 8% 6% Camera stickers 7% 308% 4% Kiosks 3% End cap marketing 2% Take-one pads Functioning cameras on display 1% None 68% 72% 71% 74% Point-of-Sale Marketing* *Based to exclude “Other”

Canon, Sony and Kodak most highly considered brands
*Caution: Small sample

Consideration Profile
Considered HP but purchased other brand HP Considered but did Not Purchase 15%

Reasons HP Not Purchased
Most Influential Reason HP Not Purchased* Total HP Average Price 34% 46% Resolution/Number of megapixels 13% 7% Camera size 6% 5% Quality of pictures 4% 4% Style/design 3% 4% Features/functions 5% 4% Optical zoom 2% 4% Brand's reputation 5% 3% Ease of use 2% 3% Amount of features and functions 6% 3% Quality of digital camera workmanship 0% 2% Size of LCD viewing screen 1% 1% Digital zoom 1% 1% Ability to record video 0% 1% Easy to print pictures from camera 3% 1% Ability to record audio 1% 1% Manufacturer's warranty 0% 0% Retailer's extended warranty 2% 0% *Excludes “Other” in the ranking.

Verbatims from HP Escaped Shoppers
“Mom had one and tried it a few times but didn’t like pic quality” “Negative review by other consumers” “They didn’t have the one I wanted in stock. They were going to send me to another store that was far” “Batteries didn’t last when using LCD” “I did purchase an HP – returned it because red eye was horrible” “Did not have ability to shoot action shots”

Industry Demographics
HP Owner Demographics $0-$199 $200-$399 $400-$599 $600 or more Median Age 39 42 42 # Median Income $52,593 $64,286 $65,000 # % Male 26% 30% 40% # % College Graduate 41% 41% 56% # Industry Demographics $0-$199 $200-$399 $400-$599 $600 or more Median Age 38 38 36 37% Median Income $48,930 $60,800 $71,753 $74,908 % Male 29% 35% 41% 46% % College Graduate 36% 47% 54% 57% # denotes insufficient sample size.

Success in the $0-$199 price segment will be a product offering that is a true ‘easy to use’ digital camera. Cameras in this price segment should not be over engineered with function/features and megapixels for fear of cannibalizing sales in the higher priced segments. Success in the $200-$399 price segment will be a product offering that remains extremely easy to use, while providing minimum additional functions/features. Products in this segment should have an appealing size, appearance and styling. Success in the $400-$599 price segment will be a product offering that begins to offer advanced functions/features and increased megapixels. Products in this segment will need to be smaller in size, attractive and have well-configured styling. Success in the $600 or more price segment will be a product offering that capitalizes on the performance expectation buyers have. Size and appearance are less important in this segment, while providing advanced functions/features and megapixels are most important. Recommendations

Improvement Analysis for HP

Weighted gap analysis for each of the price segments that HP has sample for reveals attributes which fall behind the benchmark relative to index weighting. $0-$199: 6 attributes were identified using a weighted gap analysis (listed in order of importance): Appearance: Overall appearance of camera Performance: Battery life Performance: Speed to first shot Performance: Speed of shutter delay Performance: Clarity of image on LCD screen Performance: Shot-to-shot speed If each of the 6 attributes was improved upon in 2005 by 10%, the Overall Satisfaction Index would jump from 786 to an estimated 808*. Index scoring is a strong driver of loyalty. Currently, HP enjoys a loyalty percentage of 29% in this segment. An 808 index score would result in a 3-percentage point increase. * Index using 2004 index weight model

$200-$399: 6 attributes were identified using a weighted gap analysis (listed in order of importance): Appearance: Overall appearance of camera Performance: Battery life Connectivity: Overall ease of connecting to electronic devices Performance: Clarity of image on LCD screen Performance: Speed of shutter delay Performance: Speed to first shot If each of the 6 attributes was improved upon in 2005 by 10%, the Overall Satisfaction Index would jump from 802 to an estimated 833*. Index scoring is a strong driver of loyalty. Currently, HP enjoys a loyalty percentage of 24% in this segment. An 833 index score would result in a 3-percentage point increase. * Index using 2004 index weight model

$400-$599 (Caution: Small sample for HP): 6 attributes were identified using a weighted gap analysis (listed in order of importance): Performance: Battery life Cost: Price of your camera Appearance: Overall appearance of camera Performance: Using camera buttons Performance: Understanding owner/user manual Performance: Audio/Video record mode If each of the 6 attributes was improved upon in 2005 by 10%, the Overall Satisfaction Index would jump from 810 to an estimated 843* (at the current segment lead). Index scoring is a strong driver of loyalty. Currently, HP enjoys a loyalty percentage of 21% in this segment. An 843 index score would result in a 3-percentage point increase. * Index using 2004 index weight model

Questions

2004 Digital Camera Satisfaction Study

Similar presentations

Presentation on theme: "2004 Digital Camera Satisfaction Study"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

2004 Digital Camera Satisfaction Study

Similar presentations

Presentation on theme: "2004 Digital Camera Satisfaction Study"— Presentation transcript:

Similar presentations

About project

Feedback