1. 2010 Holiday Shopping Research A Silicon Valley Research Insights™ Report December 2010 S R G V TM Silicon Valley Research Group Inc. Creating Markets. Accelerating Profits.™ www.siliconvalleyrg.com

2. S R G V TM Project Vectors  Silicon Valley Research Group sponsored research to: Explore usage of 2010 Holiday Shopping Plans Reveal Electronic Shopping Trends o Including the top most desired electronic device(s) for the 2010 Holidays  312 respondents completed a short survey US consumers Randomly selected online sample  Statistical significance: +/- 5.5% margin of error at the 95% confidence level Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 2

3. Detailed Observations 1. How Much Spending 2. Where Purchasing 3. When Shopping 4. What Electronics are Wanted Most 5. Who (Sample Demographics)

4. How Much Spending

5. S R G V TM Holiday Spending Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 n=312  The outlook for overall holiday spending is very poor About half of those sampled looking to spend less in 2010 than normal Less than 10% are planning on spending more than normal  Majority of those than are spending less will be spending 25-74% less than normal Majority of those spending more will only be spending 5-14% more 5 If you plan to spend more or less on this year's Holiday Season, by what percentage will your spending change? Percent ChangeSpending MoreSpending Less 0%-4%15%6% 5%-9%22%3% 10%-14%30%11% 15-24%7%19% 25-49%7%22% 50%-74%7%30% 75%-99%11%4% More than 100%0%4% n27149

6. S R G V TM Holiday Spending  The majority (50%) will be spending between $200 and $599 on the holiday season Almost a fifth won’t be spending more than $100 Less than 10% will be spending more than $800 Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 6 Approximately, how much do you plan on spending on holiday gifts this Holiday Season? Less than $10018% $100-$19913% $200-$29917% $300-$39912% $400-$49911% $500-$59910% $600-$6994% $700-$7993% $800-$8992% $900-$9991% $1000-$14996% $1500-$19990% $2000+1% Not Applicable to Me3% n=312

7. Where Purchasing

8. S R G V TM Shopping Venues  Big box stores just as Wal-Mart and Target are the venue the majority of respondents are most likely to shop at Follow by more than a quarter than are most likely to shop online  The online shopping trend is headed in two directions About a quarter are shopping online more Another quarter are shopping more off-line Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 8 n=312

9. S R G V TM Reasons for Shopping Online vs. Offline  Convenience, Low Prices were the top reasons for shopping online Almost a quarter do not shop online at all  Touch/Feel, Easy Returns were top reasons for shopping offline Only about 6% of respondents don’t shop off-line Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 9 n=312

10. When Shopping

11. S R G V TM Shopping Timeframes  On average the majority of holiday shopping will be done between Thanksgiving and December 15 th A deeper looks shows that almost half (45%) of respondents will NOT shop before Thanksgiving o About 30% will NOT shop after Dec. 15 th o About 10% will do at least 75% of their shopping after Dec. 15 th  Black Friday is the most popular “big” shopping day Followed closely by Cyber Monday and Super Saturday Almost half of respondent will NOT be shopping on any of these days Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 11 Please enter the percentage of the shopping you will do in each time period Average Response Early (Before Thanksgiving) 23% Middle (From Thanksgiving to Dec. 15 th ) 51% Late (From Dec. 15 th to Dec. 25 th ) 26%

12. What Electronics are Wanted Most

13. S R G V TM Top Electronics Category Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 13 If you were to receive an electronics gift for the Holiday Season, what type of electronics would you most want to receive? Please rank in order of interest from highest (1) to lowest (10).  PCs and TVs were the most popular categories of electronics gift for 2010. Movies and Movie Players were the next most popular gift Video Games/Consoles and Car Gadgets were the least popular electronics choices

14. S R G V TM Top Electronics Gift  The top electronics gift for the 2010 Holidays is: The Apple iPad Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 14

15. S R G V TM Top Electronics Gifts  Cross-tabulating the results with demographic data we see some clear trends: Gender o Females prefer more than males: Nintendo DS, iPad, iPhone 4, Amazon Kindle, X-Box Kinect o Males prefer more than females: X-Box 360, Windows Phone 7, PlayStation 3, PlayStation Move Martial Status o Singles preferred: PS 3/Move, X-Box 360/Kinect o Married people preferred: Nintendo DS o Divorcees preferred: B&N Nook, Amazon Kindle Education Level: o Bachelor degree holders preferred: Google Android phones o High school educated preferred: Nintendo Wii, Barnes and Noble Nook, and Galaxy Tab o Associate degree holders preferred: Nintendo DS, PlayStation Move, and Amazon Kindle Age o 18-29 year-olds preferred: X-Box 360/Kinect, PS 3, and iPhone 4 o 40-49 year olds preferred: Nintendo DS and PlayStation Move o 50-59 year olds preferred: Amazon Kindle o 60 year olds and older preferred: B&N Nook and Windows Phone 7 Holiday Electronics Shopping Research Silicon Valley Research Group - December 2010 15

16. Who (Sample Demographics)

17. S R G V TM Sample Demographics Social Media Research Silicon Valley Research Group - Confidential – December 2010 17 n=312

18. S R G V TM Sample Demographics Social Media Research Silicon Valley Research Group - Confidential – December 2010 18 n=312

19. 2010 Holiday Shopping Research December, 2010 S R G V TM Silicon Valley Research Group Inc. Creating Markets. Accelerating Profits.™ www.siliconvalleyrg.com