Report: Consumers value service over price when buying high-end electronics

As consumers flock to electronics retailers this holiday season, many will be looking for specialized service from salespeople rather than just the lowest price, particularly when making high-end electronics purchases, according to a study released by J.D. Power and Associates today.

The 2004 Electronics Retailer Satisfaction Study finds that consumers buying high-end electronics seek more information about the products and technology from the retailer rather than relying mainly on their own research. While price is important, many consumers are willing to pay more for these products if they also receive the one-on-one service necessary when buying technologically advanced products. This orientation is found at specialty electronics retailers, the research firm said

"Especially when consumers are making what they consider to be high-risk, high-involvement purchases like digital cameras and televisions, the extra service provided by a trained, experienced sales force to help make an informed decision is the key driver in closing the deal," said Ron Conlin, partner at J.D. Power and Associates. "For this reason, specialty stores tend to outperform `big box’ retailers in satisfying customers with the purchase experience, which can give them an edge during the highly competitive holiday season."

Among the nation’s largest electronics retailers, Tweeter Home Entertainment, which focuses on selling mid- to high-end products with personal customer attention, ranks highest in customer satisfaction.

Tweeter is followed in the rankings by another specialty retailer, Ultimate Electronics. Among big box retailers, Sears, Circuit City and Best Buy performed above the industry average.

"Big box retailers work if customers know exactly what they want," Conlin said. "However, in order to cater to the large percentage of customers who are seeking more product information, some large retailers are already trying to duplicate the look and feel of specialty stores by developing sub-branded living room-type additions that focus on more personalized service."

The study measured customer satisfaction with electronics retailers based on responses from more than 9,600 recent purchasers of digital cameras and high-end televisions, is based on the factors sales personnel, store services, store environment and store merchandise. (THG)