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CEA Studies Retail For Car Electronics

12/04/2009 10:08:48 AM Eastern

Arlington, Va. - The Consumer Electronics Association
(CEA) conducted a study that found that 85 percent of consumers are satisfied
with their shopping experience for car electronics products.

The findings differ somewhat from results of a study commissioned
by the 12-Volt Initiative car stereo group last year.  That study determined that many consumers did
not trust car stereo shops
to work on their car.  It also found that nearly a third of
consumers could not name a car stereo brand and a quarter could not name a car
stereo retailer.

The CEA study looked at consumers who already owned at least one
car stereo item. It studied 1,000 respondents through Internet interviews this
fall and found the average consumer in the pool owned more than two car
electronics items.  Forty-four percent of
the respondents said they owned a portable or handheld GPS product, and 23
percent owned an in-dash navigation system. In addition, 12 percent owned HD
Radio, and 18 percent owned an amplifier. Also, 26 percent owned an in-dash car
stereo with an iPod or MP3 connection, 14 percent had a vehicle tracking system
and 10 percent had a video system.

A third of the respondents shop online for car electronics
products; 63 percent said they shop at a general electronics store such as Best
Buy; 42 percent said they shop at mass merchants such as Walmart, and 32
percent said they shop at an automobile electronics stores.

Nearly half of those making a purchase comparison shop and many
considered their purchases for months before buying and also looked forward to
the purchase.

On a Webinar discussing the findings, hosted Dec. 3, Anne
Aldrich, partner at Artemis Strategy Group, suggested the high consumer anticipation
before a purchase "is something retailers can take advantage of."

While 85 percent were satisfied with their purchasing experience,
only 49 percent were satisfied with the installation experience.

Aldrich also noted, "When people buy these products, they are
rewarding themselves. Or with GPS and vehicle tracking systems, safety was also
important."

When asked why the findings differed from those of the 12-Volt
Initiative, CEA senior research analyst Ben Arnold said, "The distinction in
methodology was that was a qualitative study and this is a quantitative study
that really incorporated the satisfaction with the devices as well as the
retailer."

About a third of the consumers studied were highly engaged with
the products and more likely to be younger males that are very interested in
cars.  They were also likely to be a
member of a minority group and with a fairly high income.  At the lowest level of engagement in the
study were "women who drive their kids around," said Aldrich.

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