News

CEA Survey Gives Insight Into Generation Tech - Exploring The Illusive Teen Consumer (21/12/2004)

The Consumer Electronics Association (CEA) today announced the release of a new market research survey on teen consumer electronics (CE) consumers. The survey found that teens are not only interested in CE products, but American teenagers are heavy, regular users of CE products.

Nearly all teens in this phone survey, 98 percent, said they watched a TV in the past 30 days, 91 percent used a DVD player, 87 percent used a desktop computer and 86 percent used a VCR. Substantial majorities also reported using wireless phones, videogame consoles and computer-based CD burner/writers over the last month.

"From their earliest days, this generation was exposed to CE products," said CEA President and CEO Gary Shapiro. "Today's teens truly are Generation TECH. They were weaned on VCRs, DVD and cordless phones. They are active consumer electronics buyers, are particularly tech-savvy, and are typically early technology adopters. That makes teens a critically important market for CE retailers and a growing force in the future of the industry."

The survey gives insights into marketing to Generation TECH by providing an overview of buying patterns and trends. It also gives a clear picture of the influence of teens on household purchasing decisions. For example, more than 60 percent of teens say that they strongly encouraged the purchase of a TV for their household and 47 percent strongly encouraged the purchase of a DVD player.

"A key insight from the survey relates to the nature of peer pressure," according to Sean Wargo, CEA's director of analysis. "Seventy-two percent of those surveyed say they are more likely to want a given product if a friend owns it. This calls out the importance of viral marketing in this segment to generate buzz."

The survey also debunks common myths about the teen consumer. For instance, 56 percent of teens placed "extreme importance" on the price of product when making a CE purchase, and only 15 percent felt it was extremely important that CE products were specifically designed for teens.

Further showing the purchasing power of this age group, the number one item that teens have purchased with their own money was a cellular phone, with 23 percent of teens having bought one for themselves. The survey also found that the cell phone rates at the top of teens holiday wish lists. Other top holiday gift picks include laptop computers, portable MP3 players and videogame consoles.

The survey results were compiled from interviews with 1,000 teens, ages 13 to 17, and were equally reflective of boys and girls. Data cited in this release is available for purchase through CEA's Market Activity Reports and Analysis (MARA) program.

www.eBrain.org/mara