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Consumer Buying Behavior Report

University of Maryland Global Campus

MBA 640 Innovation Through Marketing and Technologies

Consumer Buying Behavior Report

Introduction

Entering the highly competitive marketplace of smart-tv’s is not an easy feat. For AMCE to be successful, they must understand the different desires of their consumers from each market they are planning to release the product. This report will analyze the three markets for consumers’ buying behaviors of the three top competitors: Samsung, LG, and Vizio.

Samsung

Samsung Background

Samsung is one of the world’s largest producers of electronic devices. Over the years, they have become an industry leader in consumer and industry electronics, including appliances, digital media devices, semiconductors, memory chips, and integrated systems (Bondarenko, P. 2021). Samsung is headquartered in South Korea. Samsung was ranked second in the world as ‘Most Popular Consumer Electronics Brands?. Samsung first entered the electronics market in 1969, with multiple departments dedicated to electronics. Black-and-white televisions were their debut products. The company began exporting home electronics items to other countries in the 1970s. Samsung was already a major manufacturer in Korea at the time, with a 50% ownership in Korea Semiconductor (Bondarenko, P. 2021). With disruptive ideas and technology that give people the power to discover new experiences, Samsung Electronics inspires the world and influences the future. Samsung continues to redefine the worlds of televisions, smartphones, wearable devices, tablets, digital appliances, network systems, memory, system LSI, foundry, and LED solutions by focusing on innovation and discovery. Samsung Electronics is dedicated to bettering the world by creating ground-breaking solutions that improve people’s lives on a daily basis. (Samsung Global Newsroom, 2019). Samsung is one of the most popular TV brands for TV screens. Moreover, Samsung has maintained the spot of biggest TV seller of all time. You must know the company from its innovative technology and turn feedback into a plus point.

Consumer Buying Behavior ? United States

According to LawAspect (2020), Samsung is expected to grab a 27 percent share of the global TV market in the second quarter of 2010, according to a market research and consultancy organization in the United States, while LG Electronics will account for 26.2 percent. Samsung’s dominance is expected to continue in 2011, according to the market researcher. With the introduction of the “Finger-Slim” LED TV, Samsung Electronics is launching a new market. The super-slim LED TV was first introduced in March 2009 and has since sold over 2.6 million units. More than 2 million devices were sold in 2009 alone, indicating a promising future. With the release of its “Bordeaux” range, Samsung has led the flat-panel TV industry for the previous five years. Samsung retained the leading position by successfully selling more than 1 million 3D televisions as of August 2010. As their rivals are always jumping on the bandwagon, Samsung outstrips them by consistently introducing better and newer models of their products (LawAspect, 2020). Over 22 percent of people aged 30 to 49 use a Samsung smartphone for business in the United States, as of 2018. For adults under 30, the rate is 18 percent, and only 10 percent for people aged 50 years or older. Consumers’ growing love affair with digital technology, combined with the growing volume of available information flowing through these devices, has undoubtedly raised the stakes when it comes to researching purchase decisions ? one of the main reasons why shoppers are often more informed than store associates when entering a store. Buyers have become so accustomed to completing their homework before making a purchase that researchers predicted that in 2015, 64% of consumers would research items and stores before making an in-store purchase, up from 49% in 2014.

Consumer Buying Behavior ? United Kingdom

The television, much as the radio previously played an important role in informing the British public about current events, today plays an important role in informing everyone about the situation. In the early stages of the coronavirus pandemic, daily updates were critical since government laws and regulations changed on a daily basis, and one of the means employed to communicate this changing environment was broadcast news. Unlike radio and newspapers, television may give viewers with useful videos, such as how to properly wash your hands. It’s an important piece of communication technology that aids in better understanding between people (The TV Specialist, 2020). Fierce competition in the smart television market provides consumers with technology advancements and a choice of multiple makes and models. With new launches throughout the year, consumers are always tempted to jump ship to the latest models. According to Statista Research Department (2021), Samsung televisions were ranked second in the UK in 2020 as the leading tv set brands. In that year, an estimated 17.4 million people used Samsung TV sets (Statista Research Department, 2021).

Consumer Buying Behavior ? Germany

With a large assortment of 4K and 8K Smart TVs, Samsung remains the undisputed leader in quantum dot technology, despite increased competition in the QLED market. Samsung TVs run on the Tizen Smart TV platform, which has a great ecosystem of apps and some of the most comprehensive smart features available: you get unique offerings for everything from smart home control to fitness-related features, as well as video chat and productivity support that other TVs simply can’t match. Samsung is also committed to rethinking how television appears and functions in our lives. Samsung’s Lifestyle TV series includes some of the most innovative TVs on the market, from The Frame, an artwork-inspired TV that hangs on the wall, to The Sero, a TV that rotates to display mobile content vertically. Samsung TVs have their own peculiarities, such as choosing the Samsung-led HDR10+ standard over the more popular Dolby Vision HDR format, but these are minor flaws in comparison to the quality Samsung provides (Westover, 2021).

LG

LG Background

LG is a company that has been operating for a long time. “GoldStar” was the name of the corporation when it was created in 1958. It was founded after the Korean War with the goal of propelling the country forward through domestically produced electronics. They were the first to manufacture radios, televisions, refrigerators, washing machines, and air conditioners in Korea (King, 2016). You can’t discuss nice televisions without mentioning LG. They do an incredible job, and the results are undeniable. LG’s first television was produced in 1966, at a time when televisions were only starting to become commonplace in homes. It was the only Korean company to bring a locally produced television to the Korean market (Smart Home Starter, 2018). According to Statista, with a 12.4 percent market share in 2015, LG was the second most popular TV maker. With a market share of 20.98 percent, they were only outdone by their fellow Koreans at Samsung. LG is a TV industry pioneer with a long history. LG was the first Korean company to provide a domestically produced television to the Korean market in 1966. Since then, LG has expanded its product line to include televisions, computers, and appliances. LG now has over 200 facilities globally, producing over 60 million displays each year, thanks to the rise of flat-screen technology! LG’s headquarters are in South Korea, and the company has numerous TV manufacturing factories in China and North America. Several countries are home to their factories (Smart Home Starter, 2018).

Consumer Buying Behavior ? United States

LG’s brand is well known, well respected, and has earned a place on the list of the best TVs year after year for one reason above all others: OLED. With OLED displays offering a clear best-in-class alternative to less expensive LCD panels, LG’s position as the top OLED maker in the world overshadows everything about their TVs. If you want the best visual quality, you want an OLED TV. Moreover, for the leader in OLED TVs, LG is the brand recommends (Westover, 2021). LG television sets can be found in most stores with an electronic department such as Walmart, Best Buy, Costco, and many more. Consumers can also purchase LG televisions directly on their website, and the site sometimes has deals and special offers such as free shipping. LG’s website also includes White Glove delivery and installation on LG Signature products and delivery, installation, and haul away of major appliances. LG offers sales in the US periodically, such as on Cyber Monday, Black Friday, New Years and more.

Consumer Buying Behavior ? United Kingdom

This South Korean electronics behemoth is quickly gaining market dominance in the United Kingdom. They no longer make plasma TVs and now offer a large range of LED-backlit LCD TVs ranging in size from 19 inches to 100+ inches. L.G. TVs are manufactured in various locations all over the world. From their home base in South Korea and China to Latin America and Europe, they make sure that everyone has a TV. However, all accessories are made in Korea and China then delivered to the assembly plants (Smart Home Starter, 2018). When purchasing a new television in the UK, they can be found online directly on LG’s website or in an electronic store such as ASDA which is equivalent to Walmart. When trying to shop sales in the UK, it is best to wait late June to early July and after Christmas.

Consumer Buying Behavior ? Germany

In 2020, an LCD TV sold on the German consumer market cost an average of roughly 583 euros (Statista Research Department, 2021).

Vizio

Vizio Background

V, Inc. was founded in Fountain Valley, California in October 2002 by William Wang and co-founders Laynie Newsome and Ken Lowe. VIZIO is the leader in LCD HDTV shipments in the United States. VIZIO plasma and LCD products can be found at BJ’s Wholesale, Costco Wholesale, Sam’s Club, and Wal-Mart Stores. When compared to more well-known brands, they are sold at a great discount. William Wang, the company’s founder and CEO, owns the majority of the stock.” With $600,000 and three employees, William Wang, Laynie Newsome, and Ken Lowe founded GreenDane in 2002. The revenue was anticipated to be around $700 million in 2006, and it was estimated to be over $2 billion in 2007. Vizio is recognized for pricing their HDTVs aggressively in comparison to their big competitors (Companies History, 2020). According to Westover (2021), Vizio’s earliest excursions into the smart TV market were plagued by a limited smart TV experience and missing features sacrificed in the interest of price. However, the most recent Vizio TVs have significantly raised the standard, with outstanding features and enhanced smart TV capabilities. But one thing Vizio dependably offers is quality, as evidenced by the Vizio OLED TV, which is now one of the finest value buys in the TV world. The one catch with Vizio TVs is that the company’s SmartCast platform has some limits that you won’t find on most smart TVs. The app selection is limited, as the TV’s built-in Chromecast and AirPlay compatibility are expected to be used to cast other apps from your phone or tablet to the TV (Westover, 2021).

Consumer Buying Behavior ? United States

Vizio became a top-selling TV manufacturer in the United States around 15 years ago by obtaining arrangements with big-box retailers such as Costco and Best Buy and selling high-definition TVs at low rates. “Of course, television advertising is one of the major addressable sectors that we’re focused on for our future growth,” Vizio CFO Adam Townsend said. While Vizio fights with Samsung, Sony, LG, and TCL to put their big screens into American homes, Roku, Amazon, and Google are now the most crucial rivals. Almost all of the increase in the television industry is due to subscription services like Netflix, Amazon Prime Video, and Disney Plus, as well as advertising aimed at the millions of consumers switching from traditional cable television to over-the-top viewing. Vizio takes a percentage of subscription purchases to Netflix and other services when consumers join up on their SmartCast TVs, as well as advertising on its home screen and inside certain free content. Last year, the number of SmartCast accounts increased by 61% to 12.2 million.

Vizio television sets can be found in US Electronic stores such as Walmart, Best Buy, Sam’s Club and many more. Vizio does offer sales on their television sets quite often throughout the year.

Consumer Buying Behavior ? United Kingdom

Vizio television sets are not common to be purchased in the United Kingdom. There are unverified websites that has the televisions listed such as U-buy.co.uk, however it may not be a reputable site. While Vizio is not the leading television brand in the UK, it can be purchased if one is seeking the brand. Today, the television business plays an important role in the UK economy, employing over 80,000 people and contributing approximately ?1 billion to the export economy. Vizio has been outranked in the UK by Samsung, Dolby Vision, and Hisense. Nearly 27 million UK households (nearly 95 percent) possessed at least one television in 2019. In the same year, 17.46 million households in the United Kingdom benefited from digital terrestrial television, up 3.69 million from the previous year. For decades, traditional media such as television has been one of the key sources of entertainment and advertising, with roughly 26.8 million households in the UK owning a television. (Popovic, 2022).

Consumer Buying Behavior ? Germany

For a Vizio Tv to work in Germany, one must have an adapter/converter to convert from 240 volts (Europe) to 120 volts (US). You can then stream content using apps on your TV I you want cable, you’ll additionally need an HDMI video format converter to convert the format to NTSC. From doing my own research I can see that it is very uncommon to find a Vizio television set in Germany, however the Amazon website sometimes has it for sale at full price. Television is still very popular in Germany and remains one of the most used media types. In 2020, 72 percent of the German population watched TV. In 2020, RTL achieved the highest ad revenue among German television channels ProSieben and Sat.1 come in second and third, respectively, with almost three billion euros. The average daily TV viewing duration varied by age group, but Germans watched over four hours each day on average. In the meantime, youngsters aged three to thirteen spent nearly an hour watching television. During the last decade, the number of households in Germany with television reception has stayed steady. The types of reception in these homes varied, but cable TV and satellite were the most common (Statista Research Department, 2021).

Conclusion

Brand matters a lot when it comes to anything related to technology. TVs, for instance, a non-recognizable brand would cost you low money but will cost you forever afterwards. Television has become a lot more critical in recent years due to the pandemic. Just like any big purchase, figuring out the best tv brand for you and your family all boils down to the specs, features, and price point. While there are many television brands to choose from Samsung, LG, and Vizio has taken charge in the industry.

References

Bondarenko, P. (2021, October 1). Samsung. Encyclopedia Britannica. https://www.britannica.com/topic/Samsung-Electronics

? Companies History (Ed.). (2020, November 20).?Vizio. CompaniesHistory.com ? The largest companies and brands in the world. Retrieved February 8, 2022, from https://www.companieshistory.com/vizio/?

King, S. (Ed.). (2016, June 24).?8 interesting facts about LG. Android Authority. Retrieved February 7, 2022, from https://www.androidauthority.com/lg-interesting-facts-696770/?

LawAspect. (2020, January 19).?Consumer behaviour on Samsung ? law essays. LawAspect.com. Retrieved February 7, 2022, from https://lawaspect.com/consumer-behaviour-samsung/?

Popovic, J. (Ed.). (2022, January 27).?Little-known TV statistics UK edition [2022] you need to know in 2021. CyberCrew. Retrieved February 8, 2022, from https://cybercrew.uk/blog/tv-statistics-uk/?

Samsung Global Newsroom. (2019, March).?Overview. Samsung Global Newsroom ? All the latest news, key facts and inspiring stories about Samsung Electronics. Retrieved February 7, 2022, from https://news.samsung.com/uk/overview?

Smart Home Starter (Ed.). (2018, September 9).?Where are LG tvs made??Home. Retrieved February 8, 2022, from https://smarthomestarter.com/where-are-lg-tvs-made/?

Statista Research Department (Ed.). (2021, July 8).?Leading TV sets brands in the UK 2020. Brands of home TV sets ranked by number of users in Great Britain in 2020. Retrieved February 7, 2022, from https://www.statista.com/statistics/438221/leadingtv-sets-brands-in-the-uk/?

The TV Specialist. (2020, April 30).?How important has the TV become in 2020? ? electronic world. Electronic World TV Blog |. Retrieved February 7, 2022, from https://www.electronicworldtv.co.uk/blog/tv-importance-2020?

Westover, B. (2021, September 8).?The best TV brands in 2021. Tom’s Guide. Retrieved February 8, 2022, from https://www.tomsguide.com/buying-guide/best-tv-brands?