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Pricing tempers consumer interest in HDTVs, HD-DVDs, survey says

About a quarter of adults in a recent national survey said they are likely to buy an HDTV set within the next year and are interested in buying a next-generation DVD players, capable of delivering high-definition content to the home.

The survey also found price sensitivity for the new technology that indicates some will postpone purchasing till prices fall.

According to the survey from Harris Interactive, 27 percent of adults indicate they’d buy an HDTV set within the next year and 24 percent expressed interest in buying next-generation DVD players.

However, when Harris Interactive asked respondents about their likelihood to purchase these same technologies and included current pricing information, the percentage that said they are likely to buy within the next year dropped.

Nineteen percent said they were likely to buy a high-definition television set that costs between $1500 and $5000, and 16 percent said they were likely to purchase a next generation DVD player costing between $250 and $1000. Certain segments of the population appear to be less price sensitive than others when it comes to HDTVs and next-generation DVD players. For example:

  • The generation with the highest degree of purchase interest in HDTVs and least price sensitivity are the "Echo Boomers" (those between the ages of 18 and 27). Nearly one-third (32 percent) of Echo boomers expressed the likelihood of buying an HDTV set when price is not mentioned and as many as 29 percent do when it is.
  • Generation Xers (ages 28-39), compared to other generations, showed higher likelihood to purchase next-generation DVD players, both with (23 percent) and without (29 percent) price consideration. Baby boomers (ages 40-59) also express interest in purchasing next-generation DVD players, but as with HDTV sets, they seemed more likely to wait until the prices come down before buying.
  • Baby boomers (ages 40 - 58) are far more sensitive to the prices of the HDTVs - 28 percent expressed likelihood to purchase when prices are concealed while only 17 percent express interest at the current prices.

Harris Interactive conducted a nationwide poll of 2630 U.S. adults between March 8 and 14. A list of home electronic devices without price ranges was presented to 1341 adults, while a list that included price ranges was presented to a separate group of 1289 adults.

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