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Consumers Want More Technology for Their Money

August 17 2005

A new study by J.D. Power finds buyers increasingly satisfied with digital cameras, especially those in the lower price segments; while two other recent surveys suggest strong demand for high-tech mobile services - as long as they are cheap.

J.D. Power's 2005 Digital Camera Satisfaction Study, which is based on responses from 4,256 consumers who purchased a digital camera between January 2005 and July 2005, shows that the performance gap between high and low-priced cameras has shrunk considerably since 2004.

The survey measures satisfaction (based on performance, connectivity, cost and appearance) with cameras in four price segments: $199 or less; $200-$399; $400-$599; and $600 or more. Kodak ranks highest in the lowest price segment and, for the second consecutive year, in the $200-$399 segment. Kodak saw considerable gains in customer satisfaction ratings in both segments, receiving high ratings from owners for performance, connectivity and cost. Sony ranks highest in the two priciest segments, with very strong satisfaction improvements.

Digital single-lens reflex cameras (DSLRs) with interchangeable lenses are the fastest growing segment in the market, increasingly attracting mainstream consumers who can use lenses from their old film-based SLRs in the new digital models.

Two new studies of advanced mobile phone features point to possible new markets for mobile phone service providers. NPD's Mobile Games: Who's Playing? report, based on an online survey of more than 8,500 teens and adults, states that half of US wireless subscribers now own phones capable of downloading games. 27% play games on their phones, compared with 20% last year, while another 6% confessed an interest in playing on their phone over the next year. Not surprisingly, kids between 13 and 17 (60%) are nearly three times as likely as adults (23%) to be mobile gamers.

However, cost is stopping the industry from really taking off. Only about a third of mobile gamers actually buy the games themselves, while the rest play free or pre-loaded games.

Mobile service provider Critical Path says findings from its new survey (conducted by Ipsos) suggest an untapped market of UK and US consumers interested in accessing email via their mobile phones. The survey found that 88% of UK respondents check their email for messages from family and friends while on holiday, and 56% would feel 'out of touch' with friends and family without email access for just a week.

Cost is a barrier once again: a massive 96% of consumers across both countries are not willing to buy an expensive mobile phone just to get mobile email, while 62% of UK consumers and 71% in the US rank 'low cost' as a very important mobile email feature. According to Mike Serbinis, Chief Technology Officer at Critical Path, there is a big opportunity for mobile operators if they can meet consumers' demands for 'an affordable service that is easy to use, works on their current phone, and can deliver messages from their current email account'.

However, the figures cast doubt over whether consumers are really interested in mobile email, as less than half (48% in the UK, 49% in the US) of respondents were aware of whether or not their existing mobile phone had email capabilities.

The companies concerned are on the Web at www.jdpower.com , www.npd.com and www.criticalpath.net .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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