TiVo in 2002: Consumer Behavior
Before reading the case, go to www.tivo.com, and watch the TiVo demo. it more important then all other appliances besides their microwave and cell phone. I really enjoyed the consumer response of their reaction to attempt to fast forwad through non-TiVo shows. Or the guy listening to the radio, wishing he had TiVo to catch all they were saying. Interesting. 2. Describe the propotypical TiVo consumer. How do they differ from you? The early customers of the TiVo were mostly young, and mostly male. Looking at the dempgraphics Exhibit 5 specific to users before 2001 it shows 37% single men, and only 6% women. 57% were married (I will assume from the single survey it was the men in the relationship driving this purchase in the family). The two age groups with the highest amount was 25-34 & 35-44. The vast majority had finished college. Perhaps that is connected with the higher end salary range. This dempgraphic is surprisingly similar to me a 30 year old married male, (who until recently was in this higher income range). This certainly fits my dempgraphics, however, I still do not own TiVo. …show more content…
3.
Which VALS category did the early adopters likely fall into? Experiencers - ■ Experiencers (13 percent). These people are young, vital, enthusiastic, impulsive, and rebellious and seek variety and excitement. They are avid consumers and spend much of their money on clothing, fast food, music, movies, and video. 4. The current purchasers? ■ Achievers (14 percent). They are successful career people who feel in control of their lives. They are committed to work and family and buy established, prestige products and services. They live conventional lives and are politically
conservative.
Launched 1999 as a bundle slow start. Problem defining and communicating a clear unifying meaning for TiVo. Competitor Microsoft UltimateTV.
Could improve lifestyle.
Current subscribers 380,000 quartlery growth rate 36%, 22& and 21%.
Reply TV withdrew from competition in 2001. Reentered market as high-end. Exclusively sold through Best Buy $12.95
New series 2 through direct tv $9.99
TiVo still had low penetration.
TiVo backed by AOL Time Warner, NBC, Discovery and Direct TV. Still lacked financial inflow.
Marketing team headed by Broadie Keast (Senior Vice President and GM Media & services). 1. Further understand the nature of TiVo’s appeal for potential and existing customers 2. Encourage all the other actors involved (advertisers, television networks, content owners, and service operators) to account for TiVo’s relevance in the life of television consumers.
Consumers changed from early adopters (young men), we now have affluent familes (busy involved) TiVo helps them organize.
There tends to be an emotional response, not all about tech. things are increasing in awareness understanding and intention to buy.
Broaide wants to conduct focus groups (will it explore deep emotional response?) already examined emails, in home observations (trying to solifidey number significance)
Since April 1999 conduct biannual survey. (buying experience, installation process, usability of the tech, and day to day experience)
3/01 used TiVo-DirectTV combo (box that was a receiver for the satellite TV offereing). Onscreen message invited 15,000 people to take survey online, 1,114 did. 44 questions 30 min long. 9 point scale.
90% of customers are satisfied and would recommend.
89% thought is was user friendly
Used Equifax to track demographics, 78% 25-54 yrs old. That range in the pop was only 60%. Families with kids under 2 yrs, were also over represented, 71% homeowners. TiVo was strongest in CA, NY, NJ & MA.