CMR Study Reveals Consumers are Prioritizing Audio Quality Over Camera in their Smartphone Purchase

 Consumer Study 

* Indians consider audio quality as one of the most important factors in their next smartphone purchase with a score of 66 out of 100, followed by battery life at 61, and camera at 60

As per a new study by CyberMedia Research (CMR), Indian Consumers are now prioritising audio quality as a key smartphone purchase driver ahead of camera and battery. In fact across all parameters one in every four users have stated audio quality as the most important factor while selecting their smartphone. For the first time ever, consumers are more tuned into ‘audio quality’, possibly driven by long hours spent alone in a homebound economy. In doing so, they are also seeking better, immersive experiences.

“Given the advancements in smartphone camera and battery, I believe consumers are mostly satisfied with industry-leading innovations therein. On the other hand, in the current homebound economy, consumers are getting more aware, and paying more heed to audio quality. As such, they are putting it on priority for the neo normal, from a communication and content consumption point of view,” said Satya Mohanty, Head-Industry Consulting Group, CMR.

According to Prabhu Ram, Head-Industry Intelligence Group, CMR, “These interesting study findings provide us with a basis to better understand evolving consumer aspirations around smartphone audio. Consumers are now seeking infinitely better and immersive listening experiences, whenever and wherever they go. Across use cases, ranging from OTT consumption to mobile gaming & even UGC, consumers seek more high-quality sound. This is where brands with industry-leading innovations, such as Dolby, will stand to shine and fulfill consumer aspirations.”

The CMR study titled “What Audio Means for Indian Smartphone users?” categorizes Indian consumers, based on their audio consumption patterns, into three broad cohorts:

* Digital Natives who spend >20 hours weekly (39%)

* Digital Dependents who spend 10-20 hours weekly (44%)

* Digital Laggards who spend < 10 hours weekly (17%)

Online content consumption – movies and music, have witnessed a tremendous growth, driven by the ubiquitous smartphones. Over the past few years, the rise of affordable and value for money smartphones has fueled content consumption, on-the-go, and at home.

India loves to binge watch on video streaming platforms, cutting across genres, including episodic content and user-generated video content on social media. In the midst of the pandemic, OTT platforms are benefiting from increased viewership, as well as new subscribers. Amongst the three cohorts, Digital Natives tend to spend more time on OTT platforms & rate audio as the most important factor considered while buying their current smartphone. 

Here are some of the most interesting study findings:

* Audio quality matters. Indians consider audio quality as one of the most important factors in their next smartphone purchase with a score of 66 out of 100, followed by Battery Life at 61, and Camera at 60. Smartphone users consume audio mostly through

* listening to music on popular audio OTT platforms (94%),

* watching video – movies, OTT content, or user-generated content on social networks (96%).

* Preferred audio accessories include wired earplugs and earbuds. 78% of the consumers prefer wired earplugs, while 65% indicate using earbuds.

* Video consumption differ with consumer personas. For instance, Digital Natives prefer videos of shorter duration (38%) whereas Digital Laggards prefer videos of longer duration (23%).

* Better audio experience means differently to different consumer personas. For instance, Digital Laggards associate better audio experience to voice and dialogue clarity (69%), whereas Digital Natives associate it to an immersive experience (61%).

* Five in every eight users (62%), use audio during gaming. 72% of those users are satisfied with it.

* Indians more tuned to audio problems. Three in every seven users face some problems in smartphone audio on a regular basis. Problems faced include

* Audio being too soft (33%)

* Audio being too loud (30%)

* Distorted audio (24%)

Note for Editors:

The CMR study titled “What Audio Means for Indian Smartphone Users?” is based on a digital survey covering 1012 respondents, across six cities of India, namely New Delhi, Mumbai, Kolkata, Chennai, Hyderabad, and Ahmedabad, covering the age groups of 18 to 40, and socio-economic levels of SEC A and B. The study was conducted in early to late July 2020.

For results based on a randomly chosen sample of this size, there is 95% confidence that the results have a statistical precision of plus or minus 3% of what they would be if the entire population had been surveyed.

To know more, and download the report, visit www.cmrindia.com/shelf

65% of Indian Consumers Express Positive Buying Sentiment in Diwali’20: TRA Whitepaper

 TRA Research, India’s leading consumer insights and brand analytics company, today released a whitepaper titled TRA’s Diwali 2020 Buying Propensity Report gauging the changing buying mindsets and sentiments for the upcoming Diwali in November 2020. 65% of all consumers expressed a Positive Buying Sentiment as compared to now, and 28% felt it would remain the same. The Apparels category was a positive outlier and had the Highest Buying Priority at 3.11 times the average of all other categories. Mobile Phones, Consumer Electronics and Two-wheelers were on Very High Consumer Buying Priority, followed by Home Furniture, Jewellery and TVs, which were on High Priority. The survey was conducted with 503 consumer-influencers across 16 cities between 9th June and 15th July 2020. 

Speaking about report N. Chandramouli, CEO, TRA Research, said that, "Diwali has traditionally been a period of consumption boom as consumers tend to increase spends, and brands scramble to catch their attention. This Diwali will be a deciding factor for many brands, as they prepare trepidatiously for the festive season. This report gives a very good view on which will be the preferred categories for Diwali buying."

"This is good news of course, but the pre-Covid consumer spends were already lower on account of a depressed and strained economy, and a comparison between the consumer household spends between the two Diwalis of 2019 and 2020, show that this year is likely to see 5.1% lesser spends than the previous one,” Chandramouli added. 

‘Medium Consumer Buying Priority’ included Personal Accessories, Cars, Laptops and Kitchen Appliances, while ‘Low Consumer Buying Priority Zone’ includes Travel, Health Insurance and Home Renovation.

The survey results also revealed that online shopping is set to see an unprecedented boom in a post-Covid-19 world. Also, kirana stores or small standalone store, close-by neighbourhood stores, local groceries are the preferred places to shop. Big formats stores like Supermarkets, Hypermarkets, Branded outlets are unlikely to see many visitors, and Malls carry a negative sentiment due to tremendous consumer reluctance despite relaxed norms and promise of better safety. 

Nearly 95% consumers rated Product Quality as the most important influence when making purchases for Diwali 2020 followed by product usefulness (89%), Product Price (88%), Buying Convenience (87%) and Brand Name (86%). Advertising at 71% remains the lowest choice driver for Diwali shopping.

About TRA Research

TRA Research, a Comniscient Group company, is a consumer insights and brand intelligence Company dedicated to understanding and analyzing stakeholder behavior through two globally acclaimed proprietary matrices of Brand Trust and Brand Desire. TRA Research conducts primary research with consumers and stakeholders to assist brands with their business decisions based on Consumer Behaviour insights.

TRA Research is consulting brands on transitioning during and after the Covid-19 crisis, to help them be more aligned to consumer and client expectations. TRA Research is the also the publisher of TRA’s Brand Trust Report and of TRA’s Most Desired Brands.

For more information, please visit www.trustadvisory.info

Chrysler gets $4-billion loan from US govt

Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the US government.

"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.

But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.

Its earlier press release said a closing was expected in due course.

Two spokeswomen for the company could not immediately be reached by the media to clarify.

General Motors Corp received $4 billion in emergency loans on December 31.

Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.

Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.

Source: Agencies

Here are the Ten US Business Predictions for 2009!

Two words apply well for the year just ended: Whoa, Nelly! With the financial markets in chaos, the jobs landscape littered with layoffs, and the most audacious outpouring of federal funds since the Great Depression, most of us are ready to look forward to cheerier times in 2009.

Here at BusinessWeek, we've again donned our prognostication helmets and took a gander into the old crystal ball for a few (educated?) guesses at what this new year holds in store. True, we failed to predict the two major events of 2008—the election of Barack Obama and the financial meltdown rippling across the world economy. But we did nail one call: 2008 was the year of $100-per-barrel oil—we just didn't anticipate its stunning slide back to $40.

Recession Reigns

Expect more budget cuts, layoffs, shutdowns, bankruptcies, and mergers. Look for beleaguered bookseller Borders Group (BGP) to slip into Chapter 11, and for Barnes & Noble (BKS) to take over some of those stores—but only a few. Also expect Chrysler to merge into General Motors (GM) at a bargain-basement price as Chrysler's private equity owners at Cerberus Capital race to get that investment off their books. With the rapid collapse of oil prices, and the resulting financial pressures, expect two or more mergers among Big Oil. Our best guess?

Royal Dutch Shell (RDSA) buys troubled BP (BP), in part to avoid regulatory issues that could come from merging with a U.S. oil company. There will also be tremendous pressure on wireless phone prices, causing financial headaches for companies like AT&T (T). Newspaper companies' profits will continue to shrink; watch for a billionaire such as financier George Soros or New York Mayor Michael Bloomberg to lead a rescue of The New York Times (NYT), which will become part of a not-for-profit corporation by the end of the year.

Bernanke: Four and No More

President-elect Obama has nowhere to go but down in his approval ratings, so he may lose some popularity points as me makes tough choices in his early months. Also expect to see the last vestiges of the Bush Administration head for the exits. Declaring that his work is done, Federal Reserve Chairman Ben Bernanke will announce he'll leave the Fed upon the expiration of his four-year term as chairman on Jan. 31, 2010.

While mostly not his fault, the recession has hurt his standing with the Obama Administration—and it also has worn him down on a personal level. He'll be succeeded by Lawrence Summers, former Treasury Secretary under the Clinton Administration.

There will also be realignment on the global level. Look for Canada to forge stronger labor and trade ties with Europe in an effort to further unhinge itself from the flailing U.S. economy. Canada also will snub its southern neighbor to strike more energy and resource deals with other countries—especially China, which will continue its ascendance on the world stage in spite of economic setbacks. Also, it's a good bet Vladimir Putin will reassume the Russian presidency.

Oil Rises Again

There's a fair chance for a resurgence in oil prices, even if they dip below $30 in the next few months. Crude is likely to average $60 or $70 per barrel in 2009. OPEC will get its act together and rein in supply, and demand won't shrink as much as speculators had feared.

Still, oil won't spike to the $100-plus range because consumers remain more energy-conscious. Oil companies will continue to invest in major projects as cash-strapped nations will open their doors to foreign investments just as they have done in the past when times are tough. And commodities are no longer the place for speculators to make a fast buck.

Workers Go Creative

Economists agree that further mass layoffs will continue in 2009, and the unemployment rate could reach the double digits. That means workers will turn creative about job opportunities. Look for freelancing and small business applications to explode as laid off workers attempt to strike out on their own. The downturn also is spurring more business and other graduate school applications, and young people will continue to take shelter at universities to ride out the storm.

Bling Takes a Break

Who can afford bling anymore? Who wants to? The ostentatious—eye-popping expense accounts, showy jewelry, McMansions—will be out and frugality will be back in fashion. Suddenly clipping coupons becomes trendy and, fortified by new Web services, hitchhiking stages a comeback. Boxed wine, already a budget sensation in Europe, will take off in the U.S. Look for eBay (EBAY) to enjoy a revival as Americans turn to the underground market to raise money and scour for bargains.

Business Embraces Big Government

Long considered a thorn in the side of commerce, the government will continue to be the apple of the business community's eye. Why? In tough times, Uncle Sam remains the economy's last resort. That doesn't mean there won't be plenty of fights over how to regulate industries and how to create not just Big Government, but also Smart Government.

But by the time all is said and done, the Troubled Assets Relief Program (TARP) funding will go well beyond $700 billion. President Obama will request, and Congress will approve, another several hundred billion in aid. Much of that will go to homeowners, although airlines will probably get a slug of cash as will auto parts makers.

Digital TV Nightmare

Chaos ensues in February when U.S. broadcasters cease analog TV signals, throwing millions of Americans into a dark-screen panic. Despite nearly $1 billion in spending on educational campaigns alerting Americans to the change, surveys show that many of the 40 million or so likely to be affected still don't realize what the digital broadcast shift means to them. The government is offering a $40 subsidy to help pay for converter boxes—but plenty of Americans still using older analog TVs have no idea.

3D Returns in a Big Way

Recession notwithstanding, innovations in 3D technology will flourish. Computing technology firm NVIDIA (NVDA) is bringing realistic 3D effects on the desktop into the market this year, and more movie theatres will have IMAX screens. Consumers also will get a peek at James Cameron's much ballyhooed Avatar, a 3D movie and game the storied producer has been slaving over since 2004.

Consumers Fight Back

Tapped out consumers will look for advocates in Congress for protection against predatory or deceptive practices in areas from Credit-card fees to mortgages to exorbitant charges for text messaging by wireless companies. Legislation like the Credit Cardholders' Bill of Rights, which passed in the House in September, will have a better shot at passing the Democrat-controlled Congress and being signed by President Obama.


Housing Hits Bottom, At Last

Super-low mortgage rates—engineered by the government to help zap the economy—finally motivate us to shop for houses again. Prices will remain weak, as people who had kept their houses off the market suddenly put them up for sale as soon as they see a little buying interest. Expect home prices to continue to fall through the end of 2009. While the decline will mean trouble for some, for others, it's a golden opportunity to buy. By early 2010 credit and confidence in the market will be restored, and smart investors will be pleased to see the housing market start to recover.

Source: Economic Times

Techies turn to social media to reach consumers

Recognizing the limits of traditional advertising, established technology companies are diving headlong into the sometimes chaotic landscape of social media to promote their products.

Companies ranging from PC maker Dell Inc to storage equipment maker NetApp are increasingly turning to outside blogs, viral videos and websites such as FaceBook, Twitter, FriendFeed and Digg — and their tens of millions of users — to reach consumers.

These social networking sites harness the age-old power of the word-of-mouth recommendation and can be potent marketing tools. If nothing else, they demand a higher level of consumer engagement than conventional ads.

“This is 180 degrees from that sort of advertising,” said Debra Aho Williamson, a senior analyst at eMarketer. “Having a conversation with them (consumers) is a very new skill.”For tech companies with big marketing budgets, the shift to social media is an implicit acknowledgment that television and print are not necessarily the most effective ways to reach buyers, particularly younger ones.

In addition, with a recession looming, corporate budgets are being slashed. UBS has forecast global ad spending will fall 3.9 per cent in 2009. In such an environment, social media could prove to be a cost-effective way to sell to consumers.

But the strategy is not without some risk. While every company wants to generate buzz, online backlash can be brutal.

Consumer healthcare giant Johnson & Johnson learned that the hard way with a recent Web video ad for its Motrin painkiller. While apparently trying to be irreverent about the pain of wearing a baby in a sling, the ad offended many mothers who savaged it on Twitter, the wildly popular “micro-blogging’’ site where users communicate with short “tweets’’ of 140 characters or less. J&J was forced to apologize on Monday.

Brian Keeler, a vice president at media consultancy VShift, said the key to social media is credibility and enlisting consumers in the act of marketing itself. But if you upset your audience, it can mean trouble. “With the online media, things can go viral and spin out of control really fast,’’ he said.

Dell has a dedicated team of around 40 people that interacts with consumers through its blogs, community forums and third-party sites. The company began its social media push last year as it moved to repair its public image.

“There’s been a realization over the last several years that your customers are going to talk about you online and you have a choice to join that conversation,’’ spokeswoman Caroline Dietz said.