Case I: Changing Consumer Perceptions of Bud Riley's Exhibit 1 Summary of Focus Group Findings Excerpts from focus group report: People shop around for electronics products. They frequently begin with Circuit City because of its extensive selection ~ an atribute that appeals to men. Where people buy is often chance — its ‘wherever they are when they think they have enough information to make a purchase. They buy if the product they have decided on is available on the spot, atthe right price. ‘Consumers betieve that prices do not vary from store to store and they are not attracted to promises such as a 120% price refund based on lower prices elsewhere. They think such promises as puffery. ‘They have negative attitudes toward bait 'n’ switch and they do not like to be traded up. ‘They begin their shopping with the Sunday paper to find out what produets are available at what prices, Sales events will attract customers to stores. Once the consumer is in the store the sales person's demeanor, approach to and treatment ofthe customer is critical. Customers want caring, knowledgeable and organized sales people. They dislike superficial friendliness, pushiness and efforts of sales people to trade them up or sell them service contracts. The sales person should be highly knowledgeable, listen to the consumer and follow up with the customer after the sae is made. Stores should have a wide selection, but not one that is overwhelming. Displays should be attractive and grouped by category in order to facilitate comparison shopping. Displays by brand ‘would help consumers evaluate how all components ofa system would appear in one’s home ~ this ‘was especially important to women as they are less concerned with price and more concemed with hhow the products will look in the home, i.e. whether they will blend with their decor. Men are more cconcemed with price, the brand name and the quality ofthe sound. Men enjoy shopping for electronics much more than women do and frequently, husbands narrow their product selections to a few before taking the wife in the store to look at the products. Although men tend to be more knowledgeable about and interested in home theater, other respondents confused it with stereo television. Analysis of the research results indicates that home theatre may be in most homes in the next 5-10 years and that respondents are willing to pay about $83,000 for a system, exclusive of the television, To exploit the opportunity to sell these systems, it will be necessary to have good, long term relationships between sales people and customers as most customers will have to buy components over several purchases. 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