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Question & Answer:

Q1. How much existing information on TV buyers can be used to assess the HDTV market? As shown in exhibit 3 shows that the sales of the large screen TVs (20 inches) steadily increase from 2.2 million units in 1975, to 9.73 millions in 1998 . Projection TV sales to dealers increased from 265,645 units in 1985 to 301,784 units in 1989.It is also seen that in 1990 98% of US households owning a color tv . The major brands like Thompson , Philips, Sony, and zenith were competing against each other with Thompson with the highest market share of 22% . All the above information was available which would be very useful for the HDTV to be launched in the market .

Q2. What are the forecasts of HDTV demand from 1992-2000? The EIA was forecasting that HDTV would penetrate 25 % of all US households by the end of 20 thcentury . For this part Zenith predicted there would be at best 10 % penetration of total tv industry by 1999. Most studies however forecast that HDTV penetration would be like that of colorTV , a much slower penetration that what was predicted. Although color TV had a slow early growth , by 1990 it had penetrated 98% of all households . the VCR with the faster penetration rate , had become volume driven with low margins . Camcorders , however , existed in only 10 % of

households and had a good profit margins with the retail price of 1000$. Projection tv had penetrated 4% of US household, with an average retail price of $2500. It remained to be determined whether the penetration curve for HDTV would be like a color tv , VCRS , projection tv.

Q3. Should Zenith do the Aspect Ratio Study? YES , certainly , zenith should do the aspect ratio study because HDTV is associative with the new aspect ratio of 16:9, leading to a wider screen .The FCC is under pressure not to go sub standard so would be hard pressed to adopt the standard thats was not 16:9.The study is important because the screen becomes 30% wider which becomes a lot more expensive and will cost approximately $300 more than the normal tv . This $300 premium would be lot for the consumer to pay . The secondary objective of the study would be , 1. To determine changes in consumer preferences at various prices . 2. To determine changes in consumer preferences with different programs 3. To determine changes in consumer preferences with different diagonal sizes

Q4. What additional market research should be done to assess market potential / consumer preference for HDTV? The alternative proposal for HDTV marketing research are :

1. Dealer research- zenith has not yet done any formal HDTV research with the dealers. This is important as a group 1st familiar with the consumer preferences and realistic buying situation .

2. Secondary source research- this is the data from the commercial marketing research firm. This is to estimate the ties and growth of HDTV industry in various scenarios .

3. HDTV INNOVATORS AND QUALATATIVE RESEARCH ON EARLY ADOPTION THIS research would consist of series of focus groups with innovators and early adopters of consumer electronic products

4. HDTV /NTSC TV PREFERENCES TEST- This was the joint analysis with thousand respondants who viewed actual working models of HDTV and NTSC monitors under various pricing scenarios .

5. HDTV consumer awareness/ HALLO EFFECT survey- a quantative survey could investigate the consumer awareness of HDTV after introduction .