Home Appliances Purchasing Factors
Determine the factors that influence home appliance purchases. The information will be used to understand consumer behavior towards large appliance purchases.
LARGE HOME APPLIANCES PURCAHASING INSIGHTS
- Based on a survey, the key considerations of consumers when purchasing household appliances are quality - 81%, good value for money - 80%, longevity - 69%, easy operation - 64%, energy efficiency - 56%, low price - 49%, design - 40%, brand - 39%, sustainability - 35%, innovative technology - 31%, special features - 27%, delivery terms and options - 17%, smart home connectivity - 10%, and others - 1%.
- Around 85% of major appliances are still purchased from brick-and-mortar stores.
- Meanwhile, online purchases of major appliances increased to "15% from 11% four years ago."
- However, for major retailers such as Costco, 85% of its major appliances purchases were done online.
- This could be due to the fact that the retailer has a bigger variety of products on its website compared to its brick-and-mortar stores.
- Online sales of major appliance purchases are seen to rise by 3.5 percentage points.
- Typically, consumers are less inclined to purchase major appliances on impulse.
- Only around 18% of appliance purchases were completed on the same day.
- When major appliances break, consumers typically need to replace them immediately.
- Based on another survey, price is the main reason why consumers prefer a retailer over another.
- The major appliance market experienced a low volume growth due to the rise in prices as a result of international trade disputes and a lagging housing sector.
- Nevertheless, the positive outlook of the US economy and the housing market remain to be seen as the main drivers of major appliance purchase.
- The most heavy-hitting attributes of major appliances in 2018 were those that provide more usage options and those that enhanced basic appliance functions.
PROPRIETARY RESEARCH AVAILABLE
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Proposed next steps:
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As our initial research shows the availability of data points on the factors that influence major appliance purchases, we recommend continuing the research to provide the information in several research blocks. We will focus on large kitchen and laundry appliances purchase only and expand to other large appliances as needed. We will primarily go through the annual reports of major US leaders like GE, Samsung, Whirlpool, and Maytag. We will also look for consumer surveys or research on this topic. This will primarily be a US-focused research.
(1) Provide 5-7 insights that detail the impact of price and promotion when deciding to purchase major appliances.
(2) Provide 5-7 differences in consumer journey and path to purchase between a "distress purchase" and a planned remodel or upgrade. Distress purchase refers to the situation when an appliance breaks down and need immediate replacement.
(3)Provide 5-7 insights on the role of showrooming and webrooming in the decision and the perceptions of big-box retailers versus independent retailers versus buying direct.
(4) Provide 4-6 trends involving the purchasing behaviors of US consumers with regard to large appliances in general. For each trend, we will indicate a detailed description of what is the trend all about, how or why it will impact the purchase of large appliances, and examples of brand engagements that are manifesting the trend.
(5)Provide a demographic analysis of US consumers that are purchasing large appliances by age, gender, location (urban or rural), income level, educational level, marital status, and ethnicity. As these are mostly not directly available, we will infer or triangulate the information based on available data points.
Alternatively, we could identify 5-7 general insights that cover the general factors that influence the purchasing decisions of US consumers with regard to large appliances.