International research firm Parks Associatesannounced today that almost 66% of U.S. consumers have altered their spending habits in 2008 as a result of the country’s deteriorating economic conditions. These changes have had a large impact on entertainment and CE spending, according to Digital Media Evolution, a new consumer survey from Parks Associates, but also open new areas for growth in customer support services.
The firm reports that consumers have cut spending in 2008 primarily on outside entertainment sources, creating greater dependence on at-home entertainment services and new opportunities for broadband, communications, and entertainment providers in offering customer support, self-diagnostic, and troubleshooting solutions.
“For household services such as Internet and pay TV, recessionary concerns have less impact,” said Kurt Scherf, Vice President, Principal Analyst, Parks Associates. “Consumers are more likely to cut back on outside entertainment expenses before trimming household services such as home telephone, pay TV, and Internet.”
In 2008, U.S. consumers are most likely to cut their spending on dining out, travel, and out-of-home entertainment. Additionally, Digital Media Evolution found that nearly 50% indicate that they will be spending less on consumer electronics because of economic conditions in the fourth quarter of 2008.
Parks Associates advises providers to take back-to-the-basics approaches to revenue growth and cost savings. The firm reports that service provider costs for supporting home networks alone could total hundreds of millions of dollars annually. By implementing self-diagnostic and troubleshooting solutions and building remote support capabilities, service providers can turn customer support from a liability into an opportunity, reducing OPEX costs initially and growing revenue-generating customer support businesses in the long term.
For more information, visit Parks Associates’ blog at http://parksassociates.blogspot.com/ or visit www.parksassociates.com.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.
Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.
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