TiVo: Consumer Behaviour Analysis

Group 4

Bhuvaneswari Cheruvu(2011055)

Dharna Shandilya(2011064)

Esheeta Ghosh(2011071)

Paras Jain(2011093)

Kallol Sarkar(2011096)

Sheetal Saxena(2011255)

TiVo – What is it?

TiVo is a digital video recorder (DVR) developed and marketed by TiVo, Inc. and introduced in 1999.

It also provides a range of features when the TiVo DVR is connected to a home network, including downloads, advanced search, personal photo viewing, music offerings, and online scheduling.

Who buys it ?

78% of the subscribers are between ages of 24-54 years.

Married couples, high income families, and the middle aged consumer make up high percentage of TiVo subscribers

The subscribers are of high income strata, 71% are home owners

TiVo- Who likes it?

Purchase Behavior70.1% of new subscribers knew somebody who bought a

TiVo.57.5% of new subscribers were most influenced by

friends.

Purchase demographicsBy Nov. 2000 households with income below 51k made

up only 22% of purchases Households with income greater than 100k made up 38%

of purchasesAges 18-24 and 54 and up made up only 13% of purchasesSingle women consist only 7% of purchases

What is Consumer Behaviour? Consumer behaviour is the study of how individuals,

groups and organizations select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and wants.

Consumer behaviour is influenced by: Various StimuliConsumer PsychologyConsumer CharacteristicsBuying decision processPurchase Decision

Consumer Behaviour Model

Marketing

Stimuli

OtherStimuli

Products & ServicesPriceDistributionCommunication

EconomicTechnologicalPoliticalCultural

Buying Decision Process

Problem recognition Information search Evaluation of alternatives Purchase decision Post-purchase behavior

Consumer Characteris

tics Cultural Social Personal

Purchase Decision Product choice Brand choice Dealer choice Purchase amount Purchase timing Payment method

Consumer Psycholog

y Motivation Perception Learning Memory

The family that watches TV together…Stimuli:TiVo price is higher compared to its competitor

DirecTVThe failure of UltimateTV and ReplayTV resulted in

a negative image on the PVR product

Consumer Characteristics:

Social FactorsFamily

The TiVo is popular in families with small children. As the parents are usually too busy, they find it easier to record their shows or games to watch them later.

The family that watches TV together…Status:

With high income families, both the partners may be working, leading hectic life styles. TiVo lets them catch up with their favourite programs.

Personal Factors:Age:

Usually, young generation are more tech-savvy than the older generation. People age> 54 may be reluctant to change

Status of life cycle:

The family that watches TV together…

Single people:

Men would be more interested in sports, they may be reluctant to record the game and watch it later when they knew who won.

Women would be interested in soaps and talent shows where they watch an episode and discuss them with their friends.

It is also usual for single friends to get together to watch a ‘live’ program.

The family that watches TV together…Occupation and age:

People in 24-54 age group would usually be employed in ‘regular’ jobs, they can catch up with any programs they missed.

Consumer PsychologyPerception:

The people who bought TiVo perceived it as a valuable product, saving them time and allowing them to have ‘quality time’ with their family.

The family that watches TV together…Buying Decision Process:

Reference groups:

Most customers are persuaded by their friends, who bought a TiVo and had a positive experience, to buy it for themselves.

Post Purchase Behavior:Customers who bought TiVo, were delighted with it

and created a positive ‘word of mouth’ and created more sales.

ConclusionTiVo, although enjoys large number of

subscribers, is facing issues because of the failure of two of its competitors in PVR category.

Watching TV is the favourite pastime of Americans of all ages, it is almost a cultural ethos.

Changing the way Americans watch TV is going to take some time.

TiVo has to try to work in that direction to bring about the change.

Thank You