Realtime Strategies for Customer Satisfaction

The recent surveys on personal information equipment, conducted by R&D and R&D/JD Power, examined how consumers think about PCs and related products. A series of surveys was conducted at three-month intervals, targeting consumers in Tokyo and Osaka whose ages ranged from 18 to 69. These surveys had two major characteristics.

First, they were part of an omnibus survey on products and services, so that the surveyed items were not limited to PC products. This allowed us to obtain balanced results regarding overall consumer trends, unlike typical focused surveys in which it is mostly only those interested in a particular product who participate. Because our survey covered a wide range of products and services, we feel confident that the results are well balanced and yield accurate ratios for PC purchase plans and PC use.

Second, the survey was conducted in Japan's two major urban areas, Tokyo and Osaka, which typically anticipate countrywide trends by six months to a year. The survey results, therefore, are significant for making Japan-wide market forecasts.

Our series of surveys checked the number of people who regularly use PCs. In September 1996, about 33% of respondents replied that they use a PC almost every day. This included 7% who use PCs only at home, 15% who use them only in the office, and 11% who use PCs both at home and at work.

The percentage of respondents who said they use a PC almost everyday was 27% in the March 1996 survey, which indicates that the number of Japanese who use PCs grew sharply (by 6 percentage points, to 33%) in just six months. Since those responding that they use a PC both at home and at work grew from 7% in March to 11% in September, it is evident that the diffusion of PCs is not a home-only or office-only phenomenon, and that PC use in the office motivates people to want their own PC at home. We forecast that, in the corporate market, the ratio will be 2.3 persons per PC within a few years, versus 6.3 persons per PC in 1995. This will add additional fuel to the home-use market.

Regarding individual PC purchase plans, our survey indicated that 33% of planned purchases are for additional or replacement machines, 41% will be new purchase bought by those using PCs at work, and 26% will be new purchases by those who have never used a PC. This reinforces the perception that the growing PC market for individual use is being driven in part by those who use PCs in the office and want to have one of their own at home. This is a significant factor that manufacturers need to consider, because people tend to choose the PC that they are accustomed to using at work. PC brand share in the corporate network market can be expected to influence vendor share in the individual-use PC market.

Regarding what users most want to do with their PCs, in the March 1996 survey the leading answer (about 47%) was home database use, such as for organizing address and phone numbers or recipe management, followed by making greeting and New Year's cards. In September, though, 61% of respondents replied that they want to use the Internet. This is an indication of the rising level of home user interest in the Internet, and a clear reflection of Japan's current Internet boom.

Regarding their intended purpose for getting online, the largest percentage of respondents (44%) replied that they will use the Internet for information collection (for hobbies and personal interests), followed by those who want to do homepage "surfing" (27%). A significant number (26%), though, replied that they want to do online shopping and make tour arrangements through the Internet. This suggests that the potential demand for electronic commerce is high.

In particular, single working women had very concrete ideas about what they would use the Internet for, a factor that will be significant for making future market forecasts. For example, 50% of single working women replied that they want to use the Internet for shopping and tour arrangements (compared with the survey average of 26%), 61% said they will collect information about their hobbies (survey average 44%), and 45% plan to use the Net for e-mail (survey average 21%).

Manufacturers and service providers should be aware of the differences between the men's market and women's market. Cameras are a prime example of a product market that has shifted from a male-centric to a female-centric focus. Cameras were once regarded as men's hobby goods, but today most camera users actually are women. This market shift owes much to changes in the product, especially the move from bulky and heavy single-lens reflex cameras to compact, lightweight models that feature easy operation. This product evolution has brought about an alteration of the camera market, with some 70% of film purchases and use being by women.

The same situation can be expected to appear in the computer market, long thought of as primarily a male market. As computer functions become more focused for personal use, and their operation becomes easier, there is a possibility that the market structure will change drastically, with women becoming the predominant home-use computer purchasers and users.

A recent example of a product that must change to be truly successful in Japan is Internet TV (televisions with Internet access functions). The Internet TVs currently available all feature large screens (often 32-inch and 36-inch models). Considering the home market, though, it is doubtful whether such products will enjoy widespread success. Since Japanese houses tend to be small, it can hardly be imagined that all family members will enjoy Internet TV in the living room. Further, large-screen TVs are not suited to individual viewing in a small room, such as a bedroom. Since the primary target of Internet TV vendors is single women, manufacturers will soon find they need to take a different marketing approach.