Tuesday, March 27, 2007

Computer shoppers don't trust salespeople

According to consumer electronics magazine, Twice, the web is the main source for consumer research. With 25% of consumers using it, beating out word-of-mouth by a mere 2%. The reasoning is interesting.

"Consumers named a number of factors to back up their pre-purchase research process, including their belief that the Web is convenient, available 24/7, includes a broad spectrum of opinions, doesn’t “use pressure tactics,” is unbiased and is free"

"Unbiased"? You have to be kidding me! Many websites, particularly those of some of the bigger IT and consumer magazines, are outrageously biased or downright inaccurate.

It would be interesting to drill down deeper into this. I use web reviews, but I pay more attention to the reader's comments as I do the review. I find if there's a trend in the comments then that trend is worth investigating further.

The weighting consumers give their sources would be worth investigating too. While I'm sure a customer might spend 12 hours researching a purchase on the web, a twenty minute chat with a knowledgeable neighbour or relative will trump the web every time.

I wouldn't write off the "high pressure" salesman at the local computer superstore either. That 19% is low. I despair for the number of times I've told someone to buy a Linksys router or Toshiba desktop only to find the local Dick Smith or Harvey Norman store has talked them into buying a Dlink router or Packard-Bell desktop.

Vista sales rely on new PCs

When I read that Windows Vista has sold at twice the rate of XP, I smelt a rat and made a mental note to find out the comparable computer sales figures. Luckily, Ars Technica saved me the work in their "Vista's twofold sales boost" article. To quote,

"In early 2002, ten million new PCs were sold each month, along with 8.5 million copies of Windows XP. If the numbers hold, the first quarter of 2007 will see at least 21 million new PCs sold per month with Microsoft's announced 20 million copies of Windows Vista.

If anything, Vista should sell even more as it's clear Microsoft are starving the channel of systems preloaded with Windows XP. For most people it's Vista or nothing. Although one of my techs was told by Dell they've made more systems available with XP as customers are going elsewhere because they don't want Vista.

The downside of the Internet

People need to remember what the Internet is really about

The blogosphere is awash this morning that blogger Kathy Sierra has locked herself away because of threats against her in someone else's blog. Uber-blogger Robert Scoble feels physically sick and has gone on strike for a week. Half the rest of the world's blogs rise up in sympathy.

My favourite is the Licence to Roam blog. To quote, "insecure, small mindedness, misogynistic behaviour". That pretty well describes half the Internet.

Guys, get a grip. This-is-the-Internet. The Internet is the greatest medium for insecure, inadequate dweebs to get attention.

And that's what all this is about. Inadequate little creeps saying stuff to shock others, just like some attention deprived twelve year old. In fact, half of those posts probably were by twelve year olds.

Sadly, Ms Sierra's reaction and the mass indignation of the worthy bloggers only encourages these individuals.

The simple fact is the Internet is full of dopes like this. It's why I avoid usenet and web forums. Life is just to short.

I'd suggest Kathy you get on your plane and go to that meeting. The chances of any of these carrying out their threats or fantasies is minimal, their moms or wives won't let them out the house for a start. If you're going let these idiots ruin your life, then it might be best to avoid the Internet.

Wireless broadband booms?

"Net users are flocking to wireless broadband" gushes Lia Timson in today's Sydney Morning Herald. According to the Australian Bureau of Statistics, wireless broadband use grew 400% in 18 months.

The figures deserve a closer look. The overall market grew 11% in that period to a total of 6.65 million subscribers, of that 186,000 were wireless. That's actually 2.8%, not the 5% reported in the SMH report and the ABS media release the article is based upon.

The figures need to be further taken with a grain of salt by a number of market factors that were happening over that 18 months. The biggest wireless broadband providers, iBurst and Unwired were marketing heavily in that period. In regional areas, local providers such as Wirefree and Cirrus Communications were using wireless in areas where ADSL isn't feasible.

Looking at our customer base, 3% is about right. Despite the hype, wireless broadband isn't for everyone. ADSL and cable are far cheaper and more reliable alternatives.

Wireless broadband does have a role to play. For people moving around and those in difficult to reach areas it's the most feasible option. I can see this niche being up to 15% of the market over time as more service companies, sales people, taxis, couriers and the like start using it.

It's just a shame the SMH and press release writers at the ABS have to hype up the figures. The growth is impressive, but it's started off a low base. I pity investors who get into these ventures without understand the figures or the market.