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CLICKS GAINING ON BRICKS: CEA RESEARCH SHOWS INCREASING NUMBER OF CONSUMER ELECTRONICS PURCHASES MADE ONLINE

Customer Satisfaction, Loyalty Higher Among Online CE Shoppers One in Five Personal Computing Devices Purchased Online

Arlington, VA, July 6, 2005 — Online shopping for consumer electronics products is gaining in popularity according to “The Demographics of Online vs. In-Person CE Shopping,” a study recently released by the Consumer Electronics Association (CEA). While an average of five percent of all consumer electronics purchases are made online, certain product categories–including personal computing, digital cameras, wireless home networking devices and portable music players–each sell more than 10 percent of product through online channels.

According to more than 1,000 U.S. adults surveyed by CEA, online CE shoppers report higher satisfaction with the purchase process than those who visited traditional brick and mortar stores, citing convenience, order accuracy, product variety, product availability and product information among the top reasons.

Online shoppers surveyed also reported better customer loyalty than those who make CE purchases in person, with 52 percent claiming store brand loyalty. By comparison, only 37 percent of brick-and-mortar shoppers were deemed loyal in their CE purchasing behavior.

“CE devices today are found in more American homes than are automobiles,” said Joe Bates, director of research at CEA. “CE products have become ubiquitous, and play a key role in almost every aspect of our lives. As a result, consumers will naturally gravitate towards a convenient means of purchase that makes them feel as though they have made a fair, well-informed decision in a setting that is easy to reach and work with.”

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The CEA survey also found that consumers who buy at least some of their CE products online spend 67 percent more each year than those who do not make any CE purchases online. On average, the online buyer spent $1,500 on CE purchases, with 29 percent of that spent over the Internet.

“The Demographics of Online vs. In-Person CE Shopping” was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research, international research and historical trends for the consumer electronics industry. The complete study is available free to CEA member companies. Non-members may purchase the study for $499 at http://www.ce.org/CEAStore.

About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA’s members account for more than $121 billion in annual sales. CEA’s resources are available online at http://www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES — Defining Tomorrow’s Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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