How Would You Characterize the Large Household Appliance Industry and Market?
View Full Essay
1) How would you characterize the large household appliance industry and market?
According to the textbook, I would characterize the large household appliance industry and market have great potential and opportunistic revenues; especially, in the developing countries such as China, India, and Southeast Asia areas with great portion of population do not own any or very few of these appliances; moreover, the population of these countries is very large; for example China population about 1.35 billion, India about 1.15 billion that had supported by the industry analysts about their findings of the great opportunity for the industry sale as many or greater as North American and Western European consumers because the combination of two great factors--large population and low saturation level owning home appliances; in point of evidence, China is leading in the quantities of selling refrigerators (Kerin & Peterson, 2010). Any how, the market is showing great opportunity so is the competitiveness; there are many monster home appliances producers such as Matsushita Electric Industrial, Haier, and Whirlpool etc....
2) How do consumers buy large household appliances?
Consumers buy large household appliances most likely for replacement of the existing and/or broken one which has very high rate (70%) and the rest 30% for first time buyers and desired upgrade buyers according to data in the United States for retail chain. Further, data information showed that independent appliance retailers only have 47% due to product failure, 17% for remodel, 15% for first-time buyer, 11% for upgrading, and 10% for moving (Kerin & Peterson, 2010). In addition, it is similar to other products consumer are very high brand loyalty that they usually buy the same brand for replacement. Other factors are not less important attributes which are ranked by U.S consumers such as store placed in the first, next best deal, then convenience, and service and knowledge which play very...