LCD and plasma TVs: Consumers scale down their buying plans

Nov 19, 2008 6:05 PM

Lcd_xmas The leading big-ticket item this holiday season will once again be the flat-panel television, according to the latest national poll of U.S. consumers by Consumer Reports, conducted October 30 to November 2. Nearly one-quarter of consumers (23 %) plan to buy an LCD or plasma TV before or after the holidays. But the results also reveal the sets bought may not be as big as models purchased last year, or as pricey.

About 10 percent of consumers said they have plans to buy a flat panel TV, but will wait until after the holidays to buy. The primary reason cited for waiting: The cost of a TV is too much to spend right now (43%). That suggests the economic downturn is putting a damper on TV-buying plans.

One quarter of consumers said they were delaying their TV purchase because they expected TV prices to go down. Indeed, steady price drops for TVs may help explain the lower prices survey respondents planned to pay this year compared to the last few—though the economy may of course also play a role.

The average amount consumers plan to spend for their new TV sets has fallen over the past three years from $1,600 in 2006 to about $1,100 this season. Last year, Consumer Reports found that nearly one-quarter of consumers (24%) were planning to spend $1,500 or more on their flat-panel sets. This year, only 19 percent plan to spend that much. In the past men expected to spend more, but in 2008, both genders plan to spend the same on average.

Over one-third (35%) of consumers who plan to buy a flat-panel TV say they’ll be taking advantage of low or zero percent financing from the retailer. That’s an option that retailers say they'll be retaining this season, in spite of tightening credit and riding interest rates for credit cards. Store financing was a particularly popular option for younger consumers—those between the ages of 18 and 34 (48%).

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While many consumers still lust for larger screens, smaller flat screens are also on the rise. Over half (51%) of TV shoppers are considering flat screens under 40 inches. This represents a increase of approximately 10 percentage points over last year. Again, the economy may be partially responsible, but other survey findings suggest the spread of flat panel technology to multiple sets in the home is also a factor. Of those considering a flat-panel for the holidays, 40 percent already have at least one in their home, including 15 percent who already have two or more.

Other poll findings include that fact that Black Friday, the frantic sales day that follows Thanksgiving, seems to be becoming even more geared to electronics this year.

For more on those findings, see the post on the Consumer Reports Money blog by Tightwad Tod, our specialist in frugal shopping.