The IT Threat
He says that there are some customers who are okay with the process, whereas there are other customers who have more enthusiasm for the category and are more brand-conscious. The question Herschman asks is, "Can Dell and Gateway become credible brands in CE [when it] took Sony years?"
Herschman also asks, "How much actual interaction with the product and with the sales person will the customer need? A lot of it depends on prices of purchase. But the more expensive the product, the more they're going to want that interaction."
Demographics also play a huge role in whether the CE/IT sales will succeed, notes Herschman. "The PC savvy buyers are mostly younger males who can set up their own wireless networks, who can burn their own CDs and who can edit their own videos using a certain comfort level in PCs." This is the kind of person who will gravitate online, he says; the same consumer type who will be willing to buy a Gateway or Dell-branded CE device because they already recognize them as computer giants.