An innovative Decision Tactics and Luth Research joint behavioral segmentation study reveals how shoppers choose digital cameras

Released on: November 30, 2007, 5:53 am

Press Release Author: Shlomi Ron/Decision Tactics

Industry: Marketing

Press Release Summary: Decision Tactics, a division of ITGi Inc. today announced
that it has successfully completed a comprehensive behavioral segmentation program
for Luth Research, a leading market research firm.

Press Release Body: BRIARCLIFF MANOR, NY- Decision Tactics, a division of ITGi Inc.
today announced that it has successfully completed a comprehensive behavioral
segmentation program for Luth Research, a leading market research firm.

As part of the program, a survey was administered by Luth Research using its widely
recognized SurveySavvyT online research panel, along with Decision Tactics' flagship
product, Live Behavioral SegmentationT (LBST), a friendly Web-based tool, to analyze
decision drivers of several brands of digital cameras along three price ranges:

. Under $200
. $200 to $400
. Over $400

Chart: Digital Cameras for Testing

Under $200

* Olympus FE-115 - $109
* Sony DSC-S650 - $139
* HP R827 - $159
* Sony DSCW55/P - $199
* Canon PowerShot A560 - $199


$200 to $400

* HP Photosmart R927 - $279
* Olympus SP-510 UZ - $299
* Canon PowerShot SD1000 - $299
* Olympus Stylus 750 - $310
* Panasonic DMC-FX50S - $399


Over $400

* Olympus Stylus 750 - $310
* Canon PowerShot S5IS - $499
* Sony Cyber-shot DSC-G1 - $599
* Panasonic DMC-FZ50K - $599
* Sony Alpha A100K - $700

Note: Prices reflect period of testing.

The study revealed that the majority of respondents are willing to spend between
$199 and $299 on a digital camera. Within this price range, consumers are willing to
spend more on a brand they believe in. The study also found that the top three
decision drivers of consumers' purchases when shopping for a digital camera are:

1) Megapixel.
2) Format (SLR, SLR like, Compact, Ultra Compact).
3) Digital zoom.

It also showed that consumers process information on different brands differently
within different price ranges. With products priced under $200, shoppers who make
purchase decisions quickly and rely on less information are far more likely to
choose the Canon PowerShot A560, while those who seek more information about
features tend to choose Sony's DSCW55/P. With the products that range from $200 to
$400, shoppers are most likely to select Canon\'s PowerShot SD 1000, indicating high
brand recognition and loyalty. When it comes to high-end digital cameras (with price
tags greater than $400), shoppers tend to choose either the Sony Cyber-shot
DSC-G1or the Canon S5IS. In comparison, those who make more calculated decisions
about their purchases are more likely to go with Panasonic's DMC-FZ50K.

Through this study, the LBST technology showed a promising new solution to tracking
consumer behavioral patterns rather than self-reported responses typical in a survey
setting, revealing the true consumer decision-making process. Compared to the
traditional survey questions or the well-established Conjoint design, LBST offers
much more flexibility without compromising data integrity. Founded on sound Decision
Science, the technology uses advanced algorithms to uncover marketers\' most-sought
after intelligence -- how consumers aggregate product information into a buying
decision, which is vital to fuel ongoing marketing programs and boost conversion.

According to Shlomi Ron, board member at Decision Tactics, "Our technology allows
Luth Research to enhance their existing survey programs by producing a much richer
understanding of shoppers\' decision landscape and pinpoint trade-offs between brand,
product features and price."

To provide its clients with an innovative approach to uncover consumer preferences
like these, Luth Research saw unique value in partnering with Decision Tactics.
After the success of the current program, the two companies anticipate rolling out
more programs utilizing LBST across a wide array of products.


About Decision Tactics
Decision Tactics is a leader in the development and deployment of scientific
Decision Tracing and behavioral targeting solutions. Its friendly Web-based tool,
Live Behavioral SegmentationT (LBST), combines sophisticated data mining techniques
with cognitive psychological analyses. Decision Tactics` LBST help marketers to
analyze and predict consumer choice in such sectors as consumer electronics,
automotive, finance, travel, and other feature-rich e-commerce contexts where
shoppers are presented with multiple product alternatives. The technology was
successfully implemented at Gateway and numerous major universities and financial
organizations. The company has offices in New York and Israel.

For more information about Decision Tactics, please visit www.decisiontactics.com

About Luth Research
Founded in 1977, Luth Research has consistently offered clients around the world the
kind of forward- thinking market research that moves business ahead. From its
innovative online panel, SurveySaavyT, to the creative combination of research
methods by an experienced team, clients can always count on Luth Research for
excellence in market research.

For more information about Luth Research, please visit www.luthresearch.com.

###

Web Site: http://www.decisiontactics.com

Contact Details: Shlomi Ron
914-923-3508
shlomi.ron@decisiontactics.com
9 Haymont Terrace Briarcliff Manor, NY 10510

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