Investigates customer satisfaction.
Roy Morgan Research foresees a shake-up of the Australian consumer electronics market with the recent acquisition of The Good Guys by JB Hi-Fi. The research firm has considered what the takeover could mean for the sector, and in particular, Harvey Norman.
In the 12 months to June 2016, over 3 million Australian consumers made at least one purchase from JB Hi-Fi in an average four weeks. Over a million made at least one purchase from The Good Guys, while Harvey Norman attracted nearly 1.3 million customers. Therefore, the new JB Hi-Fi Good Guys collaboration will dominate the market in this respect – customer volume.
Furthermore, The Good Guys has triumphed in the Furniture/Electrical Store category of the Roy Morgan Customer Satisfaction Awards every month this year, with consistent scores over 90%, and JB Hi-Fi has been close behind in second place, while Harvey Norman sits around fourth place.
Image Source: Roy Morgan Single Source (Australia), July 2015-June 2016.
JB Hi-Fi customers are from the highest-earning households, with a mean household income of $115,000 – well above the total household average of $99,000. Harvey Norman shoppers come in at second spot with households with a mean income of $107,000, followed by The Good Guys customers at $98,000.
Harvey Norman customers have a mean age of 50 years, ahead of The Good Guys, who average 49 years, while JB Hi-F customers have an average age of 40.
Roy Morgan Research CEO, Michele Levine said, “With customers as happy as The Good Guys and JB Hi-Fi customers, the announcement of this merger is bound to make many people even happier, including shareholders.”
“While both will remain separate brands and companies in the retail world, the merger may influence their happy customers to shop at both stores. Of course, only time will tell whether JB Hi-Fi’s younger, higher-earning customers will now be inspired to visit The Good Guys when purchasing household appliances, boosting the latter’s profitability with their above-average buying power.
“Furthermore, the similarity in age of The Good Guys and Harvey Norman customers could pose a challenge for the latter, with JB Hi-Fi’s takeover of The Good Guys almost certain to bring with it revitalised business and marketing strategies designed to make consumers take notice.”