1.0 Executive summary
This report will focus on the concept of perishability and how this concept can be linked to the Digital Switchover. This report will also investigate how the US, Japan, Europe and the UK differed in their strategies to implement this switchover and what affect this had on consumers.
As the digital switchover is an emergent issue at the moment there is a strong need to explore further into why this issue will and has had a huge effect on the consumer market to date. The aim of this report is to link the concept of perishability with the digital switchover and show how by implementing this switchover throughout the world what affect this had on the consumer. By examining this issue further we can see how the digital switchover has been a much debated issue over the last few years and we can gain a clear insight into why the UK and other countries used different strategies to phase in the switchover in order to make consumers aware that their analogue television services will perish. We will also be able to see what affect this will have on them.
3.0 The different strategies implemented by the US, Japan, Europe and the UK to phase in the digital switchover and what affect this had on the consumer A service can be defined as “the production of an essentially intangible benefit, either in its own right or as a significant element of a tangible product, through which some form of exchange, satisfies an identified need”(Palmer, 2008). For this report the service which will be investigated is the service of the TV. “The contemporary consumer is now more active, informed, connected, wealthy, demanding, difficult to profile, unpredictable and empowered” (Pine and Gilmore,1999; Schmitt, 1999; Gobe, 2001). Therefore, the way in which the various countries being studied phased in the digital switchover had to be greatly thought out to ensure the consumer was fully aware of what was to come and to give them time to come to terms with it, enabling them to successfully complete the switch to digital television when they were required to. By informing the consumer efficiently of how to successfully make the switch they had time to choose whether or not they felt this was the best option for them, what type of provider they wanted to switch with did they wish to make the switch and what benefits they would gain out of making the switch. One theory in services marketing suggests that services can ‘perish.’ According to Palmer, A (2011) the term perishability “Describes the way in which a service capacity cannot be stored for sale in a future period. If capacity is not sold when it’s produced, the chance to sell it is lost forever.” When examining the digital switchover the principle of perishability can be linked to this as once the digital switchover took place analogue TV as a service was void to consumers therefore it could not be used as a service again in the future. This is why the consumer needed to be made fully aware of the switchover so they didn’t lose the service of their analogue TV without knowing why or how. Due to the perishable nature of the analogue TV service many key players decided to take advantage of the situation by giving consumers a choice of providers to switch their TV services too. Some of the key players who tried to take advantage of this situation were sky, virgin media and BT vision. As the digital switchover was a process consumers had to face or risk losing the service of their TV the key providers benefited greatly from this. The process of the digital switchover was phased into countries in very different manners. The way in which it was phased in depended on numerous factors. These included; the size of the market, the importance of terrestrial TV in relation to satellite and cable and the feasibility of achieving the targeted analogue switch-off dates, due to factors such as the availability of frequencies in certain locations (Leiva et al, 2006.)...
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Gobe, M (2001) - Emotional branding: The new paradigm for connecting brands to people
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MTG Leiva, M.Starks, D.Tambini (2006) - Overview of digital television switchover policy in Europe, U.S and Japan
Palmer, A (2008) – Principles of services marketing
Palmer, A (2011) – Principles of services marketing
Pine and Gilmore (1999) – The experience economy
Schmitt, B (1999) – Experiential marketing
(Overview of Digital TV Switchover policy in Europe, U.S and Japan. MTG Leiva, Michael Starks, Damien Tambini (2006))
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