Despite first-tier brand TV vendors lowering prices for LCD TVs of certain sizes in North America in May, the refund rates for LCD TVs actually increased due to consumers being more fickle about the quality of high-definition images.
Branded TV vendors indicated that in order to boost sales volumes in the North American LCD TV market, many first-tier brand TV vendors lowered the price for 32-inch and 40-inch LCD TVs starting from May. The resulting pricing competition caused the price of LCD TVs in North America to drop, which should have increased sales volume, noted the vendors. The refund rate for LCD TVs, however, increased to around 25-30%, according to industry sources.
With the introduction of high-definition TV broadcasts in North America it became much easier to compare the resolution of LCD TVs. As a result, the refund rate for LCD TVs increased as customers returned low-priced products that did not meet their original expectations in terms of picture quality, noted the sources.
