Development of a sector with a bright future: teleshopping · 2007. 1. 18. · Silvia Sanz Blas Isabel Sánchez García Facultad de Economía Universidad de Valencia Abstract Non-store

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september · december 2006 · esic market

Development of a sector with a bright future: teleshoppingSilvia Sanz Blas

Isabel Sánchez García

Facultad de Economía

Universidad de Valencia

AbstractNon-store selling represents an opportunity for many companies to diver-sify their activities in their business and expand their markets. Among alldirect methods of purchase, teleshopping is experiencing a great develop-ment in recent years thanks, in part, to the advances made in new techno-logies, allowing that television media becomes a very important tool fortrade all over the world. The outstanding broadcasting increase of thiskind of programs / advertisements, reflected not only in the channel’s bro-adcasting time and the apparition of prearranged images, but also in thenumber of channels (regional, local and sale channels) and companies thatoffer these services and the access to Internet through television areaspects that encourage the development of this method of purchase. Thispaper is focused in analysing the evolution of teleshopping along the timewith the aim of highlight its importance and identify the future trends.

Keywords: television media, teleshopping, new technologies.

JEL Code: M31.


development of a sector with a bright future: teleshopping

1. IntroductionTeleshopping is a commercial non-store formula which has coexistedalongside traditional methods since 1980 in countries such as Italy, Fran-ce and the United States (Quelch and Takeuchi, 1981).

A brief review of the most significant studies in this field shows thatearly research on Teleshopping focussed attention on the system’s benefitsand drawbacks, the target audience and in general the implications ofteleshopping itself (Foster, 1981; Martí and Zeilinger, 1982; Quelch andTakeuchi, 1981; Rogers, 1982).

The literature on the above aspects of teleshopping was significant butthere was an evident lack of research on consumer attitudes towards thenew shopping system. By the end of the eighties, studies which focusedmore on consumer attitudes towards teleshopping began to appear(McKay and Fletcher, 1988) as it was acknowledged that the audience isthe potential user of the system and its attitude towards this type of servi-ces is of critical importance. The results of this new research facilitatedinformation on the levels of consumer demand for this type of shoppingand provided guidelines for television organisations to direct the teleshop-ping market to the most advantageous areas.

In Spain, studies continue to concentrate on the system’s main advan-tages and disadvantages, the target audience and levels of demand for thistype of shopping. Studies in other countries (Grant, Guthrie and Ball-Rokeach, 1991; Skumanich and Kintsfather, 1993, 1998) have extendedthe scope of research to analyse the possible links and relations the teles-hopper has with this type of advertisements and/or programmes and theirinfluence on the purchase, and the background or precursors to these rela-tions.

In Spain, very little research has been done up to now why this salesformula did not start until the early 1990s, the date when the first studiesbegan to appear. The most relevant of these studies being both market stu-dies on shopping habits in the new sales systems carried out by the Insti-tuto Emer in several regions of Spain and the research done by De la Balli-

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na and González (1993), Sanz (2002), Sanz and Sánchez (2002a, 2002b)where this new sales formula is analysed in detail.

Currently, there is a clear interest in studying interactive television andInteractive Home Shopping, as new, significant developments which areobviously driving or will drive in the not too distant future to the growthand importance of this type of non-store sales. However, there is a markedlack of interest in the traditional television sales formats. Interest in thisfield should be revived since these formats are at present the most com-monly used and in the more immediate future, they will continue to com-plement the more innovative formats.

This lack of interest and little research have encouraged us to studytelevision sales in more detail. The objective of this work is to analyse, andthus highlight the growing relevance and importance of teleshopping, howthe system has developed over time and its expectations for future deve-lopment.

2. Teleshopping originsSales through television channels began in Italy around 1980 then appea-red in the United States and two years later were introduced in France. Inthe early stages, teleshopping services worked through an interactive sys-tem which allowed subscribers to send messages to their information pro-viders who, in turn, were able to provide transactional services such as:placing standing orders, home banking and teleshopping (Marti and Zei-linger, 1982; McKay and Fletcher, 1988).

The interactive facility stemmed from the fact that the shopper couldnot only receive general information on the sales organisation, but couldalso ask about available stocks, price, colour, size and even order a chosenitem (Thompson, 1997). To make teleshopping available, the television setwas connected to a minicomputer in the retail establishment by ordinarytelephone lines. Consumers could order their products from the lists whichappeared on the tv screen. At first, the information was only static andwritten, and so there were no images.

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To place an order, the shopper pressed the appropriate buttons tointroduce the item code number and the desired quantity. The consumer’sshopping list detailed item by item appeared on the screen with the corres-ponding account. The consumer could even recover old shopping listsbecause they were stored in the seller’s computer memory. Repeat orderscould be quickly confirmed, items could be deleted and new items couldbe added before completing the transaction.

When the order was finalised, it was recorded in the shop computer andwas printed out in the form of a purchase order. The products were prepa-red by the staff in the shop for delivery to the consumer. In the majority ofcases, delivery took place at the shop’s convenience, but in other cases, at thetime requested by the shopper. Payment was in cash, by cheque or creditcard as decided by the organisations participating in this new sales system.

While teleshopping could appear an attractive proposal in someaspects, the system also had some limitations (see Table 1). Marti and Zei-linger (1982) paid special attention to the drawbacks of teleshopping,from the consumer’s point of view, and at that time the most serious disad-vantages were:

1. The fact that the television was not available for watching pro-grammes or the phone for making calls.

2. Possible risk of error if a mistake was made selecting the item codes. 3. The lack of a printed version to detect any possible errors.

The first of the above problems was classified as minor, as these defectscould easily be solved. Obviously the consumer would choose to shop bytelevision when his favourite programmes were not on, or when there wasno need to use the phone. The last two were more problematic. In anycase, the majority of consumers were probably not dissuaded from teles-hopping by just these setbacks.

The above list of drawbacks was extended thanks to research by otherauthors such as McKay and Fletcher (1988), who after a study of consu-

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mer attitudes towards teleshopping concluded that most of those intervie-wed were opposed to the alternative of shopping by television on the basisof the following criticisms:

1. It meant a loss of social contact, emphasising the social function oftraditional shopping.

2. It did not offer the visual stimulation of shopping in a shop. The phy-sical aspects of the product, such as presentation and packaging weredecisive when shopping and teleshopping was incapable of commu-nicating this information through photographic presentations. Theproducts, reduced simply to words and figures, lost aesthetic attrac-tion and therefore the temptation to buy them. The lack of visual sti-mulation was a clear drawback to the teleshopping system.

3. Teleshopping was perceived as something not very interesting andlacking in mental stimulation. It was synonymous with lack of choi-ce. It limited the number of products available, as all the itemscarried by a shop could not reasonably appear on the screen. Teles-hopping therefore, did not offer as wide a range as the traditionalshop.

4. It was not very suitable for buying perishable goods, clothes orfootwear. These products are thought to need a priori examinationbefore the purchase.

5. The benefits of home delivery also had negative aspects, such as theneed to wait until the products were delivered, receive unwantedreplacements, discover some items had run out and generally, recei-ve products in poor condition. There was special emphasis on theneed for an efficient customer service to reduce the inconvenienceof having to return items.

6. The price of the products. The consumer did not consider that thepurchases were competitive on price, since in addition to paying theprice of the product, other costs also had to be paid, such as trans-port costs.

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There were therefore, several reasons which indicated the possible fai-lure of teleshopping (seller’s operating costs, the range of products or legalbarriers), with one of the clearest reasons being the lack of consumer inte-rest. This, at first, caused doubts as to the future commercial feasibility ofthe teleshopping service1.

In Spain, television sales started in the early 1990s on private channels.Teleshopping programmes were first broadcast with the launch of Antena3 television. Through “La Teletienda Antena 3” this type of programmewas introduced in a totally new way. These television sales slots were cha-racterised, at first, by their serious nature, since presenters rarely appea-red, it was mostly shots of the products announced with an off-cameravoice commenting on them. There were also no testimonies or commenta-

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1. Television not available to watch television programmes.

2. Telephone not available to make calls.

3. Risk of error when selecting item code numbers.

4. Lack of printed copy of the order to detect any errors.

5. Loss of social contact.

6. Lack of visual stimulation.

7. Lack of consumer interest in the service.

8. Limited number of products available.

9. System not appropriate for the sale of products such as: perishable goods, clothes and footwear.

10. Problems with the product delivery service.

11. Lack of efficient customer service.

12. Uncompetitive prices.

Table 1. Initial limitations of teleshopping

Source: Adapted from Marti and Zeilinger (1982) and McKay and Fletcher (1988).

(1) It should be notedthat several authors haveworked on the conceptof teleshopping, in theearly stages, as a verywide concept, includingthe purchase of itemsfrom the television orfrom the computer ortelephone. Other authorsextended the concepteven further, includingunder teleshopping anyother method of nonstore sales, i.e. any typeof sales which could bemade from the customer’s home,including catalogue orpostal sales, whichtogether with televisionwere included in theterm Direct Marketing.



ries from the people who created the products or used them. These pro-grammes were broadcast at different times: in the mornings from 11:00 to12:00, in the afternoons at 15:30, 17:15, 18:30 and finally at 19:00 (Cas-telló, 2002). Until that moment, only those with a parabolic aerial hadaccess to some teleshopping programmes.

3. Current situation of teleshoppingIn comparison with its beginnings, the concept of teleshopping has evol-ved considerably. Nowadays, some of the problems perceived by consu-mers to hinder the development and introduction of teleshopping appearto have been solved (visual stimulation, appropriate knowledge of the pro-ducts, efficient customer service and competitive prices). There is no doubtthat this commercial non-store sales formula has recently been experien-cing significant developments both in Spain and other EU countries andhas spectacular perspectives for growth. Teleshopping (teleshopping pro-grammes or infomercials) can therefore be viewed as one of the most pro-mising methods for the sale of goods and/or services, thanks especially tothe new technologies that continue introducing new ways to access pro-ducts and to purchase them from the television set.

In addition, given that the television is extremely popular and is pre-sent in practically all households (CIS, 1997; EGM, 2005; El País, 1999;Núñez, 2000; MECD, 2002; SEDISI, 2000), sales through this mediumare becoming an extraordinary force within commercial distribution (Díezde Castro, 1997; Gómez, 1995; Miquel, Parra, Lhermie and Miquel,2006; Whitford, 1994). Therefore the phenomenon of teleshopping whichstarted approximately twenty years ago, has very promising possibilitiesfor development (Carcasona, 1994, Gómez, 1995), as indicated by the factthat, currently both private and state-run channels, including the regionaland local channels, have slots dedicated to sales. Some foreign companiesbroadcast through Spanish channels and others in channels which can beseen with parabolic antennas, as for example Galavisión (teleshopping) orSky Channel (Quantum Int. Ltd.), with well organised distribution logis-

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tics in order to sell their products in Spain. Exclusive sales channels areeven beginning to appear where it is possible to shop 24 hours a day(Ono’s teleshop EHS (European Home Shopping)). In addition to the abo-ve is the inclusion of sales in certain programmes, such as entertainmentprogrammes, where the presenters present and sell the products (for exam-ple the sale of “Lo Monaco” mattresses in the programme “A tu Lado”).In these cases trust in the presenters generates greater credibility for theproducts and therefore increases sales.

At present, three types of television sales are being developed most inSpain (see Table 2). Firstly, there are direct response advertisements, simi-lar to conventional advertising but with a slightly longer duration (aroundtwo minutes), secondly the teleshop or video-catalogue programmes(which last about 15 minutes), and thirdly infomercials, long lasting salesprogrammes (up to 3 hours).

Of these three, the most popular among the public are the video-catalo-gue programmes (Sanz, 2002), of which A3D, from Antena 3 TV was one ofthe most successful until its disappearance. It had more than 900,000 clientsand consolidated as the leading Spanish company in the direct sales sector(A3D, 2003). In the year 2000 its turnover was 27.04 million euros using thechannel’s least saturated advertising slots (Barrio and Nieto, 2003).

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CHARACTERISTICS

• Short duration (between 60 and 120 seconds).• A single product is offered.• A telephone number is given to acquire the

product

• Minimum duration of 5 minutes.• Maximum duration of 15 minutes.• Several products are offered.• A telephone number is given to acquire the

product.

TYPES

Conventional directresponse advertising

Video-catalogue/teleshopprogrammes

Table 2. Types of teleshopping



These three forms of sales are included within the traditional teleshop-ping systems since, in all of them, the client requests the product by pho-ne and it cannot be acquired any other way. Contact is made with the sup-plier of the goods or service and the sale is finalised by phone (Bragg,1987; Díez de Castro, 1997; Gómez, 1995; Linke, 1992; Miquel et al.,2006; Quelch and Takeuchi, 1981). Nowadays in Spain, in comparison toother countries, telephone ordering is the most used system and is there-fore still the current system.

In addition to these traditional teleshopping systems, where the clientmakes a phone call to request a product/service, with the appearance anddevelopment of new technologies such as digital, satellite or cable TV (seeGraph 1), the opportunity to shop directly (for programming or pro-ducts/services) is being offered on non-sales channels which is thus leadingto a complete rebuiliding of the television infrastructure (Grant, Guthrieand Ball-Rokeach, 1991). Thus, thanks to the development of interactivetelevision, the consumer can purchase direct from the television set bysimply pushing a button on the remote control, and charge the cost of thepurchase to his credit card or bank account (Blake, 1996; Lee and Lee,1995; Levy and Weitz, 1998; Linke, 1992).

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CHARACTERISTICS

• Minimum duration between 15-20 minutes andhalf an hour (only one product is shown).

• Maximum duration up to 3 hours (several prod-ucts are advertised).

• Broadcast in cheap and/or low audience timeslots.

• A telephone number is given to acquire theproduct.

TYPES

Long sales programmes(informercials or infocommercials)

Table 2. (Continuation)

Source: Original work.



In addition, it should be mentioned that the consumer is beginning tohave Internet access through the television set, which promotes yet furtherthe development of television interactivity between the televiewer and themedium (Blake, 1996). Thus, the customer can view the catalogue ofgoods/services offered by different companies on his television screen,make his choice and buy the products after comparing ranges, conditions,prices and brands (Bliwas, 2000; Bramley, 2000; Caswell, 2000; Clawson,1999; Frederiksen, 1997; Leonardi, 1999; Techtrends, 2000; Thompson,1997; Yorgey, 1997).

This new form of teleshopping (Internet), already available on the mar-ket for some companies, still has a very low level of introduction, and istherefore mentioned in this work as a future teleshopping formula, withperspectives for rapid growth on the Spanish market.

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Graph 1. The role of new technologies in sales

Source: Original work.

Satellite

Cable

Terrestrial

SALE BY

TELEVISION

Internacionalisation of slots

Consolidation of new chains

• Programming specialisation

• Adaptation to specific segments

• Additional services:

• Home banking• Telephone• Telework• TELESALES• Internet Access



In other countries such as the United States and the United Kingdom,television is very highly developed and an example of this is the fact thatinteractive television and Internet by television have been available forsome time, as have exclusive sales channels for products and/or services.Cable and satellite television are also good precursors for all these servi-ces, as they take advantage from their high number of televiewers to makesignificant sales through teleshopping2. These more innovative services arebeginning to be developed now in Spain.

In the United States, home shopping is a very powerful distribution chan-nel, and there are more than 500 channels dedicated to this type of sales(Underwood, 1993; Whitford, 1994). The variety of products marketed isimmense, with items from 12 euros to over 1,200 on sale (Ridsdale, 1993),with jewellery and cars being the most successful products (Whitford, 1994).

On the North American market there are even independent Spanishlanguage stations broadcasting sales programmes in Spanish, in order toreach a relatively wide audience such as the Hispanic market3 (Shermach,1997). This market shows a predisposition or favourable attitude towardsadvertising and direct marketing, considering that both are importantinformation sources (Korgaonkar, Karson and Lund, 2001). Nowadays,the telesales industry in the United States is worth over 2,000 milliondollars (around 2,103 million euros).

At present, one of the leading television channels in the teleshoppingsector is QVC (Quality, Value, Convenience), which has been operating forover 15 years in the United States and, since a few years ago, in Canada,Mexico, Japan and Europe (France, the United Kingdom and Germany) aswell (Stephens, Hill and Bergman, 1996). In 1992 this great teleshoppingchain had a loyalty rating of around 60%. Out of every 10 viewers whomade a purchase, 6 purchased again (Stephens, Hill and Bergman, 1996),this loyalty rating was maintained in 1997, together with the incorporationof 150,000 new clients every month (Thompson, 1997). Currently, it is pre-sent in more than 64 million households in the United States and around 6million households in the United Kingdom (Leonardi, 1999).

(2) An example of thehuge potential and scopeof this medium is thepromotion of Frank Coffey’s book which inone of the sale programmes broadcast(QVC) in only 5 minutessold 2,000 copies, withtotal sales of 8,000copies over the totalduration of the programme of just 17minutes. (Whitford,1994).(3) Currently, the Hispanic market has apopulation of around 25million people with aspending capacity ofaround 150 billion dollars, justifying theimportance of this market segment both foradvertising and directmarketing (Korgaonkar,Karson and Lund, 2001).

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This leading sales chain achieved total sales of 1.6 billion dollars in1995, with a 400 million dollar increase on the previous year (Underwo-od, 1996), and by the end of 1999 passed the 2.8 billion dollar mark(Sullivan, 2000).

Although QVC was initially set up to market only cheap, low qualityproducts (such as costume jewellery), nowadays, with the aim of increa-sing its target audience, it offers a wide variety of products through its dif-ferent sales channels (for example the Q2 and On Q channels), some ofwhich also specialise, among others, in family themed programmes,health, sports, fashion, fitness and travel (Rubel, 1995; Solomon, 1994;Thomphson, 1997; Underwood, 1996). Greater market segmentation andvariety of products offered to its audiences (more than 200 products perhour) (Daugard, 1996) has meant that this company has recently begun toattract a more discerning public, in a higher income bracket offering bet-ter quality products at a consequently higher price (Miller and Zapolin,1996; Underwood, 1996). The company uses a persuasive sales system incontrast to the aggressive sales system traditionally associated with telesa-les (Masko, 1997).

QVC’s business was extended in the summer of 1996 by incorporatingthe service of shopping by PC (iQVC), offering its clients the opportunityto acquire products not only by television but also by Internet (Galenskas,1997; Underwood, 1996).

Another of the pioneering companies in teleshopping (founded in1977) and also a market leader is HSN (Home Shopping Network). Thiscompany, in contrast with the previous one, attracts the middle incomebracket consumer with lower price and lower perceived quality products(Miller and Zapolin, 1996). Sales at the end of 1999 were over 1.2 billiondollars (Sullivan, 2000).

Like QVC, this leading chain has also extended its business with theInternet shopping service. This service started in 1995, a year before thanits most direct competitor (QVC), and in even that first year obtained aturnover of 2 million dollars (Underwood, 1996).

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Together with QVC and HSN, other teleshopping chains such as ValueVision (founded in 1990) and Shop at Home have also contributed to thesuccess of this sales formula4 (Andersen, 1999; Underwood, 1996). Thanksto the development of these chains and in particular of the leading saleschains, i.e., QVC and HSN (present in over 140 million households (Mer-migas, 2001)), teleshopping has a promising future (Eldridge, 1993). Infact, television sales have gone from 2.5 billion dollars in 1993 (Underwo-od, 1994) to 4 billion a year between the end of 1995 and 1996 (Miller andZapolin, 1996; Underwood, 1996) and around 6 billion dollars at the endof 2000 and early 2001 (Mermigas, 2001). It is forecast that this figure willincrease by 1.5 billion dollars over the next 4 years (Mermigas, 2001).

4. Implications of direct sales for companiesAll the indicators show that teleshopping will grow in the future. This willmean a change in consumers’ lives but also an important change for com-panies who hope to increase sales through the television medium, either bycompeting or doing business with it (Solomon, 1994).

The growing tension between manufacturers and distributors is incre-asingly pushing manufacturers to search for alternative sales channels,which they often use in parallel with sales to large distributors, in order todecrease their dependency (Gómez, 1995). In fact, for manufacturers, theappearance and development of this form of sales means a further alter-native (and in many cases a cheaper one) for making its products knownand offering them to consumers without having to invest in costly con-ventional advertising campaigns to do so (Carcasona, 1994; Hawthorne,1998b; Masko, 1997; Whitford, 1994).

In addition, for the distributors, although this commercial formulameans greater competition for them, they can take profit from it, using itto diversify their offer, as in the Spanish case of the El Corte Inglés5

(Gómez, 1995). Thus, sellers who add a telesales component to their shop or business

can obtain a significant synergy (Barrett, 1996; Silverman, 1995; Solo-

(4) Telesales for ValueVision and Shop at Homein the United Statesreached 218 million and150 million dollarsrespectively in 1999(Andersen, 1999).(5) This major distribution chain beganbroadcasting in June2001 a series-type programme (Tele 5 in ElCorte Inglés) made in thechain’s own stores, lasting about 20 minutes(from 10:00 to 10:20). Inthese programmes, someof the staff gave detailedpresentations of severalproducts which could bepurchased at the stores orthrough the programme itself byphone. In total 4 or 5products were advertisedper programme, somewere well known brandsand prices, in most caseswere over 30 euros. Alongwith the phone number tomake the order, a guaran-teed refund was offered,and the possibility of pay-ing with any credit card,including the El CorteInglés store card. Thisprogramme was broadcast every day from

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mon, 1994; Webster, 1997). For example, in the case where the consumeris not satisfied with the product purchased by television and providing thisproduct is available in the shop, he can either return it or change itthrough the usual teleshopping channel or go to one of the advertiser’ssales outlets. As a result, the consumers may end up visiting the shop andbuying more products there as well.

Nowadays, the large companies in the distribution sector, such asCarrefour, have reached an agreement with teleshopping companies underwhich some of the products offered on the television (reducing ointments,gym apparatus, etc. ) are present throughout the chain.

In the same way, television has also appeared as a support to postalsales (Dowling, 1997, Méndez, 1993). Currently, companies such as Spie-gel and Time Warner, or El Corte Inglés6 in Spain, use telesales program-mes to offer products from several of their sales catalogues, thus helpingto promote the catalogue business. The telesshopping channel is used togenerate orders by catalogue and simultaneously, the catalogue is used topromote the telesales channel. The products which appear in the catalo-gue with the note “sold on tv”, sell more (Dowling, 1997).

Companies which do business using television sales need to realise thatsales through this medium may be both a blessing and a nightmare. Tele-vision is able to sell thousands of products in a few minutes; this meansthat a small manufacturer needs to consider his production, stocks andwarehousing before the product is broadcast on television, in order tomeet whatever response there is to the advertisement. Replacing resources,reviewing strategies used in several departments, subcontracting part ofthe manufacturing process and not assigning so much capital to traditio-nal advertisements are aspects which must be considered by thesellers/manufacturers who anticipate they could grow by selling throughthis medium (Solomon, 1994).

In addition, this commercial formula will allow the manufacturers/sellers themselves to control the results in the short term, as they can beobserved and measured almost immediately (in a few hours, under a

Monday to Friday as partof the daily schedulingand was even repeated inthe early hours.(6) After the popularityof the El Corte Inglés products advertised by“Tele Tienda”, the majorSpanish distributionchain decided to go intocatalogue sales on itsown without intermediaries. In late1992 it set up an out ofstore sales departmentcalled “La Tienda enCasa”. Customers couldplace orders over thephone or using thecoupon inside the catalogue. The launch ofthe first El Corte Ingléspostal sales cataloguecaused quite a stiramong the companiesalready operating in thebusiness, who wereenjoying a particularlyfavourable period (Méndez, 1993).

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week), so that the assumed risk is very controlled (Carcasona, 1994;Cotriss, 1998; Danaher and Green, 1997; Díez de Castro, 1997; Hawt-horne, 1998a; Kaye, 1999; Masko, 1997; Whitford, 1994).

Sellers who, initially, refuse to adopt telesales will have to develop newformats to make the experience of in-store shopping more stimulating andattractive, perhaps by providing entertainment, leisure activities or shows.They will also have to use new technologies to help consumers buy moreeasily and conveniently, such as for example introducing computer sta-tions on sales floors so the consumers can find out about products, avai-lability or future offers (Solomon, 1994).

The professionalism and good practices of the different companies ope-rating in the sector (product quality, delivery terms, guarantees, refunds,prices, etc.), European Union legislation7 on television-related issues, andthe development and definitive introduction of interactive television are,among others, elements which will exert significant influence on the deve-lopment of this type of sales.

5. Perspectives of growth for teleshoppingThe most immediate future of teleshopping in Spain is without doubt, thedevelopment and definitive introduction of cable television and the digitalcommunication networks. From these new technological advances, telesa-les will benefit given that:

1.- More time will be dedicated to sales slots (Gómez, 1995), so the dif-ferent channels will broadcast more programmes of this type (Wicks,1991). The sales or catalogue programmes on a cable channel are usuallybroadcast for around 30 minutes and can be shown to all the subscribersas part of the regular broadcasting schedule or only to individual subscri-bers on request and at their convenience.

The availability of more broadcasting time will create, on the onehand, more competitive markets, as more viewing options will be availa-ble for the televiewer and on the other hand will lead to lower prices for

(7) The legislationincreases the timeallowed for broadcastingconventional directresponse advertisements, givingseparate consideration tosales programmes andexclusive sales channels.

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television slots (Gómez, 1995). This will doubtless favour the rapidgrowth of the traditional sales systems such as infomercials (long salesprogrammes for products and/or services) (Carcasona, 1994), and thedevelopment of new forms of catalogue programmes and commercialadvertising (Díez de Castro, 1997).

2.- Specific channels will be dedicated to the sales of goods/services(Carcasona, 1994; Whitford, 1994; Wicks, 1991). This means that themeddirect sales channels will appear from which to shop 24 hours a day.

This formula will radically increase sales, as the consumer will be ableto specifically choose a channel on the television at any time of day fromwhich to teleshop and in addition, in the not too distant future, the servi-ce will be interactive (Blake, 1996; Thomphson, 1997; Whitford, 1994).Thus, the traditional system of phone shopping will survive alongside inte-ractive shopping systems where the consumer can transmit the orderthrough the television remote control (Blake, 1996).

3.- Internet access through the television set itself will be developed,which will mean a significant extension to the market (Frederiksen, 1997;TechTrends, 2000; Thomphson, 1997; Yorgey, 1997). In fact, most Inter-net and teleshoppers, together with subscribers to cable and satellite tele-vision are favourably disposed towards using this service (TechTrends,2000).

There will even be combinations of sales programmes and Internet,where the televiewers, by watching these programmes, will have directaccess from the programme itself to the company website, simply by clic-king on the web address which appears on the screen, which will allowconsumers to see a product, select it and buy it using the remote controlwhile watching the sales programme, without the need for a computer ora phone call. (Bramley, 2000; Caswell, 2000; Leonardi, 1999). In the Uni-ted States, more than 80% of active teleshopping channel customers havealready stated their interest in this service and therefore that they are readyto order and pay for the products through their television sets. Of these,27% say they would pay a monthly fee for this service (TechTrends,

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2000). This combination of Internet and telesales will surely help to over-come some of the limitations inherent in the use of Internet alone (Chilesand McMackin, 1996; Frederiksen, 1997; Javenpaa et al., 1999; Lohceand Spiller, 1998; Pavitt, 1997; Swaminathan et al., 1999).

In the United Kingdom, this interactive system has been available onthe market (on the Sky Digital channel) since late 2000 and has been deve-loped by NDS (leader in problem solving for companies using sophistica-ted interactive technologies), in collaboration with the sales channel QVC(Bramley, 2000). In the same way, this system has been developed byWorldgate Communications Inc., also in collaboration with the saleschannel QVC, with the aim of introducing a new form of impulse buyingin the sphere of e-commerce (Leonardi, 1999).

It is predicted that in the short term, the television will be a direct res-ponse medium, with a significant change towards commercial advertisingor programmes of the dot.com type, designed so it is possible to placeorders straight away, request further information or visit the company’swebsites (Bliwas, 2000; Card et al, 2000; Caswell, 2000; Clawson, 1999;Leonardi, 1999).

In Spain, the first platform offering Internet services through the tele-vision was Quiero TV, with more than 80% of subscribers using this ser-vice (Gómez, 2001a). The offer ranged from several interactive televisionchannels to services such as: e-mail accounts, mobile messaging, partici-pation in forums, chats, food home delivery and shopping (books, musicand electronics, insurance, bathroom fittings, etc.) (Marín and Marcelo,2002). The concept Quiero Tv tried to transmit was that of participation,inviting all viewers to be an active part of the channels. However,currently, Quiero Tv no longer offers its services to the market, the mainreason for its disappearance being its high risk business plans to competewith other pay-to-view channels. Outstanding, among others was the hugeinvestment made both to capture customers and purchase contents whichexceeded subscriber generated income by more than 100% (Noticias deComunicación, 2002).

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Internet-television convergence is becoming increasingly apparent(Carton, 2001; Dunphy, 2001; Kelling et al., 2000; Kenny y Marshall,2000; Long, 2001; Robins, 2001; Serena, 2000), both in terms of techno-logy and content (linn, 1999). However, despite the similitude betweenboth media there are significant differences with respect to choice motiva-tions and media use, giving rise therefore, to different benefits for each ofthem (Heeter, 2000; Kelling et al, 2000). In addition to the above, it is dif-ficult to make these new services profitable and the television infrastruc-ture itself is resistant to change, all motives which may mean that Internet-television convergence is still some time away (Gómez, 2001b).

6. Barriers to the use of the teleshopping systemAlthough everything seems to suggest that teleshopping will benefit fromthe development of cable and, digital communication networks, it shouldbe noted that there are a series of barriers or obstacles to introducing pro-duct sales which may be a break on access and interest for companies. Werefer to three main barriers: the cable operator, policies and costs.

Firstly, it should be noted that cable operators, up to now, have notbeen very enthusiastic about commercial advertisements/programmes, sin-ce these operators have focussed mainly on obtaining income from subs-cribers rather than advertising, and are fairly sensitive to including it.

Secondly, advertising programmes are not always considered positive,as they can lead the consumer to impulsive and/or compulsive buying ofthings which are really of no interest to him (Beatty and Ferrell, 1998;Christenson, Faber, De Zwaan, Raymond, Specker, Eckern, MacKenzie,Crosby and Mitchell, 1992; Cobb and Hoyer, 1986; Donthu and Gilli-land, 1996; Faber, 1992; Faber, O’Guinn and Krych, 1987; O’Guinn andFaber, 1989; Ridsdale, 1993; Roberts, 1998; Rook, 1987; Rook and Fis-her, 1995; Thomas and Quindry, 1999).

Finally, the operators see commercial advertisements/programmes as atype of publicity and therefore, expect some type of compensation. Normallythe operating station, in exchange for inserting an advertisement for free,

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receives a percentage of the sales (usually 3-5%) generated by the orderstransmitted by telephone or the interactive systems8. As with a conventionaladvertisement, it is also possible to buy an advertising slot to broadcast theadvertisement/programme (Bragg, 1987; Cotriss, 1998; Daugard, 1996;Eicoff, 1995; Gómez, 1995; Mermigas, 2001; Quelch y Takeuchi, 1981;Ridsdale, 1993; Whitford, 1994). In the latter case, according to the durationof the telesales slot and the broadcasting time, the operator invoices the com-pany which sells the products as though it were just another advertisement(Cotriss, 1998; Gómez, 1995). Low audience time slots are usually used tobroadcast this type of programmes and this is therefore an important resour-ce to mitigate the possible advertising crisis (Barrio and Nieto, 2003).

Cable operators’ lack of interest, the negative view received by politi-cal agents and the costs generated by broadcasting the advertisements/pro-grammes are some of the reasons why companies may abandon the ideaof getting into the direct sales market through the television medium.

7. ConclusionsSales through the television medium is an interesting option for companieswho want to expand their markets and diversify the offer of their pro-ducts/services.

This direct shopping formula, which appears as a complementary met-hod to in-store sales, is currently undergoing significant development andis quite popular among consumers, boosting the importance of the televi-sion medium as a distribution and sales channel.

The increase in the broadcasting of advertisements and/or sales pro-grammes and the number of channels and companies which offer them,the appearance of exclusive, 24 hour a day shopping channels and the saleof products through certain programmes are, among others, aspects whichshow how important this shopping system is becoming.

In addition, it must be noted that thanks to the liberalisation of tele-communications and the development of interactive television, the consu-mer is beginning to have access to a series of services hitherto unimagina-

(8) This method of buying media in directmarkets is known as “Per order” (PO) or “Per-Inquiry” (PI) (Daugard, 1996; Eicoff,1995). Some stations donot accept PI since,although the methodguarantees a profit to thedirect market, the medium may lose byreceiving less moneythan if advertising hadbeen paid for. In thesecases the PI methodgives way to the “cashlibrary” where the station,before the direct market,benefits from the income,or the “guarantee purchase” method, wherethe direct market buysadvertising space and thestation guarantees a minimum number oforders (Eicoff, 1995).

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ble, including teleshopping. The development of interactivity will help thetelevision to change from being a passive instrument to offering the tele-viewer the chance to participate in the content and therefore adopt a rela-tively active attitude to the television screen.

Internet through television is an obvious example of the progress inthis field and without doubt is one of the most interesting options for sti-mulating the use of this form of shopping. In less than 10 years time it isexpected that the television will exceed the PC and most shopping tran-sactions will take place through it, with a fully developed interactive tele-vision in both Europe and the United States (Barry, 2000; Cantwell, 2000;Card et al, 2000; Caswell, 2000; Lee and Lee, 1995; Strategis, 2000) Bylate 2000, interactive television was already present in almost 15 millionhouseholds worldwide and for 2006, this figure is expected to reach over240 million households.

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