Shifting Demand: Online Music Piracy,Physical Music Sales,and Digital Music Sales

Traditionally, music has been sold to consumers by recording several individual songs/tracks in physical media such as CDs and cassettes. Sales of such physical music have been declining for the past several years. Many academic studies have attributed the decline of physical music sales to online music piracy, yet some other studies have not found evidence to support a negative relationship between online music piracy and physical music sales. Interestingly and importantly, we have observed that while many of the studies that found the negative relationship between online music piracy and physical music sales used data before 2003, other studies that do not find similar results have used post-2003 data. In fact, there was a significant structural change in the music market in 2003. Legal (iTunes-like) online channels for digital music that allow consumers to buy individual tracks became available during that year. This article complements the existing literature by analyzing the impact of online music piracy and physical music sales in the presence of iTunes-like legal channels for digital music using bivariate Granger testing. Our results show that the availability of legal channels for digital music has weakened the negative effect of online music piracy on physical music sales. Moreover, in the presence of legal channels for music distribution, digital music, not online music piracy, substitutes for physical music.     

Why buy new when one can share? Exploring collaborative consumption motivations for consumer goods

The notion of collaborative consumption or sharing economy—where consumers share access to ownership of properties such as cars, clothes and accommodations—has gained tremendous popularity in recent years. Development of communication technologies and peer‐to‐peer communities has enabled consumers to coordinate sharing activities through various online platforms. Collaborative consumption involves sharing of both intangible (e.g., music, space and car rides) and tangible assets (e.g., household items, clothes and furniture). Activities such as renting, swapping, trading and purchasing/selling used consumer goods are included in the latter. Despite increasing academic attention on collaborative consumption, little research has been pursued in the context of consumer goods. The nature of consumption for tangible goods can be entirely different from that of intangible goods because people can exercise greater control over tangible goods, which results in greater psychological ownership than that for intangible goods. To address this gap, the objective of this study is to develop a scale that examines consumer motivations for collaborative consumption of consumer goods. Following Churchill's paradigm of scale development, the procedures of scale item generation, purification and validation were conducted via in‐depth interviews, literature review and surveys. The study identified five underlying dimensions of collaborative consumption of consumer goods: concern‐for‐sustainability, social, variety‐seeking, fun and cost‐saving. Study findings and implications are discussed, and future research avenues are suggested.     

Don't ignore the floor: Exploring multisensory atmospheric congruence between music and flooring in a retail environment

In retail environments, consumers commonly evaluate products while standing on some type of flooring and concurrently being exposed to music; however, no study has examined the interaction of these two atmospheric cues. To bridge this gap, this research examines whether retailers can benefit from creating multisensory atmospheric congruent rather than incongruent retail environments of flooring and music. The results of an experiment in a real retail store reveal positive effects of multisensory congruent retail environments (e.g., soft music combined with soft flooring) on product evaluations. This study provides a new process explanation with consumers’ purchase‐related self‐confidence mediating these effects. Specifically, consumers in congruent rather than incongruent retail environments experience more purchase‐related self‐confidence, which in turn leads to more favorable product evaluations. Furthermore, this study shows that consumers with a low rather than a high preference for haptic information are influenced more by multisensory atmospheric congruence when evaluating a product haptically.     

Perceived preservation format and food preference

The same (chilled) food product was presented to 77 consumers with either a frozen or chilled label. As predicted, liking for the food product was found to be in line with consumer expectation of liking for the different preservation format labels. For example, consumers that expected chilled foods to taste better than frozen reported higher liking for the product with the chilled label, even though actual quality of all products tasted was the same. Contrary to our prediction that tasting similar quality products perceived to be from different preservation formats would bring expectation of liking for those formats closer together, we found consumers who expressed no preference before tasting the products had developed a preference afterwards. We discuss the implication of these results and similarities between the concepts of conditioning, attitude, expectation and preference.     

How consumers contribute to the development and continuity of a cultural market

This article examines the “indie” music industry in South Korea. It describes a consumer-led market where network of consumers aided by social media take responsibility for its maintenance and development, specifically the market for indie music in South Korea. With the emergence of digital technology and a participatory culture, the roles of consumers have expanded. Through their commitment and passion for independent music, aided by social media, these consumers have developed a virtual indie music community, which uses a variety of mechanisms, such as producing podcasts, to promote its music. These non-traditional producers regard indie music as an important part of their lives and their existence, which is why they take responsibility for developing the indie community rather than leaving this to a profit-orientated music industry. Therefore, we demonstrate how in South Korea the production of indie music has ceased to be dominated by traditional actors, such as record labels, and is driven by the enthusiasm of music fans. Previous research on cultural markets suggests that consumers play critical roles in the formation and evolution of the market. This study sheds light on this process by depicting a cultural market that is governed by pro-social consumers (rather than anti-market resistance) who pursue a balanced approach between resistance to and negotiated harmony with commercial and social norms rather than drawing a simple boundary between “us” and “other”.     

Interactive music for multisensory e-commerce: The moderating role of online consumer involvement in experiential value,cognitive value,and purchase intention

Background music adds a multisensory element to marketing and e-commerce. Applying interactive sensory-enabling technologies (SETs) to online shopping websites is an area of interest in sensory marketing. This research examines interactive background music in e-commerce and investigates how online consumer involvement moderates the effects of interactive music. Single-factor experiments with three conditions (interactive music, static background music, and control) were conducted to investigate its impact on experiential value, cognitive value, and purchase intention of high- and low-involvement consumers among both students (Study 1, N = 251) and nonstudent samples (Study 2, N = 218). Different music genres were applied to stimuli of the two studies to demonstrate the generalizability of the findings. Results find that interactive music enhances the experiential value of e-commerce for low-involvement consumers. By contrast, high-involvement consumers show greater purchase intention under the interactive music condition due to a heightened level of perceived cognitive value. Involvement is an effective predictor of elaboration and purchase intention under the interactive music condition, but not under the other two conditions. The contribution is twofold: (a) it shows the impact of music as an interactive SET and, (b) demonstrates the moderating role of consumer involvement in the context of multisensory integration in e-commerce. Theoretical and practical implications are discussed along with limitations and directions for future research.     

Digital coupon promotion and platform selection in the presence of delivery effort

In recent years, physical retailers have started selling products to consumers through either third-party or self-operated online platforms. Doing so, they face demand which depends on digital coupon promotions, delivery effort by the platform (i.e., deliver products from retailers to consumers), and channel preference. In this paper, we develop a game-theoretic model to examine the interactions between the physical retailer's distribution channel choices and coupon promotions. In normal operation, retailers prefer to pay lower fees to the third-party platform, but we find, counterintuitively, that when carrying on a digital coupon promotion, the retailer can be better off paying a higher participation fee to the third-party platform. We also identify the conditions under which the retailer prefers the third-party platform over the self-operated platform with and without coupon promotions. Furthermore, we show that digital coupon promotions and delivery effort boost the retailer's profits by price discriminating among consumers with differing purchase utilities.     

Nostalgia and consumer preference for indulgent foods: The role of social connectedness

Prior qualitative research suggests a strong association between nostalgia and indulgent food consumption. Nonetheless, these qualitative findings do not explain the causal relationship between nostalgia and indulgent food consumption, or the mechanism underlying this relationship. To this end, the authors conduct four studies and show that highly nostalgic consumers have greater preference for indulgent foods. This relationship is mediated by social connectedness, whereby high (low) nostalgia works through high (low) social connectedness to increase (decrease) consumers’ preference for indulgent foods. This effect is moderated by eating companions, such that the effect of nostalgia on consumers’ preference for indulgent foods would be strengthened (vs. weakened) when eating with friends (vs. with strangers or alone). These findings have significant implications on consumer well‐being and policy‐making pertaining to consumer health.     

Streaming or stealing? The complementary features between music streaming and music piracy

Among young consumers, music streaming can be perceived as a substitute for music piracy. However, streaming can provide a venue for discovering and listening to new releases, and then, gaining access to these new tracks illegally. The objective of this study is to determine if music streaming acts as a buffer (substitute) or enabler (complement) of piracy. Using a logit model, we found that streaming complements piracy, providing evidence that these two modes of music consumption will coexist in the market. In addition, we found that social and peer behavior, risk perceptions, and consumption time online are elements contributing to music piracy.     

Consuming in one's mind: An exploration

Consumer research generally focuses on the consumption of tangible objects and experiences, which are concrete. However, consumers often consume in their minds by fantasizing, dreaming, or imagining that they possess some desired object or that they are living some experience. In this article, the term consumption dreams is used to refer to mental representations of consumption objects that consumers desire and experiences that they want to realize. These are distinguished from uncontrolled mental activities that occur when asleep. The results of two exploratory studies that examined consumption dreams are presented. In the first study, five adult consumers were asked about their most important consumption dream, as well as the factors that influenced this dream and the behaviors that ensued. The second study consisted of a survey of 195 adult consumers where the determinants and consequences of consumption dreaming were probed. It was found that indulging in consumption dreaming is a common activity among most consumers and that consumption dreams and their characteristics depend on general as well as dream‐based variables. In addition, those dreams were found to impact on several consumer behaviors. A causal model involving a subset of the variables examined in this exploratory research was put forward and tested with the survey data. The results showed the value of a proposed conceptual framework to generate theoretical propositions about consumption dreaming. © 2005 Wiley Periodicals, Inc.     

Synchronising retail and space: using urban squares for competitive place differentiation

This essay probes the critical dimensions of consumer‐culture theory (CCT) by investigating managerial tendencies toward integrating consumers from above or even imposing culture from on high, rather than viewing consumer culture as something that arises from the consumers themselves. Illustrations based on the use of background music or Muzak support concerns that culture is degraded by marketers as a means of social control. Attempts of an organization such as Pipedown to resist background music present an impression of futility in the face of hegemony. Hence we draw attention to the apparently predominant commercial thrust toward and mass susceptibility to manipulation, as born out by the ubiquity of background music and by the apparent lack of meaningful counter‐play by consumers. Noting the lacunae in our critical understanding of consumption, markets, and culture from the CCT perspective, we consider the ideological consequences.     

Cultivating group-oriented travel behaviour to major events: assessing the importance of customer-perceived value,enduring event involvement and attitude towards the host destination

Abstract

Major events, such as the Olympics and Glastonbury music festival, attract tourists and result in increased consumer spending in host economies. The purpose of this study is to gain insights into the key determinants driving future intentions of travel consumers to participate in group-based travel to major events. An integrated theoretical model is empirically tested with 424 travel consumers who have had prior experience travelling in a group to a major event. The results substantiate the model showing that customer value perceptions of a past group-travel consumption experience conceptualised with multiple benefit dimensions has the largest relative effect on future intentions to engage in group-travel behaviour to major events, followed by attitude towards the host destination and enduring event involvement. The results provide managers with holistic insights into components that are used as the basis upon which group-travel consumers develop their choice behaviour which can be used to effectively cultivate more attendees to major events.     

Heterogeneous consumers,search and retail formats

This paper proposes a model featuring the heterogeneity of consumer preferences and analyzes the multiple equilibrium of retail formats by building a map of the relationships between consumer heterogeneity and retail formats. The key questions analyzed in this paper are how the retailer adjusts its combination of marketing elements through repositioning and how innovation in retail formats is implemented to match consumers’ heterogeneous preferences in a market with consumer search costs. Unlike recent research, our model, by taking different consumer preference structures into account, introduces consumer psychological costs into the Ehrlich-Fisher model and deduces the existence of different retail formats and their multiple equilibriums. We find that consumer heterogeneity, retailers’ diversified transfer costs and economies of scale are endogenous drivers of prosperous retail formats. Accordingly, diversified retail formats with complementary functions and differentiated services can be described as the horizontal extensions and interface changes of the retailing industry.     

The Impact of Power Distance Belief on Consumers' Brand Preferences

Five lab studies and a field study explore how power distance belief (PDB) influences consumers' preference for mass-market versus niche brands, the underlying mechanisms, and boundary conditions. We find that high (vs. low) PDB consumers are more likely to prefer mass-market over niche brands because they tend to be risk averse, which in turn increases preference for widely used brands. Consequently, the relationship between PDB and brand preferences is mediated by risk aversion. Further, when product usage contexts are risky, low (but not high) PDB consumers' preference for mass-market brands increases, whereas offering an extended money-back guarantee increases high (but not low) PDB consumers' preference for niche brands. In addition, we find that when choosing service providers (versus choosing physical goods), low (but not high) PDB consumers are significantly more likely to prefer mass-market brands over niche brands. We conclude with the implications of these findings for marketers, such as for their segmentation and targeting endeavors. We also provide specific tools that marketers could use, both inside and outside the store, to influence consumers' preference for mass-market versus niche brands.     

The same old song: The power of familiarity in music choice

Does "familiarity breed contempt" or is "to know you is to love you"? In this research, we explore the role of familiarity in music choice. We show that although consumers say they would prefer to listen to unfamiliar music, in actuality familiarity with music positively predicts preference for songs, play lists, and radio stations. Familiarity with music is at least as good, if not a better, predictor of choice as are liking, satiation (which actually positively predicts choice), and regret. We suggest that the need for familiarity is driven by consumers' low need for stimulation in the music domain, and show that when the need for stimulation decreases, the power of familiarity significantly increases. In addition to their theoretical contribution, these results are informative for music managers determining playlists, for the promotion of music events and products, and for advertisers selecting the most potentially lucrative music venues.     

A Comparative Assessment of Consumer and Non-Consumer Preference for Beef Cuts Consumption in Malaysia

Malaysia is currently enjoying an economic revival, resulting in a rising per capita income and an increasing urban population. There are consumers whose taste buds have become more accustomed to international cuisines, including meaty Western food, to satisfy their quest for diversity in their new lifestyles. This group of consumers in Malaysia plays an important role in shaping the rising trend in the consumption of meat products, and this changing attitude calls for empirical research to clarify factors shaping it. The results also indicate that there are three factors (attributes of beef cuts, quality and safety, and the variety of Malaysian dishes) that greatly influence the preference for beef consumers toward their consumption of beef cuts. It was also determined that four factors that influenced the preference for non-beef consumers are price of beef cuts, lifestyle, risk associated with beef cuts consumption, taste, and preferences influencing non-beef consumers.     

Dietary Restraint and Consumer Consumption Intentions for Low‐Calorie Snacks

Much is still unknown regarding the reasons that drive consumer consumption intentions for low‐calorie snacks. This research investigates the impact of individuals with low vs. high dietary restraint inferences of low‐calorie snacks on their subsequent consumption intentions. We conducted a between‐subjects experiment in which we asked participants to indicate their consumption intentions and their hedonic and utilitarian value perceptions for more (almonds) vs. less (goldfish crackers) healthy 99‐calorie snacks. In addition, we measured participants' level of dietary restraint. Results suggest that consumers with high vs. low dietary restraint levels do prefer low‐calorie snacks for different reasons. Hedonic value perceptions explain consumers with low dietary restraint preference for the less healthy snack, while utilitarian value perceptions explain consumers with high dietary restraint preference for the healthier snack. We conclude with a discussion on the managerial and policy implications of our findings.     

How Online Consumer Segments Differ in Long-term Marketing Effectiveness

Online commerce gives companies not only a growing global sales platform, but also powerful consumers enjoying 24/7 availability, choice proliferation and the power to opt in and out permission-based communication. Unfortunately, our knowledge is limited on long-term marketing effectiveness in this space and on how it differs across customer segments. Managers appear overwhelmed by the combination of rich online data on hundreds of thousands of customers and the typical aggregate-level data on offline marketing spending.This paper is the first to investigate the long-term impact of coupon promotions, TV, radio, print, and Internet advertising across customer segments for a major digital music provider with over 500,000 customers. We first segment customers and subsequently analyze how these segments respond in the long run to different marketing activities when purchasing music downloads. Our findings reveal that the effectiveness of marketing differs across segments, while standard segmentation approaches fail to identify the most valuable catches in a sea of consumers. In contrast to empirical generalizations on consumer packaged goods, heavy users of digital music products are least sensitive to price and most sensitive to TV advertising and to multiple touch points. Light users, the majority of consumers, are price sensitive and tend to opt out of targeted communication. Our research enables managers in the digital media space to target high-value customer segments with the most effective actions.