This chapter reviews the background literatures applied in this study, the expectation confirmation theory introduced by Oliver (1980) and the consumption value theory by Sheth, Newman and Gross (1991a,1991b).
2.2.1 Satisfaction and Repurchase Intention
Consumer’s intention can be taken as the pre-purchase intention and repurchase intention, while when it connected to satisfaction it is always refer to the post-purchase attitude, i.e. the repurchase intention (Oliver, 1980).
The Expectation Confirmation Theory (ECT) developed by Oliver (1977, 1980) and Bhattacherjee (2001) in marketing and IS domain is widely used to study the relation between consumers’ satisfaction and their reuse or repurchase intention (Oliver 1977, 1980; Bhattacherjee, 2001; Hossain & Quaddus, 2012; Westbrook &
Reilly, 1983; Lin et el., 2005). The theory suggests that if the consumer perceives the perceived-performance is higher than the expectation, i.e. a positive confirmation, the satisfaction will be higher as well, and then the satisfaction also has a positive relation with consumer’s reuse or repurchases intention. Details are shown in Figure 2.10.
Figure 2.10: Expectation Confirmation Theory Model
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While this research tries to use the notion of the latter half of the theory, the higher the satisfaction the greater the repurchase intention, combines with Sheth et al.
(1991a, 1991b) five consumption value, to study the factors that make the consumers willing to purchase music product in two different product types.
2.2.2 Consumption Value
This research tend to study the value of people who still pay for music in the age and environment that free music are just so easy to obtain, and also try to contrast the different value provided by two product types in diverse intrinsic qualities at the same time. Therefore, the Consumption Value introduced by Sheth, Newman, and Gross (1991a, 1991b) will be the most relevant model to apply.
Sheth et al. (1991a, 1991b) used their theory to explaining why consumer choose to buy a certain product or not, why consumer prefer one product type over another, and why consumer make their choice of one brand over another in their work. They use cigarette smoking to illustrate those three choices made by smokers (or non-smokers): why people smoke and why people do not smoke, why smokers choose to smoke filtered cigarette or non-filtered cigarette, and why do smokers have their preference over one brand to another brand.
However, unlike cigarettes, music products do not have negative effect on human body, it does not provide positive values if someone just not pay for it (while cigarette does). But it is still applicable to explain why people pay for music products because of someone can still enjoy music without paying for it. On the other hand, to choose not to buy music products can provide positive value instead, for example, saving money. Therefore, although this study only focuses on those who really pay for music, this study believes Sheth et al.’s model is suitable to be applied to explain why people still pay for music in this research. After that, the choice of product type is another
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key element in this study, just like the original work, this paper try to understand the reason of why those who still buy music products make their decision to choose between printed type and the digital type of music products. And, even so, this study is aimed to find out the perceived consumption value by the music consumer, the research result is trying to provide suggestions to the whole industry from upstream music labels to downstream retailers or service providers, rather than to any particular brand of music label, retailer, or service provider, so the third subject in Sheth et al.’s (1991b) work is not pertained in this research.
Sheth et al. (1991a, 1991b) identified five values in their theory (Figure 2.11), which are functional value, social value, emotional value, epistemic value, and conditional value that lead to affect consumer choice behavior, and also suggested three fundamental propositions to the theory:
1. Consumer choice is a function of multiple consumption values.
2. The consumption values make differential contributions in any given choice situation.
3. The consumption values are independent.
Consumer Choice Behavior Functional
Value
Social Value Conditional
Value
Emotional Value
Epistemic Value
Figure 2.11: Consumption Value Theory Model
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As stated “The theory is applicable to choices involving a full range of product type”, previous studies has applied Sheth et al.’s model to many various products, include typical printed products and also digital online products. Pihakaendr (2008) conducted the theory to compare the consumption value of the bottled tea beverage market in Taiwan and Thailand. Pan (2009) conducted the theory to study consumer’s behavior of netbook, and also Kim, Koh, and Lee (2009) develop the theory to investigate the purchase intention of digital item in virtual communities. Ho and Wu (2012) apply the theory to study the factor affecting purchase intention of virtual goods in online games. The latter two studies show that this theory is also capable to be applied to the consumption value of virtual digital products on the Internet.
Notice that another research done by Chen (2006) also used this theory to study the consumption value on behavioral intention to mp3 download. Chen (2006) adjust the research model based on Sweeney & Soutar’s (2001) argument, remove and divide functional value into economic (price) value and quality value, and also remove conditional value in its model. While in this research, functional value is being separated into more sub-category factors, and retain the conditional value instead, more detail will be discuss in the later chapters.
In addition to Chen’s (2006) study, however, the most distinguishing diversity from this research is the research target. Chen’s (2006) study just focusing on digital music product type, while we focusing on both printed and digital music product type.
And Chen’s (2006) also focusing on all the digital music user no matter they really pay or not, but this paper defines the consumption values as the values from the consumers or users who actually paid for the music, in expect that this study can provide more findings and suggestion to the correlated businesses in the industry.
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2.2.2.1 Functional Value
Functional value is considered the most important factor affecting consumer’s behavior in this theory (Sheth et al., 1991a, 1991b), which contains the most direct relations between the product and the consumer. If a product or one product type can provide the functional, utilitarian or physical performance to the consumers, and which can satisfy the need of function and utility, then the product or the product type acquire the functional value. In addition, attribute, need, quality, reliability and durability are also seems as part of the element contained in it, also notice that price (economic utility) is included in functional value as well (Sheth et al., 1991a, 1991b).
For example, the functional value of an automobile might take its fuel economic and maintenance record into consideration; the function as an inflation hedge could be one of the values of purchasing a gold coin; and for the first time house buyer, the functional value for whom could be the house contains more space than previous apartment (Sheth et al., 1991b).
Because of Chen’s (2006) study only focus on the digital type of music, this research develop the functional value into four sub-factors in order to do a further analysis of each feature of both the printed and digital types of music product, but still combine the four sub-factors into one as “Functional Value” as the factor influencing consumer’s behavior. Based on the definition of functional value and the use of previous research (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009), the four sub-factors this study use are price, quality, attribute and need.
Also based on Sweeney & Soutar’s (2001) point of view, this paper only use
“price” instead of economy utility to classify the factor from the overall functional value, because the research target of this paper are those who really spend their money on music. However, comparing to tradition music product, one of the advantages and/or characteristic of digital music product is their prices are usually lower as an
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album, and especially as a single track. So this study will extend “price” as one of the sub-factors in the functional value, and expect it will make influence on the various product types.
Unlike price has a negative effect on the perceived value, “quality” always has a positive relations on the perceived value. While this study define this factor wider than Chen’s (2006) point of view, for example, not only try to compare the quality of sound performance, but also take “content” into comparison. Because of, first, although most of the audience cannot tell, printed music products (CD, and especially vinyl, SACD and so on) usually provide higher sound quality than digital music.
Secondly, sometimes the contents and the quality of music products, such as the tracks, video, gifts, lyrics or booklet, would have differentiation between printed and digital types of products. Therefore here this study combines these elements into one
“quality” sub-factor, to examine whether there are disparities between the two or not.
Next, this study takes the “attribute” of those music products into inspection, the attributes of digital item and printed product. As familiar of the characteristic of cloud computing, one of the most advantages of online music is its convenience. Not only the online music store is always operating twenty-four seven, but it is also accessible at any place and on any device. Customer can receive their purchased item right away, and these attributes make it more convenience to buy music products for the online music consumers. Furthermore, beside the accessibility to the store, the nearly unlimited virtual space also provides advantages for online music because it can offer way much more items than a brick-and-mortar store. In comparison, tradition music products can only available in some certain places at certain hours, though people can place an order via online channel, they still cannot get the item immediately, moreover, items sold out, out of print, or even some are only available in digital version, could all affect the convenience of purchasing music products. The attributes of the products
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types would also influenced the convenience when users trying to use or to manage their purchased item. For example, digital music might be more convenient for those who play music with personal computer, laptop, ultra book, or smart phone and tablet, but for those who are used to play music with traditional players, printed products might still useful for them. And for digital music, it only occupy the virtual storage space in a computer device, but printed products have to take up the space of the shelf, nonetheless, the preference of each might varied from person to person as well. So hereby develop the “attribute” factor into examination between the two product types.
The last sub-factor developed from functional value is the “need” of music consumer. This study simply interpret the music products have a few utilities to meet the needs of music consumer, which are, the most fundamental one, to enjoy, to share, and to collect of the music products. Though this sub-factor is also based on the physical and digital attributes of the product types, this study takes these utilities as a different level from convenience of the “attribute”, in order to inspect whether the product types would affect consumer’s perceive value or not.
2.2.2.2 Social Value
When consumer can perceive the utility of a product by getting association with some specific social group, and also by getting association with some stereotyped demographic, socioeconomic and cultural-ethnic group then they can acquire social value from the product. Sometimes the consumer want to be accepted by a social group, to conform to the social norms, or to express some images of their own (Sheth, 1991a, 1991b; Chen 2006; Pan 2009). The measuring elements include social class, symbolic value, reference group, conspicuous and compensatory consumption, normative component of attitudes, and opinion leadership and diffusion of innovation.
For example, clothing and jewelry are took as products with social value; purchase of
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luxury cars are usually driving by social value as well beside to its functional value;
and for house buying, the social value would acquired because other friends also buying homes.
Chen (2006) studied social value mainly based on the element “reference group”, but the hypothesis was rejected, which suggested that having those mp3 music does not really help to improve people’s relationship with others or to become popular among others. So this paper inspect the social value mainly base on the elements symbolic value, normative component of attitudes, because this paper believe that although free music is just so easy to get nowadays, many of them are still illegal, so paying for legal music must contains some correct value in it. And, paying, collecting, or supporting some kind of music genres or artists could also pertain to an image or value. Therefore, this study believes that customers would have perceived much more values comparing to those who are just download the music for free, because the consumers are actually spend their money on it.
2.2.2.3 Emotional Value
If a consumer can perceive the utility of a product by arouse feelings and emotions, then the consumer can perceive the emotional value from the product.
Emotional value is also seen as one important factors affecting consumer behavior, usually some purchase on impulse, or some non-planned purchase are seen driving by emotional value. The measuring elements include motivation research, personality, marketing and promotional mix variable, nonverbal processing and hemispheral brain lateralization, and subliminal perception (Sheth, 1991a, 1991b; Chen 2006; Pan 2009).
For example, the romance aroused by a candlelight dinner, the fear aroused by a horror movie, and for house buyer might feel secure by owning a home.
In Chen’s (2006) study, the emotional value is measured mainly focus on the
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element of “motivation research”, like the happiness, joyfulness emotions arouse by the music or the melody itself, which also affect consumer behavior significantly.
However, this research develops the emotional value of music products into the elements of “personality”, “nonverbal processing and hemispheral brain lateralization”. Because this paper believe that the happiness and joyfulness emotions could be seen as one of the fundamental functional value provided by music, even people who download the music for free can acquire such value, so as those who really pay for it can. So here this study like to focus on consumer’s personal emotion to the music, the song, and also the artist, that would really make them like to spend money on it, to own the music themselves, and to collect those music products they like instead of just download the virtual files for free. And at the same time, focusing on this consumer behavior can express their style, their taste, and their personality or not. These emotional values are expected to influence quite well to the purchase of music products for music customers.
2.2.2.4 Epistemic Value
The epistemic value is define as a product or service can arouse consumer’s curiosity, provide novelty, or satisfy a desire for knowledge. This epistemic value will drive consumer to purchase something that is non functional based or not other needs required, like a new item or an entertaining item, the measuring elements include exploratory, variety-seeking and novelty-seeking behavior, optimal arousal and stimulation, and innovativeness (Sheth, 1991a, 1991b; Chen 2006; Pan 2009). Trying a new type of coffee, visiting a new night club, and the novelty of purchasing a new house are all examples of epistemic value.
Although in Chen’s (2006) study had already showed that the epistemic value has a positive relation with user’s intention of music download, this research here still
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tend to retain the epistemic value in inspecting consumer’s intention of music purchase. Because this paper think that people can still acquire curiosity, novelty, or knowledge when they purchase music products, such as the tracks they did not hear in advance of an album, the bonus gift and bonus video in the music products, which might not be contained in those downloaded mp3 file. And maybe the consumer is supporting the artist they like then make the purchase without hearing all the tracks beforehand, or the consumer is just attract by an album’s cover, package, or the promoting written descriptions and so on. In addition, beside the music itself, the design, like the lyrics, booklets, pictures, inside an album is also fresh to the music buyer, therefore, this study still keep the epistemic value as one of the test components.
2.2.2.5 Conditional Value
If the consumer can acquire perceived utility from a product or service under a specific situation or circumstance, then the product or service can provide conditional value. The conditional value is also be seen as derived from temporary functional value or social value, the measuring elements include effects of situational contingencies, classifications of situational characteristics, antecedent states, physical surroundings, social surroundings, task definition, and temporal perspective (Sheth, 1991a, 1991b; Chen 2006; Pan 2009). For example, a seasonal Christmas card, a once in a lifetime wedding gown, an emergency ambulance service, or even a popcorn at the movie theater, a first time house buyer may also acquire conditional value when starting a family.
This research also follow the original model of consumption value developed by Sheth et al., and keep the conditional value to inspect consumer’s purchase behavior on music products. Because this study think that some music purchases are made
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under certain situations and circumstances such as for doing some jobs or tasks, holding some events or parties, or attending some artists’ promotion activities and so on. Therefore, the reason to inspect conditional value is to find out that if the purchase of music products is happened randomly under certain circumstances, by which of the product types will the consumers choose more directly and more often. Hence, this paper also retains the last conditional value as one of the test components.