音樂產品再購意願之影響因素：以產品型態做比較

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(1)國立高雄大學國際企業管理碩士學位學程碩士論文. 音樂產品再購意願之影響因素：以產品型態做比較 Factors Affecting Repurchase Intention of Music Product: A Comparison of Product Type. 研究生：林祐民撰指導教授：吳建興博士陶幼慧博士. 中華民國一零三年六月.

(2) Acknowledgement It is the end, finally, of these two years, and of my student career. By the point of finishing this thesis and degree, I wish to express my gratefulness to many people in this acknowledgement. First, I would like to thank the former IMBA Director I-Hui Cheng for every effort he put to me and to this program; and thanks to Ruth for her hard works, we wouldn’t have made it without her. Thanks to all the classmates for their company and all the Professors I met in this school for their teaching and dedication. Also thanks to my parents, who are always supporting me, let me focusing on what I am doing without anxieties on anything, you are the greatest to me. And then my gratitude goes to my advisor Dr. James Chien-Hsing Wu for his teaching and support to me and my thesis, he is always so nice, really awesome to students, I am so grateful to have such a wonderful Professor as my advisor. And also thanks to the co-advisor the Dean Yu-Hui Tao and the committee members for helping me to accomplish all of these in the final steps. A special thanks goes to Valerie Lin for her help and all the friends and colleagues from 5 Music, to me, it is the very beginning that made up all of this achievement today. And thanks to all the friends who ever help me and provide suggestions to me for completing this study. At last, thanks the Almighty God that makes all of these happened, and for the arrangements of what I had been through and of the journeys and adventures in my future, when it ends it starts again. Don’t you worry child! See heaven’s got a plan for you!. Hank Yu-Min Lin June 2014, Nantzu KH.

(3) Factors Affecting Repurchase Intention of Music Products: A Comparison of Product Types Advisor: Dr. Chien-Hsing Wu Dr. Yu-Hui Tao Department of Information Management, National University of Kaohsiung Student: Yu-Min Lin International Master of Business Administration, National University of Kaohsiung. Abstract As the rapid growth of computer technology nowadays, online music has become more and more popular among the ways people listening to music. In review of the music market sales revenue, online music accounts for an increasingly sales within the past decade as well in both the global and Taiwan market. However, the traditional printed music product is still the dominant product type at the same time in most of the market places in the world. While at the same time, literature paid a limited attention to the factors that affect the repurchase willingness between the two product types. This thesis conducts an empirical study that statistically examines the effect of consumption values on the satisfaction toward repurchase intention. Based on the data analysis from 728 valid samples, research findings indicate that (1) the functional, emotional, and epistemic value are the significant driving factors that make people still paying for both the printed and online product types, though it shows a limited distinction for the two types, (2) in comparing of the concepts of designed functional value, printed music consumers tend to have a stronger enthusiasm in music consumption, (3) social value and conditional value are not the predicators of satisfaction, implying that the music consumption is self-oriented for any normal amusement, and (4) for the factors that present significant, the epistemic value shows significant on all levels of significance for the type of printed, while insignificant if α=0.01 for the type of online. Implications and suggestions are also addressed. Keywords: Music consumption, Consumption value, Printed music, Online music.

(4) Table of Contents Chapter One: Introduction ............................................................................................. 1 1.1 Background ..................................................................................................................... 1 1.2 Motivation and Objective ................................................................................................ 2 1.3 Research Procedure ......................................................................................................... 4 1.4 Thesis Overview .............................................................................................................. 5. Chapter Two: Literature Review & Hypothesis Development ...................................... 7 2.1 Music Industry ................................................................................................................. 7 2.2 Background Literature ................................................................................................... 19 2.3 Hypothesis Development............................................................................................... 29. Chapter Three: Research Method ................................................................................ 31 3.1 Research Model ............................................................................................................. 31 3.2 Sampling Plan................................................................................................................ 32 3.3 Measure ......................................................................................................................... 33 3.4 Data Analysis Techniques ............................................................................................. 36. Chapter Four: Results & Discussion ............................................................................ 38 4.1 Descriptive Statistics ..................................................................................................... 38 4.2 Reliability ...................................................................................................................... 47 4.3 Factor Analysis .............................................................................................................. 52 4.4 Test Result ..................................................................................................................... 64 4.5 Discussion ..................................................................................................................... 70. Chapter Five: Conclusion ............................................................................................ 75 5.1 Research Findings ......................................................................................................... 75 5.2 Research Suggestions .................................................................................................... 76 5.3 Future Studies ................................................................................................................ 78. References .................................................................................................................... 79 Appendix ...................................................................................................................... 82 Appendix A: Formal Research Questionnaire (In Chinese) ................................................ 82 Appendix B: Formal Research Questionnaire (In English) ................................................. 86 I.

(5) List of Tables Table 1.1: Research focus for the past decade ............................................................... 2 Table 2.1: 5Music weekly chart 201101 to 201226, Japanese & Korean category ..... 13 Table 3.1: Operation Definition ................................................................................... 34 Table 4.1: Overall Demographic Statistics .................................................................. 38 Table 4.2: Consumption Behavior Statistics of Product Types .................................... 39 Table 4.3: Items Mean Score of Printed Music ............................................................ 45 Table 4.4: Items Mean Score of Online Music ............................................................ 46 Table 4.5: Reliability of Functional Value (printed) .................................................... 48 Table 4.6: Reliability of Independent Variables (printed) ............................................ 49 Table 4.7: Reliability of Dependent Variables (printed) .............................................. 50 Table 4.8: Components Reliability (printed) ............................................................... 50 Table 4.9: Reliability of Functional Value (online)...................................................... 51 Table 4.10: Reliability of Independent Variables (online) ........................................... 51 Table 4.11: Reliability of Dependent Variables (online) .............................................. 52 Table 4.12: Components Reliability (Online) .............................................................. 52 Table 4.13: KMO & Bartlett’s Test (independent variables for the printed) ............... 53 Table 4.14: KMO & Bartlett’s Test (dependent variables for the printed) .................. 54 Table 4.15: Factor Analysis (printed dependent variables) ......................................... 54 Table 4.16: Factor Analysis (printed independent variables) ....................................... 55 Table 4.17: Pearson Correlation (printed) ................................................................... 57 Table 4.18: 1st run of KMO & Bartlett’s Test (online independent variables) ............. 58 Table 4.19: 1st run of Factor Analysis (online independent variables) ........................ 59 Table 4.20: 2nd run of Factor Analysis (online independent variables) ....................... 60 Table 4.21: 3rd run of KMO & Bartlett’s Test (online independent variables) ............ 61 Table 4.22: 3rd run of Factor Analysis (online independent variables)........................ 62 Table 4.23: KMO & Bartlett’s Test (online dependent variables) ............................... 63 Table 4.24: Factor Analysis (online dependent variables)........................................... 63 Table 4.25: Pearson Correlation (online) ..................................................................... 64 Table 4.26: 1st Layer Regression Model Summaryb (printed) ..................................... 65 Table 4.27: 1st Layer ANOVAa (printed)..................................................................... 65 Table 4.28: 1st Layer Regression Coefficientsa (printed values to satisfaction) .......... 66 Table 4.29: 2nd Layer Regression Coefficientsa (printed FV to satisfaction) .............. 67 II.

(6) Table 4.30: 2nd Layer Regression Coefficientsa (printed EmV to satisfaction) ........... 67 Table 4.31: Regression Coefficientsa (printed Sat. to repurchase intention) ............... 67 Table 4.32: 1st Layer Regression Model Summaryb (online) ...................................... 68 Table 4.33: 1st Layer ANOVAa (online) ...................................................................... 68 Table 4.34: 1st Layer Regression Coefficientsa (online values to satisfaction) ........... 69 Table 4.35: 2nd Layer Regression Coefficientsa (online FV to satisfaction) ................ 69 Table 4.36: Regression Coefficientsa (online Sat. to Repurchase Intention). .............. 69. III.

(7) List of Figures Figure 1.1: Research Procedure ..................................................................................... 5 Figure 2.1: Global Music Sales in 2012......................................................................... 7 Figure 2.2: Global Digital Music Sale ........................................................................... 8 Figure 2.3: Digital Music Dominant Countries in 2012 ................................................ 8 Figure 2.4: Music Sales of main Asia Countries............................................................ 9 Figure 2.5: Over all Music Sales in Taiwan ................................................................. 10 Figure 2.6: Taiwan Music Sales by Product Type........................................................ 10 Figure 2.7: UK Vinyl Sales, 2003-2013 ....................................................................... 11 Figure 2.8: Taiwan Vinyl Sales, 2008-2012 ................................................................. 12 Figure 2.9: Parallel Import Items' Chart Performance ................................................. 15 Figure 2.10: Expectation Confirmation Theory Model ............................................... 19 Figure 2.11: Consumption Value Theory Model .......................................................... 21 Figure 3.1: Research Model ......................................................................................... 31 Figure 4.1: Music Consumption Distribution of Product Types .................................. 40 Figure 4.2: Product types Preference by Age............................................................... 41 Figure 4.3: Dispensable Income Level and Preference of Product Types ................... 42 Figure 4.4: Purchase Experience of Product Types ..................................................... 42 Figure 4.5: Money Spend Each Time of Product Types (TWD) ................................. 43 Figure 4.6: Purchase Frequency of Product Types (times) .......................................... 43 Figure 4.7: Music Language Preference of Product Types .......................................... 44 Figure 4.8: Music Genre Preference of Product Types ................................................ 44 Figure 4.9: Validated Model (printed) ......................................................................... 70 Figure 4.10: Validated Model (online) ......................................................................... 71. IV.

(8) Chapter One: Introduction. 1.1 Background In the age of prosperous development of information technology, the way people listening to music are quite different from before. The common use of mobile devices like smart phones or tablets and high speed Internet with cloud computing make compact disc seems to an old-fashion data storage media. According to Recording Industry Foundation in Taiwan (RIT), in year 2012, the total revenue for copyrighted printed music sales in Taiwan only accounts for about 9.7% of the industry revenue at the peak in year 1997. Many people are even surprised when they heard that there are still CD stores alive nowadays, such that paying for music products seems to be an unwise behavior among people since the Internet is so mighty for everything, especially for those entertainment media. Nonetheless, the crisis that the industry is facing actually becomes its turning point to stay alive and even to grow again. Profits of digital music are growing year by year, also weighted more and more position on the leverage against the tradition printed music products in the overall revenue of records sale. As the printed record market shrank, most of the recent studies with various topics in Taiwan market focus mainly on the online music domain, but many of which are focusing on the free online music file downloading, while limited literature concentrated on legal and paid music, list in Table 1.1.. 1.

(9) Table 1.1: Research focus for the past decade Author. Main Topic. Chen(2006) Consumption Values on Behavioral Intention to MP3 Download Wu(2007) Digital music platform and Users’ Needs through the Aspect of Knowledge Innovation Xiao(2007) Usability and marketing strategies of online music Chen, Shang, The intention to download music files in a P2P & Lin(2008) environment Lee(2011) Downloading decision behavior of online music. However, not many researches have addressed the intention of purchasing digital music file after Apple Computer’s virtual online store, iTunes Store, officially launched Taiwan market on June 27, 2012. As reported to account for three fourths of the global digital music market (Appleinsider, 2013), iTunes Store is also expected to make influences in Taiwan’s music market. On the other hand, as the Korean pop music become more and more common and popular in the Taiwan society, printed records that are imported directly from Korea have gradually occupied the shelves of the local retailers and of the music collectors. Hence, this study believes that the research dealing with the legitimate music is worth studying at this moment as well. 1.2 Motivation and Objective Despite paying for music, there are so many ways for people to enjoy free music by computer these days no matter it is legal or not. An Online media website, such as YouTube, could be a common one, or go to an online streaming website such as SoundCloud. And now even the Sweden based Spotify has already launched Taiwan market, which also provides free account for streaming. Needless to say the notorious illegal mp3 download, according to Record Industry Foundation in Taiwan, digital 2.

(10) piracy rate accounts for an enormous 82%. Around only 1.5 million users are using the legal digital music out of 8 million music audience. Digital music file is too easy to copy, too share, and to spread via the computer and the Internet, thus almost everyone has the experience of downloading illegal mp3 file on Internet. As a result, the first objection of this study is trying to find out why there are some people still willing to spend their money on those easily available music files and products. However, though the advances of information technology almost killing the industry, the popularization of 3G, Wi-Fi and mobile devices like smart phone and tablet give the industry another gleam to survive, and even to grow again. Importantly, purchasing physical compact disc is no longer the only way of buying music. When the music can be sold digitally and virtually online means it can replace the basic function of tradition CDs. Nonetheless it rouse another question at the same time, if the digital music file could be acquired so easily, like 24/7 and everywhere by downloading, why should people still pay for a virtual item that they can just obtain it free. On the other hand, if those digital files could work easily with devices, why do people still buy the printed CDs, which still account for over 57% of the total sales of the music market. With the first objective discussed, the second topic, which is the key element of this research, is trying to find out are there any reason for people to make their decision to purchase printed products or digital items. The International Federation of Phonographic Industry (IFPI) states that about 35 percent of sales in record industry are in digital format, while newspaper account for 5 percent, books 4 percent, and movies account for only 1 percent. Although the numbers are still small, it also means that there are huge opportunities to grow in the future, at the same time. With the second research objective, the third objective of this study is trying to discuss the opportunities for those tradition printed media which could be transformed into digital format. It seems quite possible to foresee the 3.

(11) proportion accounted by these two kinds of product types would intersect in the near future, especially in the music domain. Then it triggers a simple question: will those tradition printed media be totally replaced by the format of digital file? Therefore, this study tries to understand the values of each product type, and then makes suggestions based on the results to the related business. Therefore, the research thesis defines two research objectives as follows: 1. Understand the trends and the value of why people would still like to pay for music, and why would they like to purchase it in printed products or in the virtual way. 2. Statistically examine the factors that have potential impacts on the repurchasing intention of music products in the comparison of printed products and online ones. 1.3 Research Procedure This research is about the music consumers’ consumption value and repurchases intention in Taiwan market, with a comparison between the traditional printed albums and the online digital music. After decided the research topic and objective, the next step is to gather the related documents and previous studies, and then confirm the field of this research, establish the research structure, then manipulate through online questionnaire to collect data. In order to understand each values that leads music consumers willing to spend money on music between the various consumption experience of printed products and digital items, therefore, to bring up the conclusion and suggestion for the correlated business of the industry. The general research procedure is showed in the Figure1.1:. 4.

(12) Research Background, Motivation & Objective. Review of Literature & Document. Research Method Design: Online Questionnaire. Data Collecting and Analysis. Research Results and Findings. Research Conclusion and Suggestion. Figure 1.1: Research Procedure. 1.4 Thesis Overview There are five main chapters in this thesis to complete the research, and for the further illustrations are stated as follow:. 5.

(13) Chapter 1: Introduction: This chapter concludes the general background about this study, and then brings out the research motivation and objective, with the overview of the research procedure and the structure of this paper. Chapter 2: Literature Review: The first half of this chapter takes a close look at the sales performance of the record industry market within the decades, which include both the global and Taiwan (Asia) market, and also in both printed and digital markets, plus the conceptual perspective definition of each product types. The second half of the chapter discusses both the theory of consumption value and satisfaction & repurchases intention. With slightly adjustment and modification, the research hypotheses of the study are proposed. Chapter 3: Research Method: This chapter explains the research methodology conducted in this paper, which includes the data sampling plan, questionnaire measuring concept, and the data analysis techniques, with an overall conceptual research model in the beginning of this chapter. Chapter 4: Results and Discussion: Conduct computer statistics software to analyze the collected data, discuss the overall implications for the results of both descriptive statistics and inferential statistics, and exam the proposed research hypotheses based on the test results. Chapter 5: Conclusion: Make a short summary of this paper and illustrate the research findings and suggestions for the correlated businesses and industries, and then propose some directions for future studies.. 6.

(14) Chapter Two: Literature Review & Hypothesis Development. 2.1 Music Industry This study discuss the music industry mainly as the record sales of music albums or singles, while right now basically it is combined of two different product type, tradition printed products and digital online products. The global overall music sale was increased by 0.2% in year 2012, the first time growth since year 1998. And the total revenue accounts for 16.481 billion USD in 2012, while the printed music products are still dominant, account for 57.1% although it is the only subject that are decreased with a 5%. In addition, digital music account for about 35.2%, with a growth for 8%, the other two growing subjects are performance rights revenue and synchronization revenues, accounts for 5.7% and 2.0%, see Figure 2.1.. 5.70% 2.00%. Printed 57.1% Digital 35.2% Performance rights revenue 5.7%. 35.20% 57.10%. Synchonization revenue 2%. Source: RIT. Figure 2.1: Global Music Sales in 2012 Despite the decline of the global music market in these decades, revenue and market share of digital music has been growing every year, since the first year the IFPI started to gather statistics. Digital music accounts for only 0.4 billion revenue 7.

(15) and 2 percent in the total market in year 2004, however, as mention, the revenue has reached 5.6 billion and account for a 35.2% percent in the market in year 2012, the growth rate is a remarkable 1400 percent within a decade (Figure 2.2).. 6 Billion USD. 5. 4.3. 4.7. 4.8. 2009. 2010. 5.6. 5.1. 4 3 2 1 0 2008. 2011. Year. 2012. Source: IFPI RIN 2013. Figure 2.2: Global Digital Music Sale. But in some areas, digital music sale take the majority of the country’s total revenue. In the top 20 global markets ranked by IFPI, America ranked No.1 market, and digital music revenue accounts for 58% out of the total 4,481.8 million (USD); Australia No. 6, 47% out of the 507.4m; Sweden No. 12, 59% out of the 176.7m; India No. 14, 60% out of the 146.7m; and China ranked No.20, out 82% of the 92.4m, see Figure 2.3. Printed 100%. 352.2. 40.2. Digital. Others. 16.2. 12.9. 103.9. 88.4. 1280. 80% 60%. 2598.2. 237.5. 5798 75.5. 40% 20%. 1531.5. 229.6. 9403 56.5. 45.4. 0% America(1) Australia(6) Sweden(12). India(14). 16.9 China(20). Global. Unit: million USD. Source: RIT. Figure 2.3: Digital Music Dominant Countries in 2012 8.

(16) Furthermore, Japan is the biggest market in Asia, the total revenue is a great 4,422m USD, just slightly behind America and ranked the second largest market in the world, yet digital music only account for 17% of the whole. The ranking of South Korea is rising at No. 11 worldwide in 2012 comparing to No. 18 in year 1997. And Taiwan, in 2012, ranked No.6 in Asia and No. 28 in the world, far slide from previous No. 13 in 1997 globally, only account for 27% out of the 58.3 million USD, also lower than the global average 35.2 percent of the overall revenue (Figure 2.4).. Printed 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%. 352.2 755.8. 5. Digital. Others 1.6. 12.9. 79.8 88.4. 75.5. 2.5 16. 35.2. 3526.4. 39.8. 102.7. 24.6. 45.4. 1280 5798. 9403. 16.9. Unit: million USD. Source: RIT. Figure 2.4: Music Sales of main Asia Countries Actually, Taiwan was ranked No. 2 in Asia market, No. 13 in the world back in the year 1997, the highest peak in Taiwan’s recorded music industry. Even though Taiwan is the headquarters of the mandarin music, accounts for 80% of the production of which, the revenue has been a depressing decline since 1997. Exchange the currency back to TWD, at the most prosperous period the revenue was even more than 12 billion of the total Taiwan market, and rapidly shrank more than half in only 5 years (Hsien, 2004.), then in 2012, it comes to the 14.3% left of the number in 1997, see Figure 2.5. 9.

(17) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0. Unit: million TWD. Source: RIT. Figure 2.5: Over all Music Sales in Taiwan However, regardless of these disappointing numbers, it is true that the market is shrinking, but it may not necessarily means it is dying, in other words actually, it is altering. If we look at the statistics data by the RIT, the sales of digital music in Taiwan is growing, especially in these few years. The revenue grew 11% in 2008, which accounts for 13.8 percent of the total music sales, then drop 7 and 4 percent till year 2010, the market share of total revenue also drop slightly to 12.2 percent. Whereas it grew up to a large 39% to 344.7 million TWD, 17.4% of the total sales in 2011, and then grew another 38% to 475.8 million in 2012, the market share also grew to 27% at the same time (Figure 2.6). Printed. Digital. 2500 2000 1500 1000 500 0 2008. 2009. 2010 Unit: million TWD. 2011. 2012. Source: RIT. Figure 2.6: Taiwan Music Sales by Product Type 10.

(18) Furthermore, as a matter of fact, if we take a closer look at the Taiwan market reports by the Record Industry Foundation (RIT) in Taiwan, there are two factors that might make the printed market looks better, the first one is the sales of vinyl records, the other one is parallel imports. According to British Phonographic Industry (BPI) and BBC Newsbeat’s report, the vinyl sales in the U.K. has reach a highest level, “Almost 550,000 LPs have been snapped up by music fans so far (Oct. 17) in 2013, already giving vinyl its most successful year since 2003”, while at the end of 2013, “BPI is estimating that more than 700,000 units could be sold by the end of the year, the highest total sales since 2001” (Figure 2.7). IFPI also confirm this statement: within these 5 years, the global vinyl sales revenue has increased from 66 million USD to 171 million USD, the growth rate is a wonderful 21% though the proportion is still minute, these messages could all shows the trend of revival of vinyl product.. Figure 2.7: UK Vinyl Sales, 2003-2013 Follow by this trend, plus the “Vinyl Renaissance” event by Eslite since 2007 (ETtoday, 2013), the unit sale of vinyl in Taiwan has a massive growth as well. According to RIT’s market report, the annual unit sale of vinyl is only 1.11thousand in 2009, and then started to grow constantly to 12.66 thousand units in 2012, account for a incredible growth rate for more 11 times within 4 years, and especially in year 2012 (see Figure 2.8). 11.

(19) 14 12 10 8 6 4 2 0 2008. 2009. 2010. 2011. Unit: thousand. 2012. Source: RIT. Figure 2.8: Taiwan Vinyl Sales, 2008-2012 And the other factor in RIT’s report is that all the sales figures are excluded the parallel imports, which means the overall consumption for music products of Taiwan customer could be higher than those numbers. Just like digital music, parallel imports would cut down the sales of records released officially by the local music labels, but at least some of the local importers can have benefits of it. Though it is hard to estimate exactly how many copies by parallel imports are sold annually in Taiwan, we can still quote some data to show that the parallel imports items are really taking some quantities in Taiwan’s record market. Here takes the weekly and annual chart announced by one of the largest local music retailer, 5music (www.5music.com.tw), to demonstrate this circumstance by organize the chart of Japanese & Korean category from 2011 to 2013. As the Korean pop culture getting more and more popular these years (Liao, 2013), Korean made music products which are parallel imported by local retailer are also started to occupy a few places in the weekly chart since the early 2010. On average, the first half year of 2011 has 5.7 parallel import items on the chart that account for 30.9% of the total sales in the weekly top 20 chart, and in the second half year of 2011, the parallel imports has 6.7 items on the chart and account for 35.7% of the total sales. In the first half year of 2012, there are around 8.1 items in the top 20 ranking every week, account for 45.7% 12.

(20) of sales in the top 20 selling items totally. While looking more directly at the annual chart of 2013, the parallel import items take 8 places in the top 10 ranking, total 14 places in the top 20 chart, account for a large 82.46% of sales in the annual top 20 selling items, organized and shown as Table 2.1 and 2.2.. Table 2.1: 5Music weekly chart 201101 to 201226, Japanese & Korean category Week. Parallel import places. Percentage account of sale. Week. Parallel import places. percentage account of sale. Week. Parallel import places. Percentage account of sale. 201101. 4. 31.50%. 201127. 5. 9.00%. 201201. 5. 41.73%. 201102. 5. 42.20%. 201128. 4. 11.80%. 201202. 8. 42.05%. 201103. 4. 25.30%. 201129. 4. 18.70%. 201203. 6. 42.36%. 201104. 6. 29.40%. 201130. 8. 30.40%. 201204. 8. 42.68%. 201105. 5. 12.30%. 201131. 9. 38.40%. 201205. 6. 43.00%. 201106. 4. 10.30%. 201132. 4. 50.50%. 201206. 8. 43.32%. 201107. 3. 10.80%. 201133. 4. 40.00%. 201207. 6. 43.64%. 201108. 8. 20.50%. 201134. 4. 8.20%. 201208. 6. 43.96%. 201109. 6. 35.10%. 201135. 4. 11.50%. 201209. 7. 44.28%. 201110. 6. 42.30%. 201136. 5. 22.10%. 201210. 5. 44.60%. 201111. 5. 21.00%. 201137. 7. 27.90%. 201211. 8. 44.92%. 201112. 4. 26.00%. 201138. 7. 32.90%. 201212. 6. 45.24%. 201113. 3. 42.70%. 201139. 8. 42.50%. 201213. 6. 45.56%. 201114. 4. 34.50%. 201140. 8. 37.30%. 201214. 8. 45.87%. 201115. 6. 72.00%. 201141. 10. 39.40%. 201215. 10. 46.19%. 201116. 5. 36.00%. 201142. 8. 50.70%. 201216. 8. 46.51%. 201117. 9. 49.40%. 201143. 12. 82.00%. 201217. 11. 46.83%. 201118. 7. 36.10%. 201144. 9. 62.10%. 201218. 8. 47.15%. 201119. 4. 16.50%. 201145. 8. 40.20%. 201219. 8. 47.47%. 201120. 6. 16.90%. 201146. 7. 30.40%. 201220. 10. 47.79%. 201121. 7. 34.10%. 201147. 5. 16.00%. 201221. 12. 48.11%. 201122. 7. 45.00%. 201148. 7. 21.30%. 201222. 11. 48.43%. 201123. 7. 20.50%. 201149. 5. 39.80%. 201223. 11. 48.75%. 201124. 9. 50.90%. 201150. 8. 71.70%. 201224. 11. 49.06%. 201125. 9. 27.90%. 201151. 8. 48.60%. 201225. 8. 49.38%. 201126. 5. 13.70%. 201152. 6. 43.90%. 201226. 9. 49.70%. 5.7. 30.90%. Average. 6.7. 35.70%. Average. 8.1. 45.70%. Average. 13.

(21) Table 2.2: 5Music annual chart 2013, Japanese & Korean category Ranking. Title th. 1. Artist. Sale%. Album “I Got A Boy” Girl’s Generation. 4. 16.98. (Korea Import Ver./Group Cover) st. 1 Album “XOXO” (Korea Import,. 2. “New Challenge”(Korea Import Ver.). S.M. Entertainment. EXO. 12.98. Repackage- Kiss Ver.) 3. Publisher. S.M. Entertainment. INFINITE. 8.23. Woollim Label. INFINITE. 6.76. Woollim Label. CNBLUE. 5.61. FNC. th. 4 Mini Album 2ndSingle Album “DESTINY” (Korea. 4. Import Ver.) 5. Re: BLUE(Korea Import Limited Edition/ Jeong Yong Hwa Ver.) rd. 3 Album “Chapter 1: Dream Girl/The. 6. Entertainment SHINee. 5.59. misconception of you”. S.M. Entertainment. (Korea Import Ver.) 7. ONE SHOT (Taiwan Printed Ver.). B.A.P. 4.92. SONY MUSIC. 8. Special Album “Miracles in December”. EXO. 4.91. S.M.. (Korea Import Korean Ver.) 9. rd. 3 Album “Chapter 2: Why So Serious?”. Entertainment SHINee. 4.62. The Misconceptions Of Me” (Korea. S.M. Entertainment. Import Ver.) st. 10. 1. 11. th. 11. Mini Album “Trap”. Henry(Super. (Taiwan Printed Ver.). Junior-M). Album “The Classic”. SHINHWA. 3.52. avex. 3.5. Shinhwa. (Korea Import Thanks Edition) th. 12. 5. Mini Album “Everybody”. Company SHINee. 3.45. (Korea Import Ver.) 13. st. 1. 14. S.M. Entertainment. Album (Korea Import Regular Ver.). Teen Top. 2.74. TOP Media. I JUST WANNA HAVE FUN. TEAM H (Jang. 2.72. Warner Music. (Taiwan Video Deluxe Edition). Keun Suk X BIG. 2.52. C-Jes. BROTHER) 15. st. 1. Mini Album “I” (Korea Import Ver.). (JYJ) KIM JAEJOONG. 16. st. 1. Album “WWW” (Korea Import Ver.). (JYJ) KIM. Entertainment 2.36. JAEJOONG 17. Mini Album “Fly High” (Korea Import Ver.). 14. INFINITE H. C-Jes Entertainment. 2.21. Woollim Label.

(22) 18. rd. 3 Japanese Album “LOVE&PEACE” Girls` Generation. 2.17. Universal Music. SHINee. 2.16. avex. Girls` Generation. 2.05. Universal Music. (Taiwan Printed Deluxe Edition) Chapter 1. “Dream Girl-The. 19. misconceptions of you” (Taiwan Printed Ver.) 20. GALAXY SUPERNOVA (Taiwan Printed Limited Edition). The parallel import items’ chart performance is sum up in Figure 2.9. places in chart. percentage of sale. 16. 0.9 14. 14. 0.8. 12. 0.7 0.6. 10 8.1 8. 0.5. 6.7. 82.46%. 5.7. 6. 0.4 0.3. 4 2. 45.70%. 35.70%. 30.90% 0. 0. 0. 0.2 0. 0. 0.1 0. 2011 1st. half average. 2011 2nd. half average. 2012 1st. half average. 2013 annual. Figure 2.9: Parallel Import Items' Chart Performance 2.1.1 Printed Music Products In this research, the tradition music product is defined mainly focus on its physical characteristics comparative to the virtual digital item. Compact discs is the most dominant type of tradition music products, include the normal CDs, high definition Super Audio CDs (SACD), DVDs, VCDs, and Blu-Ray Discs and so on, which accounts for 99.7% of the total printed market, while the vinyl record takes the 0.3% remaining (RIT market report, 2012). Most of consumers buy music products in brick-and-mortar record store, included department store, wholesaler store and book 15.

(23) store, etc. And still some will buy music product on the online stores (Ministry of Culture, 2011). Comparing to online music, printed music products are considered more worthy to collect for music fans, and also used to provide more contents than online music especially the gifts like posters, postcards, or folders that let its buyer can really hold the products they consume. Again, as mentioned, printed music product is still the dominant product type in Taiwan music market.. 2.1.2 Online Music Products To the contrary, the online music product is defined as the virtual product or service transaction in the world of Internet, while this category of product type basically combine online streaming and digital download. The concept of online streaming is like to rent a legal account, a certification monthly to access the database unlimitedly of the service providers, and charge the subscriber the subscription fees very month. And for digital download is more like to purchase items, just like purchasing printed products, but in the virtual way, the consumer still pay for that item, but getting the virtual digital files. Although the idea between these two is sort of different from each other, this research is trying to combine these two business models as a category of online music product. Therefore, music products that are sold or streamed through the Internet can be considered as the applications to the so called “cloud computing”. And at the same time, it is the characteristics of “cloud” that make the distinctness of online music so different than the tradition printed music. Referring to the definition of National Institute of Standards and Technology, U.S. Department of Commerce, by Mell and Grance (2011), they define the cloud computing with five essential characteristics, which are: 1.. On-demand self-service: “A consumer can unilaterally provision computing 16.

(24) capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.” This characteristic make music consumers can link to the online music server themselves to reach the music they want, and the server are running automatically by computer instead of store human clerk, the music is always available, 24/7. In addition, people can get the music they want right away, which makes no time limit to purchase music. 2.. Broad network access: “Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).” This feature make music consumers can use any devices, no matter it is a computer at home or a portable tablet, to access to online music rather than go to a brick-and-mortar store for their goods. Moreover, it make the consumer can both buy and play their music within one device, in other words, it makes no space limit to purchase music.. 3.. Resource Pooling: “The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. …. Examples of resources include storage, processing, memory, and network bandwidth.” The databases of online music providers are like a extremely large pool that contains plentiful music data that can be access by any consumer no matter where the resources at. This characteristic make online music can provide way much more music items than a physical store, such as the items that are out of print or the items which do not release in certain country.. 4.. Rapid elasticity: “Capabilities can be elastically provisioned and released, 17.

(25) in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.” This characteristic make online music can be sold or be streamed as many times as consumers want, which also means the music is always available, never sold out. 5.. Measured service: “Cloud systems automatically control and optimize resource use by leveraging a metering capability (Typically this is done on a pay-per-use or charge-per-use basis) at some level of abstraction appropriate to the type of service (e.g., storage ….). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.” The last characteristic let the traditional record business model also work in digital way, and even brings out a new one. Online music consumer’s consumption is measurable either by streaming or downloading. As mentioned, online streaming will be controlled by time (usually a month), while mp3 downloading can be measured either by a single track or by a whole album. Purchasing a single track is popular among digital music buyer because it is much easier and reasonable for people to buy the music they like, people will not have to buy other tracks that they are not really want but is also contained in the whole album. As The Nielsen Company & Billboard’s 2012 Music Industry Report (2013) state that digital tracks had sold 1.34 billion units in 2012, which account for 80% of the overall music unit sales.. In brief, all these five characteristics above by Mell and Grance show the attributes of online music that can make consumers easier to access music comparing to a traditional printed record. 18.

(26) 2.2 Background Literature 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 19.

(27) 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 20.

(28) 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.. Functional Value. Conditional Value. Social Value. Consumer Choice Behavior. Emotional Value. Epistemic Value. Figure 2.11: Consumption Value Theory Model 21.

(29) 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.. 22.

(30) 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 23.

(31) 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 24.

(32) 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 25.

(33) 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 26.

(34) 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 27.

(35) 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 28.

(36) 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. 2.3 Hypothesis Development This study applies Sheth et al.’s (1991a, 1991b) Consumption Value theory in music consumption’s domain to exam the repurchase intention, by combining with the later part of Expectation Confirmation Theory. With the review of the applied background literature, the research hypotheses are defined in the same format for both printed and online product types, listed as follow: Hypothesis 1: Functional value significantly influences satisfaction in printed/online product type. Hypothesis 1a: Price significantly influences satisfaction in Functional value in printed/online product type. Hypothesis 1b: Quality significantly influences satisfaction in Functional value in printed/online product type. Hypothesis 1c: Need significantly influences satisfaction in Functional value in printed/online product type. Hypothesis 1d: Attribute significantly influences satisfaction in Functional value in printed/online product type. Hypothesis 2: Social value significantly influences satisfaction in printed/online product type. Hypothesis 3: Emotional value significantly influences satisfaction in printed/online 29.

(37) product type. Hypothesis 4: Epistemic value significantly influences satisfaction in printed/online product type. Hypothesis 5: Conditional value significantly influences satisfaction in printed/online product type. Hypothesis 6: Satisfaction significantly influences repurchase intention in printed/online product type.. 30.

(38) Chapter Three: Research Method. 3.1 Research Model With all the derived research hypotheses developed, the Figure 3.1 is the research model of this study. It contains five independent variables and their direct dependent variable, satisfaction that affects repurchase intention. In addition, in the purpose of comparing the affecting factors of product type, the two targeted product types are both pertained but examined separately in this developed research model.. Functional Value Social Value. H1. H2. H3. Emotional. Satisfaction. H6. Repurchase Intention. Value. H4 Epistemic. H5. Product Types:. Value. Printed/Online. Conditional Value. Figure 3.1: Research Model H1: Functional value significantly influences satisfaction in printed/online product type. H1a: Price in functional value significantly influences satisfaction in printed/online product type. H1b: Quality in functional value significantly influences satisfaction in printed/online product type. H1c: Need in functional value significantly influences satisfaction in printed/online product type. H1d: Attribute in functional value significantly influences satisfaction in 31.

(39) printed/online product type. H2: Social value significantly influences satisfaction in printed/online product type. H3: Emotional value significantly influences satisfaction in printed/online product type. H4: Epistemic value significantly influences satisfaction in printed/online product type. H5: Conditional value significantly influences satisfaction in printed/online product type. H6: Satisfaction significantly influences repurchase intention in printed/online product type. 3.2 Sampling Plan This study focused on the consumption value of those people who are still willing to spend their money on music no matter in which forms they consumed, and also trying to make a comparison between the two product types. Therefore, the subjects of this research questionnaire must be the music fans who are still keeping the purchase convention rather than only downloading music files online for free, within about the last one year. Moreover, in order to make an exact comparison of the values between traditional printed music and digital online music, the research questionnaires were separated in two while designed exactly the same (only changed the object printed/online in sentences) for research subjects who had consumed either printed music or online music in one year. Besides, if both were consumed, the subject will be asked to fill the questionnaire twice by each experience they had. To collect the research data, especially the objects whose consumption of online music is necessary, this research only released the questionnaire online in hoping to reach to the target group more directly. While in the early stage, this questionnaire was only spread between friends by social network, and then turned to Taiwan’s local BBS site (Ptt) to ask music fans for help. Also, in hoping to collect the more balanced 32.

(40) data in music preference and gender, this study published the online research questionnaire on board “WesternMuisc”, “J-PopStation”; boy groups “Mayday”, “EXO”, and “INFINITE”; girl group “APINK”, “T-ara”, and “SNSD”, which are some popular boards that would gather many music fans on Ptt BBS site. The online questionnaire was officially released on Jan. 23, 2014 for a month. 3.3 Measure After a review of the related literature and previous study, the operation definition of variables (e.g., functional value) and their sub-variables (e.g., price) were shown in Table 3.1. For example, the function value was defined to be that subjects perceive a positive attitude to the price, quality, attribute, and utility of music products. (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). The sub-variable of price was defined to be those subjects perceive a positive attitude to the price of music (single, EP, album, etc.). (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). The measure items were also developed for the study to collect data. For example, one of the measure item (FV1) for the sub-variable, price is I perceive (printed/ online) music are worth the price.. 33.

(41) Table 3.1: Operation Definition Factors Functional Value – Subjects perceive a positive attitude to the price, quality, attribute, and utility of music products. (Sheth et al., 1991a,1991b; Chen, 2006; Pan, 2009). Sub-factor concepts Price – Subject perceive a positive attitude to the price of music (single, EP, album, etc.).. Items FV1: I perceive that (printed/ online) music are worth the price. FV2: I perceive that the price of (printed/ online) music is reasonable. FV3: I perceive that the price of (printed/ online) music is affordable.. Quality – Subjects perceive a positive attitude to the quality of music (content, bonus, sound, etc.).. FV4: I perceive that the content and the quality of (printed/ online) music (cover, lyric) are quite good and abundant. FV5: I perceive that the bonus and the quality of (printed/ online) music (tracks, video, and gifts) are quite good and abundant. FV6: I perceive that the sound quality of the music is really great. FV7: I perceive that (printed/ online) music are enjoyable. FV8: I perceive that (printed/ online) music are shareable. FV9: I perceive that (printed/ online) music are collectable.. Need – Subjects perceive a positive attitude to their needs of music (enjoyable, shareable, collectable, etc.).. Attributes – Subjects perceive a positive attitude to the attribute, of music (easy to buy, to use, to manage, etc.).. FV10: I perceive that (printed/ online) music is quite easy and convenient to consume. FV11: I perceive that (printed/ online) music are always available in store. FV12: I perceive that (printed/ online) music is quite easy and convenient to play with my devices or players. FV13: I perceive that (printed/ online) music is quite easy and convenient to manage and to collect. SV1: I perceive myself belonging to a higher social class by paying for (printed/ online) music. SV2: I perceive myself belonging to a certain symbolic value group by paying for (printed/ online) music. SV3: I perceive myself of a certain image by paying for (printed/ online) music. SV4: I perceive myself pertain to the right social norms by paying for (printed/ online) music.. Social Value Subjects perceive that they are associated with some certain social group by paying for music. (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). 34.

(42) Emotional Value Subjects perceive they can express personal individuality or arouse emotional feelings with the music or artist. (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). EmV1: I perceive collecting the (printed/ online) music I like can express my style. EmV2: I perceive collecting the (printed/ online) music I like can express my taste. EmV3: I perceive collecting the music (printed/ online) I like can express my individuality. EmV4: I can perceive a stronger connection to the artist I like by collecting their works. EmV5: I can perceive a stronger connection to the song I like by collecting it. EmV6: I can perceive mutual emotion exchange with music and/or artist I like by collecting the (printed/ online) music I like.. Epistemic Value Subjects perceive novelty, curiosity, and knowledge, by their consumption of music. (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). EpV1: I perceive learning more knowledge about music by consuming (printed/ online) music. EpV2: I perceive novelty by consuming (printed/ online) music. EpV3: I perceive satisfying curiosity by consuming (printed/ online) music.. Conditional Value Subjects perceive that they sometimes, but necessarily need music products for some reasons. (Sheth et al., 1991a, 1991b; Chen, 2006; Pan, 2009). CV1: I perceive that sometimes I need (printed/ online) music in order to do some tasks or jobs. CV2: I perceive that sometimes I need (printed/ online) music at some holidays and festivities. CV3: I perceive that sometimes I need (printed/ online) music to play in some special events. CV4: I perceive that sometimes I need (printed/ online) music in order to participate in artist’s activities.. Satisfaction Subjects perceive that they are satisfied with their consumption of music. (Oliver, 1977,1980). SA1: I am satisfied with consuming (printed/ online) music. SA2: I am satisfied with collecting (printed/ online) music. SA3: I am satisfied with the values of (printed/ online) music. SA4: Overall, it is worthwhile to consume (printed/ online) music.. 35.

(43) RI1: I am willing to consume (printed/ online) music in the future. RI2: I have no reason to stop consuming (printed/ online) music. RI3: I will continue to consume (printed/ online) music when I need or I want. RI4: Overall, I am willing to consume (printed/ online) music again.. Repurchase Intention Subjects perceive that they are willing to purchase music products again in the future. (Oliver, 1977,1980). In order to compare the different consumption values of those two types of music products, collecting the research data separately would be more relevant and more specific to understand consumers’ mind of their consumer behavior of music. The first part of the questionnaire asked the personal information of subjects, which are gender, age, and disposable income. And the next question asks of did the subject consume printed music within the last one year, if one did, items about consumption behavior and music preference will be asked to the subject, then will be the questions listed in the previous table to measure the consumption value of printed music; while, if not, or who finished the first part, the subject will be asked did they consume online music within the last one year. If who did, the same questions will be ask again to measure the consumption value of online music, and if not, or who finished, ends of this questionnaire. This design of the questionnaire might be seems as somewhat redundant or duplicate for those who consume both type of music, however, again, this method could collect the data more specific to subjects’ thoughts about their music consumption of the two forms of music products. 3.4 Data Analysis Techniques To analyze the collected research data, three parts of statistical analysis techniques were conducted in this study. The first part conducted internal consistency coefficient, Cronbach’s alpha, to see if the reliability and validity of the defined variables are consistent, Cronbach’s alpha coefficient value above 0.9 is considered 36.

(44) excellent, 0.9 to 0.8 is considered very good, 0.7 is good, and over 0.5 is still acceptable, while the value below 0.5 will be considered low reliability, which should be rejected. The second part was to perform factor analysis, purify the components and reduce the measurement scales into certain factors. Questions with similar loadings or which might lower the reliability could be removed. The third part was to use linear regression model to test the research hypotheses proposed in the previous chapters, computer software tool, Statistical Package for the Social Sciences (SPSS), is employed to analysis the data collected in this study. Details will be described in Chapter 4.. 37.

(45) Chapter Four: Results & Discussion. 4.1 Descriptive Statistics The online questionnaire of this study was officially released for one month from January 23 to February 23, 2014, and collected 825 copies in total. Nonetheless, subtracted 90 copies that presented not purchasing any types of music products within the last one year and 7 copies of outlier, 728 valid copies was collected, showing a validity rate of 88%. The following Tables 4.1 and 4.2 show the overall distribution of demographic statistics and consumption behaviors.. Table 4.1: Overall Demographic Statistics Gender Male: Female:. Frequency 198 530. Percentage 27.2% 72.8%. 482 245 1. 66.2% 33.7% 0.1%. 243 245 85 39 116. 33.4% 33.7% 11.7% 5.4% 15.9%. Age Under 25: 26 to 45: Over 46: Dispensable Income (TWD) Below 5,000: 5,001 to 10,000: 10,001 to 15,000: 15,001 to 20,000: Over 20,001:. 38.

(46) Table 4.2: Consumption Behavior Statistics of Product Types Consumption Experience Less than 5 years: 5 to 10 years: Over 10 years:. Printed Frequency Percentage. Online Frequency Percentage. 200 197 298. 28.8% 28.3% 42.9%. 194 44 9. 78.5% 17.8% 3.6%. 423 187 54 31. 60.9% 26.9% 7.8% 4.5%. 117 40 49 41. 47.4% 16.2% 19.8% 16.6%. 4 29 382 280. 0.6% 4.2% 55.0% 40.3%. 130 74 17 26. 52.6% 30.0% 6.9% 10.5%. 459 373 274 206 35 62. 32.6% 26.5% 19.4% 14.6% 2.5% 4.4%. 186 116 68 112 22 8. 36.3% 22.6% 13.3% 21.9% 4.3% 1.6%. 684 420 349 174 121 77 61 55 46 32 8 69. 32.6% 20.1% 16.7% 8.3% 5.8% 3.7% 2.9% 2.6% 2.2% 1.5% 0.3% 3.3%. 241 171 125 68 49 23 25 14 15 8 2 12. 32.0% 22.7% 16.6% 9.0% 6.5% 3.1% 3.3% 1.9% 2.0% 1.0% 0.3% 1.6%. Consumption Frequency (a year) 1 to 5 times: 6 to 10 times: 11 to 15 times: Over 16 times: Money Spend Each Time (TWD) Below 150: 151 to 300: 301 to 450: Over 451: Music Language Preference (choose at least 2) Mandarin Korean Japanese English Taiwanese Other Music Genre Preference (choose at least 3) Pop Rock Soundtrack R&B Electronic Instrument Rap Classical Jazz Crossover Religion Other. In these 728 response subjects, 695 of which had consumed printed music within 39.