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To Purchase Or Pirate Music: A Global Perspective
University of Northern Colorado.
University of Borås, Faculty of Textiles, Engineering and Business.
University of Borås, Faculty of Textiles, Engineering and Business. (Swedish Institute for Innovative Retailing; Handelsgruppen)ORCID iD: 0000-0003-2219-1525
University of Northern Colorado.
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2017 (English)In: MARKETING EDGE SUMMIT 2017 ONLINE PROCEEDINGS, 7-8 October, New Orleans, New Orleans, 2017Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

EXTENDED ABSTRACT: 

Research Question 

This research focuses on the potential impact of various cultural, economic, psychological and social factors on the consumer decision whether to buy or to steal music. Relevant theories applied to the research question include: Reasoned Action, Planned Behaviour, and Theory of Time Allocation. 

Method and Data 

The sample for this study consists of 4618 college students across 26 countries. Data was collected regarding the respondents last acquired music. The variables included the method of acquisition (legal, illegal), cultural measures (Rule Orientation and Uncertainty Avoidance), aspects related to the music (value, quality), channel characteristics (time to download and selection), respondent characteristics (ability) and respondent attitudes (toward music industry, ethics of downloading, perceptions of channel and copying risk). The data was analysed using SEM LOGIT in MPlus to test the hypotheses. 

Summary of Findings 

Results indicate that culture has a significant and prevalent impact on consumer attitudes toward the purchase/pirate decision. The Rule Orientation of a culture impacts consumers’ attitude toward the music industry, ethical views of downloading music illegally, and the potential risks of copying music. Likewise, Uncertainty Avoidance also affects the potential risk of copying music along with the overall view of the channel risk of downloading music from the internet. Interestingly, impacts of value, downloaded music quality, ease of Internet use, attitudes toward music industry and ethical perception of music downloading on consumer purchase or pirate decision.

Ethical perceptions of downloading had the highest impact on the respondents choice to purchase or pirate music. Interestingly, the relative odds ratios suggest that the largest direct impact of whether a consumer chooses to download music is their ethical views, followed closely by the relative selection of music available for download. Thus, consumer ethical attitudes drive much of the decision. However, respondents attitude toward the music industry were not a significant factor. Thus, it might be a post decision justification for piracy to blame the industry or artists, rather than an inherent part of the decision process itself. 

The economic rationale for downloading was based on value rather than the respondents’ time. Unlike typical channel choice, whereas convenience plays a central role, the decision to purchase/pirate does not appear as much convenience related. The impact of channel risks (viruses and payment risks) were much higher than personal risks (prosecution). It is apparent that respondents see very little risk (except in Germany) of being prosecuted for pirating intellectual property. The ability to find and download music also had a significant impact on the decision to pirate. 

Key Contributions 

Results indicate significant impact of price on consumer buying decision, which can in current circumstances download music from the Internet with impunity, to be more price-sensitive. Therefore, music companies need to find a way to decrease the differential cost of music illegally acquired from the Internet and that acquired legally. It is unsurprising that a high correlation exists between consumer’s attitudes about ethics of downloading the music from the Internet and decision to steal. Hence, it would be necessary for music industry to affect consumer’s attitudes through marketing campaigns and education initiatives with regard to ethics of on-line music downloading, not necessarily focused on punishment for infringement. Music industry should develop diverse customized pricing models for different 

customer segments in order to increase the attractiveness of a legal offer together with ethical incentives reflected through the education of potential customers about the benefits of buying and consequences of the infringement of copyright law.

Place, publisher, year, edition, pages
New Orleans, 2017.
National Category
Social Sciences Economics and Business
Research subject
Business and IT
Identifiers
URN: urn:nbn:se:hb:diva-13800OAI: oai:DiVA.org:hb-13800DiVA, id: diva2:1189320
Conference
Marketing Edge Summit, New Orleans, 7-8 October, 2017.
Available from: 2018-03-09 Created: 2018-03-09 Last updated: 2018-03-20Bibliographically approved

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https://www.marketingedge.org/sites/default/files/SummitProceedings/2017/41-Reardon.pdf

Authority records BETA

Radon, AnitaSundström, Malin

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