Fetscherin and Lattemann (2007)

Source Details

Fetscherin and Lattemann (2007)
Title:	Motives and Willingness to Pay for Digital Music
Author(s):	Fetscherin, M., Lattemann, C.
Year:	2007
Citation:	Fetscherin, M., & Lattemann, C. (2007, November). Motives and Willingness to Pay For Digital Music. In Automated Production of Cross Media Content for Multi-Channel Distribution, 2007. AXMEDIS'07. Third International Conference on (pp. 189-196). IEEE..
Link(s):	Definitive
Key Related Studies:	Becker (1968) Chiang and Assane (2002) Limayem Khalifa (1999)
Discipline:	A13: Relation of Economics to Social Values C: Mathematical and Quantitative Methods C10: General C31: Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions • Social Interaction Models C51: Model Construction and Estimation C83: Survey Methods • Sampling Methods K: Law and Economics K3: Other Substantive Areas of Law
Linked by:

About the Data
Data Description:	174 students and adults surveyed.
Data Type:	Primary data
Secondary Data Sources:
Data Collection Methods:	Qualitative Collection Methods Survey Research (qualitative; e.g. consumer preferences)
Data Analysis Methods:	Quantitative Analysis Methods Regression Analysis
Industry(ies):	Sound recording and music publishing
Country(ies):
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	none
Funder(s):

Abstract

This paper outlines the key factors affecting the consumer behavior for digital music; grouped into socio-demographical, economical, experience, cultural, risk, technology and Digital Rights Management (DRM). We present then the data collection process and empirical data. Also our results are more suggestive than conclusive, they show that the willingness to pay for digital music is higher without piracy and people would also buy more music if no piracy is available. We then propose a multiple regression model including multiple groups of factors as well as DRM. The results suggest that the purchasing behavior for digital music is complex whereas multiple factors have an impact on the consumer behavior.

Main Results of the Study

• Authors tested 14 separate hypothesis in regards to socio-demographic, economic, risk, culture, and technological factors along with experience and usage in order to see how they affected piracy behaviour. * Results show that the willingness to pay for digital music is higher without piracy and people would also buy more music if no piracy is available, but people were still willing to pay for music even with the presence of piracy.* Presented a multiple regression model which models the consumer purchasing behavior taking into account demographical, economical, experience, technological, cultural, risk and digital rights management(DRM).

Policy Implications as Stated By Author

• Decreasing or abolishing piracy would, according to the results in the study, increase willingness to pay so policies designed to combat piracy could increase music purchasing.

Coverage of Study

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

Coverage of Evidence Based Policies

Issue	Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size:	174
Level of aggregation:	Individual
Period of material under study:	2007