Tag Archives: consumer behavior

Is Owning Music at an End?

When was the last time you purchased music? Not music streaming, but actually bought a physical product for money?

If you are like most consumers, it has probably been a long time since you purchased a CD. In the last decade, CD sales have fallen 80% – from 450 million units to 89 million units! Consider the lasting impact of the declining sales, not only on the record industry, but also in manufacturing. Many of today’s car companies (e.g., Tesla, Ford, Toyota) no longer even include a CD player in the car dashboard, and portable CD players are hard to find.

Even downloads of music have taken a big hit, decreasing 58% since the peak in 2012. Artists have also noted the trends; Bruce Springsteen released his latest box set exclusively on vinyl – no CD options. CDs are doing well in some markets though – in Japan, where streaming has not yet taken off, 72% of music sales were physical CDs. But look around U.S. retail stores – where are the CDs even stocked?

It’s not just streaming that has killed off the CD. Vinyl records have grown from less than a million units in 2007 to more than 14 million in 2017. Vinyl sales even hit a 25-year high last year and new vinyl record manufacturing is popping up to replace CD manufacturing.

Here are some numbers to note about music sales:

  • CD sales: 712 million units in 2001, to 88.6 million units in 2017.
  • Track downloads: 1.3 billion sold per year from 2011 – 2013; 555 million sold in 2017
  • Song streams: 118.1 billion in 2013; 618 billion in 2017
  • Vinyl: 990,000 units in 2007; 14.3 million units in 2017

How do you buy your music?

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Poll students: When did they last purchase music? What form was it in?
  3. Where did they last see CDs or vinyl music? What was the inventory level?
  4. Who has a CD player in their car?
  5. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  6. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Knopper, S. (14 June, 2018). The end of owning music. Rolling Stone.

 

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Your Smile Pays for Shopping

By now, nearly everyone has heard about Amazon Go stores where shoppers can skip the check-out lanes and are automatically charged for what they purchase. But, Amazon isn’t the only company that offers stores without cashiers. The latest entry is from Alibaba at its new Futuremart store in Hangzhou, China. The store sells a wide variety of Alibaba merchandise. Customers enter the store using a facial recognition app and scan a QR code with their Taobao, Tmall, or Alipap apps so they can shop.

But wait – it doesn’t end there! The store also uses a facial recognition program – a “Happy Go” happiness meter – to measure how happy the shopper is right now. A big smile can earn discounts!

Similar to Amazon Go, at Alibaba, when leaving, facial recognition and RFID technology recognize the shopper and the items being purchased. Alibaba and Amazon may be in the forefront of the new shopping technology, but others are close behind. Panasonic is also working on an automatic checkout using a walk-through RFID solution at a store in Japan.

Go ahead and walk-through the store – but don’t forget to smile big!

Group Activities and Discussion Questions:

  1. Poll students: Would they like to be able to shop without a cashier payment step? Why or why not?
  2. Discuss the new ways in which technology is impacting retailing, such as Amazon Go and Alibaba.
  3. Show Alibaba video: https://youtu.be/FGtRXi8eRKI
  4. Show Amazon Go video: https://youtu.be/NrmMk1Myrxc
  5. Show the Panasonic RFID video: https://youtu.be/VD_FJzio3wo
  6. Divide students into teams. Have each team reimagine the shopping experience using technology. What are their findings? Will consumers accept these innovations?

Source: Brandchannel.com. Alibaba test smile-and-pay facial recognition shopping.

 

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Let Your Fingers do the Paying

Have you ever forgotten your credit/debit card or money when buying something? It’s certainly embarrassing for the consumer, and not only that, the retailer then loses the sale. Wouldn’t it be nice if one could pay by using a different form of identification? Well, there is a new possibility brought to consumers from Nets, a Nordic payment provider.

Nets has launched a service called ‘Fingopay’ – a biometric payment system that uses a consumer’s finger-vein reading system to access credit cards and PIN numbers, while still maintaining a person’s security. The system uses infrared lights to scan the consumer’s prints, creating a 3D map of the veins in the whole finger (not the fingerprint). This can be registered as a preferred payment method, linking the finger tips to the bank account. The biometric signature is a one-of-a-kind identifier. It can’t be stolen, forged, or damaged. If the vein print matches the registered pattern, the sale is made!

Fingopay is now in use at the Copenhagen Business School and at Brunel University in London. Readers are installed at points of sales in the campus store and cash-free transactions ensure that purchases can be made, even without wallets or phones!

Purchasing is now at your finger – really!

Group Activities and Discussion Questions:

  1. Poll students: How many have forgotten their wallets or id recently when trying to make a purchase? What happened?
  2. Show Fingopay’s Web site: http://fingopay.com/
  3. View the video on the site that shows how the system works.
  4. Another video on U.S. news: https://youtu.be/bwDvUolnf8Y
  5. Poll students: Would they use this system? Why, or why not?
  6. For all the objections to using the service, have teams of students develop promotional tactics that could counteract the objections.

Source: Trendhunter.com.

 

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