Factors Affecting the Growth of Digital Audio Devices: An Empirical Analysis of the Korean MP3 Player Market
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As a result of active discussion and debate concerning the copyright and digital rights management scheme, regulations and restrictions on digital content are well organized. Consequently, the market for the digital content oriented device, the digital audio player, is likely to grow further in scale. In this situation, the needs to develop market strategies and NPD strategies for the digital audio player are essential. This study investigates the factors that influence the consumer demand for MP3 player, which is a representative device of digital audio player, through empirical analysis. This study applies two analyses—micro and macro market analysis, the first with the discrete choice model using panel survey data and the latter with the growth model—to the market of South Korea in order to establish market strategies and implications. The results of this study introduce an initiative marketing strategy as a suggestion for focusing on attractiveness requirements, along with possible future research directions.
Abstract
As a result of active discussion and debate concerning the copyright and digital rights management scheme, regulations and restrictions on digital content are well organized. Consequently, the market for the digital content oriented device, the digital audio player, is likely to grow further in scale. In this situation, the needs to develop market strategies and NPD strategies for the digital audio player are essential. This study investigates the factors that influence the consumer demand for MP3 player, which is a representative device of digital audio player, through empirical analysis. This study applies two analyses—micro and macro market analysis, the first with the discrete choice model using panel survey data and the latter with the growth model—to the market of South Korea in order to establish market strategies and implications. The results of this study introduce an initiative marketing strategy as a suggestion for focusing on attractiveness requirements, along with possible future research directions.
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