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| WILTON, Conn., May 5
/PRNewswire/ -- Over 66 percent of 5,200 online music shoppers have not paid for (and
would not expect to pay for) digital music downloads, according to Greenfield Online's
e-Merging Music II research report. This finding underscores the issues surrounding the
recording industry's recent legal battles with online digital music distributors. In total, 45 percent of respondents have downloaded music from the Internet. The MP3.com website, for example, was visited by 20 percent of the online music shoppers in the study, up slightly from the first fielding of e- Merging Music in August 1999. Also of note, MP3 music files now have nearly the same penetration level (22 percent) as music videos (23 percent). Low Prices and Good Customer Service Are Key Price is a driving force for nearly 80 percent of online music shoppers. If consumers can find the item for a lower price elsewhere, either online or offline, that's where the transaction will occur. More than half of respondents (55 percent) shopped for music online and then purchased offline, while 53 percent shopped for and purchased music online in the past 90 days. Because online music shoppers are price sensitive, they generally are not willing to spend more money to get additional features. For example, a third of respondents think features such as sharing music with friends and/or music portability are important, but they are not willing to pay for this feature. However, more than a quarter of these online music shoppers would pay a premium for the ability to create custom mixes. Along with a low price, good customer service is a significant factor when respondents make an online music purchase decision. Nearly 70 percent of respondents may not or will not make a purchase if customer service is not satisfactory. Customer service is most significant for online consumers aged 55 and older. Music Websites That Are Humming With Consumers Despite news reports of cdnow.com's struggle with profitability, this site remains the second most visited music retailer on the Web. In fact, the top three most visited sites remained unchanged since the last fielding, each with even higher penetration levels than six months ago.
About this Digital Consumer(TM) Study This study is part of Greenfield Online's ongoing Digital Consumer(TM) series that examines attitudes and usage of the online public and is for sale from Greenfield Online. The e-Merging Music II study was conducted online between Feb. 7 and Feb. 21, 2000, with a sample of 5,200 people who have shopped for music online at some point in time. The data has been weighted to represent the Internet population in terms of age, gender and region. All survey findings report aggregate information about groups, not individuals. To join the Greenfield Online participant community, please visit http://www.greenfieldonline.com. About Greenfield Online Greenfield Online, Inc. is a totally Internet-enabled, full-service marketing research provider. The company's core business is to conduct custom consumer and business-to-business online studies that are faster, better and richer than traditional marketing research. Incorporated in 1995, Greenfield Online is headquartered in Wilton, Conn., with satellite offices in San Francisco. For additional information about Greenfield Online and its services, please call Mark Fusco at 203.846.5778 or visit the company's website at http://www.greenfield.com. CONTACT: Mark Fusco, 203-846-5778 or 203-858-1771, or mfusco@greenfield.com, or Gail Janensch, 203-846-5720 or 203-856-6185, or gailj@greenfield.com, both of Greenfield Online SOURCE: Greenfield Online, Inc. |
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