We prefer to study the MP3 player market as it is a novel and fast growing one. Flourished in 2004, the MP3 player replaced the old devices like walkman and disc man, thanks to the technological developments. In 1998, an unfamiliar brand introduced the first MP3 player and it was only in 2001 that the most reliable and well known iPod was launched by Apple. This brand has opened a new market and created a new need.
The new device with high storage capacity, allows hearing music anywhere at any time. In fact, the device changed the customer behaviour and modified their choice process. In order to consider customers' opinion competitors in the MP3 players market their products and strategy. In this study, we will observe the consumer behaviour based on three main targets and we will analyse how the companies operate and maintain their core competencies.
[...] Few people are taking out a subscription to specialized magazines such as “sono magazine” or “prestige audio video”, and they basically don't take information through that media (only Main features People who own an mp3 player, of course, want to listen to music since it is the core feature of this product but also using their mp3 as a photograph album (having the ability to watch pictures and to always want the family or vacation pictures with them). Only 20% of people responded care about extra features such as video, games and maybe internet. [...]
[...] Then, geek people are affected by their mp3 player and have a special behavior towards the features that the product offers. Consumer involvement Concerning geek people's involvement about the product, they have a cognitive involvement since they want to know the most information as possible about the product. The reason why they are so close to their mp3 player is the features and the functionality rather than the esthetical aspect of the product. Motivation Their motivation is underlined by the tangible attributes of the mp3 player, its features and the figures of each criteria of the mp3. [...]
[...] As a consequence, switching costs for customers are considerable and persuading them of a new brand will be very expensive. This is a technology that has been around for nearly a decade now, and there are many companies adapting this technology and creating their own version of an MP3 player Distribution MP3 Player can be found in various channels of distribution. First of all it can be found in retailer's stores such as Carrefour, Auchan, Circuit City, Wal-Mart, CompUSA, Best Buy and Target which place product in floor space based on consumers demand. [...]
[...] The Apple IPod is definitely the market leader and very popular among students; a research done in 2006 showed that 72% of the students owned and MP3 player and of them 79% owns an IPod. Further IPod is selling around 22 million IPods every quarter. Nevertheless, we could have noticed that it is in decline since 2006, apart from the Christmas period due to the new competitors. Actually, respecting to all the Apple products, it represents 14% of market share whereas two years ago, it was eighteen points more. [...]
[...] - The devices will become smaller and more advanced (bracelet mp3 player or a yoyo recharging system). - The price will lower over time PESTEL Method Political The political environment for MP3 players in France is very stable. There are no pressure groups nor wars and/or government conflicts. Since France is an EU country they have the same government policy as the other members and therefore, trade is very easy. Further Apple faced one major legal issue in 2006. It was accused of breaking human rights in its China factory, and Apple had to correct this. [...]
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