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Business News (more headlines) 04-19-2014

New Research Shows How Online Retailers Can Tackle Music Piracy

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New research from a leading European business school shows that there are two strategies online retailers should adopt in order to combat the problem of illegal music downloads.

The first is to develop a free music approach, targeted at young users and supported by advertisements. The second is to market a high-quality music offering to older customers, where they pay for downloads but with no visible advertising.

The research, conducted by Prof Frank Goedertier, a leading brand management expert at Vlerick Business School, involved conducting 100 interviews with online music consumers from different age groups.

Based on in-depth analysis of the responses, the research revealed six distinct consumer segments each with their own specific characteristics.

Goedertier says: "Our analysis looked at how people behave in relation to online music consumption. The younger segment predominantly tends to disregard the law and are outspoken when it comes to their preference for free downloads and streaming. The older segment proved more law-abiding and ethically concerned. This segment is willing to pay for music as long as they can avoid pop-ups and advertisements. Our research shows that consumers do prefer legal and ethical options if available but each age group has different ways of making this economically viable."

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