September 22, 2006

The website of the National Association of Recording Merchandisers has a bit of information on an NPD Group study on value-added physical product concepts (a.k.a. what bonus material or incentives motivate a consumer to purchase physical product). To read the full reports you must be a NARM member, but the post offers some information to all visitors.

• Consumers across all demographic segments prefer a CD coupon the most.
• DVD-based content appealed to about half of physical music buyers.
• Bundles won't increase store traffic, but they will increase impulse buying.
• Consumers don't expect to pay more for bonus content on a CD.

There's nothing surprising in those bullet points. I hope labels have got over the desire to use bonus content to rationalize their price points. A better strategy: Set a price point that is expected to be effective, then add content to increase impulse buying and lure the fence-sitters.

Anybody have a copy of the entire study? Send me an email.

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Posted by Glenn at 12:47 PM | | | Research