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Reni Diah Kusumawati, 2Teddy Oswari, 3Tristyanti Yusnitasari
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reni_dk@staff.gunadama.ac.id, 2toswari@staff.gunadarma.ac.id, 3tyusnita@staff.gunadarma.ac.id 1, 2
Department of Management, Faculty of Economics, Gunadarma University
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Department of Information System, Faculty of Computer Science, Gunadarma University Jl. Margonda Raya No.100, Depok, 16424 – Indonesia
The decline of music industry in Indonesia forcing the players in the music industry to think hard in order to increase sales of music products. Innovation made by the music industry is offering online sales of music products, where consumers can purchase music products through the internet. The famous brands of smartphones such as Blackberry and iPhone have recorded success in selling online music products through Blackberry World and iTunes. The success rate indicated by the smartphones do not necessarily return the product sales music as in the 80’s or 90’s, so that the music industry still have to work hard to be able to restore music product sales figures. Everyone who is involved in music industry are trying to stay afloat in the music industry through on air and off air activities to introduce songs from the musicians, but piracy and illegal downloading of online music products still rampant on the internet. The purpose of this study is to examine the factors that can influence consumer purchase decisions on online music products either directly or indirectly through consumer purchase intentions on online music products. The populations in this study are music lovers for all types of music in Indonesia. The data in this study were obtained through questionnaires which were filled by 427 respondents, and analyzed using path analysis. The results showed that directly only variables of product, promotion, and purchase intention affect on consumer purchasing decisions of online music products, while the other variables price, distribution, people, physical evidence, and process do not directly affect on consumer decisions of online music products. The results also showed that indirectly through purchase intention the variables of product, price, promotion, distribution, and process affect on consumer purchase decision of online music products, while the another variables of person, and physical evidence have no affect on consumer purchase decisions of online music products through purchase intention.
: buying intention, marketing mix, online music products, purchase decision
Indonesia's music industry continues its efforts to address the illegal sales of music products through a variety of ways, including through cooperation with the government to lock websites
that offer free downloading of songs through their website, also asked the government to tackle
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of the original CD and online music products that can be obtained legally through the official website in the internet. The increase in sales of music products can be done in by understanding and realizing what consumers want, so consumers can be attracted to consume music product legally.
Consumer behavior changes over times. The digital era has changed the behavior of many consumers because it may be easier for consumers. Technological developments provide positive and negative effects for the music industry, on one side technology makes it easy for consumers to obtain music product, but on the other side the existence of technology can create musical products that are sold illegally either by the sale of pirated CD’s or downloading music for free through illegal sites which are very detrimental for music industry. The loss caused the music industry every year worse off.
Various efforts and innovations made by the music industry in order to increase the sales of music products. Efforts were made include providing product sales offers music CD’s through bundling with other products, offers online music products that can be purchased via smartphones such as Blackberry and iPhone. Efforts are being made that have shown good results although still not be able to increase sales of music products significantly. It shows that consumer awareness is still less on the effects of consume music products illegally which will make number sales of music product continue decrease.
This study aims to provide information for the music industry to understand the factors that affect consumers to make purchase decision of online music products. The results of this study are expected to increase sales of music products, especially online music products by observe to the factors that can affect the purchase decisions of consumers on online music products.
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The digital era makes people prefer to buy products through online. Selection of the consumer in making a purchase online because of time considerations that can enable customers to make purchases from anywhere and anytime, even not all of the products purchases online by consumers. Music product is a product that has been chosen by the consumer to purchase online, because consumers can easily obtain all the tracks through internet without having to go to a music store [1][2]. Offers online music products is expected not to remove the physical music formats (CD), but it gives shape offers diversity of music products for consumers [3].
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The development of technology with the ease of internet access give consumers in terms of time efficiency to acquire online music products and now many consumers prefer to acquire online music products [8]. Offering online music products performed by the music industry in order to attract consumers' purchasing intentions and provide ease of obtaining music products at affordable prices because consumers can only choose to buy the song they like. Price became an important element that must be considered by a company whose value is adjusted to the qualities of the product [9]. Innovation and promotion conducted via the internet and mobile phones are the efforts made by the music industry to be able to increase the volume of sales of music products [10] [11].
Convenience offered to the consumer music industry should consider the quality of the products and materials of song, because online music products provide an alternative to buy music products with only buying songs preferred by consumers, and not buy an album from an artist [12], with the presence of such offers can make consumers happy to buy online music products for artists or bands are preferred by consumers and are well known [13][8]. Consumers will stay loyal to purchase products produced by the band's music or artists that they admire along the track material and the quality of the band or artist and product quality is still maintained [14][15].
The rise is offerings of online music product followed by the emergence of a variety of websites that offer online music products. Businesses should be able to pay attention to the display sites of interest to consumers and the ease for consumers to acquire online music products, so that consumers can be interested to buy online music products [16]. Physical evidence that is displayed on a conventional music store or online music sites can affect consumers to make purchases of products music [17]. Ease in obtaining online music products has made many consumers to switch to consume music products online than to go to a conventional music store to buy a physical music product (CDs).
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The population in this study is the music lovers in Jabodetabek!Indonesia, the samples used were 427 respondents who are music lovers who ever made a purchase online music products. This study focused on the music industry in Indonesia for all types of music. Method used is simple random sampling. Data collection method used was a survey method using questionnaires, and using 1!5 Likert scale measurement in this study. The hypothesis used in this study is path analysis.
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Figure 1. Research Model
Figure 1 is a model of consumer behavior that examines the affect of marketing mix variables consists of the product, price, promotion, distribution, people, physical evidence, and process to purchase intention of consumers towards online music products, and examine the marketing mix variables on consumer purchase decisions of online music products either directly or indirectly through consumer purchase intentions.
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The results of validity test is valid if it has a significance value of <0.05, and has a high degree of reliability coefficients obtained if the value >0.60 [20]. The results of validity test for the variables of the marketing mix, purchase intention and purchase decision showed a significant value (P <0.05), these values mean that all items in the questionnaire questions are valid and can be used in research. Reliability test results for the variable of products is 0.753, variable of price is 0.768, 0.773 for the promotion variable, the variable of distribution is 0.764, the variable of people is 0.787, 0.803 for the variable of physical evidence, process variables is 0.755. These values show number >0.60, which means that the data from the questionnaire can be trusted. Respondent data who filled the questionnaire in this study as shown in table 1.
Product (X1)
Purchase Decision (Y) Distribution
(X4)
People (X5)
Physical Evidence (X6)
Process (X7) Buying Intention (X8) Price
(X2)
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Tabel 1. Respondent Data
( $ %
)
Male 230 53.86%
Female 197 46.14%
%
16!20 123 28.81%
21!25 128 29.97%
26!35 90 21.08%
36!45 71 16.63%
>45 15 3.51%
$ & ( # * ( #+
500.000 – 1 million 173 40.51%
>1 – 3 million 110 25.76%
>3 – 5 million 76 17.80%
>5 – 7 million 38 8.90%
>7 – 10 million 23 5.39%
>10 million 7 1.64%
Jakarta 154 36.07%
Bogor 40 9.37%
Depok 82 19.20%
Tangerang 62 14.52%
Bekasi 89 20.84%
The results of path analysis test with a significance value of 5% will be said affected when the value of the P!Value <0.05 and CR ≥ 1.96. The test results of path analysis for the variables of marketing mix (product, price, promotion, distribution, people, physical evidence, process),
purchase intention and purchase decision such as presented in table 2.
Tabel 2. Regression Weight (Group number 1 – Default model)
Estimate S.E. C.R. P
Buying_Intention < !!! Product !.077 .034 !2.237 .025
Buying_Intention < !!! Price .234 .048 4.876 ***
Buying_Intention < !!! Promotion .080 .025 3.195 .001
Buying_Intention < !!! Distribution .275 .058 4.759 ***
Buying_Intention < !!! People .022 .053 .424 .672
Buying_Intention < !!! Physical_Evidence !.033 .082 !.403 .687
Buying_Intention < !!! Process .181 .036 5.065 ***
Purchase_Decision < !!! Buying_Intention 1.097 .154 7.129 ***
Purchase_Decision < !!! Product .337 .110 3.064 .002
Purchase_Decision < !!! Process .156 .117 1.337 .181
Purchase_Decision < !!! Physical_Evidence .160 .262 .612 .541
Purchase_Decision < !!! Price .207 .156 1.326 .185
Purchase_Decision < !!! Distribution .320 .189 1.696 .090
Purchase_Decision < !!! People .084 .167 .504 .614
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Tabel 3. Standardized Direct Effect (Group number 1! Default model)
Process People Physical_Evidence Distribution Promotion Price Product Buying_Intention
Buying_Intention .249 .023 !.021 .247 .152 .232 !.103 .000
Purchase_Decision .061 .025 .029 .082 .261 .059 .128 .314
Tabel 4. Standardized Indirect Effect (Group number 1! Default model)
Process People Physical_Evidence Distribution Promotion Price Product Buying_Intention
Buying_Intention .000 .000 .000 .000 .000 .000 .000 .000
Purchase_Decision .078 .007 !.007 .078 .048 .073 !.032 .000
Based on Table 2 and table 3, the variables that directly affect on purchase decision are variable of product 0.128 with significance level of 5% P value is 0.002 CR value 3.064, variable of promotion 0.261 with significance level of 5% P value is 0.000 CR value 5.993, and the variable of purchase intentions 0.314 with significance level of 5% P value is 0.000 CR value 7.129. Other variables, price, distribution, people, physical evidence, and process have no direct affect on consumer purchase decisions on online music product because it has a P value > 0.05, and the value of CR ≤ 1.96.
The variables that affect on consumer purchase decision indirectly through purchase intention are product variable !0.032 with a significance level of 5% value of P is 0.025 CR value is !2.237, the variable of price is 0.073 with a significance level of 5% the value of P is 0.000 CR value is 4.876, variable of promotion is 0.048 with 5% significance level P value of 0.001 for 3195 CR value, the variable distribution of 0.078 with a significance level of 5% value of P is 0.000 CR value is 4.759, and the process variable is 0.078 with a significance level of 5% the P value is 0.000 CR value is 5.065. Other variables are person, and physical evidence have no affect indirectly on consumer purchase decision of online music product through purchase intention because it has a value of P >0.05, and the value of CR ≤ 1.96.
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This study focused on the music industry in Indonesia for all types of music, such as pop music, dangdut, jazz, blues, disco, reggae and more. The digital era has provided a change in consumer behavior, changing the way consumers interact with the environment and change the way consumers spend their money to meet the needs and desires of consumers. Technology makes it easy for consumers to interact with the environment through Internet, obtain the information, and buy anything they need from a place where the consumer is without having to meet in person or go for shopping to store where it sells goods desired by consumers.
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Ease in obtaining online music products is also has a negative impact for music industry. Easy access to the internet causing a lot of sites to growth that offer free downloading of songs, it is certainly very detrimental to the music industry. Efforts made by the music industry and government through the Law on Information and Electronic Transactions (ITE) is still not able to prevent the illegal downloading, but the effort was enough to reduce the number of sites that offer songs which can be downloaded illegally.
The test results indicate that the variable products directly and indirectly through the buying intention, product variables affect on consumers purchase decisions of online music products. These results indicate that consumers are very concerned about the quality of music products produced which is indicated with crystal clear sound even though consumers buy the music product via online. Consumers also pay attention to the practical packaging products which can be downloaded via internet, so that consumers can choose to save it through any media. Brand products which in this case is the artist or band that sang songs is also be a part of consumers consideration in choosing music product.
The results of this study are consistent with previous research which states that consumers will pay attention to the quality of the products that contain of songs with a good quality of a singer or band that could affect consumer buying intention [12]. These results are also consistent with studies that have been conducted by previous researchers which states that the innovation offered by the music industry through product offerings of online music can affect consumer buying intention to make purchases of music products [5][11].
Test results show that the price variable is directly the price variable does not affect on purchase decision of online music product, but indirectly through buying intention price variable affect on purchase decision of online music product. It shows that even though the price offered of online music products is cheaper than physical music products (CDs), consumers will still not make a purchase if the music products offered are not have a good quality, but if the consumer already has had the intention to buy online music products then any deficiencies that exist in the online music product consumers will still buy the products.
The results of this study are consistent with previous research which states that the price variable is partially influence on purchase decisions on music products [4]. However, these results are not consistent with the results of studies conducted by previous researchers which states that consumers will be willing to buy the products offered music for singers or bands they like and are well!known, because according to the consumer by buying that music products will give the benefit for consumer because they can know the song which is trend in a public [8][13][16].
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introduce the song and the singer or band can foster consumer buying intention and eventually the consumer may decide to purchase online music products.
The results of this study are consistent with previous research which states that a good promotion that is done by the company can attract the consumer's intention to consume music products [8][10][16]. However, the results of this study are not consistent with previous research which states that the promotion is not partially affect on purchasing decision of music product, although simultaneously the result test of research states that the promotion affect on consumer purchase decision of product music [4].
Test results on the distribution of the variable states that the distribution does not directly affect on purchase decision of consumers in online music products, but indirectly through the buying intention distribution variable affect on consumer purchase decision on online music products. The test results showed that although the distribution of songs and have complete different types of songs available on online music sites still not affect on consumers to buy online music products, but if the consumers has had the intention to buy the song they want then the consumer will try to get it despite having to search through a few websites that offer online music products in order to enjoy the song.
The results of this study are consistent with previous studies conducted by researchers which states that a good selection of distribution channels can affect consumers' buying intention [4][5]. The selection of appropriate distribution channels can help the music industry to reach the target market that can help to increase sales volume of online music products. Innovations made by the music industry through online sales are expected to reach a wider target market in order to make the music industry arise.
Test results on people variable states that both directly and indirectly through buying intention people variable has no affect on purchase decision of online music product. These results indicate that although the websites that offer music products has made it easier for consumers by providing the facility of Frequently Asked Questions (FAQ) and online chat services still can’t cause a consumer's intention to purchase online music products, because there are other things that more mainstream consumers are taken into consideration to purchase online music products.
The results of this study are not consistent with previous research which states that people variable has a role as important as other variables can affect consumers in deciding to purchase music products [8][16]. People variable needs to get the attention from music industry, so in the future people variable can help the music industry to affect consumer buying intention of consumers and finally consumer can decide to make a purchase on online music products.
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The results of this study are not consistent with previous studies which states that physical evidence variables have affect for consumers in deciding to purchase music products [8][16]. Physical evidence indicated by the sites that offer online music products should be do more promotions to consumers so that consumers can know that on the internet there are websites which offer convenience for consumers to obtain online songs they like legally.
Test results on process variables directly states that process variable has no affect on purchase decision, but indirectly process variables through buying intention has affect on consumer purchase decisions on online music products. These results indicate that ease the process for accessing online music products and convenience in terms of payment does not affect the consumer to purchase online music products. However, the ease of the process can affect the consumers to buy online music products when consumers have had the intention to buy online music products.
The results of this study are not consistent with previous studies which states that process variables affect on consumers in deciding to purchase music products [8][16]. There are still many consumers who are afraid to conduct online transactions become one of the causes of online transactions which still doubted by consumers, but as the number of good experiences of consumers about online transactions is expected can increase the sales of online music product.
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Various attempts by the music industry in order to increase sales volume of music is still not enough to restore the maximum of the music industry slump. Innovation through the online sale of music products actually cause the proliferation of sites offering illegal downloading of music products. Cooperation between the music industry and government to contend the rampant piracy of physical music products (CDs), and illegal downloading of online music products are still not able to increase the volume of sales of music products.
The results of research on seven elements of marketing mix consists of product, price, promotion, distribution, promotion, people, physical evidence, and process to buying intention of consumers and consumer purchase decision on online music products show that many of the marketing variables that have no affect directly to consumer decides to purchase online music product, even indirectly through buying intention variable, there are several variables that affect consumer purchase decision on online music products.
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This study only uses marketing mix variables to determine the level of consumer buying intention and consumer purchase decision for online music product in Indonesia. The result study is provides information for music industry to revive consumer purchase decision on online music product. Various ways such as e!commerce by selling music product via online is a part of marketing strategic from music industry to make music industry keep alive and the creativities from musicians can be more appreciate by buying music product legally.
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The author would like to thank to Gunadarma University for all the support in this study, so this study can be completed by the authors. The authors are also grateful to our friends and the environment around us that have helped provide ideas, comments, and support for the completion of this research. We also thank the respondents who have helped fill out the questionnaire used in this study, so the data that has been collected can describe the situation in the community.
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