PERSONAL FACTORS AFFECTING CONSUMER BEHAVIOR TOWARDS DOWNLOADABLE MOVIES IN THE INTERNET AND MOVIE RENTALS--VIDEO CITY A Research

Paper Presented to Ms. Rhodora Rosales De La Salle University Dasmarias, Cavite In Partial Fulfillment Of the Requirements for the Degree Business Administration Major in Marketing and Advertising Management Fuderanan, Darel Espaola, Precious Michellin Butial, Romelyn Ann Amaba, Judy Ann Oligario, Euzaila De luna, Vanessa

CHAPTER I: INTRODUCTION 1.1 BACKGROUND OF THE STUDY DVD player sales plummeting as film lovers switch to downloadsBy Daily Mail Reporter. Sales of DVDs suffer decline during 2011BBC News. DVD

sales will continue to decline because of online digital contentwww.filmindustrynetwork.com. These are just few articles referring to the competition convenient, less special and more of an outdated product that doesnt match our need, and with Internet speeds increasing and computer prices are falling consumers are their home entertainment setups from TVs with DVD players to a experience.

switching

completely online

While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as new physical and digital services for buying and renting movies gain in popularity. The proliferation of movie rental kiosk over the years was probably the most visible sign of consumer interest in viewing movies at home. And by showing the interest of the consumers on watching movies, we think of a rental house that will fit in to their lifestyle and that is Video City. Video City is consistently the only video shop that offers high quality and legitimate VCD and DVD titles. Its legitimacy and quality concept embodies the culture of excellence of VIVA. It is also accessible because the Video City outlets are located in key cities, leading malls and other accessible location in the country. Aside from video retail and rentals, Video City also sells games and video accessories.

1.2 STATEMENT OF THE PROBLEM o How the occupation of an individual does play a significant role in influencing his/her buying decision? o How can an age and maturity influence the buying behavior of consumers? o How the income of an individual affects its buying tendency? o How the personality of an individual affects his/her buying behavior? o How lifestyle of an individual affects his/her buying decision?

1.3 OBJECTIVES OF THE STUDY o To know whether the occupation plays a significant role in buying decision of the consumers. o To understand clearly if the age and human cycle can influence the behavior of the consumers. o To find out if the buying tendency of individual is directly proportional to their income per month. o To figure out whether their personality affects their buying behavior o To know how the lifestyle of an individual affects his/her buying decision.

1.4 SIGNIFICANCE OF THE STUDY Through this study, the researchers will be able to extend help to the following groups: Company. This research paper will help the Video City to be aware of what are the people prefer nowadays. They will be informed that because of the expensive cost of renting a movies there will be a chance that people will prefer to download movies online than paying a high rental fees. Customers. They are the main concern in this study. They will become satisfied of the proposed ideas on this research. Customers will learn that they will think of their budget first if it is enough and if the money they will spend on the products is worth for the price. School. De La Salle University Dasmarias will once again prove that this is where good researchers are made from. The DLSU-D will be promoted because the authors of this research paper are all come from this school. The cover page of this paper wears a DLSU-D logo. Students. Through browsing this research paper, the students will be informed about what Marketing and Advertising students are doing. The students from other colleges, as well as other courses will be aware of what are the possible tasks may be assigned to Marketing students in the future. Non-marketing students may get inspired of what marketing is all about. Researchers. Through this paper the researchers were exposed to different ideas regarding the Video city . It also helped them to practice their future profession. The

group got a grasp of what are the possible tasks that will be given to them in the real corporate world in the future. Future Researchers. This research paper could be a reference for future researchers, especially if they will also study the same topic. Future researchers may use our gathered information to enhance their research paper. They will be benefited because information found in this paper are all significant.

1.5 SCOPE AND LIMITATIONS OF THE STUDY The study will only focus on the 5 Personal factors affecting consumer behavior (Occupation, Age, Personality, Economic Condition and Life style) towards downloadable movies in the internet versus movie rental houses such as Video City that makes the researcher become interested to study this topic. The study aimed to assess the said topic and find out if these factors affecting the consumer have a high impact on buying decisions of the consumer.

1.6 DEFINITION OF TERMS Consumer behavioral- is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Age- The length of time that a person has lived or a thing has existed Occupation- an activity in which one engages; the principal business of one's life. Personality- is the particular combination of emotional, attitudinal, and behavioral response patterns of an individual. Economic condition- The state of the economy in a country or region Life style- is the typical way of life of an individual, group, or culture.

CHAPTER II: REVIEW OF RELATED LITERATURE 2.1 Brief History Related to the problem o COMPETING WITH FREE: THE IMPACT OF MOVIE BROADCAST ON DVD SALES AND PIRACY (H. John Heinz III School of Public Policy and Management) The creative industries have frequently expressed concern that they cant compete freely available copies of their content. Competing with free is particularly concerning for movies studios, whose content maybe more prone to single use consumption than other industries such as music. This issue has gained renewed importance recently with the advent of new digital video recording and distribution technologies, and the wide spread availability of Internet piracy. o VIDEO RENTAL DEVELOPMENTS AND THE SUPPLY CHAIN; NETFLIX, INC. (Washington University in St. Louis) In an age where everything from dinner to dry cleaning to prescription medication can be delivered to your home, it should come as no surprise that the entertainment field is following suit. While in-home on-demand movie

entertainment is certainly not newVCRs have been around since 1976 and by 2000 nearly 90% of homes with televisions also owned VCRs5 the advent of DVD technology along with sophisticated internet commerce has allowed for changes in the way rentals, and rental businesses, work.

o THE NECESSITY OF CONVENIENCE: FILM RENTAL IN THE DIGITAL AGE Visualize a television set being stared at by undergraduate students. This

television set, via PC-to-TV Converter, is connected to a PC. Inserted into this PC is a USB wireless card capable of intercepting wireless internet signals from adjacent homes. The PCs internet capabilities allow its users, with a single click of their mouse, to arrive at a web page where they can view the latest popular films and television programs free of charge. This scenario, once observed by the author in the student community, demonstrates the ease with which a person of low income can access and view the copyrighted creative content of a media conglomerate in the digital age. Given the free and convenient nature of black market video streaming web sites and illegal downloading, movie and television studios are currently being forced to come up with innovative ways to make their product widely available to consumers at a low price. When coming up with new ways to distribute their content, an important consideration for companies in the industry is how to properly balance convenience with profitability. \

2.2 DISCUSSION OR PREVIOUS STUDIES, RESULTS AND FINDINGS o COMPETING WITH FREE: THE IMPACT OF MOVIE BROADCAST ON DVD SALES AND PIRACY

To estimate the effect of movie broadcasts on DVD sales, we create a set of weekly time dummy variables that control for the sales levels before and after the broadcast. For notational simplicity, the dummy variable D(x) will be equal to one for x weeks before or after the broadcast. Thus, D(1) equals 1 for the time period from one week before broadcast until the time the broadcast started on the East Coast of the United States. Likewise, D (1) equals 1 for the first week after the start of the broadcast in Eastern time zone. We then estimate a model with DVD-level fixed effects to examine how sales change after a movie is broadcast on over the-air or cable television. A fixed effect model ensures that changes in sales are captured within DVDs. The fixed effect model we estimate is

Ln(Rankit) = Priceit + Dt + it

Table 3. Impact of Movie Broadcasts on Sales Rank (Fixed Effects) Independent Variables D(1) D(1) D(2) D(3) D(4) Amazon Price Constant Number of Observations Number of of Groups Broadcast 0.000 (0.3) 0.008** (14.1) 0.005** (7.8) 0.002** (3.4) 0.000 (0.8) 0.129** (11.3) 8.649** (0.282) 3,063 93 Ad-Cable 0.000 (0.3) 0.012** (20.2) 0.002** (2.0) 0.000 (0.3) 0.003** (3.5) 0.090** (20.4) 7.825** (38.5) 14,551 678

Where i indexes a movie and t indexes time. and are the vectors of coefficients to be estimated, where captures the effect of the movie broadcast on DVD sales, our variable of interest. Due to time series effects, we control for AR(1) disturbances in the error term.

o VIDEO RENTAL DEVELOPMENTS AND THE SUPPLY CHAIN; NETFLIX, INC.

It is intended as the basis for class discussion rather than to illustrate either effective or in effective handling of an administrative situation.

2.3 SYNTHESIS The topic for this research study talks about the 5 internal and external factors that affects the consumer behavior and buying decision of the consumers. It was evident that there is indeed a threat made by the online streaming, and available and downloadable movie copies from the internet, whether it be legal or illegal, towards the movie rental industry. Most marketers are already have negatively responded to the idea of video rental companies would give rise to this vast trend of internet movies. This gives rise to the idea to what personal factors may or can affect the buying decisions of a consumer to movie rentals or to downloadable movies. HYPOTHESIS That Age, Occupation, Economic Condition, Lifestyle and Personality are personal factors that hugely affects consumers behaviour towards downloadable movies and movie rentals. NULL HYPOTHESIS That Age, Occupation, Economic Condition, Lifestyle and Personality are not personal factors that hugely affects consumers behaviour towards downloadable movies and movie rentals. ALTERNATIVE HYPOTHESIS That Age, Occupation, Economic Condition, Lifestyle and Personality are not personal factors that hugely affects consumers behaviour towards downloadable movies and movie rentals

CHAPTER III: THEORETICAL FRAMEWORK

3.1 CONCEPTUAL FRAMEWORK When buying a certain products, we do need to consider the different factors that can affect the behaviour of the consumer. Some of the factors that the researchers choose are the age, occupation, economic condition, lifestyle, and personality. AGE. The age is one of the demographic factors that influenced customers buying decision and according to Flynn (1995), age is a very important demographic factor that

influences on the decision making process on the purchase because natural factor, easy to measure and use it a lot of social science theories. Kotler mentioned that the different needs and wants are different in different age groups. People of different age have different needs and wants and buy different goods and services over their life time. OCCUPATION. The occupation also plays an important role because as what Kotler and Armstrong states that the purchase made for goods and services are affected by a person's occupation. Identifying the occupational groups according to the interest in their products is an important thing for the marketers to do as a company will be able to focus on the target customers or even specialize on a certain products that will fit with the customers' needs.

ECONOMIC CONDITION. The third one is the economic condition. Economics, in its simplest form, is all about supply and demand, and the basis for supply and demand is based on the consumer. The more the consumer buys, the more will be made, which impacts a lot of jobs they can offer.

LIFESTYLE. And for the lifestyle, we all know lifestyle is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumer's major activities (work, hobbies, shopping, sports, social events), interest (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). According to Kotler and Armstrong, lifestyle is not just all about social class or personality, but it involves the entire life of a person. People from the same family, social class, or income level can have totally different lifestyles.

PERSONALITY. When it comes to personality, it all talks about the set of traits and behaviors that make a person unique. Self-concept, closely associated to personality, is their view of perception of themselves. Research indicates that a buyer purchases products that reflect and enhance self-concept.