Motives and Willingness to Pay for Digital Music

Abstract

This paper outlines the key factors affecting the consumer behavior for digital music; grouped into socio-demographical, economical, experience, cultural, risk, technology and Digital Rights Management (DRM). We present then the data collection process and empirical data. Also our results are more suggestive than conclusive, they show that the willingness to pay for digital music is higher without piracy and people would also buy more music if no piracy is available. We then propose a multiple regression model including multiple groups of factors as well as DRM. The results suggest that the purchasing behavior for digital music is complex whereas multiple factors have an impact on the consumer behavior.

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