hmv jack of all or master of none

hmv: top dog or jack of all?An investigation into the growing expansion of HMV’s offerings, and consumers' resultant brand perceptions.

Introduction ............................................................................. 3

hmv’s Problem ........................................................................ 5

Market decline ............................................................................................... 5

Comparison to Competitors ........................................................................... 6

What Needs to Be Understood ...................................................................... 6

The Need for Research ................................................................................... 6

Research Objectives ............................................................... 7

Essential Aims of the Investigation ................................................................ 7

Essential Questions for the Investigation ....................................................... 7

Methods of Research and Design ......................................... 8

Primary Methods: Questionnaire Survey ....................................................... 8

Primary Methods: Consumer Interviews ........................................................ 9

Primary Methods: Industry Professional Interview ...................................... 10

Secondary Research Methods ...................................................................... 11

Research Limitations .................................................................................... 11

Current Literature .................................................................. 12

HMV’s curent state ...................................................................................... 12

Loss of Competitors ..................................................................................... 13

HMV’s Current Competitors ......................................................................... 13

Experience Engagement ............................................................................... 14

Methods of Data Access ....................................................... 15

Questionnaire Surveys ................................................................................. 15

Interviews: Professional ............................................................................... 15

Questionnaire, Poll and Interview: Design and Objectives ................................................................................................ 16

Questionnaire Survey .................................................................................. 16

Consumer Interview .................................................................................... 16

Professional Interview ................................................................................. 16

Discussion Analysis of Survey Results .............................. 17

Questionnaire Screening: Users/non-users and the gender ......................... 17

Lina Pio 2 | P a g e

Reason for not buying at HMV ..................................................................... 18

Customer profiles and the competition ........................................................ 19

Product awareness ...................................................................................... 21

Strongest parts of the product mix .............................................................. 22

Product-led brand or experience-led brand? ................................................ 23

Shopping experience .................................................................................... 24

Brand personality ........................................................................................ 26

Discussion Analysis of Interview Results .......................... 27

Analysis of Consumer Interviews ................................................................. 27

Analysis of Professional Respondent Interview ............................................ 27

Conclusions and Implications for hmv ............................... 29

In store experience must change ................................................................. 29

More branding and awareness campaigns of other services ........................ 29

Opportunities for future research ................................................................ 30

References ............................................................................. 31

Annual reports ............................................................................................. 31

Industry reports ........................................................................................... 31

Trade press .................................................................................................. 31

News ........................................................................................................... 31

Academic Journals ....................................................................................... 32

Books ........................................................................................................... 32

Appendices ............................................................................ 33

Frequency tables .......................................................................................... 33

Consumer Interviews ................................................................................... 43

Professional Interview ................................................................................. 60

Questionnaire .............................................................................................. 62


Acknowledgements

I would like to thank the following, Laima, Rasa and Preena for their super work researching and co-authoring this paper with me. My especial thanks goes to Ian and Nick for their interest, insight and enthusiasm.


Introduction

Against a backdrop of an economic downturn and erratic media reports of HMV’s strengths,

this study was conducted to investigate the (not the overall group) brand perception of

HMV Stores amongst a target demographic of media savvy consumers aged between 18-32,

or ‘Generation Y’.

Prior to the research, informally there appeared to be misalignment between the

demographic’s perception of the brand and the image proposed by HMV itself, particularly

within its annual reports.

The study focused specifically on verifying this hypothesis. To achieve this, measurements of

four key aspects of HMV’s brand perception were sought: how aware this demographic was

of the expanding range of products and services offered by HMV, HMV’s popularity in

comparison to current competitors, the demographic’s feelings about the brand experience

in-store and online, and finally their general views of HMV and its future. The study

discusses the results and is intended to provide possible recommendations for improvement

for HMV.


hmv’s Problem

Market decline

In the 18 weeks to the 29th of August 2009, the first weeks of its financial year, HMV posted

a 1.8 percent fall in underlying sales (Potter, 2009). A one year analysis of the business saw

its shares plummet by 20% and level off in the run up to Christmas 09. To alleviate the long

term decline of the original megastore market, HMV is now repositioning itself as a

multichannel entertainment provider. Not only selling music, games and films, but now also

offering live music venues, in-store cinemas (HMVCurzon), digital music distribution and

ticketing.

HMV's Shares Over 3 years

Source: Google Finance

HMV’s shares against its competitors between 6th January 2006 and 4th December 2009


Comparison to Competitors

Since the closest competitors Zavvi (previously Virgin Megastores) and Woolworths went

into administration at the end of 2008 (Murchie, 2009), HMV has no directly identical rivals;

other retailers offer a subset of its products, but there is no other business in the UK that

offers an identical product mix. Being unique provides HMV with a differential competitive

advantage (Porter, 1979).

What Needs to Be Understood

Consumers’ preferences when buying the products HMV offers needs to be understood to

avoid it developing as deadly a mismatch between consumer wants and its offerings as Zavvi

and Woolworths. This requires insight into why people shop, and the reverse, with HMV,

and their attitudes towards the brand. More immediately HMV’s positioning relative to its

competitors in different product categories must be assessed to find how it can better

compete.

The Need for Research

Currently, there are no pre-existing studies which analyse perceptions of HMV’s brand and

new product offers in the context of its financial results. The lack of understanding how a

consumer sees HMV might lead to poor marketing and product-mix strategy, decreasing the

value of the company by failing to supply the true wants and needs of its potential market

(Blankenship et. al., 1998).


Research Objectives

Essential Aims of the Investigation

The investigation attempts to gain insight into:

the brand perceptions of media savvy Generation Y consumers aged between 18-32,

of HMV,

the demographic’s awareness of the range of products and services offered by HMV,

HMV’s popularity in comparison to current competitors,

the similarity of consumer perception of HMV, and that of its management in annual

reports.

Essential Questions for the Investigation

Is HMV still popular amongst this demographic, against current competitors?

Why is HMV popular?

Why do members of this demographic no longer shop at HMV?

Which parts of the product mix are valued most by this demographic?

To what extent is the demographic aware of all the services and products at HMV?

What can make HMV succeed over rivals?

How does the demographic feel about the in-store and online experience of HMV?

Is the future of HMV stable?


Methods of Research and Design

Primary Methods: Questionnaire Survey

To establish an initial understanding of the target demographic’s opinion, a qualitative self

administered questionnaire survey was designed and distributed online through the use of

SurveyMonkey.com. The main advantages of this type of data collection are its highly

structured nature, which makes the results easier to synthesise than in-depth interviews,

and that a large volume of respondents can be generated. Due to the volume of

respondents, the results are relatively more representative in comparison to a few detailed

interviews of extreme examples.

Due to the size of the study, the sampling used was a non-randomised cluster convenience

sample. The sample is a cluster in that only those on social networking sites or the university

network were able to take part; it did not give the whole population of the target

demographic an equally random chance to participate. The study may missed extremes of

opinions. Therefore, a full and accurate analysis for the research’s margin of error could not

be calculated, and cannot determine the full representative nature of the responses. A more

representative further study to be carried out would investigate the opinions of a

randomised sample from the whole population of HMV consumers and competitors’

consumers.

Since the survey was carried out as an online self administered questionnaire, further

possible problems arise in the higher chance of leading questions, an inability to understand

a particular question, lack of flexibility in answering the questions, and an exclusion of those

without an internet connection or facebook / Twitter / Research agency/ University network

membership. However, the research aimed at understanding the opinions of media savvy

youth who were huge entertainment consumers. Ofcom research (Ofcom, 2009) indicates

that the majority of these respondents typically had access to a broadband connection and

in fact made up a large proportion of internet users.


Ofcom Media Consumption 2 Internet Audience and Time Spent by Age

Primary Methods: Consumer Interviews

Online interviews were also carried out in order to alleviate some of the limitations typical

of quantitative research highlighted above. While the survey provided a somewhat

representative understanding of the demographic, the interviews would provide deeper

understanding of the survey’s results through comparison with extreme examples of

respondents.

Ofcom Media Consumption 1 The Media Consumers Would Find Hardest To Live Without


The interviewees were youths typical of the demographic from across the UK, with different

occupational and educational backgrounds and strong opinions on HMV. Although there

were only 3 respondents, this was felt enough for this pilot study to investigate the issues.

The interview was conducted through online IM chats, chosen for the speed and ease of use

crossing geographical boundaries that would otherwise hamper the study. Respondents

were able to answer anonymously at their own convenience in their own surroundings. In

choosing this method, an immediate transcript was produced, preventing time wasted on

transcribing of audio transcripts misquotation of the respondents’ answers.

A disadvantage of online IM interviews is that respondents who do not have connectivity to

the internet could not be included. However, as the study’s aim was to understand the

opinions of media savvy youths who were using different types of media to interact with

retailers such as HMV, this failing was not vital. A further disadvantage perhaps felt on some

occasions was the inability to detect and exploit the interpersonal communication in the

form of body language and tone of voice. This may have prevented further questions for

investigation being inspired from non-verbal communication.

Primary Methods: Industry Professional Interview

In order to balance the views and opinions of consumers a qualitative telephone Interview

with an external industry professional was sought to gain an independent opinion on the

study. The interview arranged was with an eCommerce consultant, editor of

InternetRetailing, prior to which he had been LittleWoods eCommerce Director and Director

of BBC Online. At the interviewees request, no recording was made.

This qualitative interview gave many insights from the independent perspective of someone

typically consulted by retail businesses similar to HMV, and generated views and opinions

on HMV as a whole and specifically, HMV’s internet presence.

Like IM, for telephone interviews distance is not problematic. Unlike IM, the telephone

interview could detect the non-verbal communication contained in tone of voice. This


meant that questions were more easily directed and flowed more naturally according to the

tone of the conversation.

In spite of this, the disadvantage of the non recorded telephone interview is the larger

margin of error in terms of inaccurately recording down by pen the data collected.

Therefore, the possibility of having misinterpreted the responses is higher.

Secondary Research Methods

To gain a good initial understanding of HMV’s situation and the varying theories behind, a

background analysis of current relevant literature was conducted. First, the company’s

annual report was analysed to understand the opinion of HMV’s board. To gain a full

understanding of HMV’s current situation, HMV’s industry report created by DataMonitor

was compared against HMV’s own data. A discovery of the current professional branding

agency opinion was sought by analysing reports created by Interbrand on brand

engagement, retail and digital; areas relevant to HMV. Further to this, trade press articles

for a more general background of practitioner opinion along with general press articles were

analysed. Finally, to keep the study well rounded, opinions form peer reviewed academic

journals were also sought.

All of this information gave a good basis for the direction of the research.

Research Limitations

Due to the size and timescale of the project, this can only be treated as a pilot study, an

indication of the need for further research and what the results of further research may

yield.


Current Literature

HMV’s curent state

Despite Potter (2009)’s article describing HMV’s core sales falling, HMV’s 2008 annual

reports describe HMV as being in a positive situation in relation to the global slowdown,

with ‘good progress [being] ... made on the Group’s three-year transformation plan.’ HMV

recognises its market is changing structurally, with specialist retailing declining markedly.

Therefore, a programme of expansion to gain leadership is critical, especially in the face of

stiff competition from ‘online players’, (Amazon in particular), and best seller providers:

supermarkets. Their steady growth, has given them the ability to take the ‘first steps into a

new, long-term strategy to extend HMV’s brand and activities into live music and

entertainment venues and ticketing,’ (HMV, 2009: 6).

“As a specialist retailer, both through our stores and websites, we seek to differentiate HMV

by:

- providing the widest ranges and availabilities, driven by best-in-class inventory

management systems

- offering customers superior product campaigns utilizing high-quality merchandising

skills . . .

- the authoritative product knowledge and advice offered by our employees

- provision to our customers of added value experiences, including special events to

meet artists and authors and

- to attend live performances at our stores innovative CRM to drive and maintain

customer loyalty,

- including in HMV UK access to rewards which are not usually available for purchase.”

(HMV, 2009: 11)

Further measures highlighted in the report discuss

- The introduction of 15 new stores throughout the UK supporting a ‘next generation’

store format. (HMV, 2009: 6)

- HMV’s highly recognised brand and prime high street locations are also being further

leveraged to offer customers related entertainment experiences. (HMV, 2009: 6)


Loss of Competitors

2008 saw the loss of direct high street competitors, Woolworths and Zavvi based on

‘decaying business models’ (Perry, 2009). Despite the last minute efforts of Woolworths

management, as described by Hall (2009), Woolworths collapsed on a failed model. Because

of this, as Sutherland (2009), and Thompson (2009) explain ‘HMV ... benefited not only by

grabbing sales from now defunct retailers, such as Woolworths, but also by acquiring 25

stores from Zavvi,’ profiting from the "Woolworths effect” (Pearson, 2009).

Clearly the loss of competitors saw HMV’s profits rise, but also prompts HMV to reduce its

similarity to the failing companies.

HMV’s Current Competitors


Experience Engagement

Industry insiders, commenting on the issue have described HMV’s situation as being

‘between a rock and a hard place, and it doesn’t get much rockier or harder than iTunes or

Tescos’, describing HMV’s first tentative steps online (Ritson, 2006: 20). Since then HMV has

rebranded its logo and slogan (Quilter, 2007). Despite HMV’s stable performance it, unlike

Amazon, has not featured in Interbrand’s best 100 global brands of 2009, an assessment

usually composed of a brand’s financial health and the brand’s influence on sales

(Interbrand, 2009a).

Indeed, Interbrand’s analysis of retail brands in general is positive. Interbrand believes that

far from suffering under a challenging economy, ‘retailers are perfectly placed to build truly

great brands. They have many rich data points: physical experiences involving numerous

opportunities to create uniqueness, including service, process, product mix, layout,

ambience, culture. (Interbrand, 2009b: 1).’

Interbrand explains further that, as well as acquisition, ‘great brands not only need to

engage, they also need to deliver *to customers’ expectations+. To be a truly great brand,

you don’t just need to get them hook, line and sinker, you also need to take good care of

them once they are in the boat.’ (Interbrand, 2009c: 1). The report emphasises on the

importance of consumer experience as a tool for retention and stronger brands.

Like Interbrand, Bowden (2009) suggests that, ‘customer-brand relationships do not just

exist, they develop over time and through multiple service experiences’, yet Bowden’s

research found that customer-brand relationships were a largely static phenomenon where

not much aftercare was placed upon acquisition of the consumer.

On a different level, Martinez & Pina Perez (2009) look into brand expansion strategies.

They found that in general ‘Brand-extension strategies *such as HMV’s+ enhance success

chances of new products,’ (Martinez & Pina Perez, 2009: 53) even when though brand

image is exposed risks of dilution. In spite of this, a brand expansion into highly relevant

areas did not guarantee the protection of brand perceptions.


Methods of Data Access

Questionnaire Surveys

Access to a sample base for the questionnaire survey was sought from a variety of online

sources. The survey was advertised on status messages on Twitter and Facebook and on

HMV fan pages. An invitation link was sent through the online university message board and

through the management department admin who passed the invitation link to all

management students.

Further access was sought by sending the invitation link to a research and brand consultancy

which specialised in social network market research, which redistributed the link to its

database of respondents.

The eventual sample base generated from the questionnaire survey amounted to 160

respondents. The expected sample base from these forms of data access was approximately

80 respondents. The desired was 150 respondents. Although exceeding expectations,

through pay-per-click Facebook advertising the sample base would have been much larger

and perhaps more representative (of consumers online on social networking sites),

however, the decision was made not to use forms of rewards to advertise the research as a

general base of opinion was sought from respondents who were interested in taking part,

giving full and varied opinions, rather than extrinsically motivated.

Interviews: Professional

Existing industry contacts were used to source the telephone interview with the industry

professional.


Questionnaire, Poll and Interview: Design and Objectives

Questionnaire Survey

The survey design was revised several times until it was felt that the final design targeted the questions most relevant to the objectives and focus of the study with the questions being simply phrased and without a leading bias.

Consumer Interview

The focus on the interview questions were to delve deeper into the questions asked in the survey and to further investigate the responses generated from the survey, and to reveal answers to the study’s questions.

Professional Interview

The questions in this exercise were designed to provoke responses from the respondent, focussing on the study’s research objectives and main questions, to gain an independent viewpoint.


Discussion Analysis of Survey Results

Questionnaire Screening: Users/non-users and the gender

The first question was designed to screen the sample and distinguish between users and non-users. For this study, non–users were defined as respondents who had not bought from HMV in the last 2 years. For some analysis, the non-users of HMV will be excluded. The majority of the respondents (75.6 %) have recently bought from HMV and are expected to be familiar with recent HMV’s branding efforts. This serves the further analysis by reducing the likelihood of answers based on out-dated perceptions. The sample used turned out to be composed of more females than males (73.8% and 26.3% respectively), which suggests that the analysis of the questionnaire might suffer from the gender bias. As can be seen from the Table 1, HMV seems to be more popular among females (78% are Users) than among males (69% are Users). However, after applying Independent Samples t-Test (sig. 2 tailed = .280) the difference appears to be statistically insignificant (Table 2). Based on this, there will be no attempts to account for unequal split between genders.

Table 1 User/Non-User and Gender Crosstabulation

29 13 42

69.0% 31.0% 100 .0%

24.0% 33.3% 26.3%

92 26 118

78.0% 22.0% 100 .0%

76.0% 66.7% 73.8%

121 39 160

75.6% 24.4% 100 .0%

100 .0% 100 .0% 100 .0%

Count

% withi n Gender

% withi n Recent User

Count

% withi n Gender


Count

% withi n Gender


Ma le

Fem ale

Gender

T otal

Yes No

Recent User

T otal

Have you bought anything from HMV, either in store or online, in the past 2 years?

Answer Options Response

Percent

Response

Count

Yes 75.6% 121

No 24.4% 39

answered question 160

skipped question 0


Reason for not buying at HMV

Figure 1 Q2 Frequences: If you have not bought from HMV, why?

The majority (61.1%) of non-users said that there was no need to buy from HMV rather than that they were unsatisfied with any of the aspects of HMV as a retailer (Figure 1). Even considering the current trend towards cheaper digital media, bad value for money, according to the research is only the second strongest reason for not buying from a high-street retailer like HMV.

Conclusion: marketing efforts for attracting non-users should include the generation of need, possibly emphasising the benefits that other retailers are not able to offer or by looking at the underlying reasons for unwillingness to purchase entertainment products.

Independent Samples Test

4.296 .040 1.154 158 .250 .094 .081 -.067 .254

1.091 59.037 .280 .094 .086 -.078 .265

Equal variances

assumed

Equal variances

not assumed

Gender

F Sig.

Levene's Test for

Equality of Variances

t df Sig. (2-tailed)

Mean

Difference

Std. Error

Difference Lower Upper

95% Confidence

Interval of the

Difference

t-test for Equality of Means

Table 1 t-Test of differences between genders and Users/Non-Users


Customer profiles and the competition

Figure 2 Q3 Competitive environment

1

Since HMV is a multi-product brand, for the competitive environment analysis the question was narrowed down to the core products (music, films, games). Loyal Customers were defined as those who Always or Usually chose one retailer, Not-Loyal Customers as those who Sometimes or Not Usually chose one retailer. As can be seen from Figure 2, HMV looses Loyal Customers to Amazon, iTunes and Supermarkets (orange and blue combined). However, it is also evident that HMV takes the biggest share of customers who did not reveal a strong preference towards any of the retailers. Generally, there are more Not-Loyal customers in the market for music, films and games, which suggests that customers are price sensitive and look for the best deal available.

1 SPSS tables with cumulative frequencies for each retailer can be referred to in the Appendix.


Question 3: Statistics

2

HMV iTunes Supermarkets play.com Amazon

N Valid 160 160 160 160 160

Missing 0 0 0 0 0

Mean 3.44 3.74 3.61 4.19 3.13

Median 3.00 4.00 4.00 5.00 3.00

Std. Deviation 1.142 1.353 1.239 1.193 1.177

Variance 1.305 1.830 1.536 1.424 1.385

Table 2 Customer Profiles Descriptive Statistics

Descriptive analysis of this question revealed that HMV has the most homogeneous opinion among the respondents (lowest standard deviation) meaning that HMV has the potential of turning the biggest share of Not Loyal Customers to Loyal Customers. In comparison to other rivals, HMV’s marketing efforts directed to Not Loyal Customers would have the biggest reach.

2 Coding used: Always – 1, Usually – 2. Sometimes – 3, Not usually – 4, Never – 5


Product awareness

Figure 3 Q4 Product awareness

3

As can be see from the Figure 3, three groups of the level of awareness emerged:

1. Music, films and games (86% and above) are the products that the majority are aware of.

2. About half of (between 49.4% and 65.6%) are aware of fan-related merchandise, MP3 accessories and books.

3. Less than 20% of know that online downloads, live concert and cinema tickets are also sold by HMV.

This suggests that customers are not fully aware of HMV’s products. There are some communication gaps concerning the product mix that the marketers of HMV should consider filling. Tickets have just recently been added to the product mix of HMV; however, what should worry marketers of the company even more is the low awareness of online downloads (13.8%), especially concerning the current trend towards online retail.

3 In the questionnaire products were listed in a random order to reduce answer bias


Strongest parts of the product mix

Figure 4 Q5 Product mix

4

As can be seen in the Figure 4 (detailed frequency tables can be found in the Appendix), respondents revealed the strongest preference to buy DVDs from HMV (53.2%), followed by Music CDs (51.7%) and games (28.5%). Digital media, together with the most recently introduced products, was not perceived as being the strong part of HMV’s product mix. This could be considered by HMV as the next potentially successful market, since as revealed by the analysis, customers are likely to chose HMV over other competitors for music, games and films while buying those in store.

4 The question also included a Non Applicable option. For the purpose of analysis, these entries were

considered as missing.


Product-led brand or experience-led brand?

Respondents were asked to evaluate sentences that represent the product-led and experience-led motivators. As can be noticed from the frequency tables below (Table 4 and 5), the majority (76.9%) enjoys the shopping experience provided by HMV, while only 19.4% emphasised the grater importance of product range.

Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Agree 46 28.8 28.8 28.8

Agree 77 48.1 48.1 76.9

Neither Agree Nor Disagree 13 8.1 8.1 85.0

Disagree 16 10.0 10.0 95.0

Strongly Disagree 8 5.0 5.0 100.0

Total 160 100.0 100.0

Table 3 Frequencies for Sentence 2: I like to wander around the shop even if I'm not buying anything

Figure 5 Product-led brand versus Experience-led brand


Frequency Percent Valid Percent Cumulative Percent


Agree 25 15.6 15.6 19.4

Neither Agree Nor Disagree 66 41.3 41.3 60.6

Disagree 41 25.6 25.6 86.3


Total 160 100.0 100.0

Table 5 Frequencies of Sentence 4: My primary reason for going to HMV is the specialised / rare products, which are difficult to find elsewhere

These findings imply that one of the ways to gain competitive advantage over other entertainment products retailers is to emphasise its shopping experience, which the major competitors (like Amazon) are not able to provide. Results from Sentence 2 once again validate the previous conclusions about the need to strengthen the position the digital side of HMV.

Shopping experience

Figure 6 Shopping experience


This question was aimed to measure the experience of shopping at HMV as far as value for money, customer service and product range are concerned.

Table 6 Descriptive Statistics for Shopping Experience

As can be seen from Table 6, the average response for all three variables lies between Good and Neither Good Nor Bad (2 < Mean < 3). It is also interesting to look at whether there is a significant difference in the way Recent Users and Non-Users rate the experience (or perceived experience in the case for Non-Users). According to Independent Samples t-Test carried out (Table 8), there is a significant difference in the way Users and Non-Users rate the shopping experience (Sig. (2-tailed) < 0.05). From Table 6, it is evident that Non-Users rank the experience lower that Recent Users, with the most significant difference being for Product Range.

Statistics

160 160 160

0 0 0

2.66 2.49 2.09

.905 .727 .791

.818 .528 .626

Valid

Miss ing

N

Mean

Std. Deviation

Variance

Value for

money

Customer

Service

Product

Range

Group Statistics

121 2.50 .828 .075

39 3.13 .978 .157

121 2.38 .698 .063

39 2.85 .709 .113

121 1.91 .683 .062

39 2.67 .838 .134

Recent User

Yes

No

Yes

No

Yes

No

Value for money

Customer Service

Product Range

N Mean Std. Deviation

Std. Error

Mean

Table 4 t-Test for differences between Recent Users and Shopping experience Table 7 Descriptive statistics for Recent Users and Shopping experience


Brand personality

Figure 7, illustrates that the majority of respondents felt HMV as being reliable and trendy. The full brand personality analysis is beyond the scope of this research. However, the fact that respondents trust HMV suggests that the new business areas that HMV is trying to enter are likely to benefit from having a reliable brand name; however, at least from the findings of the research, it seems that HMV does too little to communicate its intentions to become a multi-channel entertainment brand.

Independent Samples Test

.152 .697 -3.912 158 .000 -.624 .160 -.939 -.309

-3.591 56.617 .001 -.624 .174 -.972 -.276

1.715 .192 -3.611 158 .000 -.466 .129 -.721 -.211

-3.584 63.544 .001 -.466 .130 -.726 -.206

4.927 .028 -5.688 158 .000 -.758 .133 -1.021 -.495

-5.125 55.232 .000 -.758 .148 -1.054 -.461

Equal variances

assumed

Equal variances

not assumed

Equal variances

assumed

Equal variances

not assumed

Equal variances

assumed

Equal variances

not assumed

Value for money

Customer Service

Product Range

F Sig.

Levene's Test for

Equality of Variances

t df Sig. (2-tailed)

Mean

Difference

Std. Error

Difference Lower Upper

95% Confidence

Interval of the

Difference

t-test for Equality of Means

Table 5 t-Test for differences between Recent Users and Shopping experience

Figure 7 Brand Personality


Discussion Analysis of Interview Results

Analysis of Consumer Interviews

Respondent A is a 21 year old female, B a 19 year old male in his first year at university, and

C is a 29 year old employed graduate.

Respondent A provided some valuable insights into why the survey respondents found HMV

'reliable' and the shopping experience enjoyable, mentioning that the staff are always

helpful. Respondent B and C could give insight into the persona of the 25% of respondents

who had not recently bought from HMV's stores. Neither was interested in buying HMV's

core entertainment products in person, and both seemed to think a physical store for such

goods obsolete. B cited music services such as Spotify as fully satisfying his demand for

music.

The low take-up for HMV's online offering could be explained by price sensitivity and

intense competition for online entertainment, typified in respondent C's argument that he

would only consider HMV.com if it offered 'cost, variety and convenience' advantages over

competitiors. For consumers who view entertainment as a commodity to be bought as

cheaply and easily as possible, branding is of less importance. Respondent A, who has

otherwise positive feelings for HMV, suggests another reason for HMV.com's low take-up:

she found the site confusing and unappealing.

All respondents associated HMV first with music, and then with films and games. None

knew of HMV's wider offerings online or its ticketing. Respondent A and B had clear images

of the brand, but C was ambivalent. Correlating with the quantitative research, none of the

three had strong opinions of the brand either way.

Analysis of Professional Respondent Interview

As a third party, the professional respondent stressed primarily that his views on HMV were

neither positive nor negative. The respondent stated that far from hmv’s general rebrand

and expansion into all areas, HMV is heading in the wrong direction. With the age of the

specialist corner vinyl shop he believes that the future of retail is downscaling, not that of a

monolithic conglomerate. The respondent’s general belief was that HMV survived in the


weakened economy not down to its merits, rather on the backs of its direct competitors

which ‘committed suicide’. When asked why these competitors had failed, the respondent

cited reasons as Woolworths having a ‘stack-‘em-high-price-‘em-low’ model of general best

sellers, a strategy that no longer worked. Similarly, Virgin or Zavvi, like HMV, was large

enough to house everything in a non specialist manner due to floor space constraints.

Although successful in previous years, Generation Y isn’t interested in the quantity a

physical store can sell, if breadth of range is required, Amazon far outstrips high street

stores capacities. Rather, once in the store, Generation Y wants more of a user experience,

an inviting atmosphere. He suggested the model of a shop which charged a deposit for

consumers to spend time on the premises and have a knowledgeable personal shopper to

take the consumer on a journey of discovery. In short, an experience similar to that of the

Apple store an inviting place to stay and try out items. Going shopping, he explained, was a

reason to go out and have fun.


Conclusions and Implications for hmv

Overall, the perceptions of HMV’s brand appear to be fairly standard. Any boost in revenue

appeared to be the result of external factors: Zavvi and Woolworth’s unanimous closure.

The results of the consumer survey respondents do not indicate a high concentration of

either very positive or very negative opinion within this demographic. For the most part,

HMV is not a brand which incites a strong emotional tie. The research suggests that where a

small minority of respondents felt a strong affinity to the brand, an equal proportion existed

for other retailers cited.

In store experience must change

Industry experts point to an expansion as potentially toxic to HMV, with suggestions that, in

direct contrast to its current plans, HMV must massively downscale and specialise its

operations, positioning HMV as more of a specialist and experience brand. This was

suggested as the only armoury against competitors, Amazon, iTunes and Tesco.

However, as identified in its annual reports, HMV has already begun an initiative to

transform its in-store gaming experience, inviting customers to trial games (HMV, 2009: 3).

However, HMV must continue this drive and take even bolder steps towards creating a true

user experience, inviting customers to spend time and money in HMV’s stores.

More branding and awareness campaigns of other services

Of significant interest, and perhaps concern, should be the lack of knowledge of HMV’s

products and services respondents appeared to show. Indeed the majority of respondents

still felt that HMV was primarily a music brand. Whether HMV was in the wrong, in the eyes

of the demographic, to expand and rebrand itself as an entertainment conglomerate cannot

be exactly determined since a large number of respondents were unaware of the broad

services now available.

Because of this, an awareness campaign must be deployed emphasising on the broad range

of products and services now available at HMV and HMV.com.


Opportunities for future research

Due to the time scale and size limitations of this study, it can only be treated as a pilot

study, a suggestion of what future research on a much larger, more representative scale

may yield. With this in mind, a survey randomly sent to the whole population of HMV

customers and non customers would generate a much larger and more representative

sample base for research. Throughout, the research has leant towards an external

understanding of HMV’s situation, with HMV’s opinions taken from existing literature. In

order to gain a further level of understanding of HMV’s management decisions, further

research would include in-depth staff interviews.


References

Annual reports

Amazon.com, Inc (2008) Annual Report, Amazon.com, Inc.

HMV Group Plc (2008) Annual Reports and Accounts, HMV Group Plc.

Tesco Plc., (2009) Annual Report and Financial Statements 2009, Tesco Plc.

Walmart Stores Inc., (2009) 2009 Annual Report, Walmart Stores, Inc.

Industry reports

Ofcom (2008) Communications Market Report (14th August). London: Ofcom.

Interbrand (2009a) Best Global Brands of 2009, Interbrand. New York.

Interbrand (2009b) Best Retail Brands of 2009, Interbrand. New York.

Interbrand (2008c) Engage and Deliver: Understand your Customers and Improve their

Experience, Interbrand. New York.

Trade press

Perry, M (2009) A Natural Death. Accountancy

Ritson, M. (2006) HMV Group Faces Brand Equity Test. Marketing (00253650).

Sutherland, M (2009) The Beat Goes On. Billboard

News

Hall, J (2009) Sad Collapse of a Retail Giant. (Nov 15th) Financial Times, London

Pearson, S (2009) Retailers Profit from Demise of Woolworths.(Apr 24th) Financial Times,

London.

Potter, M (2009) HMV’s Core Sales Fall. (Sep 3) Thomson Reuters [Online] Accessed 3rd

October 2009. Available from: http://uk.reuters.com/article/idUKTRE58217F20090903

Thompson, J (2009) HMV profits from demise of rivals Zavvi and Woolworths. The

Independent. London: Jul 1. Pg 34

http://uk.reuters.com/article/idUKTRE58217F20090903


Academic Journals

Bowden, J (2009) Customer Engagement: A Framework for Assessing Customer Brand

Relationships, The Case of the Restaurant Industry. Journal of Hospitality Marketing &

Management, 18(6), 574-596.

Martinez Salinas, E. , & Pina Perez, J. (2009) Modelling the Brand Extensions’ Influence on

Brand Image. Journal of Business Research, 62(1), 50-60.

Read but not cited:

Veloutsou, C (2009) Brand Relationships Through Brand Reputation and Brand Tribalism.

Journal of Business Research.

Books

Blankenship, A. B., Breen, G. B., Dutka, A., (1998), State of The Art Marketing Research, 2nd Edition, Lincolnwood (Chicago): NTC Business Books

Murchie, K., (2009), HMV profits boosted by collapse of Woolworths and Zavvi, Finance Markets, [Online] Available from: http://www.financemarkets.co.uk/2009/06/30/hmv-profits-boosted-by-collapse-of-woolworths-and-zavvi/ (Accessed: 2009, December 5)

Porter, M.E. 1979, "How competitive forces shape strategy", Harvard Business Review, 57(2), pp. 137-145

http://www.financemarkets.co.uk/2009/06/30/hmv-profits-boosted-by-collapse-of-woolworths-and-zavvi/

http://www.financemarkets.co.uk/2009/06/30/hmv-profits-boosted-by-collapse-of-woolworths-and-zavvi/


Appendices

Frequency tables Q1 Have you bought anything from HMV, either in store or online, in the past 2 years?

Frequency Percent Valid Percent Cumulative

Percent

Valid Yes 121 75.6 75.6 75.6

No 39 24.4 24.4 100.0

Total 160 100.0 100.0

Q2 If you have never bought from HMV, why?


Percent

Valid 0 126 78.8 78.8 78.8

1 2 1.3 1.3 80.0

2 22 13.8 13.8 93.8

3 4 2.5 2.5 96.3

5 6 3.8 3.8 100.0

Total 160 100.0 100.0

Coding: 1 - I don’t like HMV; 2 – I have never needed to buy from HMV; 3 – I don’t know why 4 – Poor customer service 5 – Bad value for money Q3 How often do you shop from the following retailers when buying music, film or games? Amazon


Percent

Valid Always 8 5.0 5.0 5.0

Usually 46 28.8 28.8 33.8

Sometimes 54 33.8 33.8 67.5

Not Usually 21 13.1 13.1 80.6

Never 31 19.4 19.4 100.0

Total 160 100.0 100.0

Q3 How often do you shop from the following retailers when buying music, film or games? HMV


Percent


Usually 17 10.6 10.6 17.5

Sometimes 56 35.0 35.0 52.5

Not Usually 42 26.3 26.3 78.8

Never 34 21.3 21.3 100.0

Total 160 100.0 100.0

Q3 How often do you shop from the following retailers when buying music, film or games? iTunes



Percent


Usually 30 18.8 18.8 24.4

Sometimes 28 17.5 17.5 41.9

Not Usually 20 12.5 12.5 54.4

Never 73 45.6 45.6 100.0

Total 160 100.0 100.0

Q3 How often do you shop from the following retailers when buying music, film or games? Supermarkets


Percent


Usually 23 14.4 14.4 20.0

Sometimes 43 26.9 26.9 46.9

Not Usually 32 20.0 20.0 66.9

Never 53 33.1 33.1 100.0

Total 160 100.0 100.0

Q3 How often do you shop from the following retailers when buying music, film or games? play.com


Percent


Usually 17 10.6 10.6 13.8

Sometimes 20 12.5 12.5 26.3

Not Usually 19 11.9 11.9 38.1

Never 99 61.9 61.9 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Music


Percent

Valid no 9 5.6 5.6 5.6

yes 151 94.4 94.4 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Film


Percent

Valid no 16 10.0 10.0 10.0


yes 144 90.0 90.0 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Online downloads


Percent

Valid no 133 83.1 83.1 83.1

yes 27 16.9 16.9 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Cinema tickets


Percent

Valid no 147 91.9 91.9 91.9

yes 13 8.1 8.1 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Concert tickets


Percent

Valid no 138 86.3 86.3 86.3

yes 22 13.8 13.8 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Games


Percent

Valid no 22 13.8 13.8 13.8

yes 138 86.3 86.3 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Fan-related merchandise


Percent

Valid no 55 34.4 34.4 34.4

yes 105 65.6 65.6 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? MP3 accessories



Percent

Valid no 60 37.5 37.5 37.5

yes 100 62.5 62.5 100.0

Total 160 100.0 100.0

Q4 What can you buy from HMV? Books


Percent

Valid no 81 50.6 50.6 50.6

yes 79 49.4 49.4 100.0

Total 160 100.0 100.0

Q5 I would choose to buy from HMV over other retailers when purchasing music CDs


Percent


Agree 52 32.5 34.4 51.7

No Preference 42 26.3 27.8 79.5

Disagree 17 10.6 11.3 90.7


Total 151 94.4 100.0

Missing 6 9 5.6

Total 160 100.0


Q5 I would choose to buy from HMV over other retailers when purchasing DVD


Percent


Agree 58 36.3 37.2 53.2

No Preference 38 23.8 24.4 77.6

Disagree 21 13.1 13.5 91.0


Total 156 97.5 100.0

Missing 6 4 2.5

Total 160 100.0

Q5 I would choose to buy from HMV over other retailers when purchasing online downloads from hmv.com


Percent


Agree 24 15.0 17.5 20.4

No Preference 47 29.4 34.3 54.7

Disagree 29 18.1 21.2 75.9


Total 137 85.6 100.0

Missing 6 23 14.4

Total 160 100.0

Q5 I would choose to buy from HMV over other retailers when purchasing games


Percent


Agree 32 20.0 23.2 32.6

No Preference 53 33.1 38.4 71.0

Disagree 23 14.4 16.7 87.7


Total 138 86.3 100.0

Missing 6 22 13.8

Total 160 100.0


Q5 I would choose to buy from HMV over other retailers when purchasing concert tickets


Percent


Agree 10 6.3 7.2 10.8

No Preference 42 26.3 30.2 41.0

Disagree 37 23.1 26.6 67.6


Total 139 86.9 100.0

Missing 6 21 13.1

Total 160 100.0

Q5 I would choose to buy from HMV over other retailers when purchasing cinema


Percent

Valid Strongly Agree 1 .6 .7 .7

Agree 4 2.5 3.0 3.7

No Preference 32 20.0 23.9 27.6

Disagree 34 21.3 25.4 53.0


Total 134 83.8 100.0

Missing 6 26 16.3

Total 160 100.0

Q5 I would choose to buy from HMV over other retailers when purchasing fan-related merchandise


Percent


Agree 26 16.3 19.7 24.2

No Preference 68 42.5 51.5 75.8

Disagree 18 11.3 13.6 89.4


Total 132 82.5 100.0

Missing 6 28 17.5

Total 160 100.0


Q6 I prefer to buy from HMV's high street stores rather than buy from hmv.com


Percent


Agree 56 35.0 35.0 56.3

No Preference 50 31.3 31.3 87.5

Disagree 15 9.4 9.4 96.9


Total 160 100.0 100.0

Q6 I like to wander around the shop even if I'm not buying anything


Percent


Agree 77 48.1 48.1 76.9

No Preference 13 8.1 8.1 85.0

Disagree 16 10.0 10.0 95.0


Total 160 100.0 100.0

Q6 HMV is able to cater for my entertainment needs


Percent


Agree 70 43.8 43.8 55.6

No Preference 53 33.1 33.1 88.8

Disagree 11 6.9 6.9 95.6


Total 160 100.0 100.0

Q6 My primary reason for going to HMV is the specialised / rare products which are difficult to find elsewhere


Percent


Agree 25 15.6 15.6 19.4

No Preference 66 41.3 41.3 60.6

Disagree 41 25.6 25.6 86.3


Total 160 100.0 100.0


Q7 Value for money


Percent

Valid Fantastic 10 6.3 6.3 6.3

Good 67 41.9 41.9 48.1

Neither good, nor bad 56 35.0 35.0 83.1

Bad 22 13.8 13.8 96.9

Awful 5 3.1 3.1 100.0

Total 160 100.0 100.0

Q7 Customer Service


Percent


Good 85 53.1 53.1 56.3


Bad 8 5.0 5.0 98.1

Awful 3 1.9 1.9 100.0

Total 160 100.0 100.0

Q7 Product Range


Percent


Good 92 57.5 57.5 76.9


Bad 3 1.9 1.9 98.1

Awful 3 1.9 1.9 100.0

Total 160 100.0 100.0

Q8 Gender


Percent

Valid Male 42 26.3 26.3 26.3

Female 118 73.8 73.8 100.0

Total 160 100.0 100.0


Q9 Cheerful


Percent

Valid Yes 26 16.3 100.0 100.0

Missing No 134 83.8

Total 160 100.0

Q9 Unique


Percent

Valid Yes 4 2.5 100.0 100.0

Missing No 156 97.5

Total 160 100.0

Q9 Reliable


Percent

Valid Yes 65 40.6 100.0 100.0

Missing No 95 59.4

Total 160 100.0

Q9 Pretentious


Percent

Valid Yes 10 6.3 100.0 100.0

Missing No 150 93.8

Total 160 100.0

Q9 Leader


Percent

Valid Yes 20 12.5 100.0 100.0

Missing No 140 87.5

Total 160 100.0


Q9 Family oriented


Percent

Valid Yes 13 8.1 100.0 100.0

Missing No 147 91.9

Total 160 100.0

Q9 Young


Percent

Valid Yes 36 22.5 100.0 100.0

Missing No 124 77.5

Total 160 100.0

Q9 Trendy


Percent

Valid Yes 55 34.4 100.0 100.0

Missing No 105 65.6

Total 160 100.0

Q9 Tough


Percent

Valid Yes 2 1.3 100.0 100.0

Missing No 158 98.8

Total 160 100.0

Q9 Confident


Percent

Valid Yes 41 25.6 100.0 100.0

Missing No 119 74.4

Total 160 100.0

Q9 Corporate


Percent

Valid Yes 33 20.6 100.0 100.0

Missing No 127 79.4

Total 160 100.0


Consumer Interviews

Interview with Respondent A

Gender: Female

Age: 21

Education: college

Occupation: part-time cook

What is the first thing that comes to mind when you think of HMV?

The first thing I though of was music.

If HMV were a person, what would they be like? Can you describe their personality for me?

If HMV was a person, it would be a young individual who was really cool. A person would be friendly, outgoing, and knowledgeable about music. I would also probably be friends with him because I love going out and meeting new people, so does he (laughing).

Have you bought from HMV in the past 2 years?

Yes, I have bought something from HMV a couple of times. I usually go there before Christmas or birthdays to get presents.

What was it for?

I usually buy CD’s there as a present for my friends and family. I do not think I have ever bought anything for myself because I think it is a bit too pricey. Instead I usually copy music from my friends or download it. Though, it is nice to buy something of a good quality for others.

Do you shop there often? Why?

No, I do not shop there that often because it is expensive and I do not have much money to spend.

How do you find the experience shopping there?

I find the shopping experience at HMV pleasant. The staff are always friendly and they seem to know what they are talking about, and if you need help they are always there. Also the atmosphere is very comforting and makes me feel really relaxed.

At the top of your head, what can you buy from HMV?

CDs, DVDs, vinyl, and games.

Have you tried buying from HMV online? Why?

No, I have not. I like the experience of going to the shop, consulting the staff and listening to the albums in-store. Besides, I find HMV’s website off-putting and a bit confusing. I remember one time trying to buy something I needed but could not be bothered to go through the procedure of registering, then entering my details and etc. I would rather go in-store or to Amazon.com where buying is easy.


How do you think HMV compares with Amazon.com, play.com, iTunes or supermarkets (e.g. Asda, Tescos)?

I do not think HMV gets used as much as iTunes. Most of the people go to buy music online because they have MP3 players or iPods and the music online is sold in a format already compatible with the devices. For example, if I bought a CD I would have to spend time converting it to an MP3 file or some other format in order to put it on my iPod.

Supermarkets offer cheaper prices than HMV while the variety of CDs is similar. Though, when I needed a vinyl, I went to HMV straight away because it is the last place you can buy them from, well except from the Internet. I trust HMV more because it always delivers quality products whereas with the Internet you never know what you will get.

What would you like to see HMV do to improve their services?

I would like them to reduce their prices and get a wider range of electro and house music.

What would you like to see HMV stop doing?

There is nothing in particular that I do not like or find annoying.

What do you think are HMV’s main strengths?

HMV has a good promotion and a great variety of products available. They have made a good name for themselves so you know you can go there and always get what you want. They must be one of the only CD selling shops left around.

What do you think is the future of HMV?

I think they will go on forever doing what they do. I am sure they will start introducing all sorts of new products and services which will make them even stronger.


Interview with Respondent B

Gender: Male

Age: 19

Education: first year undergraduate

Occupation: student

Interviewer: what is the first thing that comes to mind when you think of HMV? Respondent B: music Interviewer: anything else? Respondent B: the pink logo Interviewer: ok that's interesting Respondent B: not the dog or anything, just the pink logo that says hmv 15:28 Interviewer: ok that's very interesting so if hmv were a person, what would they be like? would they be modern, trendy, out of fashion, old, young etc what would their personality be like? Respondent B: oh right maybe like late twenty's trendy white man Interviewer: would he be chatty? what kind of job would he have? like as in, would he be technical 15:31 or would he be arty? Respondent B: i honestly haven't been to hmv so i don't really know he's more like a guy who has his own band and just works in a crappy record shop around the corner


15:32 Interviewer: ahh really? interesting Respondent B: a band which nobody has heard of and just plays at small concerts Interviewer: that's how you see hmv? not mainstream? not 'mister cool tyring to be everything?' 15:33 so you mentioned that haven't been to hmv why do you think that is? Respondent B: i have been to hmv 15:34 but only a couple of times and i've never bougth anything Interviewer: oh, why is that? Respondent B: because i don't really listen to music much and when i do listen to music i use spotify instead Interviewer: oh ok so what do you think HMV sells? 15:35 is it just music? Respondent B: well i know they sell dvds as well and i think they sell ipod accessories as well Interviewer: ah ok what was your experience like last time you visited? 15:36 did you like it?


did you hate it? was it cluttered? was it clean? Respondent B: oh hmv sells games too i think the last time i went i think i was lookign aroudn for which shop was sellign a particual game that i wanted at the cheapest price 15:37 it was alright. it was clean and organised Interviewer: i see Respondent B: i don't quite rememebr though Interviewer: and did hmv sell the game? Respondent B: because i can't really tell the difference between hmv and zavvi. 15:38 so if i'm trying to remember the last time i went to a recor dshop i can't rememebr if it washmv or zavvi because they're basically exactly the same Interviewer: did you know that zavvi has gone out of business? Respondent B: except that zavvi has a virgin media recruitment thing in the back i did not know that Interviewer: yeah that was a year ago, coiincided with woolworths another hmv rival 15:39 and hmv is the 'last man standing' Respondent B: oh how come zavvi was there for so logn as virgin megastores and then when it changed its name


it went out of business after a year or so Interviewer: i think it was because the name change was a last ditch attempt to try and save the store and it didn't save it 15:40 Respondent B: ok Interviewer: so they ditched the whole virgin megastore/zavvi thing anyway besides the point so you said that you tried buying a particular game from one of those stores Respondent B: yeah Interviewer: did you buy it in the end from there? Respondent B: i think i probably bought it from zavvi 15:41 this was obviously more than a year ago so i'm not entirely sure Interviewer: that's ok Respondent B: i think it was the same price in all the shops anyway Interviewer: ok so if you don't shop from hmv what do you think would encourage others like you to shop there? 15:42 Respondent B: errm i'm not really sure. 15:43 i don't shop there because i don't listen to much music and spotify is free and i just downlaod films and tv and if i wanted to buy a dvd its cheaper mos tof the time online


Interviewer: ok are you aware that HMV has its own download service? Respondent B: no 15:44 Interviewer: would you consider using it? Respondent B: but then again everythign has its own downlaod service now no, if i was going to downlaod music i'd downlaod it for free Interviewer: what about film? 15:45 Respondent B: i would never pay to download music or a film or tv shows i'd certainly buy a dvd of a film or tv shows but i'd never pay to downlaod them Interviewer: ahhh interesting Respondent B: for music i wouldn't buy cds because cds are obsolete now (i don't have a cd player) and i don't listen to much music anyway 15:46 Interviewer: ok so what do you think of the idea of sitting in HMV in a lounge type experience and trying out a film, meeting friends there etc 15:47 Respondent B: that sounds interesting. But there'd always be othe rpeople sitting their watchign their own film 15:48 Interviewer: ok, but what if there were a certian number of screens around a number of sofas where you sat with some friends for 5quid and watched one film there and had access to a coffee bar etc and it could have earphones or even an isolation room/booth 15:49 Respondent B: for 5 quid? i could just go to a cinema Interviewer: yeah but this would be an experience with your friends to chat over a film


Respondent B: or rent the dvd off lovefilm Interviewer: with coffee service or food etc Respondent B: i don't really dirnk coffee 15:50 Interviewer: hot chocolate lol pedantic ;-) Respondent B: the idea doesn't really interest me that much i don't think i'd use it if they had that Interviewer: ok and why is that? 15:51 Respondent B: well first of all even if they charged 50p for it it'd be an out of the question no if it was free i guess that if i was going around guildford i might stop there and sit down for a few minutes 15:52 and i guess it would be interesting to have a film playign while iw as sitting there Interviewer: ok but you definitely wouldn't pay to watch it or sit down Respondent B: no way. i'd rather go to a furniture shop and shit down there 15:53 and iwould probably never watch a full movie there at most 15 minutes or if i was waiting for someone it'd be a good place to stay while i was waiting i'd certainly never go to guildford centre intending to go to hmv and watch a movie


Interviewer: what if it was a tv show playing? 15:54 15mins long? Respondent B: if it was a tv show it'd have to be one that i really really liked Interviewer: i see ok 15:55 Respondent B: i watch a lot of tv but i only watch repeats of the ones that i really like Interviewer: so bearing in mind you don't shop from hmv - especially when you're buying physical dvds and games, what makes amazon.co.uk <http://amazon.co.uk> or play.com<http://play.com>, better? better than hmv? Respondent B: because its generally cheaper and move conveneitn convenient Interviewer: ok 15:56 what would you like to see hmv do to improve itself? and what would you like to see hmv stop doing? (i have 4 minutes left before my next lecture) 15:57 Respondent B: errm i can't really see anything to improve i do like the idea though of havign a couch there and a tv playign a blu ray film thats it really Interviewer: interesting ok so what do you think hmv has going for it? 15:58 what strengths?

http://amazon.co.uk/


http://play.com/

http://play.com/


advantages? Respondent B: it sells a really wide selection of music, tv films and games Interviewer: but in comparision to amazon.co.uk <http://amazon.co.uk> which also does that Respondent B: well if i wanted to a film today i could go there instead of waiting for post 15:59 Interviewer: ok so the instantaneousness what do you think is the future of hmv? bearing in mind that zavvi and woolworths are out of business already? 16:00 Respondent B: i'm guessing they'll stay around but they'll downscale a bit. so they might close donw some of their shops Interviewer: so you think they're too big currently for their capabilities? Respondent B: yes 16:01 Interviewer: and the average 2000 joe consumer buying music and video games etc Respondent B: i think maybe soon they'll move away from sellign cds as well because nobody really uses cds anymore everyone has an mp3 player cds are pretty much dead already Interviewer: ok so hmv's future is insecure? 16:02 Respondent B: well people still buy dvds and blu rays will soon replace them adn hmv will mvoe on to sellign blu ray 16:03




Interviewer: ok so there's still a future in hard media formats - especially when it comes to film as in they wont be replaced by downloads Respondent B: yes for now Interviewer: for exmaple, if LoveFilm and also Amazon were to suddenly sell films downloadable to your computer in the UK would that replace hmv? Respondent B: well hard dvds are still better than legal downloads 16:04 the film downlaod market isn't veyr big at all now in america there is netflix but thats streaming films not downloads


Interview with Respondent C

Gender: Male

Age: 29

Education: History Graduate

Occupation: Web developer

Interviewer: hello what is the first thing that comes to mind when you think of HMV? 22:52 Respondent A: meh Interviewer: can you extrapolate? Respondent A: they're there: but i can't imagine why i'd use them Interviewer: i see so have you bought anything form HMV in the past 2 years? Respondent A: only when w someone bought my 22:53 me a gift card, who didn't know me that well and i bought something with it for someone else; the rest of the giftcard is still resting, unused, in my wallet Interviewer: i see why do you not buy from HMV? 22:54 Respondent A: because i don't often buy music or films. if I did, i'd buy them from Amazon Interviewer: ok so you say that hmv sells purely music and films? Respondent A: and books and posters 22:55 Interviewer: that's it? Respondent A: yup


Interviewer: ok what about online downloads? did you know that HMV has an online downloads store? Respondent A: nope if it did films/series i'd be interested 22:56 Interviewer: i see something which Amazon or Lovefilm currently do not do yet - at least not in the UK ? Respondent A: i believe so 22:57 Interviewer: so what do you think gives Amazon, play.com <http://play.com>, iTunes and highstreet supermarkets an edge over HMV? Respondent A: price convience range at least for amazon + iTunes 22:58 Interviewer: ok so for you it's more convenient to wait for an item come to your house rather than go to the item and buy it immediately in store? Respondent A: yes Interviewer: what would you like to see HMV do to improve its services? Respondent A: the only thing i'd be interested in is online media renting i can't think of anything else i'd want from them 22:59 Interviewer: ok so do you think it should change from being a highstreet AND online store to a purely online store? Respondent A: nope; i'm not like most of their customers

http://play.com/

http://play.com/


if they're making money doing what they do they should stick to that 23:00 Interviewer: but to reach out to someone like you, they need to vastly improve on their online services: to provide film and tv show renting? Respondent A: yup 23:01 Interviewer: so seeing as HMV's main difference to it's current competitors is it's in store experience (save for supermarkets) what do you think hMV should be doing with it's store? 23:02 Respondent A: not sure haven't been in there for years Interviewer: what would you like to see HMV stop doing? 23:03 Respondent A: i'm not familiar enough with them to know Interviewer: so do you know what their main advantages over Amazon, play.com<http://play.com> and iTunes are? Respondent A: they have advantages over the above? Interviewer: lol 23:04 so what do you think is the future of HMV? is it secure, stable? unstable? Respondent A: i could see that they have major competition from online not sure what they can do to compete really, their costs must be very much higher 23:05 so it's up in the air: unstable Interviewer: some say that HMV should concentrate more on making the most out of HMV's physical store, by making it more of an experience being there do you agree? Respondent A: sounds a good idea 23:06

http://play.com/

http://play.com/


if you've got such high costs you should make it pay 23:07 Interviewer: so if HMV began introducing a range of lounge type experiences in its stores where you were invited to watch a tv show or film on a number of couches around a few tv screens, you could invite your friends for example, order popcorn, hotchocolate etc would that appeal to you? 23:08 Respondent A: maybe, i like cafes 23:09 i suppose it could be an interesting idea - a 'managed lounge experience' for when you're too lazy to make your own tea at home Interviewer: ok would you pay for this? Respondent A: i'd pay for the tea Interviewer: but not the whole thing - as in just sitting there and watching the tv show 23:10 Respondent A: maybe if some people wanted to go along to it Interviewer: so a place to hang out with friends? Respondent A: yup if people wanted to Interviewer: very interesting ok so bearing all this in mind 23:11 how much would you pay for it? Respondent A: for 'it'? 23:12 Interviewer: ok well am I right in saying that you said you'd pay for the experience of being there if you went along with friends - or did i misinterpret that as yo usaying you'd only go in general if your friends went along as a place to hang out? Respondent A: i'd pay for anything i ate or drank there, like a pub 23:13


i'm not sure i'd pay entry Interviewer: aah ok i see interesting so in a few sentences/words how would you describe hmv's personality if it were a person? 23:14 is it cool trendy outdated what clothes does it wear male female (basically describe the main consumer you think buys from hmv) what job does it have is it loud is it chatty Respondent A: i'd guess 'too young to have a credit/debit card' Interviewer: is it old fashioned Respondent A: or 'not online yet' or rather, and 23:15 Interviewer: so you'd say it's naiive? Respondent A: nope, just not online or young Interviewer: old fashioned? 23:16


Respondent A: I'm not sure, maybe if you liked browsing through cds etc it would still be relevant Interviewer: ok Well thank you for your time, Respondent A. Respondent A: No problem!


Professional Interview


Questionnaire

1. Default Section

HMV

1. Have you bought anything from HMV, either in store or online, in the past 2 years?

*

2. If you have never bought from HMV, why?

3. How often do you shop from the following retailers when buying music, film or games?

*

Always Usually Sometimes Not usually Never

Amazon nmlkj nmlkj nmlkj nmlkj nmlkj

HMV nmlkj nmlkj nmlkj nmlkj nmlkj

iTunes nmlkj nmlkj nmlkj nmlkj nmlkj

Supermarkets nmlkj nmlkj nmlkj nmlkj nmlkj

Play.com nmlkj nmlkj nmlkj nmlkj nmlkj

Yes

nmlkj

No

nmlkj

I don't like HMV

gfedc

I have never needed to buy from HMV

gfedc

I don't know why

gfedc

Poor customer service

gfedc

Bad value for money

gfedc

None of the above (please specify)

Other (please specify)

4. What can you buy from HMV? Please tick all that apply.*

5. I would choose to buy from HMV over other retailers when purchasing... (please evaluate this statement)

*

Strongly Agree Agree No preference DisagreeStrongly

disagree

Not applicable

to me

Music CDs nmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

DVDs nmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

Cinema tickets nmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

Digital audio or video

from hmv.comnmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

Tickets to live

performancesnmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

Games nmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

Fan-related

merchandise (e.g.

posters, toys etc)

nmlkj nmlkj nmlkj nmlkj nmlkj nmlkj

6. Please rank the following statements.* Strongly agree Agree

Neither agree nor

disagreeDisagree Strongly disagree

I prefer to buy from

HMV's high street

stores rather than buy

from hmv.com

nmlkj nmlkj nmlkj nmlkj nmlkj

I like to wander

around the shop even

if I'm not buying

anything


HMV is able to cater

for my entertainment

needs


My primary reason for

going to HMV is the

specialised / rare

products which are

difficult to find

elsewhere


Music

gfedc

MP3 accessories

gfedc

Online downloads

gfedc

Cinema tickets

gfedc

Film

gfedc

Games

gfedc

Fan-related merchandise (e.g. posters, toys etc)

gfedc

Live concert tickets

gfedc

Books

gfedc

Other (please specify)

7. Please evaluate the following according to your experience at HMV. * Fantastic Good

Neither good nor

badBad Awful

Value for money nmlkj nmlkj nmlkj nmlkj nmlkj

Customer service nmlkj nmlkj nmlkj nmlkj nmlkj

Product range nmlkj nmlkj nmlkj nmlkj nmlkj

8. Please select your gender. *

9. If HMV were a person, which TWO of the following characteristics would you choose to describe HMV's personality?

*

10. Any other comments about HMV? (Optional)

Male

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Female

nmlkj

Confident

gfedc

Unique

gfedc

Corporate

gfedc

Young

gfedc

Reliable

gfedc

Family oriented

gfedc

Trendy

gfedc

Pretentious

gfedc

Cheerful

gfedc

Tough

gfedc

Leader

gfedc

None of the above (please specify)

gfedc

thank you :)

hmv jack of all or master of none

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