A Marketing Research Study to Determine the Demographical Effect on the Acceptance of Mp3 Technology

A Marketing research study to determine the

Demographical Effect on the Acceptance of

MP3 Technology

Marketing Research 0509-384-02

Prepared for:

Dr. Berhe Habte-Giorgis

Prepared by:

Jennifer Gray

Fred Hodge

Jackie Clark

Phyllis Walters

April 21, 2005

Letter/Memo of Transmittal

To: Dr. Berhe Habte-Giorgis

Here are the results our research team found regarding demographic

effect on the acceptance of MP3 technology. The information enclosed can help assist MP3 companies such as Apple and Nomad in terms of which groups of people should be targeted. Thank you for providing us with this learning experience. If any questions arise feel free to contact our research team at (856) 555- 1737.

Sincerely,

Fred Hodge

Jennifer Gray

Jackie Clark

Phyllis Walters

TABLE OF CONTENTS

Page

TITLE PAGE

COVERING LETTER/MEMO

TABLE OF CONTENTS

MANAGERIAL SUMMARY ...............................................................

Objectives and methodology

Findings

Conclusions and recommendations

BACKGROUND ..............................................................................

RESEARCH OBJECTIVES ..................................................................

RESEARCH DESIGN AND METHODOLOGY ..........................................

Research Method

Sampling

Data Collection (attach specimen questionnaire in the appendix)

Tabulation and Analysis Procedures

RESULTS .......................................................................................

Description of respondents (respondent characteristics)

Findings pertaining to each research objective

CONCLUSIONS AND RECOMMENDATIONS...........................................

LIMITATIONS OF THE STUDY ............................................................

APPENDICES ....................................................................................

BIBLIOGRAPHY ...............................................................................

MANAGERIAL SUMMARY

Background

Preliminary research showed that the acceptance of a new technology is most commonly referred to the diffusion of an innovation. Sources stated that in order for an innovation to diffuse, the members of society being introduced to the technology should have some sort of common knowledge or interest in the topic. Because of the differences in lifestyle occurring due to demographics such as income, age, sex and occupation it can be assumed that demographics would play a part in the ability of an idea to be diffused.

Objectives and Methodology

A study was conducted in order to examine the effect demographics may have on acceptance and adaptation to MP3 technology. Secondary data was collected from the internet, where journal and articles were found from many links. Surveys were collected from students at school during class room time and from other participants during their days. Secondary data led to articles and journals from many website and links to decision analyst. A self-administered survey was appropriate for many types of respondents. This enabled those who had busy schedules to still participate in the assignment by allowing them to fill out the questionnaire at their own convenience. Self-administered survey also allowed questions to be asked using graphics and visual comparisons that enabled respondents to retrieve information without feeling pressured. However, this type of surveying also pointed out problems or concepts to be studied, and perhaps in generating hypotheses. Over 118 surveys were distributed to many students which took about five minutes to complete.

Results

The data collected was analyzed according to the demographics age, sex, and annual income to determine whether or not demographics have an effect on the acceptance of MP3 Technology. It was found that age does have a major impact on the acceptance of MP3 technology. Younger generations are much more willing to accept new technologies, while the older generations tend to stick with what they know. Annual income also plays an important role. Those with less income tend to be more accepting of MP3 technology because it is much cheaper, in the long run, compared to CDs. Sex, on the other hand, had less of an importance, although in some instances males are a little more likely to use some technologies compared to females.

BACKGROUND

Diffusion is the process by which an innovation is communicated through certain channels over time among members of a social system. (Rogers, 5) Since demographic categorization defines groups of people into social systems, it is understandable that demographics would be thought to impact the rate and degree that an idea or innovation is accepted by society. An innovation is an idea, practice