Finding Direction When Developing New Media Products. An Empirical Study of Readers’ Preferences for Enhanced Fiction EBooks

Abstract

In times of media convergence, media managers are under increased competitive pressure. New technologies result in a change of the customers’ preferences, which – if ignored by established market participants – attract players from other industries to satisfy their needs. Therefore, the investigation of the preferences of consumers in the context of new media channels is essential and can provide decisive competitive advantages. This study aims to elaborate on one of the methods to increase more appropriate knowledge about the customers’ needs, even in an early stage of the media product development process. Using the example of eBooks, a best-worst analysis concerning potential enhancement features was applied. Estimated utilities by the hierarchical Bayes model and customer segments by latent class analysis lead to clear profiles of two different benefit segments characterized by distinct patterns of utility profiles. The first segment consists of heavy readers of books, conservative and budget conscious in their attitudes. The second segment is characterized by a more sporadic reading style. These kinds of readers are highly multimedia affinitive and their willingness to pay for eBooks is higher than that the one of the first segment. Media managers should take advantage of the potential of such research to make better investment decisions and rely less on the pure intuition and/or internal views of creative media people.