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Online Vinyl Record Network: A Study on Genre-Specific Communities and Consumption, Lecture notes of Marketing

The online vinyl record network as an e-tribe built upon genre-specific member groups, where the Internet facilitates consumption by informing, inspiring, and allowing network members to interact. The study focuses on insiders and devotees within the network, using Davern's social network components and Kozinets' member types as an analytical framework.

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UPPSALA UNIVERSITY
Department of Business Studies
Master Thesis
Autumn 2009
Tutor: James Sallis
How the Internet Facilitates the Activity within a Consumer Culture
- A Study of the Online Vinyl Record Network
David Broman
2009-06-02 Stefan Söderlindh
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UPPSALA UNIVERSITY Department of Business Studies Master Thesis Autumn 2009 Tutor: James Sallis

How the Internet Facilitates the Activity within a Consumer Culture

- A Study of the Online Vinyl Record Network

David Broman 2009 - 06 - 02 Stefan Söderlindh

Abstract

The purpose of this thesis is to describe and analyze how the online vinyl record network functions from both a consumer and retailer perspective, in order to gain an understanding of how the Internet facilitates the activity within a consumer culture. The vinyl record industry is experiencing a revival, with an upswing in sales and media attention and a significant increase in the amount of online trading. This inductive study contains data from qualitative interviews with ten vinyl record consumers and four vinyl record retailers, as well as observations of three relevant online forums. The study shows that the online vinyl record network is an e-tribe built upon a number of genre- specific member groups where the Internet facilitates consumption by informing, inspiring, and allowing network members to interact. Among the respondents, consumers with sufficient resources in their offline network rely to a lesser extent on their online network for interaction. The study further indicates that retailers have little influence on the network, compelling them to adapt the information and structure of their marketing activities to the preferences of the individual consumer groups. In all, the online vinyl record network does contribute to the recent growth of the vinyl record industry.

Table of Contents

    1. BACKGROUND
  • 1.1. PURPOSE
  • 1.2. DISPOSITION
    1. THEORETICAL FRAMEWORK – MASSES, FRAGMENTS, TRIBES & NETWORKS
  • 2.1. CONSUMER CULTURE THEORY
  • 2.1.1. CONSUMPTION COMMUNITIES
  • 2.1.2. TRIBES
  • 2.1.3. E-TRIBES
  • 2.1.3.1. Member Types within E-tribes
  • 2.2. SOCIAL NETWORKS
  • 2.2.1. THE STRUCTURAL COMPONENT
  • 2.2.2. THE RESOURCE COMPONENT
  • 2.2.3. THE NORMATIVE COMPONENT
  • 2.2.4. THE DYNAMIC COMPONENT
  • 2.3. ANALYTICAL FRAMEWORK
    1. METHOD
  • 3.1. A NETNOGRAPHIC APPROACH
  • 3.2. INTERVIEWS
  • 3.3. SAMPLE SELECTION
  • 3.3.1. CONSUMER RESPONDENTS
  • 3.3.2. RETAILER RESPONDENTS
  • 3.4. OPERATIONALIZATION
  • 3.5. OBSERVATION
    1. THE ONLINE VINYL RECORD NETWORK
  • 4.1. CONSUMERS
  • 4.1.1. RESPONDENT BACKGROUND
  • 4.1.2. PERCEPTIONS OF THE MARKET
  • 4.1.3. PERSONAL AND VIRTUAL NETWORKS
  • 4.1.4. BLOGS
  • 4.1.5. ONLINE FORUMS
  • 4.1.6. OTHER IMPORTANT SOURCES OF INFORMATION
  • 4.2. RETAILERS
  • 4.2.1. RETAILER BACKGROUND
  • 4.2.2. MARKETING
  • 4.3. OBSERVATION
    1. ANALYSIS
  • 5.1. STRUCTURAL COMPONENT
  • 5.1.1. NETWORK STRUCTURE
  • 5.1.2. ACTORS & TIES
  • 5.2. RESOURCE COMPONENT
  • 5.2.1. MEMBER TYPES
  • 5.2.2. INFLUENTIAL ACTORS
  • 5.3. NORMATIVE COMPONENT
  • 5.3.1. NORMS & VALUES
  • 5.3.2. CONSUMER PERCEPTION OF THE MARKET AND MARKETING
  • 5.3.3. RETAILER PERCEPTION OF THE MARKET AND MARKETING
    1. CONCLUSION
    1. REFERENCES
  • APPENDIX 1-

1. Background 1930 RCA Victor presses the first vinyl record. 1988 Compact discs outsell vinyl records for the first time. 1999 Vinyl record sales amount to 0.02 percent of CD sales. 2007 Amazon launches its vinyl-only section, offering more than 250.000 vinyl records to online customers worldwide. 2008 The vinyl record market reaches its highest sales number since 1991. Major record labels begin to reissue titles from their back-catalogue and release new albums on vinyl. (Record Collectors Guild, 2006; Economic Expert, 2009; New York Post, 2009, RIAA, 2009, Wired, 2007) The vinyl record was considered virtually obsolete in the late 1980s when the CD became the standard audio format, and a majority of people gladly threw out their entire collections of vinyl records, never to look back. However, a small group of nostalgics, audiophiles and collectors unwilling to surrender their hobby, kept on buying, selling, discussing and listening to the dated record format. Recently, the vinyl record has had a revival, experiencing an upswing in sales and increased media attention (New York Times, 2008; Rolling Stone Magazine, 2008; Wall Street Journal, 2009). In today's digitalized age, when virtually all music is instantaneously accessible as mp3 files online, why would anyone want to buy a vinyl record? Consumers have previously been limited to whatever top-selling products deemed profitable by the stores in their local area, but are now given the possibility to browse, compare and order almost any product through the Internet. This is the starting point of Wired Magazine editor Chris Anderson's book “The Long Tail”, where he proposes that people, when given the opportunity to access previously hard-to-reach products and services, will find offerings that better fit their own preferences further down the 'tail' of the product demand curve (Anderson, 2006). Previously unprofitable products have become profitable as people are utilizing the Internet to discover that their preferences are not as mainstream as they might have thought, something that in turn contributes to the increased popularity of niche products such as the vinyl record. Not only does the Internet facilitate access to products and services, it also gives followers of particular niches, brands or products the possibility to interact and exchange information. The term consumer culture is a broad concept referring to groups of people gathered around different

2. Theoretical Framework – Masses, Fragments, Tribes & Networks****. This section provides a background of the research within consumer cultures, leading to Kozinets' (1999) definition of an e-tribe and the categorization of its four member types. Further, Davern's (1999) four components of social networks are described, where three of the components are used in the analytical framework in order to describe the dynamics of the online vinyl record network. Modern marketing is argued to have emerged at the turn of the last century when more academic attention was given to the field of market distribution (Wilkie & Moore, 2003). Since then, marketing has developed and shifted its focus from early agricultural distribution processes via scientific marketing and marketing management to more modern approaches such as relationship marketing (Egan, 2008). During a considerable part of the twentieth century, the market has been viewed as a mass market, where positioning and segmentation by gender, age and income have been important tools for success (Egan, 2008). However, researchers have argued for decades that mass markets are eroding, and that they are becoming increasingly fragmented (Kotler, 1986; Firat & Shultz, 1997; Schouten & McAlexander, 1995). Recently, several scholars have elaborated on that notion, arguing that the fragmented markets are being replaced by markets consisting of various consumer cultures (Cova et al., 2007; Kozinets, 1999).

2.1. Consumer Culture Theory

Consumer Culture Theory (CCT) is an area of research addressing the sociocultural, experiential, symbolic, and ideological aspects of consumption (Arnould & Thompson, 2005) and has its historical roots in calls for consumer research to investigate these dimensions of consumption in context (Belk, 1987). CCT is not a unified grand theory, but rather a family of theoretical perspectives that address the dynamic relationships between consumer actions, the marketplace, and cultural meanings (Arnould & Thompson, 2005). One important orientation of CCT is the study of communities and their interconnected system of images, texts, and objects; consumed for self-identification and social belonging (Maffesoli, 1988, Firat & Shultz, 1997). 2.1.1. Consumption Communities One of the focal aspects studied by consumer culture theorists is the dynamics and implications of societal communities. Bender (1978:145) defines a community as “a network of social relations

marked by mutuality and social bonds”. Other researchers highlight the common interest and reciprocity, pointing out that communities allow for members to share and exchange a number of resources, the most important one being the creation and negotiation of meaning (McAlexander et al., 2002). Shared meaning may rely on for example religion, geography, a common cause or consumption interest. In fact, CCT researchers have studied communities thoroughly and identified a variety of related community types with various purposes, including consumption communities, communities of limited liability, and brand communities (Muniz & O'Guinn, 2001). Boorstin (1973:89) introduced the concept of consumption communities, describing them as “ invisible new communities... created and preserved by how and what men consumed." Muniz & O'Guinn (2001:414) elaborated on Boorstin’s description, describing a consumption community as a group with “community members placing special emphasis on some type of consumption as part of a celebration, ritual, or tradition.” The consumption community thereby closely resembles what Maffesoli (1988) terms a tribe. 2.1.2. Tribes In the book “Time of the Tribes”, the researcher and sociologist Michel Maffesoli describes what he terms 'neo-tribalism' as members of a group “characterized by fluidity, occasional gatherings, and dispersal” (Maffesoli, 1988:76). Put simply, he proposes that mass markets have become heterogeneous fragments, that is, “groups which are distinguished by their member's shared lifestyles and tastes” (Maffesoli, 1988). A tribe is similar to a consumption community in the sense that they both are based on a set of social relations among admirers of a brand, cult object or consumption activity (Cova & Cova, 2002 ). 'Neo-tribalism' represents the notion that the individualized offerings required by customers are replacing the mass market, which is in turn being replaced by small groups of people sharing an interest in a particular product or brand. An individual can have an interest in any number of consumption activities, and consequently be a part of any number of tribes.

Figure 1, Member types. (Kozinets 1999:254-255) The tourist is an individual lacking strong social ties within the network holding little or no interest in the consumption activity. Such a person is unlikely to participate actively in discussions of either social or informational nature. The mingler maintains strong relationship ties, but has a negligible interest in the consumption activity itself. The mingler's opposite is the devotee, who has both an interest in and enthusiasm for the activity, but usually does not engage in social interaction. Finally, the insider has strong social ties within the network, as well as strong ties to the consumption activity. These four member types represent the generalized picture of the network members; naturally the four types and everything in between exists. This study will focus on the insiders and devotees within the network, since a genuine interest in vinyl records acts as a foundation for the existence of the entire e-tribe.

2.2. Social Networks

Kozinets (1999) sees virtual communities, and consequently e-tribes, as social aggregations built upon webs of personal relationships. In order to understand the behavior within such groups, a social network approach is necessary (Davern, 1997 ). All networks consist

of nodes and connections , which within social network theory are equal to actors and ties (Handcock & Raftery, 2007). The term actor represents either an individual or an aggregation of individuals, and the ties represent a relation between any two actors within a network (Handcock & Raftery, 2007). In an e-tribe such as the online vinyl record network, an understanding of these actors and ties is necessary in order to explain how the network functions. Davern (1997) stresses the importance of these actors and ties, and proposes that social science studies should put more emphasis on the social networks as a research topic. He further argues that social networks consist of four basic aspects; namely the structural, resource, normative, and dynamic components. Davern suggests a relation-centered approach where the components represent the relations between actors, the respective access to resources, the networks' norms and values and the frequent formation and dissolution of ties. Four components of social networks, adapted from Davern (1997:288) 2.2.1. The Structural Component The configuration of actors and ties within a network is the main concern of the structural component. The arrangement of them with respect to each other greatly influences the actors' behavior and the outcome of it, meaning that an altered arrangement of actors and ties will alter the social consequences (Davern, 1997). For instance, a network consisting of three people can have the shape of a straight line, giving one of the actors a power advantage. The person connecting the other two then has a more powerful network position. Conversely, the network takes on a triangular shape if all actors are connected directly, making them equally powerful.

similarities and differences between the two member categories, mainly concerning access to resources. Similarly, network, actors, ties, and activities are analyzed using three out of Davern's (1997) four components of social networks as depicted in figure 2. Analytical framework, based on Davern’s (1997) social network components and Kozinets' (1999) member types. In order to gain an in-depth understanding of how the Internet facilitates the activity within the network, it is necessary to investigate the network’s structure, members, their respective resources and what norms and values exist The structural aspects of the online vinyl record network are investigated by studying the respondents' perception of the ties between actors, the ties' respective strength, as well as the network structure and its influence on a particular actor. By investigating the members' online interaction, the study aims to identify the available resources within the online network and how they affect the strength of the actors' network position. The personal and online networks are inherently interconnected, making the resource allocation between an individual’s online and personal networks an aspect of interest (Kozinets 1998). Although the study covers the online vinyl record network, identifying differences between respondent’s personal and online networks can give insight into what role the Internet plays for how the respondents’ pursue their interest. Important normative aspects to study are what norms and regulatory rules exist in the online vinyl record network and what possible sanctions network members risk when violating the norms and rules, as well as the norms' impact on retailer marketing activities. These components are broad and fairly general, but act as a starting-point for the investigation as they determine the important areas of the online vinyl record network.

3. Method This section provides the reader with a background to the practice of netnography, as well as accounts of the methodological choices made. Studies in Consumer Culture Theory are often qualitative as they focus on experiential and sociocultural dimensions of consumption that are often not accessible through surveys or experiments (Arnould & Thompson, 2005). Methodological pluralism is encouraged if needed, and several methodological approaches can be exercised within the field of CCT. One commonly used method when conducting case studies about consumer cultures is ethnography and its online equivalent netnography. For this study of the online vinyl record network, a netnographic approach has been chosen, as the study is exploratory and descriptive in its nature.

3.1. A Netnographic Approach

Netnography is a recently developed method, devised specifically to investigate the consumer behavior of cultures and communities present on the Internet (Kozinets, 1998). It is largely based on the traditions and techniques of cultural anthropology, adapted to the contingencies of the online environment (Kozinets, 2006). The origin of netnography – ethnography - aims to clarify the ways culture is constructed by people's behaviors and experiences, and has four distinct features (Arnould & Wallendorf, 1994). The four features suggest that ethnographic researchers must (i) produce a systematic data collection and recording of human action in a natural setting, (ii) generate interpretations which are found credible by both research subjects and intended audience, (iii) participate and observe extensively and (iv) use multiple data sources in order to generate varying perspectives on the matter studied (Arnould & Wallendorf, 1994). In line with these features, Kozinets argues that netnographies require “an immense combination of cultural participation and observation”, resulting in the researcher becoming “a recognized cultural member” (1998:366). This is traditionally done by actively seeking and becoming part of the focal culture. The netnographic approach in the actual study will not cover an extensive participation of the network, as the study's time frame is limited. However, as both of the authors are vinyl record collectors and immersed in the culture in several aspects, the prior knowledge about the network is sufficient to ease the

crystallized. Shorter versions of the interview guides containing more succinct questions were created especially for the e-mail interviews in order to receive as comprehensive answers as possible. E-mail interviews are not as comprehensive as personal interviews, but to compensate for this fact, the interview guide was structured around the same topics. During the personal interviews, one of the authors asked questions and acted as a facilitator while the other author took notes. Notes were chosen rather than tape recording, as it tends to be more comfortable for the respondent. Although information may be lost in the process when using notes, the fact that two interviewers were present was seen as sufficient to compensate for this risk. In the face-to-face and telephone interviews, the discussion evolved and also touched upon other topics than those mentioned in the interview guides. However, the main focus of the discussion was on the areas covered in the interview guides.

3.3. Sample Selection

All respondents contacted and interviewed in the study were categorized as either 'insiders' or 'devotees', meaning that they all had a genuine interest in the consumption activity (Kozinets 1999 ). In order to find suitable respondents, a combination of a convenience sample and a snowballing method was used. The convenience sample consisted of people in the authors extended networks, that is, collectors, audiophiles, and DJ's with whom the authors were able to get in touch. Additional respondents were added to the study through a snowballing method where some respondents recommended other people involved in the online vinyl network. An open request for respondents was also made, using online forums identified by previous interviewees as important meeting places for network members (a similar technique used by Thornton, 1995), which yielded two respondents. Although the method is not optimal in terms of identifying key actors, it does provide a primary insight that led to a number of subsequent interviews, in turn creating a more comprehensive picture of the network. In line with the view of Halinen & Törnroos (2003), as much information as possible was gathered, to later be screened for relevance and substance.

3.3.1. Consumer respondents All respondents were either 'insiders' or 'devotees', and different consumer types within the network were represented in the study. Artists, music journalists, DJ's, and collectors were included in the study in order to receive different perspectives on the network. Also, the respondents were chosen based on their taste in music, ranging from easy listening to pop, folk, black music, and techno, so that possible differing viewpoints on the network across genres could be explored. Respondents are henceforth referred to by the particular music genre they are interested in instead of by name. Respondents within essentially the same subgenre are referred to as Techno1 , Techno2 , etc. and the two respondents with preferences difficult to classify are simply categorized as Other. This is meant to ease the reader's process of differentiating between the respective respondents' answers. All respondents have a substantial amount of experience and information concerning the market for vinyl records and its online network. For example, one respondent has utilized the internet to pursue his music interest since 1993, another has been nominated for a Swedish Grammy and a third is currently a DJ in Berlin. On average, each group member owns more than 1500 vinyl records and has 16 years experience of buying vinyl records Date: Respondent: Group member: Age & occupation: Type of interview: 2009 - 05 - 07 Carl Hedberg Black 1 28, sales clerk Personal 2009 - 05 - 12 Erik Svensson Techno 1 25, student Skype 2009 - 05 - 13 Billy Rimgard Pop 1 32, artist/journalist Personal 2009 - 05 - 13 Rickard Masip Black 2 34, student Personal 2009 - 05 - 13 Markus Wästlund Other 1 35, nurse Telephone 2009 - 05 - 16 Karl Marthon Northern Soul 31, sales clerk E-mail 2009 - 05 - 17 Jonas Lundqvist Other 2 33, art director Telephone 2009 - 05 - 19 Martin Larsson Pop 2 28, student E-mail 2009 - 05 - 20 Erik Möller Techno 2 36, artist/journalist Personal 2009 - 05 - 20 Fredrik Östling Techno 3 33,artist/ programmer Personal Table 1, List of consumer respondents Although the respondents had different occupations, different levels of involvement in the network and different taste in music, the group turned out to be very homogeneous in terms of gender and

Appendix 1, question 1-6; 28-32). The three latter categories mainly focused on the structural, resource, and normative components of Davern's (1997) social network theory. The questions concerning the buying process covered online/offline buying habits and preferences (see Appendix 1, question 7-12), whereas the ones covering online activity mainly revolved around forum and blog activity, the Internet's influence on how they pursue their interest, relationships, and their influence on the respondents' buying habits (see Appendix 1, question 13-22). The questions concerning marketing covered the respondents' perceptions of online marketing, its influence, and their opinions on effective online marketing within the network (see Appendix 1, question 23- 27). To further study the aspect of the online forum activity in depth, an observation was later conducted in order to gain a deeper understanding of the culture and how members interact. The retailer interview guide consisted of three categories of questions, introductory questions, questions concerning executed marketing, and questions revolving around desirable marketing. The introductory questions concerned sales figures along with respondent, company, and industry background (Appendix 3, questions 1-6; 12-15). The marketing related questions covered Davern's three components of social networks. The executed marketing section covered online as well as offline marketing, but also how the companies perceive their market and marketing efforts (Appendix 3, questions 7-10). The category desirable marketing covered how the retailers' would market the store if resources were unlimited (Appendix 3, questions 8-11). This was done with the purpose of revealing the retailers' perception of how successful marketing should be employed.

3.5. Observation

During the interviews, four main reasons for online forum participation were provided by the consumer respondents; interaction, information, inspiration, and transaction. Based on these four motives for participation, observations of forum threads were carried out in order to explore how members of the network interact at online discussion forums, similar to previous research by Muñiz & Schau (2005). Three different online forums were observed, all identified by respondents as websites where people active in the network meet, discuss, and debate. In each forum, the ten most recent forum threads were analyzed and later categorized into one or several of the categories of communication provided by the respondents. Two of the forums were aimed at vinyl consumption in general rather than any specific sub-genre, while a third forum was oriented towards vinyl consumers within the soul scene.

4. The Online Vinyl Record Network This section is structured around the interview guides' main categories of questions, as each category of questions concerns all three of Davern’s network components. It contains the empirical findings from the consumer and retailer interviews as well as the subsequent observations of three online forums.

4.1. Consumers

4.1.1. Respondent Background The enthusiasts interviewed are all loyal to the record format. In fact, only Techno2 claimed to buy CDs to any greater extent, whereas the other nine respondents focus solely on vinyl records and digital files. The general opinion, expressed by a majority of the respondents, is that a CD is simply "a more troublesome way of listening to an mp3", meaning that the CD sound is identical to the one of a digital file, but it lacks the esthetical appeal of the vinyl record. Nostalgia, sound quality and the genuine feeling of the record are other features appreciated by the respondents. Worth noting is that all respondents are dedicated to their hobby in the sense that the interest takes up a significant share of their time. "Playing a CD instead of a vinyl record is like drinking instant coffee out of a paper cup instead of cappuccino out of a real mug."

  • Techno1, DJ in Berlin. All ten respondents believe that the vinyl record market will remain stable or grow in the upcoming ten-year period. The most common explanations given were that the Internet will increase the consumers' accessibility even further, and that young people looking for something 'genuine' in the future are likely to turn to vinyl records rather than CDs or digital files. 4.1.2. Perceptions of the Market The respondents’ perception of the individual vinyl consumer is that it is a friendly, honest and music-loving man, pursuing his music interest passionately. The network revolves around several subgenres, where specific norms and values mostly exist within the sub-genres, rather than in the online vinyl record network itself. Trust was mentioned as an important characteristic of the