Well, we finally finished our paper and presented our project to the class tonight on my last day of the Fall 2005 quarter.. just 6 more months to go.. anyway, since no one showed any interest in my results, I’ll post some of the more interesting ones.. but first, a little background.. DSport Magazine has pretty strong sales on the newsstand.. however, their subscription base is very low.. its a ratio of about 10 issues sold on the newsstand to 1 subscriber.. to give you an idea, Import Tuner, Super Street, Sport Compact Car all have about a 2:1 ratio (yeah, thats 2 issues sold on the newsstand for each subscriber.. with a monthly circulation of about 120k+, you’re looking at a lot of subscribers).. so obviously, DSport Magazine would like to know why they lack a decent subscriber base.. the objectives of our research was as follows:
1. Find out if DSport consumers are price sensitive (in general and specifically to the subscription price)
2. Find out what makes DSport appealing to subscribers and non-subscribers
3. Find out DSport’s target market and their automotive interests
4. Find out why a non-subscriber is willing to purchase in stores for $6.99, yet not subscribe
In regards to price sensitivity, we found that:
– Non-subscribers are not very sensitive to single copy price ($6.99). In fact, on average, they didnt really seem to care about the price at all. Not surprising since about 58% of the responding non-subscribers said they purchased 4 or more issues of DSport in the past 12 months..
– Subscribers were more sensitive to single copy price and less sensitive to subscription price.. which is to be expected since they are subscribers
– 80.56% of the non-subscribers responded that they would subscribe at a annual price that is lower than the current price of $29.99.. this was pretty surprising
In regards to DSport’s appeal:
– On average, non-subscribers AND subscribers rated DSport PACKAGING/APPEARANCE and ARTICLES/CONTENT the highest out of SCC, SS, Turbo, IT, and Modified
– Non-subscribers and subscribers both responded that TECHNICAL ARTICLES are important
In regards to DSport’s target market interests:
– DSport’s readership is 98% Male, 2% Female
– Non-subscribers rated Road Racing/Autocross/Time Attack the highest (1.64), then Drifting (1.66), followed by Drag Racing (2.28) and then Car shows (2.42)
– Subscribers rated Drag Racing the highest by a huge margin (1.2), then Road Racing/Autocross/Time Attack tied with Drifting (2.4), followed by Car Shows at a measly 2.8
– These scores are on a scale of 1-5 where 1=Very Interested to 5=Not Interested
– Cover Models meant more to non-subscribers than subscribers (2.72 versus 3.00), although not by much
And lastly, in regards to why a consumer would pay $6.99 yet not subscribe:
– 33% said that “not every issue is worth owning”.. however, since 58.3% purchased 4 or more magazines, its not immediately apparent to me why someone would spend about $30 (with tax) on 4 issues when they could’ve had all 12 for $30
– Non-subscribers and subscribers both purchased, on average, 3 different magazine titles in the past 12 months, not including DSport..
– 44.4% of the non-subscribers purchased 7 or more other automotive enthusiast magazines in the past 12 months
– 91.7% of the non-subscribers purchased at least 1-2 other automotive enthusiast magazines in the past 12 months
– 100% of the subscribers purchased at least 5-6 other autmotive enthusiast magazines in the past 12 months
– So why would a consumer pay $6.99 on the newsstand yet not subscribe? I’d have to say that its because they simply dont mind paying $7 an issue if the content interests them. In more academic terms, the demand for automotive enthusiast magazines is highly inelastic in terms of price
These results were based on the first 75 responses. Ideally, we needed a sample of about 384 for our results to have a confidence level of 95% with a confidence interval of +/- 5%. The survey is now the responsibility of DSport.. I’m still hosting the survey for them.. but not to worry, I’m on the board of directors.. not that it really means anything.. but me and Mike (the publisher) have known each other for about half of our lives..
Anyway, thats about all I got to say.. I dont want to say too much in case Mike gets tight.. but there’s something to chew on, I guess.. if you’re into data and research, that is..