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Chapter I INTRODUCTION Background of the study

DVD player sales plummeting as film lovers switch to downloadsBy Daily Reporter. Sales of DVDs suffer decline during 2011BBC News. DVD sales will Mail continue

to decline because of online digital These are just few articles referring to the competition convenient, less special and more of an outdated product that doesnt match our need, and with Internet speeds increasing and computer prices are falling consumers are switching their home entertainment setups from TVs with DVD players to a completely online experience. While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as new physical and digital services for buying and renting movies gain in popularity. The proliferation of movie rental kiosk over the years was probably the most visible sign of consumer interest in viewing movies at home. And by showing the interest of the consumers on watching movies, we think of a rental house that will fit in to their lifestyle and that is Video City. Video City is consistently the only video shop that offers high quality and legitimate VCD and DVD titles. Its legitimacy and quality concept embodies the culture of excellence of VIVA. It is also accessible because the Video City outlets are located in key cities, leading malls and other accessible location in the country. Aside from video retail and rentals, Video City also sells games and video accessories.

Statement of the Problem

Marketing Research is where people distinguish to get some information that may be

used to solve a specific marketing problem. This is where marketers convince themselves that they are in need to do something to prevent the problem within its market. In line with this, the group wants to improve the marketing strategy of Video City to get back the patronization of the people. The group decided to propose an appropriate strategy to Video City. This research paper aims to answer the following questions: What factors can influence consumers decision to prefer movie at Video City over downloadable movies? How does downloadable movies online affect the standing of Video City in video rental business? What are the possible solutions that may lead Video City could do to be competitive enough in advancing technology, such as movie downloader online?

1.3 Objectives of the Study

To present the factors that can influence consumers decision to prefer movie at Video City over downloadable movies. To gather information about the effect of downloadable movies online on the standing of Video City in video rental business. To provide the possible solutions that can lead Video City competitive enough in advancing technology of movie downloader online.

1.4 Significance of the Study Through this study, the researchers will be able to extend help to the following groups: Company. This research paper will generate solutions/new ideas that may affect consumers behavior towards video rentals. Customers. Through this study, customers will be aware of how technological advancement such as downloadable movies in the internet affects businesses, specifically the video renting industry. Students. Through this study, students may have an idea on how changes in technology may affect certain industry in the economy, specifically, the video renting industry. Through this study, students will be informed on how a consumer behaves in downloading movies online and its effect on the video rental business of Video City. It may also be significant involving in ethical issues regarding buying and downloading illegal copies of movies, etc. Future Researchers. Through this study, it may help aid future researchers, giving them additional information regarding Consumers Behavior in downloadable movies in the internet and movie rentals Video City. Future researchers may opt to use the data of our research to further fortify the reliability of studies regarding the said topic.

1.5 Scope and Limitations of the Study The study will focused only on the Personal factors affecting consumer behavior (Occupation, Age, Personality, Economic Condition and Life style) towards downloadable movies in the internet versus movie rental houses such as Video City that makes the researcher become interested to study this topic. The estimated number of respondent is 50 which are composed of DLSU-D students and staffs. The study aimed to assess the said topic and find out if these factors affecting the consumer have a high impact on buying decisions of the consumer.

1.6 Definition of Terms Plummeting- sounding lead; a plumb. Proliferation- large number, production, creation. Kiosk- booth, stand, stall. Landscape- the general/ the public; generally Proclivity- natural or habitual inclination or tendency; synonyms: leaning, disposition Black Market- The illegal business of buying or selling goods or currency in violation of restrictions such as price controls or rationing. Live Streaming- Multimedia content that is transmitted from a server and viewed or listened to by the user at that same time. Contrast with "downloaded media," in which a file is sent to the user's computer for playback at any time. Savvy- practical understanding; shrewdness or intelligence; common sense


2.1 Brief History Related to the problem 2.1.1 Foreign COMPETING WITH FREE: THE IMPACT OF MOVIE BROADCAST ON DVD SALES AND PIRACY (H. John Heinz III School of Public Policy and Management) The creative industries have frequently expressed concern that they cant compete freely available copies of their content. Competing with free is particularly concerning for movies studios, whose content maybe more prone to single use consumption than other industries such as music. This issue has gained renewed importance recently with the advent of new digital video recording and distribution technologies, and the wide spread availability of Internet piracy.

VIDEO RENTAL DEVELOPMENTS AND THE SUPPLY CHAIN; NETFLIX, INC. (Washington University in St. Louis) In an age where everything from dinner to dry cleaning to prescription medication can be delivered to your home, it should come as no surprise that the entertainment field is

following suit. While in-home on-demand movie entertainment is certainly not new VCRs have been around since 1976 and by 2000 nearly 90% of homes with televisions also owned VCRs5 the advent of DVD technology along with sophisticated internet commerce has allowed for changes in the way rentals, and rental businesses, work.

THE NECESSITY OF CONVENIENCE: FILM RENTAL IN THE DIGITAL AGE Visualize a television set being stared at by undergraduate students. This television set, via PC-to-TV Converter, is connected to a PC. Inserted into this PC is a USB wireless card capable of intercepting wireless internet signals from adjacent homes. The PCs internet capabilities allow its users, with a single click of their mouse, to arrive at a web page where they can view the latest popular films and television programs free of charge. This scenario, once observed by the author in the student community, demonstrates the ease with which a person of low income can access and view the copyrighted creative content of a media conglomerate in the digital age. Given the free and convenient nature of black market video streaming web sites and illegal downloading, movie and television studios are currently being forced to come up with innovative ways to make their product widely available to consumers at a low price. When coming up with new ways to distribute their content, an important consideration for companies in the industry is how to properly balance convenience with profitability.

2.2 Discussion or Previous Studies, Results and Findings

This research was motivated by the scarcity of academic research on the behavior of consumers on movie rentals and downloadable movies online. The landscape is heavily dotted by studies on movie downloading via live stream or thru torrents there were researches about movie rentals vs. downloadable movies which were conducted by Chao, Chiang-Nan; Mockler, Robert J.; Gartenfeld, Marc that discusses how the boom of the internet widely affected not just the movie rental companies but also the pay per view companies.

This emerging phenomenon of moviedownloading depends heavily on the technology a dvancement in computers, networking, and most of all the speed and capacity of the internet. The thirst for internet traffic, i.e.peer-topeer (P2P) file sharing networks in 2008 carried 600 petabytes per month morethan they did in 2 007, which means there was the equivalent of an additional 150 millionDVDs crossing the netwo rk each month, for a total monthly volume of over 500 millionDVD equivalents, or two exabytes (Cisco, 2008).- Movie: Download vs. Rental

Likewise there are articles in the internet that had conducted an observation and studies on the movie rental behavior and the proclivity to use Online Movie services. They shared the report that examined the nature of rental habits among adult broadband users, as well as evaluates the interest and proclivity of online movie services use.

They enumerated three key findings from their report which are:

-Among consumers who rented movies from a traditional video rental store, 15% also use a payper-view service, 14% use a direct-mail service, and 12% use a video-on-demand service for their movie rentals. - Only 30% of adult broadband users are to varying degrees comfortable downloading movies from the Internet. - It is imperative that movie rental services target the home TV, not a PC or remote device. From the report, they also observed that people who are less technologically informed tends to prefer movie renting as compared to the youth which are exposed to different technological advances which influence their behavior to preferring online download rather than renting a movie. The fact that those who rent from a video store tend to be less technologically savvy than other renters is a bad sign for the segment. As younger, more tech-affluent consumers age, they inevitably bring with them their unique rental habits; implying that brick-and-mortar stores will continue to become less popular as time goes by.- Movie Rental Behavior and Proclivity to Use Online Movie Services There were also researches regarding how successful movie rental chains such as Netflix and Redbox Window affect the sales of DVDs and Blu-ray. According to Mickey Ferris paper regarding Rent or Buy: The Effectiveness of Netflix and Redbox Windows, he emphasized how the windowing strategy is or maybe an advantage to movie Rental Companys which was proven effective by Netflix and Redbox in the US. when movies are not available on Netflix and Redbox during the first four weeks of release, DVD sales, Blu-ray sales, and Video on Demand rentals is unaffected. Instead of substituting to higher-priced options, consumers time-shift their consumption and wait until Week Five or later for a Netflix or Redbox rental. This implies that

consumer preferences for method of consumption outweigh the decay in utility from postponing, and that a windowing strategy yields lower short-run profits. Despite lower short-run profits, the windowing strategy may benefit studios in the long run by slowing the growth of Netflix and Redbox and stimulating growth of the downstream exhibition channels that studios own. Mickey Ferri

2.3 Synthesis
The topic for this research study is about the internal and external factors that affect the consumer behavior and buying decision of the consumers. It was evident that there is indeed a threat made by the online streaming and available and downloadable movie copies from the internet, whether it is legal or illegal, towards the movie rental industry. Most marketers are already have negatively responded to the idea of video rental companies would give rise to this vast trend of internet movies. This gives rise to the idea to what personal factors may or can affect the buying decisions of a consumer to movie rentals or to downloadable movies.


3.1 Conceptual Framework
This study aims to know the personal factor that is affecting consumer behavior towards downloadable movies in the internet and movie rentals--video city. The figure below summarizes what thus this paper will go through.

3.2 Hypothesis of the Study The researchers objective is to know how consumers behavior affects the downloadable movies in the internet. 3.2.1 Null Hypothesis The piracies are more acceptable than original DVDs. 3.2.2 Alternative Hypothesis The consumers choose downloadable movies online than renting movies on rental house and the convenience of the consumer when it comes to downloading than renting.

This section outlines the research design/result, sources of data, and method data collection. 4.1 Research Design/ Result This research adapted a Survey method for its design. This method was appropriate for the study since the main goal was to study the customer's behavior in downloadable movies in the internet and rental videos-video city. The Survey method is usually utilized by the researchers in their attempt to analyze and to expand the understanding of the researchers about the awareness of the people about Video City and Downloadable Movies in the Internet.

4.2 Sources of Data To gather information where the statistical graphs will be based, the researchers conducted a survey. The target population was students/employees from different areas in Cavite with a sample of 60 individuals. The main goal of this paper is to know the customer's behavior in downloadable movies in the internet and rental videos-video city so we designed our survey to those who have knowledge of Video City. The survey contains 11 closed questions wherein the respondents have to choose among the given choices. As attached below, survey questions were prepared to be distributed to 60 students/employees along the Cavite is and then will be collected for finalizations. The insights of these 60 students/employees will help the researchers determine the main objective of their research paper. And that is to know the customer's behavior in downloadable movies in the internet and rental videos-video city.

4.3 Method of data Collection

4.3.1 Research Instruments Primary Data - 60 respondents within the vicinity of the province Cavite for the survey Secondary Data - Interviewed manager of Video City GMA

- The group used different websites: ity_to_use