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The Marketing of Phonograph Records in the United States: an Industry Study

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The Marketing of Phonograph Records in the United States: an Industry Study Th?s dissertation has been microfilmed exactly as received 67-2470 KING, Algin Braddy, 1926- THE MARKETING OF PHONOGRAPH RECORDS IN THE UNITED STATES: AN INDUSTRY STUDY. The Ohio State University, Ph.D., 1966 Business Administration University Microfilms, Inc., Ann Arbor, Michigan THE MARKETING OF PHONOGRAPH RECORDS IN THE UNITED STATES: AN INDUSTRY STUDY DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Algin Braddy King, B.A., M.S. A A A A A & A The Ohio State University 1966 Approved by A d v iser — Department of Business Organization PREFACE The problems associated with the marketing of phonograph records were brought to the w riter's attention during a graduate seminar conducted by Professor Theodore N, Beckman at the Ohio State University. As an outgrowth of this discussion and under the encouragement of Dr. Beckman, the w riter undertook, in October 1964, to conduct a study in depth because considerable confusion exists in this industry concerning the marketing process. This confusion results from the fact that the marketing of phonograph records has undergone a revolution since 1950, and numerous seg­ ments of the industry have failed to perceive these changes or understand the effect of their ramifications on the marketing process. L ittle information from any formal study of the marketing of phono­ graph records is currently available to the industry. There was an opportunity, therefore, to contribute to the clarification of this subject by formal study, and to draw conclusions and make sugges­ tions which would serve to improve the marketing process in the records industry. The author owes a debt of gratitude to many people for mak­ ing this study possible. Because of space lim itations, acknowledg­ ments must be restricted to those making special contributions. I acknowledge a very special debt to the members of ny dissertation reading committee at The Ohio State University—Drs, Theodore N. i i Beckman, Alton F. Doody and Irving Abramowitz. They contributed not only their great knowledge but through their constructive criticism were responsible for making the study more precise, scholarly, and meaningful. Especially to my adviser. Professor Theodore N, Beckman, the debt is particularly great for it was his keen perception which first envisioned the need for investigation into this subject. His guidance in both the research efforts and in the writing of this study have been of inestimable value, not only in my producing a better research study, but in my own per­ sonal and professional development as an academician. Another group to which is owed a special debt of thanks is the Industry Advisory Committee formed for the purpose of- aiding this research undertaking. The -Industry Advisory Committee was composed of the following: Mr. Alvin Bennett, President, Liberty Records, Inc.; Mr. John Y. Burgess, Jr., Vice President, RCA Victor Record Division; Hr. Hal B. Cook, Publisher, The Billboard; Mr. Dan Dansiger, President, The Disc Shop; Mr. William R. Gallagher, Vice President, Marketing, Columbia Records, Inc.; Mr. Amos Heilicher, President, Heilicher Bros.; Mr. Cy Leslie, Presi­ dent, Pickwick International, Inc.; Mr. Jules Malamud, Executive Director, National Association of Record Merchandisers, Inc.; Mr. Tom Noonan, Research D irector, Record Market Research; and Mr. Irwin H. Steinberg, Executive Vice President, Mercury Record Corporation. These men gave of their time, knowledge and advice to the end that this study could better fu lfill its purposes and receive 1X1 the cooperation of the industry in supplying the requisite data for the dissertation, A special word of appreciation goes to Mr. Hal B. Cook, Publisher of Billboard, whose encouragement and advice has meant muchf. Mr, Thomas Noonan, D irector, Record Market Research (a division of Billboard) who so generously gave of his time and wide range of knowledge about the record business; and Mr, Jules Malamud, Executive Director, National Association of Record Mer­ chandisers, whose excellent leadership in heading the Industry Ad­ visory Committee contributed much to the success of this research in q u iry . To Dr. Donald Ball of the English Department of the College of William and Mary in Virginia goes an expression of appreciation for his editing review and comments. Finally a word of appreciation to the nearly 450 firms that made the study possible by supplying the required data. Without their cooperation this dissertation would not have been feasible. Algin B. King May 20, 1966 IV VITA January 19, 1926 Born - Latta, South Carolina 1947 . 9 B.A>, U n iv ersity of South C arolina, Columbia, South Carolina 1947-1948 .... Executive Trainee, Sears Roebuck and Company, Columbia, South C arolina 1948-1951 ......... Instructor, School of Business Admin­ istration, University of South Carolina, Columbia, South Carolina 1951-1953 ......... Chief, Econcsnic Analysis Branch, Office of Price Stabilization, Columbia, South Carolina 1953 . .......................................M.S., Men York University, New York, New York 1954-1955 ......... Executive Secretary, Columbia Mer­ chants' Association, Columbia, South C arolina 1955-1956 ......... Assistant Professor of Marketing, Department of Business Administration, ^ Texas A and M University, College Sta­ tion, Texas . 1956-1959 ........ Associate Professor of Business Ad­ m inistration, College of William and Mary, Williamsburg, Virginia 1959-1963 ........ Professor of Business Administration; Acting Head, Department of Business Administration (1960-1962); Director, Bureau of Business Research (1959- 1963) ; College of William and Mary, Williamsburg, Virginia 1963-1964 . ............................. Graduate Teaching Assistant, Department of Business Organization, The Ohio State University, Columbus, Ohio 1961^-1966 Professor of Business Administration, College of William and Mary, Williams­ burg, Virginia PUBLICATIONS 1 - Books, Chapters of Books, and Monographs. Committee on Marketing (co-author of a chapter), Principles of Marketing. New York; Pitman Publishing Co., 1961. Committee on Retailing (co-author of a chapter), Principles of Retailing. New York: Pitman Publishing Co., 1955. — Compsi'Btive Analysis of Nine Selected Business and Economic Indicators in Thirteen Virginia C ities, 1956-60 (50-page mono- graph). Williamsburg, Virginia: Bureau of Business Research, College of William and Mary, 1961. Retailing and Wholesaling in Virginia (40-page monograph). Williamsburg, Virginia; Bureau of Business Research, College of William and Mary, 1962. Selected Services Trades in Virginia (25-page monograph)! Wil- liamsburg, Virginia: Bureau of Business Research, College of William and Mary, 1965. 2 - Articles "Build Your Own Business Barometer," Banking Magazine (Febru­ ary, 1960). "Marketing and Marketing Research," Life Advertisers Magazine (June, 1965). The follow ing l i s t of a r ti c le s published in th e Commonwealth Magazine of Virginia, official publication of the Virginia S ta te Chamber o f Commerce. Richmond, V irg in ia: The Common­ wealth Magazine of Virginia. "Retail Sales as an Indicator of Business Activity" (February, 1963). "Advertising: Expense or Investment" (March, 1963). "Advertising: Three Common Misuses" (April, 1963). "The Virginia Economic Outlook Today: Bullish or Bearish" (May, 1963). VI "The Trained Manpower Shortage" (June, 1963), "Marketing Research: What Does It Do?" (July, 1963), "How to P la y The B u sin ess Game" (A u g u st, 1964), 3 - Other Publications The Virginia Business Index Report, a continuing monthly re­ search report on business and economic activity in Virginia, published monthly for four years by the Bureau of Business Research, College of William and Mary, Williamsburg, Virginia, under my direction. The monograph. Retailing and Wholesaling in Virginia, was re­ viewed in the Journal of Retailing, Volume XXXIX, No, 1, Spring, 1963, FIELDS OF STÜLf Major Field: Marketing Studies in Management. Professors Ralph C, Davis and Irving Abramowitz Studies in Economics, Professors Paul G, Craig, Arthur D, Lynn, Jr., Alvin E, Coons, and Robert D. Patton Studies in Personnel Management, Professor William E, Schlender V l l CONTENTS Page PREFACE ........................................................'. ......................... i i TABLES .................................... x i ILLUSTRATIONS................................ xv C hapter I . NATURE AND SCOPE OF THE STUDY .................................. 1 Rationale for the Study ...... .................... 2 Objectives ........ 5 Hypotheses . ...................................... 7 Methodology ....... 10 I I . THE PRODUCT, ITS NATURE AND CLASSIFICATION .... 15 Product Examination from D ifferent Viewpoints ..... ................... ...... 19 Tapes - A Special Case of Sound Reproduction . ........ 36 I I I . HISTORICAL DEVELOPMENT OF THE PHONOGRAPH RECORD . 42 The Acoustical Recording Period Prior to 1925 . 43 The Electrical Recording Period from 1925 t o 1948 ...................................... 51 The Successful Commercialization of the Long Play Record - 1948 to the Present ........................... 57 The Dimension of Stereophonic Sound Is Added to the Record - 1958 to the P re s e n t .......... ................... .. 60 The Phonograph Record Player - A Neces­ sary Adjunct to the U tilization of the Phonograph R ecord ................................ 61 V l l l Chapter Page IV. THE CONSUMPTION OF PHONOGRAPH RECORDS..........................
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