1V1€SI.J RETURNING MATERIALS: P1ace in book drop to LJBRARJES remove this checkout from -:_. your record. FINES W'iH be charged if‘book is returned after the date stamped be1ow. ‘35” ' I ”496 AN EVALUATION OF NON-SUBSCRIBERS' PERCEPTIONS OP CABLE TELEVISION TO BE APPLIED TO THE DEVELOPMENT OF TARGET MARKETING IN THREE SUBURBAN MICHIGAN COMMUNITIES By Carol Siewert Mackey A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of Telecommunication 1985 l EA (“W' I A I "‘2 Copyright by Carol Siewert Mackey 1985 ABSTRACT AN EVALUATION OF NON-SUBSCRIBERS' PERCEPTIONS OP CABLE TELEVISION TO BE APPLIED TO THE DEVELOPMENT OF TARGET MARKETING IN THREE SUBURBAN MICHIGAN COMMUNITIES By Carol Siewert Mackey This study was designed to evaluate cable television non- subscribers in three suburban Michigan communities with cable systems operated by Horizon Cablevision. The assessment of non-subscribers incorporated a free trial marketing technique as an attempt to increase subscription levels in each system. Non-subscribers were divided into subgroups determined by whether or not they accepted the free trial. and by whether or not they became subscribers at the end of the study. Subscription levels at the conclusion of the project reflected increases of 7 to 9 percent across systems. Principal findings show that respondents who accepted the free trial, and those who subscribed to cable. have characteristics similar to those reported for cable subscribers in previous studies. The non-subscribers who rejected the free trial or dropped cable after the trial period were considered "Untouchables” in the market. The “Untouchables" were also described demographically and in terms of their attitudes toward television and cable. To Mom and Dad John. Ann. and Cam ii ACKNOWLEDGEMENTS I would like to thank many people for their valuable inspiration and assistance. My thesis advisor. Dr. Thomas Baldwin. for his unending patience and subtle discipline. Dr. Thomas Muth. thesis committee member. for giving me wonderful guidance through my graduate program. and for introducing me to Horizon Cablevision. Dr. Kent Creswell. thesis committee member. who promoted my research opportunities tremendously. Mr. Glenn Priedly and Mr. Alan Baird of Horizon Cablevision. for making this project possible. Us. Carrie Heeter. friend and mentor. who sparked my interest in research. Mr. George Thorry of Continental Cablevision. who encouraged and supported my venture into cable marketing. Dr. Ron Tamborini. who patiently helped me with editing. And. my fantastic field workers: Dianna Albers. Jim Alexander. Steve Atwell. Shelly Brodsky. Julie Buckland. Tricia Carraway. Brian Flynn. Laura Geagan. Carolyn Giampapa. Shawn Greenberg. Deborah Hofmann. Craig Huitema. Keith Hurwitz. Michael Jonascu. Rich Johnson. Paul Kuehn. Scott Kurz. Terry LaMoria. my sister Ann. my brother John. Liz “artin. Dana HcCartey. Phil Newman. Debbie Parkinson. Steve Ross. Joe Salome. Mark Shifflet. Jennifer Vaughn Verner. Kipp Verner. Greg Walker. Lisa Whaley. Rhonda White. Steve Ville. Cheryl Williams. and Julie Zack. iii TABLE OF CONTENTS LIST OF TABLES ....................................... LIST OF APPENDICIES .................................. CHAPTER " I. INTRODUCTION ................................. II. CABLE MARKETING AND RESEARCH ................. Development of Cable Marketing ............. Academic Research in Cable ................. Cable Industry Research .................... Reference Notes ............................ III. METHODOLOGY .................................. Horizon Cablevision ........................ The Test Markets ........................... Universe of Non-Subscribers ................ The Study .................................. Questionnaire Development .................. IV. FINDINGS ..................................... Computer Analysis .......................... ‘JSubgroups of Non-Subscribers ............... Phase 1 Interviews and Installation Schedules ............................... \ Acceptance of the Free Trial Offer ......... Phase II Telephone Follow-Up Interviews "Acceptors'" Attitudes Toward Cable Television .............................. Subscription to Cable ...................... éwDemographic Characteristics _ of Non-Subscribers ...................... <7Satisfaction with Existing TV Programming .. :Enjoyment of Television .................... rExposure to Cable Television ............... ciPerceptions of Cable Television ............ .jlnterest in Cable Channels and Services .tTelevision Viewing Behavior/Environment ¢;Characterization of Television/Cable Television .............................. iv Television/Cable Program and Schedule Information ............................. R Other Media Use ............................ Awareness of Cable Channels ................ gfilmportance of Cable Features ............... Cable Television Viewing ................... Satisfaction with Cable .................... :fReasons for Not Subscribing to Cable Television ........................ {fiWhat Would Make Non-Subscribers More Likely to Subscribe to Cable ............ .fiprevious Subscription to Cable ............. ngubscriber/Penetration Level Activity During the Study ........................ Reference Notes ............................ V. DISCUSSION AND RECOMMENDATIONS ............... . Objectives of the Study .................... 4;Discussion ................................. ¢~Recommendations ............................ Limitations ................................ Cost Considerations ........................ SELECTED BIBLIOGRAPHY ................................ TABLE "11. '12. "13. 10. H4. is. '16. 17. LIST OF TABLES Non-Subscribers’ Acceptance of the Free Trial Offer “Acceptors” and "Rejectors" .......... “Acceptors’” Responses to What is Most Appealing about Cable ................ ”Acceptors’" Responses to What Could Improve Cable ........................ Breakdown of Channels Kept by ”Keepers" ....... Demographic Characteristics by Subgroup . Satisfaction with Existing TV Programming Average Enjoyment Ratings of TV Programs Non-Subscribers' Responses to Why Someone Would Subscribe to Cable Television .. Perceptions of Cable TV Services Average Estimates .................... Interest shown in Basic Cable Channels ........ Interest Shown in Pay-Cable Channels .... Interest Shown in Extra/Optional Cable Services ....................... Television Viewing Behavior/Environment ....... Characterization of Television/Cable Television Mean Scores .................... Television/Cable Program and Schedule Information .......................... Other Media Use ............................... Recognition of Cable Channels ........... vi Page 37 38 40 41 45 46 48 80 51 52 52 53 56 59 62 63 64 TABLE 18. 19. 20. 21. 22. 23. 24. 23. Importance Rating of Cable Features ........... Recalled Cable Channel Viewing ................ Satisfaction with Cable ....................... Non-Subscribers' Reasons for Not Currently Subscribing to Cable ....................... Non-Subscribers' Responses to What Would Make Them More Likely to Subscribe ......... Non-Subscribers' Previous Cable Subscription "Pormers" and ”Movers" ..................... Demographic Characteristics of "Formers" and "Nevers" ............................... Subscriber/Penetration Level Activity During the Study ........................... 69 70 71 73 76 78 LIST OF APPENDICIES APPENDIX Page A. Horizon Cablevision Programming ............... 97 B. Test Market Characteristics ................... 103 .iC. Horizon Cablevision Rates ..................... 110 D. Potterville/Dimondale Phase I Questionnaire ... 113 E. Saranac Phase I Questionnaire ................. 126 F. Union City/Athens Phase I Questionnaire ....... 139 0. Sample Blue Card .............................. 152 H. Potterville/Dimondale Phase II Questionnaire .. 183 I. Saranac Phase II Questionnaire ................ 160 J. Union City/Athens Phase II Questionnaire ...... 167 .hx. Demographic Characteristics of Non-Subscribers ............................ 173 viii CHAPTER I INTRODUCTION Cable television system operators share concern for secure. yet expandable and profitable business. In the cable television industry security in business is primarily a function of subscribers. i.e. people who are willing to pay for television programming and services beyond those which are available over-the-air. Building and maintaining a subscriber base for a cable company involves many of the customary sales and marketing techniques used by any business in building a clientele. The product and services being marketed need to be attractive. affordable and dependable in order to be successful. Ascertainment of television viewers' willingness. ability and incentive to subscribe to cable television services is extremely important in subscriber acquisition. Careful attention must be paid to programming. packaging. pricing and marketing strategies in order to assure provision of the best possible service and information about the product to potential subscribers. One of the major problems cable system operators face is learning how to reach non-subscribers in their markets. Non-subscribers include any households among the homes passed (i.e. the number of homes that are capable of receiving cable because the feeder lines are already in place) that do not currently subscribe to cable TV. whether they have subscribed previously or not. Selling services to these potential customers will result in increased penetration rates and increased system revenues. Therefore. development of marketing strategies that prove successful with this group (non-subscribers) has become a number one priority for many cable system operators. and the need for research in this area has become more important. In the research reported here. an attempt has been made to gauge these non-subscribers' television viewing behavior. their perceptions of cable television service. their existing attitudes toward cable TV. their interests in. preferences for. and incentives to subscribe to cable services. and their reasons for not presently subscribing to cable television. In this project. further information was obtained to define each service area's demography. and develop a demographic profile of the non-subscribers in each market selected. This research incorporated a free trial offer marketing technique in its attempt to develop bases for subscriber acquisition marketing and re-marketing decisions. Information for developing such decisions and proposals should come from the market itself. The study concentrated on evaluation of the non-subscribers in three particular south-central Michigan suburban markets for the primary purpose of making package service and pricing proposals for system rebuilding and upgrading. CHAPTER II CABLE MARKETING AND RESEARCH magnum The need for research and comprehensive marketing did not appear to be great during the development of most early cable market systems. In many areas cable TV has been extremely popular from the time it was introduced in 1949 and throughout its some thirty years of development since. Cable offers improved television reception. the ability to import distant television signals. and commercial-free and customized programming networks. In remote areas with little television available locally. cable television has been virtually ”gobbled-up." In small to medium-sized towns cable has thrived. This has allowed cable operators to be successful without being especially ambitious: to sit back and let customers come to them. Establishment of a cable system in one of these areas has usually meant starting service with above a fifty percent penetration rate (number of subscribers divided by the number of potential subscribers. or homes passed) resulting in profitable operations from the beginning. However. circumstances have changed. One leading authority in cable marketing describes the situation this way: It's a tough new world even for operators of local cable systems. Life used to be a breeze for the early entrants to that business. They built modest systems years ago. signed up around 55% of the homes in their areas with little effort. and have been collecting monthly fees ever since. But many such operators are now finding that . . . topping that 85% penetration level is still an undeveloped art. Since cable operators used to make good money by simply stringing their wires and signing up viewers who were. in the industry argot. waiting for the truck. few learned how to sell the service.1 Such early success in many cable markets has resulted in a haphazard development of marketing in the cable television industry. Of cable marketing in general. Charles Dolan. general partner of Cablevision Systems. says: There is a lot of experimentation in this industry. I think we tend to underrate ourselves and believe others are more advanced in the way they go about it than we are. But I don't know of anyone who can come in and teach this industry how to [market our services] - we're learning pretty rapidly ourselves.z People hired for marketing cable TV have come from other industries. for example: Procter a Gamble. Dupont. and American Express. lacking knowledge of cable TV. have brought with them a variety of marketing techniques that have developed through years of learning what works and what advertising is effective with certain customers. Such marketing techniques include: cross-training installers as 3 salespersons: incorporating satisfied customers' 4 testimonials in the sales campaign: focus group sessions among subscribers to determine the orientation of a campaign 8 (to meet customers' needs): direct-mail introduction of 6 service followed by door-to—door selling: ”packaging" of 7 services (combinations of channels and services offered): free trials of individual channels or entire system 8 9 offerings: market segmentation: and unifying the company's image publicized by media advertising. program guides. direct mail. door hangers. etc..10 The trend in cable marketing strategies seems to have been from focusing on a single benefit for the customer. e.g. clear signals or sports programming. to comprehensive campaigns coalescing many forms of advertising and sales to promote multiple benefits that cable TV offers. These types of programs have met with varying success throughout the cable industry. The more concatenate programs have seen the most favorable results. in particular: free trials: market segmentation: and unification campaigns. Edward Kessler. previously involved in the cable industry and now senior vice president of the nation's largest direct-marketing company. lends his opinion: Mixed messages go from marketplace to marketplace. and cable has been positioned as something different in each one. . . . the more unification to your message. the better off you are and the better opportunity you have.11 Initial marketing of cable television was typically based on an assumption that every potential customer should have every service that cable could offer. This is called “top-down” marketing because only after an exhaustive attempt to sell all services to each customer would salesmen and marketers back down and allow sales of fewer than all services to subscribers. For those involved in marketing. learning about cable television and reactions to it takes time. Techniques like “top-down" marketing worked for a while: however. cable TV is no longer a novelty. Many initial customers have joined the ranks of non-subscribers in their market as "Pormers." those who have previously subscribed to cable but do not currently. For some customers the burden of affording all the services available to them on their system has become too much to bear and they have dropped cable altogether. For other customers. cable television is confusing. (extra equipment may be necessary and channels are not always labeled with the same numbers they have traditionally had) and rather than seek out help in interpreting this new system. they have chosen to return to conventional TV. Some cable subscribers have reacted to customer service problems by discontinuing their subscriptions. Further. there are those customers who have ended their subscriptions to cable because of a lack of accurate and detailed programming information. “Nevers.” those non-subscribers who have never subscribed to cable TV. and "Farmers." previously mentioned. make up what can be a complicated base of non-subscribers to whom cable operators must market their services. Ira Tumpowsky. Young a Rubicam's vice president for communications services. gives the following advice: . . one of the most important issues to be addressed by cable marketers is continuous communications with subscribers. not only to find out how satisfied or dissatisfied customers may be. but also to let them know what's on various channels. . . . operators should be more atuned to their subscribers . . . They have to be customer-conscious.12 Michael Reginold. senior vice president of HBMVCreamer. a Boston-based advertising agency. suggests: . make damn sure you know who your target audience is: . . . make sure you have a clear-cut strategy and a clear-cut position in the market: and then . communicate that in a beneficial way in a persuasive manner.13 Little attention has been paid to marketing research designed specifically to meet the needs of cable companies. More recently. the need for research in cable marketing has increased. For many reasons. cable system operators have seen their penetration rates level off or decline. Many system operators have realized that they will have to make a greater effort in order to stand still. let alone increase IOVORUOS . mammmmu Academic research on decision-making in the cable television industry has been extremely limited. Most early cable research has focused on comparisons between subscribers and non-subscribers.1‘ viewership and processes of channel and/or program selection.13 viewership behavior and attitudes before and after cable television has been introduced into a community.18 These studies and others have been somewhat successful at creating a basic demographic/psychographic profile of cable subscribers. The typical cable subscriber is younger. more than likely male. has a higher income. owns a home. has a larger family. owns more technologically advanced video equipment (such as video recorders. games. or home computers). typically watches more television. and a wider variety of channels than the average non-subscriber. Interestingly. several studies have found an inverse relationship between level of education and the likelihood of subscribing to cable. Sparkes found that higher educated 17 individuals were less likely to subscribe to cable. and an 18 industry study by Television Audience Assessment. Inc.. as well as research in other areas of cable have confirmed this 19 type of relationship. Prediction of cable subscribership has focused primarily on these demographic variables. with little attention paid to any ”socially salient" factors or predictors. Collins. Reagan. and Abel have suggested that the demographic variables studied be expanded to include. for example. the ages of children in a household. and the type of residence (i.e. houses. condominiums. apartments. etc.) they also suggested examining other media use variables and extending studies to include multiple markets. or so-called "cross-locale“ studies.zo Some research has dealt with the comparison of basic-only and pay-service subscribers. in which several traditional demographic factors have emerged as good predictors of subscribershipuz1 Notably. however. the findings suggest that the ability to afford cable television is not a major reason for subscribing. For example. Krugman et al. examined the entertainment-seeking behavior of television viewers and found reasons such as the desire for improved reception. the ability to add distant broadcast signals. increasing diversity in channel selection. and assumedly programming. and. the incentive to subscribe to basic cable service in order to reach pay service tiers.zz In late 1983. Continental Cablevision. Inc. in Madison Heights. Michigan was faced with the choice of whether or not to add The Disney Channel to its service offerings. The primary concern of the system manager was whether this addition would increase the profitability of the system in general. Mackey and Burbott used a telephone survey to city residents in making the decision on The Disney Channel. The survey contained basic questions about the types of television service respondents had used. their demographic profile. incentives to purchase this extra service either as an addition to existing service or in replacement for an existing service. and incentives to purchase cable television for this additional channel. The profile of viewers that resulted was very close to that which had been predicted. however. the incentives to purchase cable television. and in particular. The Disney Channel. were virtually non-existent.23 Prom a similar. but more extensive study. Mackey. Thorry. Assiff. and Stern provided information used in programming and pricing proposals for the rebuilding and customizing of an existing cable system in Jackson. Michigan. In this study. a mail survey sent to subscribers and non-subscribers focused on an evaluation of the needs. desires and incentives that would support improvements in signals. increasing diversity in channel selection. and assumedly programming. and. the incentive to subscribe to basic cable service in order to reach pay service tiers.zz In late 1983. Continental Cablevision. Inc. in Madison Heights. Michigan was faced with the choice of whether or not to add The Disney Channel to its service offerings. The primary concern of the system manager was whether this addition would increase the profitability of the system in general. Mackey and Burbott used a telephone survey to city residents in making the decision on The Disney Channel. The survey contained basic questions about the types of television service respondents had used. their demographic profile. incentives to purchase this extra service either as an addition to existing service or in replacement for an existing service. and incentives to purchase cable television for this additional channel. The profile of viewers that resulted was very close to that which had been predicted. however. the incentives to purchase cable television. and in particular. The Disney Channel. were virtually non-existent.23 From a similar. but more extensive study. Mackey. Thorry. Assiff. and Stern provided information used in programming and pricing proposals for the rebuilding and customizing of an existing cable system in Jackson. Michigan. In this study. a mail survey sent to subscribers and non-subscribers focused on an evaluation of the needs. desires and incentives that would support improvements in 10 the cable television service. The questions asked centered on knowledge of cable television service. differentiation between that offered by basic-only and that available on an “extra-fee" basis. and proposing combinations of such services ("packages") with different pricing schema to determine which types of television services were valued most among viewers. Although the analysis was limited to basic frequencies and a few crosstabulations. as is much analysis of industry data. solid business decisions could be 24 made based on the information provided. WWW NCTA Study The Cable/Video Research Center. a division of Opinion Research Corporation. was commissioned by The National Cable Television Association in 1983 to conduct a Marketing Profile Service study in ten separate cable systems throughout the United States: five urban systems and 28 five suburban. Increasing penetration for cable systems. especially in urban markets had become arduous. and this study was designed to explore the reasons for such difficulty. The positioning of cable television. consumer attitudes and concerns with watching television. and competition from other leisure activities in the marketplace 28 were examined. Findings from this study showed that the main reasons for subscribing to cable television were improved reception. and the reception of movies and sports. Most 11 subscribers surveyed indicated that they were satisfied with their service and planned to retain cable. However. cable had low saliency in the minds of both subscribers and non- subscribers. It was determined that the likelihood of subscribing to cable television did not necessarily depend upon place of residence. i.e. urban v. suburban. but most importantly on attitudes towards television. including perception of its benefits and disadvantages. as well as reasons for watching television. Activities at home were shown to have a greater impact on satisfaction with cable TV. and thus penetration rates. than leisure activities outside the home. Non-subscribers were considered as marketable. although they may be a difficult group to reach. if they expressed a likelihood of subscribing within one year. if television plays a significant role in their lives. or cable can meet certain specific needs/wants that they have. and if programming preferences can be satisfied by cable television.27 Urban and suburban subscribers and non-subscribers surveyed were segmented into five groups based on their expressed attitudes toward TV. needs/wants from television. and reasons for watching. 1) ”Truck Chasers" are heavy TV viewers and satisfied customers in whose lives television plays a major role. They showed a positive attitude toward television and expressed reasons for watching that included: entertainment: education: stimulation: and relaxation. "Truck Chasers" need TV to keep them company. to babysit for them and to provide social activity. 2) The "Basic. But..." IZ segment is composed of average viewers who watch television to be informed and educated. They may be somewhat satisfied but for most in this segment cable does not have a good image. 3) The "Entertain Me“ segment is made up of heavy viewers who desire uncut movies. sports. variety. adult- oriented programming and other uninhibited entertainment. but are sensitive to duplication in programming. There is a positive attitude toward television among this group. 4) The "Make It Worthwhile“ group or the "television snobs." are the lighest viewers who watch only when “good programming is on." They show a negative attitude toward television and are generally dissatisfied with cable. 9) “No Thank You Now“ are those who do not see TV as a temptation and claim they do not want or need much that television offers. Among those in this segment. cable has a weak image. and contact with the cable company was probably initiated by the company rather than the customer. However. subscribers in this group. once sold. show high satisfaction with cable television.28 Continental Cablevision Segmentation Plan Late in 1983. Continental Cablevision. Inc. used a parallel market segmentation scheme to put together a direct-sales campaign.29 Continental combined demographic and psychographic data for its non-subscriber markets to identify four groups of these non-subscribers and targeted them for different marketing strategies. 1) "Seniors" are generally older 13 single females with lower than average income and higher than average education. In the marketing/sales campaign the benefits that are emphasized when approaching this group are: good reception. value. variety in news and information. and quality programming. 2) “Upscale." These non-subscribers are usually married. older females with higher than average education and income. Marketing this group involves stressing high quality educational/intellectual programming. current events. good reception and specific programming. 3) "Young Singles/Couples" usually have no children. average or below average income and education. and watch more television than any of the other groups. To sell cable to this group. the plan focuses upon recent movies. 24-hour and commercial-free programming. and the alternative to regular TV that cable provides. including: variety. convenience. and better reception. 4) "Families." This group includes families with children. average to below average income. and average education level. Benefits of cable promoted to these families are: "something for everyone in the family:" quality programming: value for the money: educational programming and quality children’s programs: minimal sex and violence: good reception: and current events.30 In Continental's marketing plan. all "packages" include all of the services that the cable system offers. The difference between the marketing strategies is "focus." The idea is to use market segmentation to develop specific 14 target marketing for each of the resulting segments. It is difficult to isolate the success of this particular campaign because of many changes within the company and the industry. However. at the time of this study. Continental claimed high success rates among those of its systems using this segmentation plan.31 Other Cable Industry Research Executives are using data from extensive research into cable audiences and potential audiences to make important marketing decisions. with the primary intention of raising penetration rates within their systems. Donnelley Marketing Information Services and Simmons Market Research Bureau combined in 1983 to develop a clustering. or market segmentation technique to be applied to consumer marketing. which is presented in the following way: The ClusterPlus System features 47 different demographic clusters. each representing a distinctive lifestyle pattern and offering a sound basis for assessing product behavior.32 Demographic characteristics studied include income. education. occupation. ownership and environment characteristics. The combinations that emerged were then ranked on the basis of socioeconomic level. This system has been adopted by several cable companies to meet their needs to identify. reach and influence specific customer 33 segments. Also in 1983. International Communications Research completed a study for the National Cable Television 15 34 Association. The major purpose of this study was to determine why subscribers keep cable or cancel service. Consumer attitudes toward cable were studied and levels of satisfaction with cable were measured as determinants in the subscription decision to keep or not to keep cable service. The study also focused on differences between current and former subscribers' attitudes.3s The study indicated that nearly 83 percent of current cable subscribers are at least somewhat satisfied with their cable service. and that almost two-thirds of former subscribers expressed general satisfaction with cable television.38 Major reasons people have for subscribing to cable TV are: variety: improved reception: and movies. These top three reasons take care of 77.7 percent of current subscribers and 68 percent of former subscribers surveyed in this study. Major reasons current subscribers have for disconnecting their service (not including moving) are: repetition: price: and programming issues. Among former subscribers. reasons for cancelling (not including moving) include: price: repetition: and "don't watch enough TV."37 This study also reported a significant difference between current subscribers and former subscribers in their perceptions of cable and their use of cable. Current subscribers perceive receiving more channels than do former subscribers. and current subscribers reported watching more channels than former subscribers. Almost twice as many current subscribers as former subscribers said that they spend at 16 least 40 percent of their viewing time with 38 available only on cable. A primary suggestion that comes from this study is to emphasize variety in marketing especially that marketing directed toward 39 subscribers. channels ICR/NCTA efforts. former CHAPTER II Reference Notes 1 Geoffrey Colvin. "The Crowded New World of TV." fatigue. September 17. 1984. pp. 162-64. 2 Sally Russell. "Marketing the options: Probing effective approaches to marketing cable." Qgpleyjsjgn. November 8. 1984. p. 86. 3 “Manhattan Cable to Use TV to Combat Slow Period." Maw. August. 1984. p. 8. 4 Ibid. 5 "Switchout Yields 92 Percent Conversion of Ex- Spotlight Subs." Cable Marketing. August. 1984. p. 12. "New Direct Mail Boosts Tampa Cable Sales by 80%.“ thln.lh13£llnn. January. 1988. p. 10. 7 Ellis Simon. “Cable System Profile: American Cable of Phoenix.“ gable MaLketing. January. 1988. p. 48. 8 Russell. ”Marketing the options." p. 64. 9 Ibid.. p. 62. 10 Ibid.. p. 66. 11 Ibid.. p. 87. 12 Ibid.. pp. 38-39. 17 18 13 Ibid.. pp. 57-56. 14 Donald Agostino. "Cable Television's Impact on the Audience of Public Television." Journal 2; Broadcasting. 24:3 (Summer 1980): 347-68. 18 Carrie Heeter and Bradley Greenberg. "Cable and Program Choice.“ in fiat:2Lan.EnnnzuLa.in gunmanisatign. ed. Dolf Zillman. (Hillsdale. New Jersey: Lawrence Erlbaum Associates. in press). 18 Vernone M. Sparkes. "Public Perception and Reaction to Multi-Channel Cable Television Service." figurnal 21.nLnadsaatina. 27:2 (Spring 1983): 163-78. 17 Vernone M. Sparkes. “The People Who Don't Subscribe to Cable Television: Who and Why?" paper presented at the annual conference of MAPOR. Chicago. 1983. pp. 8-7. 18 Television Audience Assessment. Inc.. In: .Mnltishannai.Enlitgnmanti A Studx.2f.111111112n liazinn.1n Inn Cable Mllhgil (Cambridge. Massachusetts. (1983)). pp. i-iii. 19 Janay Collins. Joey Reagan. and John Abel. "Predicting Cable Subscribership: Local Factors." lgglngl 21,3121121111ng. 27:2 (Spring. 1983): 177—83: James G. Webster. "The Impact of Cable and Pay Cable Television on Local Station Audiences." 1211n11_ 21, ELQLQQLLLLEQ. 27:2 (Spring 1983): 119-26. 20 Collins. Reagan. and Abel. ”Predicting Cable Subscribership." p. 183. 21 Dean M: Krugman. Richard V. Ducey. and Donald Eckrich. ”Market Composition and CabLe Television Use.“ (TeleCabIe Corporation. (1980)). pp. 4-8. 22 Ibid.. p. 6. 23 Carol S. Mackey and Tim Burbott. "Disney Subscriber Study." (Madison Heights. Michigan: Continental Cablevision of Michigan. Inc.. (1984)). 19 24 Carol 5. Mackey et al.. "Rebuild Analysis." (Jackson. Michigan: Continental Cablevision of Michigan. Inc.. (1984)). 28 The Cable/Video Research Center. "Segmentation Study of the Urban/Suburban Cable Television Market.“ prepared for the National Cable Television Association. (Princeton. New Jersey: Opinion Research Corporation. (1983)). p. 3. 26 Ibid. 27 Ibid.. pp. 11-12. 28 Ibid.. pp. 13-19. 29 Dean Gilbert. Moderator. "Sales Management Workshop." (Perrysburg. Ohio: Continental Cablevision. Inc. (1983]). p. 80. 30 led-e pp. 30-35. 31 Interview with George Thorry. Continental Cablevision. Inc.. Boston. Massachusetts. 24 April 1988. 32 Donnelly Marketing Information Services and Simmons Market Research Bureau. Inc.. "The Marketing Resource of the 80's: ClusterPlus." ([1983]). p. 2. 33 Ibid.. pp. 1-2. 34 International Communications Research. "A Summary of the 1984 lCR/NCTA Cable Satisfaction Study." prepared for the National Cable Television Association. (New York. I1964IJ. p. 1. 33 Ibid. 36 Ibid.. p. 4. 37 Ibid.. pp. 11-12. 36 39 Ibid.. Ibid.. pp. p. 18-19. 6. 20 CHAPTER III METHODOLOGY Individual cable systems. generally small. tend to be "market-specific“ in nature. Data on the national scale is not very useful for exploration into local penetration and subscriber characteristics. Therefore it is recommended that particular studies be conducted in areas that are coextensive with a cable company's service area. This geographic limitation will facilitate the ability of firms to make specific proposals from a sounder base than if several markets were included in an ascertainment. The research reported here is focused on assessment of non-subscribers in each of three small suburban cable systems in southern-central Michigan. all of which are owned and operated by Horizon Cablevision. WW Horizon Cablevision. Inc.. operating from offices in Charlotte. Michigan. was formed in May. 1981 to obtain franchises from municipalities to build and operate cable television. Each of the systems the company has constructed has a 38 channel capacity with 23 channels currently programmed. A detailed outline of Horizon’s programming for each system is in appendix A. 21 22 Early in 1984. Horizon Cablevision was beginning to feel the pressures of slipping penetration rates and felt that marketing efforts in each of their communities had become necessary. Horizon had used virtually no marketing in any of the systems since initial contact with each community at the onset of construction. There was limited knowledge of the characteristics of their markets. and Horizon executives wanted to test a marketing program involving free installation and one free month of service for all non-subscribers in each of their three markets. MMNAMI Potterville/Dimondale System Horizon Cablevision. Inc. holds franchises for the City of Potterville. the Village of Dimondale. Windsor Township and Benton Township. These places are all in Baton County. Michigan: near the center of the state. approximately 18 miles southwest of the capital city of Lansing. A summary of population characteristics for each market can be found in appendix 8. This system began service in November of 1982 and expanded in June and July of 1983. Thirty-eight miles of plant (underground and aerial cable in place in the cable system) pass 1368 homes in this area and as of June. 1984 there were 880 subscribers. a penetration rate of 62 percent. The maximum monthly revenue per subscriber was 841.00. For a complete outline of Horizon's subscription rates in each system. see appendix C. 23 Saranac System Horizon Cablevision. Inc. holds franchises for the Village of Saranac. Boston Township and Berlin Township: all in Ionia County. Michigan: also near the center of the state. approximately 60 miles northwest of the state capital. This system began service in June of 1983 and there are 661 homes passed by nine plant miles. The Saranac system served 380 subscribers in June of 1984. a penetration rate of 83 percent. The maximum monthly revenue per subscriber was 841.00. as of the date of the study. Union City/Athens System Horizon Cablevision. Inc. also holds franchises for the Village of Union City. Union Township. Sherwood Township. the Village of Athens and Athens Township. Union City. Union Township and Sherwood Township are in Branch County. Michigan. at the center of the southern border of the state. The Village of Athens and Athens Township are located in Calhoun County. directly north of Branch County. This system began service in December of 1983 and expanded into the Athens area in June of 1984. In the Union City/Athens system there are 1331 homes passed by 28 miles of plant. As of June. 1984. there were 680 subscribers. a penetration rate of 81 percent. and the maximum monthly revenue per subscriber in this system was 488.80. 24 Universe 2; Non-Subscribers The relatively small size of each of these three cable systems made an assessment of the universe of non-subscribers in each market reasonable. This eliminated the need to sample for the research reported here. It required. however. complete. current. and accurate information from the company on which homes in the community were passed. and which were subscribers to cable. Maps of each of the communities/systems were provided by Horizon Cablevision. from which an outline of the system coverage was determined. For each of the systems. a list of current subscribers including addresses was also provided by the cable company. From this information. an alphabetical list of streets in the coverage area was developed and the house numbers of subscribers were listed on each street. These house numbers served as a list of those to avoid in the marketing campaign. 1111.51.11.11! Horizon Cablevision provided the resources with which to organize and conduct this entire project. A two- phase plan was designed to meet the objectives established by the company. Phase I An in-person interview (approximately 20 minutes in length) was developed to be given to every one of the non- subscribers available for contact in each market. Included with the administration of this interview was the offer of 25 free cable television installation and one month of free cable service (all channels provided by the system). Those respondents who completed the questionnaire and accepted the offer of free cable were labeled "Acceptors." and those who completed the interview but did not take the free service were called "Rejectors." Interviewers scheduled installation for “Acceptors” in accordance with timing and personnel provided by Horizon. Phase II For each of the respondents who accepted the free month trial of cable TV (“Acceptors”). a follow-up interview was administered to ascertain additional information as well as to learn to which. if any of the channels/services the respondent would like to subscribe. A 10-18 minute telephone interview follow-up was used to get a fast response and control costs. At the conclusion of this phase of the study. the participants who decided to keep cable on a monthly billing basis were labeled "Keepers." and those who did not subscribe were called "Drops." Interviewers recorded the channel/disconnect preferences of each respondent. This information was given to the cable company who handled billing. installation of traps (electronic devices used to regulate signals coming into a subscriber's home) for subscribers taking fewer than all services available. and pick-up of converter boxes from those households having service disconnected. 26 Questionngire Development Phase I The initial questionnaire was developed to introduce interviewers as representatives of Horizon Cablevision and. since these interviewers were all Michigan State University students. this association was used to encourage participation in the study. In order to meet the objectives stated previously by Horizon Cablevision. several general questions were used by this researcher as as a basis from which specific questionnaire items were written. They were: 1) What is the television viewing behavior of non— subscribers in each market. in terms of hours per day spent viewing. number of television viewers in the household. watching alone or with others. how many TV sets owned. and whether their primary set is Black 8 White or Color? (See items 1. 2. 3. 4. and 8. in appendix D: items 1. 2. 3. 4. and 8 in appendix E: and items 1. 2. 3. 4. and 8 in appendix P.) 2) What levels of satisfaction are indicated with existing television services: the variety and types of programming and networks available in their market? (See items 6 and 7 in appendix D: items 6 and 7 in appendix E: and items 6 and 7 in appendix P.) 3) How do these television viewers characterize TV programs (television in general) in a series of five-point bipolar scales? (See items 8A through 8J in appendix D: items 8A through 8J in appendix E: and items 8A through 8J 27 in appendix P.) This series of questions was placed on the third page of the questionnaire (with no other questions on the same page) which was identified by being a different color from the main body of the interview. The questionnaire was handed to the respondent with this page to be self- administered. The purpose of this was to create an atmosphere of participation. and to help eliminate fatigue for the respondent. 4) How would these non-cable subscribers evaluate various types of television shows. on a scale of zero to 10. in terms of personal enjoyment? (See item 9 in appendix D: item 9 in appendix E: and item 9 in appendix F.) 8) What are the major sources of television program information and what levels of importance are placed on the availability of complete and accurate television program listings (guides)? (See items 10 and 11 in appendix D: items 10 and 11 in appendix E: and items 10 and 11 in appendix P.) 6) What amount of media use other than television. e.g. newspapers. magazines and theater movies. is reported among these respondents? (See items 12. 13. and 14 in appendix D: items 12. 13. and 14 in appendix E: and items 12. 13. and 14 in appendix P.) 7) Have these current non-cable subscribers ever subscribed to cable television previously. and. if so. where did they subscribe and why was the previous service discontinued? (See items 18 and 18a in appendix D: items 28 18. 18a. and 18b in appendix E: and items 18. 18a. and 18b in appendix F.) 8) What are non-subscribers' reasons for not currently subscribing to cable television? (See item 16 in appendix D: item 16 in appendix E: and item 16 in appendix P.) 9) What are suggestions from these non-subscribers as to what would make cable more attractive to them? (See item 17 in appendix D: item 17 in appendix E: and item 17 in appendix P.) 10) How much exposure have respondents had to cable television in terms of watching with friends and relatives. receiving literature about cable TV. and being contacted by representatives of Horizon Cablevision. in particular? (See items 18. 19. 20. and 21 in appendix D: items 18. 19. 20. and 21 in appendix E: and items 18. 19. 20. and 21 in appendix P.) 11) What are the perceptions of cable television shown by non-subscribers in each market. in terms of why someone would pay for or subscribe to cable TV. installation price. monthly fee. and number of channels available? (See items 22. 23. 24. 28. and 26. in appendix D: items 22. 23. 24. 28. and 26. in appendix E: and items 22. 23. 24. 28. and 26. in appendix P.) 12) What awareness of cable television is shown by non-subscribers in terms of recognition of various existing cable channels? (See items 27A through 27L in appendix D: items 27A through 27L in appendix E: and items 27A through 29 27L in appendix F.) 13) What levels of importance are placed on various components of cable television. e.g. improved reception and movie channels. in terms of making cable more attractive to these non-subscribers? (See items 28A through 28? in appendix D: items 28A through 28? in appendix E: and items 28A through 28? in appendix P.) 14) What levels of interest are shown in various cable television channels and services (both existing and potential) offered by the cable company? (See items 29A through 29!. 30A through 30?. and 31A through all in appendix D: items 29A through 29K. 30A through 30?. and 31A through 31l in appendix E: and items 29A through 29K. 30A through 30?. and 31A through 31I in appendix P.) For the previous questions 13 and 14. a separate card was developed on which the possible responses to this series of questions was typed. On Sidg_A, were responses regarding importance. and on 54g; 3 were responses relating to interest levels. The purpose of this aid was again to create an atmosphere of participation for the respondent. as well as eliminate the need for the interviewer to repeat response categories often. (A copy of this "blue card“ is in appendix G.) 18) What are the demographic characteristics of each market area? (See items 32 through 42. and 44 in appendix D: items 32 through 40. and 42 in appendix E: and items 32 through 40. and 42 in appendix F.) 30 16) How much time is required to administer an interview of this nature? (See item 43 in appendix D: item 41 in appendix E: and item 41 in appendix P.) 17) Does the particular respondent accept the free trial offer. and what are the terms of such acceptance? (See last page in appendix D: item 43. and last page in appendix E: and item 43. and last page in appendix P.) Installation scheduling information was completed by the interviewer on the questionnaire. and repeated on the last page which was given to "Acceptors“ as a record of their participation in the study and their entitlement to the free trial. This last page was also a different color from the remainder of the questionnaire. as a reminder to the interviewer that it was to be given to the respondent. Phase II A second questionnaire was designed to provide a means for comparing television viewing behavior before and after cable. to determine preferences of cable channels/services among those who accepted the free trial. and to settle upon those services to which the respondent wished to subscribe. It was administered by telephone. and was only for those who had accepted free cable and had had this free service for thirty days. The same respondent who had completed the questionnaire from Phase I was requested in the introduction of this second interview. 31 As with the first questionnaire. several general questions were used as a basis from which specific questionnaire items were written. 1) What is the television viewing behavior among these “Acceptors” since they have had cable. in terms of hours per day spent viewing. amount of viewing compared to before cable. and watching alone or with others? (See items 1. 2. and 3 in appendix H: items 1. 2. and 3 in appendix I: and items 1. 2. and 3 in appendix J.) 2) How do “Acceptors" characterize cable television in the same series of five-point bipolar scales on which they characterized television in the first phase interview? (See items 4A through 4J in appendix H: items 4A through 4J in appendix I: and items 4A through 4J in appendix J.) 3) What are the major sources of cable television programming information used among these study participants. and what levels of importance are placed on complete and accurate program listings now that they have had cable television? (See items 8 and 6 in appendix H: items 8 and 6 in appendix 1: and items 8 and 6 in appendix J.) 4) Because theater movies were assumed to be a primary competitor for cable TV. what level of movie attendance do these ”Acceptors" report for the past month. i.e. the time they were receiving their free trial of cable TV? (See item 7 in appendix H: item 7 in appendix I: and item 7 in appendix J.) 8) What awareness of cable television is shown by these respondents in terms of recognition of various 32 existing cable channels? (See items 8A through 8L in appendix H: items 8A through 8L in appendix I: and items 8A through 8L in appendix J.) 6) What levels of importance are placed on various components of cable television. e.g. 24-hour programming and independent stations such as WTBS from Atlanta. in terms of making cable more attractive to these “Acceptors?” (See items 9A through 9? in appendix H: items 9A through 9? in appendix I: and items 9A through 9P in appendix J.) 7) Which channels do these television viewers remember watching since their exposure to cable TV. and which channels did they watch the most during the free trial period? (See items 10A through 10X. 11. and 12A through 12W in appendix H: items 10A through 10X. 11. and 12A through 12W in appendix I: and items 10A through 10X. and 11 in appendix J.) The question regarding how many days in a typical week each channel was watched was dropped from the Union City/Athens Phase II questionnaire at the request of the interviewers who felt it was too long and tedious to ask over the telephone. 8) What are the favorite channels of these "Acceptors?" (See item 13 in appendix H: item 13 in appendix I: and item 12 in appendix J.) 9) What levels of satisfaction are reported by these respondents with each of the specific pay channels received in the free trial (HBO. Cinemax. and The Disney Channel). the remaining basic channels as a whole. and the 33 service received from Horizon Cablevision? (See items 14 through 18 in appendix H: items 14 through 18 in appendix I: and items 13 through 17 in appendix J.) 10) What is most appealing about cable television to those who participated in this study? (See item 19 in appendix H: item 19 in appendix I: and item 18 in appendix J.) 11) What suggestions do "Acceptors" have for improving cable television? (See item 20 in appendix H: item 20 in appendix I: and item 19 in appendix J.) 12) Does the particular respondent want to become a cable subscriber (keep cable TV on a billing basis): if not. what is the primary reason and does the respondent anticipate or consider subscribing in the future? If so. which channels and services would the respondent like to keep? (See items 21 through 23 in appendix H: items 21 through 23 in appendix 1: and items 20 through 23 in appendix J.) For those respondents who became "Keepers." or new subscribers to Horizon’s service. the interviewer outlined monthly charges for the combination of services requested. This information. along with the name. address. and telephone number of the "Keeper“ was passed on to the company's billing department who added it to their records. 13) Finally. how much time is required to administer an interview of this nature? (See last item (un- numbered) on the final page in each appendix H: appendix I: and appendix J.) CHAPTER IV FINDINGS The data reported by the non-subscribers evaluated in this study were extremely consistent among the three systems studied. Potterville/Dimondale. Saranac. and Union City/Athens. Therefore. results will be reported for these three systems collectively (averages among systems) unless otherwise specified. Computgr nal is Collected data were analyzed on the Michigan State University CDC Cyber 780 computer. using the Statistical Package for the Social Sciences (SPSS). The SPSS subprogram FREQUENCIES was used to provide descriptive statistics and distributional characteristics of each of the variables 1 created. Subgroups g; Hog-Subsgrihgrs To complete a meaningful analysis of participants in this study. non-subscribers were divided into two sets of subgroups: 1) "Acceptors" and "Rejectors." and 2) "Keepers" and "Drops.“ "Acceptors” were the respondents who completed the in-person interview and. at the end of phase I. accepted the offer of free installation and free cable service for thirty 34 35 days. “Rejectors” were those who completed the phase I questionnaire. but did not accept the free trial. ”Keepers“ were the "Acceptors“ from phase I who. at the conclusion of phase II of the study. decided to keep cable service as paying subscribers. "Drops" were the ”Acceptors" from phase I. who. at the end of phase II. did not choose to keep cable on a billing basis. For the purpose of discussion in this analysis. these four subgroups were combined into two general subgroups of non-subscribers studied: 1) "Touchables." those who expressed an interest in cable television service (i.e. "Acceptors" and "Keepers"). 2) "Untouchables." the non-subscribers in one of these mature cable market systems. to whom marketing efforts have been applied. but who remain as non-subscribers (i.e. "Rejectors" and “Drops"J. MLWMWW In the Potterville/Dimondale System. of 818 non- 2 subscribers. 248 were interviewed. Interviewing in this system began June 28. 1984 and continued for three weeks. Monday through Thursday 4:00 until 8:00 p.m.. and Saturday 11:00 a.m. until 4:00 p.m. Installations in this area were scheduled from June 26. through August 31. 1984.3 In the Saranac System. of 311 non-subscribers. 79 were interviewed.‘ Interviews in this area began July 17. 1984 and were administered following a schedule similar to that used in the Potterville/Dimondale system. but lasted only two weeks. Installations in the Saranac area were 36 scheduled for July 18 through the end of September. 1984. The same type of scheduling was used for interviewing in the Union City/Athens system area as had been used in the two previous systems. Interviewing began August 13. 1984 and lasted four weeks: installations were scheduled from August 14 to December 18. In this system. of 681 non-subscribers. 288 were questioned.3 Interview Length Each interviewer was instructed to record on each questionnaire the length of that interview. This information was used to help schedule each phase of the project. The average interview length in the Potterville/Dimondale system was 22.1 minutes: in the Saranac system. 21.8 minutes: in the Union City/Athens system. 21.6 minutes. Acceptgnce g; the Free Trig; Offer The final item on each phase I questionnaire was an indication of whether or not the respondent accepted the offer of free cable installation and one free month of free cable service. As mentioned previously in this chapter. those who did choose to accept this offer were labeled "Acceptors." and those who did not accept were called "Rejectors.” Table 1 presents the breakdown of "Acceptors" and "Rejectors" in each system. 37 TABLE 1 NON-SUBSCRIBERS’ ACCEPTANCE OF THE FREE TRIAL OFFER ”ACCEPTORS" AND "REJECTORS" Acceptors Rejectors 511.1111 11 N 11 I! Potterville/Dimondale 86.3 138 43.7 107 Saranac 78.9 60 24.1 19 Union City/Athens 66.3 171 33.7 87 MHWWW In the Potterville system. phase II. the telephone follow-up of "Acceptors" from phase I consisted of interviews with 138 who had been exposed to cable service for thirty days.6 In the Saranac system. the follow-up of “Acceptors" from Phase I consisted of interviews with 60 who had been exposed to cable service for thirty days.7 In the Union City/Athens system. the follow-up telephone interview was administered to the 171 "Acceptors“ from Phase I who had been exposed to cable service for thirty days. These follow-up interviews were administered six days a week. Monday through Saturday. at various times during the day. For each follow-up interview. the same respondent who completed the phase I questionnaire was requested on the telephone. These interviews were completed on the thirty-first day after the respondent's installation. or the closest day after that the respondent could be 38 9 contacted. "Acceptors'" Attitudes Toward "Acceptors." those television service for thirty days. most appealing thing about ”Improved reception" were the each of the three systems in question. detailed by system. TABLE 2 ”ACCEPTORS'" WHAT IS MOST APPEALING cable able Television who had been exposed to cable were asked "What is the TV?" “Variety" and two most frequent responses in the study. are presented RESPONSES TO Responses to this in table 2. ABOUT CABLE Number of Responses Regponse Potterville/ Saranac Union City/ D_i.m_9_n.d_a_La Athens Variety 40 18 63 Improved reception 23 7 23 Movies 18 7 18 24-hour programming 10 7 12 No Commercials 8 1 3 More Channels 1 8 4 Specific channel - 2 9 More news 2 1 8 Nothing 8 - 1 No antenna needed 2 2 1 Entertainment 1 2 - PBS stations - - 2 a Miscellaneous 3 4 3 (one response each) N 128 88 143 39 a Miscellaneous responses included: "Children's programs:" “Keeps the family occupied:" ”International channels:“ “Local shows:“ and "Alternative to regular TV." Interviewers also asked each of these "Acceptors“ what they thought could be done to improve cable. Most suggestions focused on reducing repetitiveness. offering a cable guide. and lowering rates. "Nothing" was among the top three responses in each system. See table 3 for a summary of responses to this question. Mum The final portion of the phase II questionnaire consisted of determining whether or not each "Acceptor" wished to keep cable on a billing basis. Those keeping cable at this point were labeled "Keepers.“ and those discontinuing their experience with cable TV were called "Drops." At the end of the follow-up interview. in the Potterville/Dimondale system. 88 of the 138 "Acceptors" interviewed decided to keep cable on a billing basis. These "Keepers" made up 63.6 percent of respondents of phase II in this system. 80 respondents dropped cable. In the Saranac system. 81 of the 60 "Acceptors" decided to keep cable on a billing basis. These "Keepers" made up 88 percent of respondents of phase II in this system. Nine "Acceptors" did not keep cable. In the Union City/Athens system. of the 171 "Acceptors." 119 decided to keep cable on a billing basis. These "Keepers" made up 69.6 percent of those interviewed in 40 TABLE 3 "ACCEPTORS'" RESPONSES TO WHAT COULD IMPROVE CABLE Number of Responses 811.113.2111.: wmmm Dimondale. 8111:1111 Less repetitiveness 31 12 27 Nothing 20 8 33 a Lower rates 10 2 11 Offer cable guide 9 9 3 Remove objectionable programming 8 4 4 Offer specific channel or program 9 4 7 More movies 2 8 9 Offer more choice 4 - 3 More channels 2 1 2 Improve quality — - 3 Fewer commercials - - 3 Improve scheduling 2 - 1 b Miscellaneous 1 2 8 (one response each) N 101 47 123 a Two of these respondents said "Make it free." b Miscellaneous responses included: "Match channel numbers to those on regular TV:“ "Light numbers on the converter box:" "Improve customer service:" "Take down the wires:” and "Clean up the mess made in our yard." this system. 82 respondents had cable disconnected. Table 4 presents a breakdown of the channels kept by "Keepers" in each system. Those keeping cable at the end of phase II of the study were to be billed for the channels and services they 41 TABLE 4 BREAKDOWN OF CHANNELS KEPT BY "KEEPERS" Channel; Kgpt Potterville/ Saranac Union City/ Rimming Athena Basic only 8 9 14 Full Service (Extended Basic) 20 13 30 Basic + HBO 7 1 4 FS + H80 16 3 18 F5 + Cinemax 10 6 21 PS + Disney 2 3 4 PS + H80 8 Cinemax 19 7 12 F8 + HBO 8 Disney 2 2 8 FS + Cinemax 8 Disney - - 3 FS + H80 8 Cinemax 8 Disney 8 6 11 N 88 81 119 chose in accordance with Horizon's regular billing procedure and be added to the company's billing files. Those who decided not to keep cable at the end of their free trial were asked the primary reason they had for not continuing their cable service. The majority of responses among these "Drops" were related to expense. not watching enough TV. and moving. However. most of those not keeping cable TV at this point reported that they would subscribe in the future. In the Potterville/Dimondale system. 78 percent of those dropping cable said they would subscribe in the future. In Saranac. 100 percent of the "Drops" reported that they would be subscribers in the future. In the Union City/Athens system. 83.8 percent of those not keeping cable at the end of phase II of the study said they would subscribe in the future. A possible 42 explanation for these high percentages of respondents who said they would subscribe to cable in the future may be guilt felt by "Rejectors" about having accepted the free trial and not subscribing to cable at the end of the study. This might warrant discounting the percentages somewhat. D I' Q] I . l' £1 H ‘5 I .1 A major portion of the phase I questionnaire concentrated on demographic information. Interviewers asked questions of each respondent to solicit such information as: length of residence in the area. whether homes were owned or rented. marital status. household size. whether or not there were children in the household. highest level of education completed. age. occupation. place of work. working hours of both the primary and secondary wage earner in each household. and annual household income. Interviewers recorded the sex of each respondent and the type of housing (i.e. house or duplex. apartment or condominium. mobile home. or "other”) in which the respondent resided. A complete breakdown of non-subscribers’ demographic characteristics in each system can be found in appendix K. Much of the market research in cable has examined several primary demographic characteristics with which comparisons can be made. The demographic characteristics that were considered most salient in this evaluation were age. length of residence in the area. number of people in the household. whether or not there were children in the household. home ownership. education level. and income 43 level. As outlined in Chapter II of the research reported here. previous research in this area has shown cable subscribers to be younger. have larger households with children. have a higher percentage of home ownership. and have a higher annual household income than non-subscribers. Often. the relationship between level of education and cable subscribership has varied between being direct and inverse. If. in this study. "Touchables" are regarded as showing similar characteristics to those of cable subscribers. and “Untouchables" are regarded as being similar to non- subscribers in previous research. the results of this study are consistent with previous findings. except in the reported percentage of home ownership. "Touchables" (i.e. "Acceptors" and "Keepers") report lower age. shorter residence in their area. larger households with children. lower percentage of home ownership. and overall higher income than "Untouchables" (i.e. “Rejectors" and "Drops"). A curvilinear relationship in income levels between "Touchables” and "Untouchables" is suggested by the higher percentage of "Untouchables" than ”Touchables" in the lowest and highest income categories. In table 8 there is an outline of these characteristics by subgroup of non-subscribers in the study. No significance tests were performed on the data reported in table 8 because the frame of respondents was the universe of non-subscribers in each of the markets studied. 44 Satisfaction filth Existing I! Etogtamming Non-subscribers were asked to rate their level of satisfaction with television programming offered on the three major networks as well as that offered on channels other than the networks. Most of the respondents reported that they were at least somewhat satisfied with programming on the three major commercial broadcast television networks. and most also expressed at least some satisfaction with broadcast non-network television programming (e.g. independent television stations). Consistent with what might be expected. "Touchables” reported lower levels of satisfaction with existing network television programming than did "Untouchables." However. "Acceptors" and "Keepers" expressed slightly higher satisfaction than did "Rejectors" and "Drops" with non-network programming. This may be an indication that those who are more satisfied with network TV programming as it exists without cable are less likely to subscribe to cable television. See table 6 for satisfaction levels by subgroups. Enjoyment 2; Television Respondents were asked to rate their enjoyment of various types of TV programs. using a scale of zero to ten (low to high enjoyment). In most cases. the average enjoyment ratings reported were higher among "Touchables“ than "Untouchables." however. ratings for sports. news. and public broadcasting type programming (i.e. Documentaries. 45 TABLE 8 DEMOGRAPHIC CHARACTERISTICS BY SUBGROUP Characteristic Acceptors Rejectors Keepers Drops Age 36.9 38.3 38.2 83.4 Length of Residence 18.4 12.2 13.8 39.0 (years) Household Size 2.99 3.14 2.90 2.38 Children in NH 46.2 86.0 48.0 17.0 N Yes Housing Status N Own 86.9 82.4 62.0 80.4 N Lease or Rent 43.1 47.6 38.0 16.2 Education Level N Less than HS 17.4 16.7 19.1 19.8 N H8 Graduate 46.8 80.0 48.6 36.2 N Some College 22.3 21.9 21.1 27.0 a N College Grad + 10.2 9.8 14.3 17.2 b N Other 1.3 1.6 0.0 0.0 Annual HH Income N < 918.000 43.9 41.9 47.3 46.9 N 818K-828K 28.7 30.4 26.8 17.1 N 828K-838K 13.3 13.9 9.7 20.0 N 838.000 + 14.1 13.9 16.8 16.0 a This category includes post graduate work (e.g. Master’s and/or Ph.D.) b “Other" included "Technical school" and “Special courses." 46 TABLE 6 SATISFACTION WITH EXISTING TV PROGRAMMING Satisfaction Level Acceptors Rejectors Keepers Drops a Network Programming N Satisfied 79.8 80.1 84.8 77.8 N Not Satisfied 20.8 19.9 18.2 22.8 Non-Network Programming N Satisfied 91.6 91.9 89.1 87.0 N Not Satisfied 8.4 8 1 10.9 13.0 NOTE: These questionnaire items asked respondents to rate their satisfaction within four categories: very satisfied. satisfied. somewhat satisfied. or not satisfied. For simplicity in reporting. the categories were collapsed into satisfied and not satisfied. a No one in the Saranac system reported being "very satisfied“ with network programming. Theater on TV. and Local 8 Community Shows) were often higher among "Rejectors" and "Drops" than among "Acceptors" and "Keepers.” The most diversity in enjoyment expressed between groups was with rock music shows. cartoons. and reruns of old series. in which "Touchables" reported higher enjoyment than did ”Untouchables.” Table 7 shows the average enjoyment ratings given (across systems) by subgroup. EXRQLRLL L2.QAEL1 Islaxisien Over 90 percent of the respondents in each system indicated they have a friend or relative with cable. and most of the non-subscribers interviewed reported having 4? watched cable with a friend or relative. Most interviewees said they had received literature about cable television. but most had not been contacted by Horizon Cablevision. There were lower percentages among "Acceptors" and “Keepers" than among ”Untouchables" who said they had received literature about cable and who reported having been contacted by Horizon. This leads one to conclude that the untouchable non-subscribers interviewed in this study who reported higher exposure to cable literature and Horizon Cablevision had already decided not to subscribe to cable before this study began. and the "Touchables" were less likely to have made any decision about cable. When questioned about why they thought someone would pay for cable television.10 most of the respondents mentioned variety. entertainment. and more movies as perceived motivation. Responses to this question are outlined in table 6. The responses to this open-ended question were not broken down between subgroups of non- subscribers in this study. Respondents were asked to estimate the installation fee for cable. as well as the average monthly fee. Although interviewers did not ask the question of respondents. they did note on the questionnaire if the respondent distinguished between basic and pay services when estimating the monthly fee for cable. Respondents were also asked to estimate the number of channels they could receive if they 48 TABLE 7 AVERAGE ENJOYMENT RATINGS OF TV PROGRAMS Program Type Acceptors Rejectors Keepers Drops Old Movies 7.08 7.08 6.64 6.66 a New Movies 6.02 6.24 6.60 4.88 Sports Events 4.60 4.72 4-43 5.79 National News 8.94 5.71 6.08 7.82 b State News 6.14 6.53 6.74 6.84 b Local News 6.42 6.28 6.39 6.63 b State 8 Local News 6.78 6.82 6.71 8.46 Weather 6.98 7.21 7.10 7.84 Soap Operas 3.86 4.38 4.21 2.87 Talk Shows 4.30 4.10 8.32 4.31 Situation Comedies 5.94 8.98 6.40 8.04 Action-Adventure 6.77 6.80 6.97 6.18 Religious Shows 3.78 3.71 4.39 4.62 Documentaries 8.67 8.49 8.46 6.83 Game Shows 4.42 4.63 4.87 4.79 Rock Music Shows 3.98 4.18 8.38 1.79 Classical Music Shows 2.97 3.08 3.18 2.61 c Jazz Music Shows 2.96 2.82 2.59 2.94 c Country Music Shows 8.83 8.58 8.50 8.42 Science Shows 8.22 4.98 4.99 8.22 Dance Shows 4.12 4.29 4.28 3.24 Theater on TV 4.72 4.77 4.38 8.01 Cartoons 4.81 5.15 4.81 2.34 Local 8 Community Shows 4.07 4.28 4.86 4.26 Reruns of Old Series 5.03 8.12 4.78 4.22 Shows about Health 8.88 8.65 5.31 5.48 Shows about Business 3.92 3.81 4.82 3.97 Shows about Government 4.08 4.16 4.40 4.88 d Shows about Schools 4.47 4.32 4.11 3.90 Stock 8 Commodity News 2.24 2.11 2.88 2.28 NOTE: The changes noted resulted from suggestions by interviewers who were in constant contact with respondents and reported problems with respondents' understanding of the questionnaires. 49 a "Contemporary” was changed to "New" to make the category more understandable for respondents b State News and Local News were combined because they are usually combined in newscasts on local TV channels. Ratings for the separate categories "State News" and "Local News" are from Potterville/Dimondale only. and ratings for "State 8 Local News" are averaged across the Saranac and Union City/Athens systems. c "Jazz" was changed to "Country" because country music seemed to be more oriented to the lifestyle of the respondents. “Jazz Music Shows'" ratings are from the Potterville/Dimondale system only. and ratings for "Country Music Shows" are averaged between Saranac and Union City/Athens. d This category was dropped after the first system survey because many non-cable subscribers did not understand this type of programming. Therefore. ratings for "Shows about Schools" are from the Potterville/Dimondale system only. had cable. Average estimates among all non-subscribers were very realistic. As might be expected. those who had had previous exposure to cable came closer in their estimates to the actual. In addition. "Touchables" reported a higher incidence of distinction between basic and pay channels when estimating the average monthly fee for cable. The results do not permit the conclusion that rejecting cable is attributable to misinformation about costs and underestimation of the number of channels offered. The results are summarized in table 9. Horizon Cablevision often offers free installation as an incentive to subscribe. and in the Potterville/Dimondale and Union City/Athens systems. several respondents estimated no installation fee. However. in the Saranac system. the lowest installation fee estimate was 50 TABLE 6 NON-SUBSCRIBERS' RESPONSES TO WHY SOMEONE WOULD SUBSCRIBE TO CABLE TELEVISION Number of Responses 0 se Potterville/ Sglgggg ggigg City; DimendaLa Alnznl Variety 41 19 74 Entertainment 36 8 28 More movies 31 9 24 They watch a lot of TV 21 6 19 It's an alternative to regular TV 16 7 18 Better quality programs 24 6 18 Better reception 10 4 18 More channels 9 6 8 More sports 8 2 3 Fewer commercials 7 3 2 24-hour programming 8 - 1 It's affordable 2 1 8 To get a specific channel or program 2 1 8 They like it 1 1 8 They have time to watch TV - 3 3 They want it 1 1 2 Everyone else has it 2 - 1 Adult programming 2 - 1 a Miscellaneous 6 1 7 (one response each) N 227 78 239 a Miscellaneous responses included: "It's an alternative to a dish:" “Don't have to have an antenna:" That's the only way to get it:“ "It's cheaper than the movies:" “Beats the hell out of me:“ etc. 88.00. This may be an indication that Horizon's offers of free installation are not as well known in Saranac as in their other system areas. 51 TABLE 9 PERCEPTIONS OF CABLE TV SERVICES AVERAGE ESTIMATES Service Acceptors Rejectors Keepers Drops Installation Fee 833.07 834.24 828.88 833.96 Average Monthly Fee 821.18 822.91 819.04 819.82 N Distinction made between Basic 8 Pay 41.2 48.2 43.8 16.8 Number of Channels Received with Cable 20.2 19.8 20.9 20.2 wmmwmm Non-subscribers were asked to rate their interest (not interested. somewhat interested. interested. or very interested) in various basic cable channels.11 Although the specific channels were not named. a generic explanation was given of each channel's programming services (e.g. Continuously updated National and International News. 24- hours a day (CNNJJ. Table 10 shows interest reported in these basic channels broken down by subgroup. Similar questions to those asked about basic cable channels were asked about six pay-cable channels.12 For each of these six pay channels. the name of the channel was read to the respondent: this was followed by a description of the channel's programming. Table 11 shows interest levels. by subgroup. in each of the pay channels listed. 32 TABLE 10 INTEREST SHOWN IN BASIC CABLE CHANNELS Channel N At Least Somewhat Interested Acceptors Rejectors Keepers Drops Lifetime 86.3 89.8 82.2 70.4 The Weather Channel 86.2 94.8 81.2 77.0 WON 84.8 88.8 79.1 86.7 WOR 80.9 80.6 78.3 84.6 CNN 79.9 90.7 76.3 75.8 WTBS 78.8 83.2 74.3 46.7 Public Access 78.8 87.8 78.0 62.0 CBN 78.2 87.1 74.8 61.2 BET 87.4 61.4 88.6 37.8 C-SPAN 43.4 88.2 41.0 39.6 FNN 29.2 41.3 24.0 26.2 TABLE 11 INTEREST SHOWN IN PAY-CABLE CHANNELS Channel N At Least Somewhat Interested Acceptors Rejectors Keepers Drops Home Theater Network 93.6 97.1 91.0 68.7 Showtime 90.9 96.2 90.2 62.8 The Disney Channel 88.6 98.0 87.6 88.3 Pro Am Sports System 68.2 78.7 68.0 89.8 Bravo 87.4 63.2 87.7 46.2 The Playboy Channel 87.0 70.4 83.0 23.0 Respondents were next asked to rate their interest 13 in nine extra. optional cable services. A summary of the results is presented in table 12. 33 Overall. ”Touchables” reported higher interest than "Rejectors" and "Drops“ in each of the channels and services listed. The greatest differences between groups in interest levels expressed were in Independent stations (i.e. WTBS (Atlanta). WGN (Chicago). and WOR (New York): The Playboy Channel: Video Games Network. Home Banking and Home Shopping. In these instances. "Acceptors" and "Keepers" were much more interested in the particular channel or service than were ”Untouchables." Possible explanations for TABLE 12 INTEREST SHOWN IN EXTRA/OPTIONAL CABLE SERVICES Service N At Least Somewhat Interested Acceptors Rejectors Keepers Drops Cable Guide with Complete Listings 98.1 98.1 92.1 66.8 Discounts on Retail Merchandise 81.6 91.6 80.4 49.2 Closed Circuit Special Events 78.8 91.2 74.0 48.4 Remote Control Channel Selector 78.1 86.0 72.8 80.0 Home Security/Alarm 69.7 72.7 66.2 82.8 Additional FM Stations 68.8 86.2 63.0 43.6 Home Shopping 87.4 66.8 46.8 28.3 Video Games Network 86.0 74.4 48.8 24.6 Home Banking 81.3 87.4 40.0 27.7 34 these differences include the fact that these towns are all located in remote areas. are considered very conservative. and have significant numbers of Senior Citizens rooted in their communities. Programming concentrating on sports and news from an area far away may not be appealing to many in these small towns. The Playboy Channel has been controversial in many areas. and has not realized high acceptance rates in more conservative communities. Many Senior Citizens. especially in small towns. use their banking and shopping as ways to socialize. and may feel threatened by the invasion by TV on these occasions. A further influence may be the confusion interactive television services bring to many older viewers. WWW In phase I of the study. most respondents reported watching 2-4 hours of television during a typical weekday. The average individual weekday viewing reported across systems was 4.31 hours per day. In the Potterville/Dimondale system. average reported individual weekday viewing time was 3.33 hours. In Saranac. 4.84 hours was the average reported individual viewing time per day. and in the Union City Athens system. individual non—subscribers reported viewing an average of 8.02 hours during a typical weekday. In the Potterville/Dimondale system. reported individual TV viewing was lower than the Nielsen average reported for November 1984 (4.38 hours per day). In Saranac and Union City/Athens systems. reported individual viewing was above 33 14 the Nielsen average. The increase in reported viewing time from the Potterville/Dimondale system to the Saranac system. and from the Saranac System to the Union City/Athens system may be explained by the starting dates of phase I of this study in each area. It has been shown that TV viewing is lower during the summer months than in any other months of the year.is This study began in June in Potterville/Dimondale. in July in the Saranac system. and in August in Union City/Athens. Across systems. there is a reported average of 2.67 TV viewers. and 1.63 TV sets per household. Most of the non-subscribers interviewed indicated that they watch color sets rather than black 8 white. and most respondents reported that they usually watch television with others rather than alone. "Acceptors." in phase II of the study. reported watching an average or 8.41 hours of television on a typical weekday. slightly more than an hour increase over phase I reports. A possible explanation for the reported increase in viewing since phase I may be the presence of cable in the household (cable subscribers have reported watching more television than non-subscribers). A further explanation may be the time of year. It would probably be inaccurate to attribute the increase entirely to the exposure to cable TV provided to "Acceptors" in this study. In phase II of the study. most "Acceptors" said they had watched more television since they had had cable. and most indicated that they watch cable TV with others rather 36 than alone. In table 13 is a detailed presentation of the television viewing behavior and environment of subgroups of non-subscribers within this study. TABLE 13 TELEVISION VIEWING BEHAVIOR/ENVIRONMENT Subgroup Phase I Phase II Average Hours of TV Viewing on a Typical Weekday Acceptors 4.61 Keepers 4.83 8.87 Drops 4.17 4.98 Rejectors 3.89 Reported TV Viewing Since Cable N More N Less N Same Keepers 63.8 2.4 34.3 Drops 40.3 3 0 86.7 Average Number of TV Sets per Household Acceptors 1.63 Keepers 1.66 Drops 1.83 Rejectors 1.65 Usually Watch TV Alone or With Others N Alone N W/Others N Alone N W/Others Acceptors 27.0 76.7 Keepers 27.8 78.8 28 9 74 1 Drops 24.? 81.0 13 8 86 2 Rejectors 33.8 69.8 37 thtggtetizgtion g; Television/Cable Television In phase I of the study. respondents were asked to 16 characterize TV programs (television) in general using a self-administered set of five-point bipolar scales. When characterizing television in general. across systems. most respondents found them: more "interesting" than "boring:" more "important" than "not important:" more "relaxing" than "exciting:” more "not confusing" than "confusing:" more "pleasant" than "unpleasant:" more ”good“ than "bad:“ more ”violent" than "gentle:" more "repetitive" than “varied:" more "commonplace“ than "unique:" and more "influential" than "not influential." In the Union City/Athens system there was one deviation. from this characterization expressed across systems: respondents reported television to be more "boring" than “interesting." Using the same set of five-point bipolar scales as was used to characterize television in phase I of the study. respondents in phase II were asked to characterize cable television. When characterizing cable television in general. most “Acceptors" found them: more "interesting” than ”boring:" more "important" than "not important:" more "relaxing" than “exciting:” more "not confusing” than "confusing:” more “pleasant" than “unpleasant:" more "good" than "bad:“ more ”violent” than "gentle:“ more "varied" than “repetitive:“ more “unique“ than “commonplace:" and more "influential“ than "not influential.“ 58 In the characterization of cable television. two deviations from the norm were discovered. In the Potterville/Dimondale system. cable television was characterized as more "repetitive" than “varied." and in Saranac cable television was reported to be more "gentle" than "violent." Ratings for the characterization of cable television were found to be more extreme than those for television in general (i.e. mean scores fell farther away from 3. the middle score): "Keepers" were more positive on every dimension than were the "Drops." For the most part. “Keepers" reported an improved impression of television over the one month free trial of cable. while the "Drops" showed little change. See table 14 for a listing of the average characeterization ratings for television and cable television. detailed by subgroup. Wimmmmummmm Among the three system areas in the study. and between phases I and II. there was little consistency in reported primary sources of television and cable television program and schedule information. In the phase I interview. the two most frequent responses were the newspaper and I1 9114; magazine. but the primary source between those two varied between systems. Other sources reported were: word of mouth. radio. and changing channels. In phase II. responses regarding the primary source of cable television 39 TABLE 14 CHARACTERIZATION OF TELEVISION/CABLE TELEVISION MEAN SCORES Subgroup Phase I Television Phase II Cable Television Boring to Interesting Acceptors 3.34 Keepers 3.84 4.00 Draps 3.32 3.48 Rejectors 3.28 Unimportant to Important Acceptors 3.38 Keepers 3.64 3.50 Drops 3.88 2.87 Rejectors 3.46 Exciting to Relaxing Acceptors 3.63 Keepers 3.73 3.80 Dr0ps 3.88 3.42 Rejectors 3.69 Confusing to Not Confusing Acceptors 4.07 Keepers 4.15 4.17 Drops 3.86 3.63 Rejectors 3.00 Unpleasant to Pleasant Acceptors 3.83 Keepers 3.68 3.98 Drops 3.89 3.89 Rejectors 3.48 60 Subgroup Phase I Television Phase II Cable Television Bad to Good Acceptors 3.42 Keepers 3.68 4.07 Drops 3.49 3.59 Rejectors 3.18 Violent to Gentle Acceptors 2.88 Keepers 2.67 3.11 Drops 2.86 2.77 Rejectors 2.49 Repetitive to Varied Acceptors 2.43 Keepers 2.82 3.19 Drops 2.58 2.89 Rejectors 2.60 Commonplace to Unique Acceptors 2.80 Keepers 2.49 3.14 Drops 2.90 2.99 Rejectors 2.22 Not Influential to Influential Acceptors Keepers Drops Rejectors .62 .68 .71 .41 menace: 61 information included the newspaper. 11 Guide magazine. and the packet of channel/program information given out by 17 . interviewers. The availability of the cable-system- supplied listings seems to have reduced the reliance upon newspapers and 11 Guide. Again. among systems. these primary sources listed appeared in varying order. Across systems. when reported collectively. the newspaper was reported to be the primary source of television and cable television information for respondents. In phase I. and in phase II. most non-subscribers said complete and accurate program listings were at least somewhat important. As might be expected. this level of importance increased within all subgroups from phase I to phase II. See table 15 for complete TV program information as reported by subgroup. magnum Non-subscribers interviewed reported having an average of one newspaper and just over two magazines delivered regularly to the household. Across all systems. theater movie attendance in the past month averaged just over one movie. Between subgroups in this study. ”Touchables" reported slightly fewer newspapers. and an average of one fewer magazines delivered regularly. ”Touchables“ reported substantially higher movie attendance than "Untouchables” in phase I of the study. and lower movie attendance in phase II. This may be an indication of the 62 / TABLE 15 TELEVISION/CABLE PROGRAM AND SCHEDULE INFORMATION Source of Program and Schedule Information Acceptors Rejectors Keepers Drops Phase I N Newspaper 42.0 39.6 48.8 48.4 N 11,9311; 33.0 36.3 24.9 29.1 N Other 25.0 24.8 29.4 28.6 Phase II N Newspaper 30.2 41.4 “119111.519. 26.5 11.4 N "Horizon Packet" 27.3 26.9 N Other 16.0 20.3 Importance of Complete and Accurate Listings Phase I N Important 88.8 91.8 85.2 74.9 N Not Important 11.8 8.2 14.8 28 1 Phase II N Important 96.0 91.0 N Not Important 4.0 9.0 movie orientation that many cable subscribers well as the fulfillment cable often provides for for more movies. Other media use is detailed in W 9.1. 9.19.12 sham—n01: In phase I of the study. interviewers cable television channels and recorded report. as the desire table 16. listed several whether of not the 63 TABLE 16 OTHER MEDIA USE Acceptors Rejectors Keepers Drops Newspapers 1.04 1.12 1.19 1.13 (average) Magazines 1.91 1.88 1.33 2.34 (average) Theater Movies Phase I 1.25 1.41 1.13 .64 Phase II .46 .60 respondents had ever heard of them. In phase II. "Acceptors" were given the same list of cable channels and the same question. Between phase I and phase II. all channels listed realized an increase in recognition. which may be attributable to the exposure to cable service all of the respondents in phase II had experienced. WTBS (the Atlanta superstation). Nickelodeon/Arts. and Lifetime gained the most recognition from phase I to phase II of the study. Table 17 provides a breakdown of channel recognition by subgroups between phases of the study. The number of channels recognized was greater for “Keepers” than for "Drops . II impottgncg g; Qabig Eegtgrgs In phase I. several features of cable television were listed for respondents who were then asked to rate how 64 TABLE 17 RECOGNITION OF CABLE CHANNELS Phase I N Yes Channel Acceptors Rejectors Keepers Drops HBO 97.8 97.8 99.4 88.1 Cinemax 90.2 91.1 88.7 71.9 The Disney Channel 83.0 84.8 80.5 67.2 CNN 78.6 79.8 78.8 89.6 MTV 77.2 78.3 81.1 51.1 ESPN 74.8 79.4 79.7 59.8 USA Network 89.2 87.9 64.2 38.4 Nashville 88.6 89.1 87.3 80.9 CBN 83.3 84.8 45.6 43.9 Nickelodeon/Arts 80.8 49.7 52.2 30.1 WTBS 47.3 80.8 48.0 33.9 Lifetime 16.8 16.8 18.8 13.8 Phase II N Yes Channel Keepers Drops HBO 99.3 97.8 Cinemax 98.6 93.7 The Disney Channel 98.0 98.2 CNN 91.2 88.1 MTV 90.0 66.0 ESPN 89.8 88.1 USA Network 88.7 73.3 Nashville 88.9 88.8 CBN 77.2 84.4 Nickelodeon/Arts 80.4 79.8 WTBS 84.0 72.7 Lifetime 50.6 38.4 NOTE: These are all channels that are carried on the Horizon system in each of the communities studied. 63 important each would be in making cable more attractive to them. The same features of cable. as given in phase I. were listed for "Acceptors“ in phase II. and they were again asked to rate the importance of each feature in making cable more attractive. Importance ratings in phase II were higher than the ratings in phase I for all of these features. Between subgroups. “Touchables“ gave 24-hour programming and more channels much higher importance ratings than did “Untouchables.“ The least difference expressed between subgroups was in News and Information channels. which is consistent with the high enjoyment and interest levels placed on these types of channels and programs by all subgroups in the study. Importance ratings are outlined in table 18. thlz Iaiaxisibn.!ianinn To guage "Acceptors'" viewing of the various cable channels available on their system. respondents were asked if they remembered watching each of the channels available on the system to which they had been exposed. “Keepers" reported relatively high viewing of H80. Cinemax. WGN. MTV. and Nashville. but lower viewing than “Drops” of CNN. CBN. and WOR. The details of recalled channel viewing are outlined in table 19. Satisfaction with Cable Interviewers asked ”Acceptors“ to rate their satisfaction (not satisfied. somewhat satisfied. satisfied. IMPORTANCE 66 TABLE 18 RATING OF CABLE FEATURES Phase I N At Least Somewhat Important Feature Acceptors Rejectors Keepers Drops Improved television 91.1 92.0 91.1 72.7 reception Entertainment 8 Info. 84.7 87.3 81.2 88.4 24—hours/day 30 or more channels 85.8 87.3 82.2 48.7 of TV Movie channels. such 84.6 87.6 82.0 83.9 as HBO Independent stations. 79.8 84.0 74.4 42.4 such as WTBS News 8 Info. channels 86.8 88.7 77.8 74.8 like CNN 8 TWC Phase II N At Least Somewhat Important Feature Keepers Drops Improved television 98.1 84.2 reception Entertainment 8 Info. 88.6 72.0 24-hours/day 30 or more channels 84.9 72.7 of TV Movie channels. such 88.1 74.2 as HBO Independent stations. 80.8 71.8 such as WTBS News 8 Info. channels 80.9 78.0 Iike CNN 8 TWC 67 a For simplicity in reporting. the categories used in this item (very important. important. somewhat important. and not important) were collapsed into at least somewhat important and not important. b In some cases. items in this list are abbreviated to fit into the table. or very satisfied) with each of the pay channels available to them on their cable system: H80. Cinemax. and The Disney Channel. Respondents were also asked to rate their satisfaction with the remaining (basic) cable channels as a whole. and their satisfaction with Horizon Cablevision’s service. Across all systems. the reported satisfaction in each of these areas was very high. Overall. close to 90 percent of ”Acceptors" reported to be at least somewhat satisfied with each of the pay channels. the remaining (basic) channels. and Horizon's service. Incidentally. in each of the three systems in the study. less than four percent of the respondents in this phase of the study indicated that they were not satisfied with the company's service. Consistent with what one might expect. "Touchables" expressed higher satisfaction with each of these areas of cable than did “Untouchables." This would seem reasonable considering the "Drops" are ones choosing not to subscribe to cable. Table 20 gives an outline of these satisfaction levels. Reasons for Not Subscribing t2 Cable Television All non-subscribers. whether they were "Acceptors" or "Rejectors." were asked "Why don't you presently 68 TABLE 19 RECALLED CABLE CHANNEL VIEWING N Remembered Watching Acceptors Channel Keepers Drops ESPN 31.6 38.0 CNN 26.4 36.2 WTBS 44.4 44.4 HBO 88.9 75.8 CBN 20.1 30.1 WGN 25.8 7.1 Local Access 6.8 4.8 The Disney Channel 86.5 88.3 Cinemax 80.3 73.3 Nickelodeon/Arts 21.6 27.9 USA Network 22.9 18.3 MTV 43.9 29.8 Nashville 26.3 18.8 Lifetime 14.5 9.7 WOR 9.4 22.8 WFSL 23.8 19.8 WILX 25.4 18.5 WLNS 26.0 14.7 WKZO 27.5 14.1 WOTV 28.9 21.6 WWMA 16.8 7.8 a WUHQ 27.2 24.1 WKARa 18.8 7.9 b WGVC 9.8 0.0 b WZZM 23.8 18.7 a These channels are available only on the Potterville/Dimondale and Union City/Athens systems. b ‘These channels are available only on the Saranac system. 69 TABLE 20 SATISFACTION WITH CABLE Channel(sJIService Keepers Drops HBO N Satisfied 93.3 80.8 N Not Satisfied 6.7 19.8 Cinemax N Satisfied 89.1 80.7 N Not Satisfied 10.9 19.3 The Disney Channel N Satisfied 98.4 93.1 N Not Satisfied 4.6 6.9 Basic Channels N Satisfied 98.2 94.6 N Not Satisfied 1.8 5.4 Horizon's Service N Satisfied 98.0 97.2 N Not Satisfied 2.0 2.8 subscribe to cable?" The majority of respondents gave replies related to expense and lack of interest in television. Table 21 shows a complete breakdown of responses. MMMW lute Likelx Ln.Suhacsibe.12.Qabie Respondents were asked what could be done to cable television to cause them to be more likely to subscribe. Most of the responses centered on lowering rates (some suggested making it free) and programming issues such as repetitiveness and specific offerings. The second most frequent response in all three systems was "Nothing." See 70 TABLE 21 NON-SUBSCRIBERS' REASONS FOR NOT CURRENTLY SUBSCRIBING TO CABLE Number of Responses Rwandan 81.11.1111 Too expensive 98 29 33 Haven’t gotten to it yet 18 8 38 Don’t watch enough TV 38 6 29 Not interested 16 3 19 Happy with TV as is 16 6 19 Kids watch too much 9 - - Don't like it 8 3 2 Seasonal viewing 7 1 7 Objectionable programming 6 8 3 Would watch more TV 4 6 3 Have poor quality TV 4 - 8 Have or want satellite dish 2 1 6 Too many repeats 2 1 - Can’t get a specific program 2 - 1 a Miscellaneous (one response each) a: \1 N .5 N 238 69 189 a Miscellaneous responses varied greatly: these included such responses as: "I have poor vision:" "I don't stay up late enough to watch it:" "Too many movies:" "Never thought about it:” etc. table 22 for a list of suggestions from non-subscribers as to what would increase the possibility they would subscribe to cable. £L£ll21£.§nhA£LL2LL2B.£2.982l2 The population of non-subscribers in any market area for cable television is comprised of those who have 71 TABLE 22 NON-SUBSCRIBERS’ RESPONSES TO WHAT WOULD MAKE THEM MORE LIKELY TO SUBSCRIBE TO CABLE Number of Responses D.i.m9.n.da.l_s. 21.11.1111. Lower rates 64 23 71 Nothing 41 17 57 Less repetition 13 5 17 Improve quality 7 6 3 More movies 11 2 9 Make it free 14 3 3 Remove objectionable programming Offer specific program or channel Give more choice Free installation More sports More channels More educational programs Send a salesperson More local shows More family programs More adult programs a Miscellaneous (one response each) a... Q N w wmwwwuuwwm luuuluwwu e-eI-OINO-efllbfllhm . a-e ‘3 N 200 70 193 a Miscellaneous responses included: "Improve reception:" “Make it stormproof:" "Offer a guide:" "Offer editing facilities:" ”Fewer commercials:" "Give lock-out box:" ”Offer it in winter only:“ etc. previously subscribed to cable television and those who have not. Marketers in the cable industry have. through research and experience. realized major differences between these two types of "accounts." These differences warrant 72 consideration when developing targeted marketing campaigns. In this study. the non-subscribers in each market have been divided into "Formers." those who report previous subscription to cable television. and "Nevers." the non- subscribers who have never subscribed to cable. Primary differences between these two types of respondents will be identified in this section. Results regarding “Formers” and “Nevers“ were extremely consistent among the three systems in this study. Potterville/Dimondale. Saranac. and Union City/Athens. Therefore. unless otherwise specified. data will be reported collectively. Also. "Formers’" reported characteristics that are similar to those of “Touchables.” discussed earlier in this chapter. and "Nevers“ reported characteristics that are similar to those of "Untouchables.“ Over two-thirds of the universe of non-subscribers in each system area had never subscribed to cable TV. Table 23 shows the percentage of "Formers" and "Nevers" in each system studied. Television Viewing Across systems. "Formers" reported watching more television than "Nevers:" average hours of viewing on a typical weekday reported were 4.44 hours and 4.29 hours respectively. Other Media Use The average number of newspapers. delivered regularly to the household. reported by both "Formers" and “Nevers" was just over one. "Formers" indicated an average 73 TABLE 23 NON-SUBSCRIBERS' PREVIOUS CABLE SUBSCRIPTION "FORMERS" AND “NEVERS” Sygtem N ”Formers" N ”Nevets" Potterville/Dimondale 31.0 69.0 Saranac 30.4 69.6 Union City/Athens 14.3 85.7 1.69 magazines delivered on a regular basis. "Nevers" reported 2.17 magazines. There was a substantial difference in reported theater movie attendance in the past month between these two groups. Consistent with expectations resulting from data reported by "Touchables" and "Untouchables." “Formers” reported seeing almost twice as many movies in the past month as "Nevers." Perceptions/Awareness of Cable As might be expected. those who had previously subscribed to cable television had perceptions of the services that were closer to the actual than did "Nevers." A higher percentage of “Formers” than "Nevers" reported recognition of cable channels listed in the study. Importance of Cable Features "Formers" reported higher levels of importance than "Nevers" placed on each of the features of cable mentioned in the interviews. The data reported between “Formers” and "Nevers" in this section of the study are very similar in degree of difference between subgroups to that reported by 74 ”Touchables" and "Untouchables“ in this study. Importance placed on News and Information channels barely differed between "Formers" and ”Nevers." Interest in Cable In most cases in which non-subscribers were asked to rate their interest in various cable channels and services. “Formers” expressed higher interest levels than did "Nevers." The two items in which this was not consistent were FNN (The Financial News Network) and CBN. Christian Broadcasting Network. The greatest differences between interest shown by "Farmers" and "Nevers" was in the superstations (WTBS. WGN. and WOR). The Playboy Channel. and Video Games. in which "Formers" expressed much higher interest than did ”Nevers. Demographic Characteristics Demographic characteristics between "Formers" and "Nevers" were extremely consistent with the previous research that has been reported as differences between cable subscribers and non-subscribers respectively. "Formers." in this study. reported lower age. shorter residence in the area. and larger households with children. However. reported income levels between these two subgroups were very similar. Table 24 presents an outline of these demographic characteristics between "Formers" and "Nevers." 73 Discontinuation of Previous Service The respondents who had subscribed to cable previously were asked why they had discontinued their service. In the Potterville/Dimondale system. 58.6 percent had discontinued their previous service because of moving. In the Saranac area. 62.8 percent disconnected because of moving. and in the Union City/Athens system. moving accounted for 86.1 percent of previous subscribers' discontinuation of service. Further research appears desirable on this point. It seems important to learn why so many of the previous subscribers. who reported moving as their reason for discontinuing service. have not reconnected in their current system. Factoring out those who had disconnected previous cable service because of moving. the main reason for discontinuing previous service was expense. Other reasons given included: "Too many repeats." "Didn't watch enough." "Not worth watching." "Didn't like it.“ and "Kids watched too much." Acceptance of the Free Trial Offer An important issue in this study is the number of former cable subscribers who accepted the free trial offer of cable television at phase I. As might be expected. more “Formers” accepted the offer than did "Nevers.” Across systems. 84.9 percent of ”Farmers" were also "Acceptors“ and 60 percent of the “Nevers” accepted the free trial offer. 76 TABLE 24 DEMOGRAPHIC CHARACTERISTICS OF "FORMERS" AND "NEVERS" Characteristic Formers Nevers Age 32.2 48.4 Length of Residence 7.29 22.0 in the area (years) Housing Status N Own 40 8 72.6 N Lease or Rent 89.2 25.9 N Other 1.6 Household Size 3.13 2.69 Children in the 89.4 31.4 Household (N Yes) Annual HH Income N < 818.000 43.2 43.9 N 818K-828K 26.8 25.2 N 825K-838K 16.8 15.2 N 838.000 + 13.8 18.2 Education Level N Less than HS 13.1 19.7 N HS Graduate 49.7 44.3 N Some College 25.1 22.4 N College Grad + 10.7 12.8 N Other 1.4 1.0 Subscription to Cable At the end of phase II "Formers" became “Keepers" This figure is somewhat of the study. by subscribing to cable lower than have 84.9 percent of again. expected. but may be explained by the low percentage “Formers” among respondents in the Union City/Athens system (14.3 percent). 10. cable at the end of the study. percent of The free trial "Nevers" subscribed seems to be 77 an excellent way to encourage these "Untouchables" to subscribe to cable television. In the Potterville/Dimondale system. at the end of phase II. penetration had been increased 7 percent: from 882 subscribers. or 62 percent. to 69 percent (938 subscribers). In the Saranac system. at the end of phase II. the penetration level was 61 percent (401 subscribers). an increase of 8 percent over the initial level of 53 percent (380 subscribers) when the study began. In the Union City/Athens system. at the onset of the project. 680 subscribers were reported. a penetration level of 81 percent. At the end of phase II. there were 799 subscribers reported (80 percent penetration): an increase of 9 percent. Table 28 presents a detailed outline of the penetration level activity during the two phases of the study. 78 TABLE 23 SUBSCRIBER/PENETRATION LEVEL ACTIVITY DURING THE STUDY Potterville! Saranac Union City/ Dimondale Athens 8. 2:. It )1 N 11 Homes passed 1388 661 1331 Subscribers (penetration) 8 Phase I 880 62% 380 53% 680 51% Non-subscribers 8 Phase I 515 311 651 Interviewed 8 Phase I 248 79 288 "Acceptors“ 8 Phase I 138 60 171 “Keepers" 8 Phase II 88 51 119 Subscribers (penetration) 8 Phase II 938 69% 401 61N 799 60% Increase: (penetration) Onset to Phase II 7N 8N 9N CHAPTER IV Reference Notes 1 Norman H. Nie et al.. Statistical Package tor the 512111 Sciences. (New York: McGraw-Hill Book Company. 1973). p. 181. 2 In each of the three systems. non-response within the universe of non-subscribers is attributed to households in which there was no occupant. no answer after three attempts. no adult respondent after three attempts. no television in the household. or refusals. Also. the number of responses to particular questions varied because of "Don't Know" responses and refused answers. Unless otherwise specified. the “N“ for this system varies between 228 and 248 respondents. 3 Most "Acceptors” were scheduled for installation the day following their interview. however. in come cases. respondents requested a later installation date. which was accommodated by Horizon Cablevision. 4 Unless otherwise specified. the “N" for this system varies between 69 and 79 respondents. 8 Unless otherwise specified. the "N" for this system varies between 216 and 288 respondents. 6 In the phase II. the number of responses to particular questions also varied because of "Don't Know" responses and refused answers. Unless otherwise specified. the “N" for this system. in phase II. varies between 129 and 138 respondents. 7 Unless otherwise specified. the "N" for this system varies between 86 and 60 respondents. 79 80 8 Unless otherwise specified. the "N" for this system varies between 146 and 171 respondents. 9 Requested installation dates from phase I were given to Horizon Cablevision. who tried to meet all dates as closely as possible. Interviewers were notified of any changes made in the requested dates so call back records could be adjusted. 10 The wording of this item was never changed in print. however. interviewers were instructed to ask "Why do you think someone would LRELQLLhi to cable television?" instead of ". . . pay . . “ 11 Horizon Cablevision systems in each community carry all of these channels except BET and C-SPAN. The channels listed in this item were considered. by Horizon executives. to be the basic cable channels that they would most likely consider deleting or adding if they were to restructure their service offerings in any system. 12 Horizon carries the Disney Channel in each of the three systems in the study. and has experimented with PASS in the Potterville/Dimondale system. Both of these channels have received very low subscription levels and will be considered. along with the other pay channels in this list. if service offerings are to be restructured. 13 At the time of this study. Horizon offered a remote control channel selector among its optional services in each system. The company has offered additional FM radio stations in the Saranac. Other services in this list are to be considered in possible service restructuring. depending on interest expressed by the respondents in this study. 14 “41:1me 1.9.8.. LC. Nielsen Company. Northbrook. Illinois. p. 8. 13 Ibid.. p. 6. 16 In this questionnaire item. "TV Programs" was changed to "Television" to make the question more understandable for respondents. The change was made after the administration of the interview in the Potterville/Dimondale system. 81 17 Each non-subscriber contacted in each system. whether or not that individual completed an interview. was given a packet containing Horizon Cablevision system information and various channel and (e.g. program HBO monthly program guide). information CHAPTER V DISCUSSION AND RECOMMENDATIONS Wflmm Horizon Cablevision established two primary objectives for the research and marketing study reported here. 1) Maximization of penetration levels in each of their three cable systems (Potterville/Dimondale. Saranac. and Union City/Athens) by acquisition of new subscribers from the non-subscriber population in each market area. Incorporated in this effort was the offer of free installation and free cable service for thirty days to each of the non-subscribers willing to participate in the study. 2) Collection of detailed attitudinal. behavioral. and demographic information about the non-subscriber population in each system area included in the study. At the conclusion of this project. Horizon considered both objectives achieved. Penetration Levels At the time this effort was undertaken. Horizon reported penetration levels of 62 percent. 83 percent. and 81 percent in the Potterville/Dimondale. Saranac. and Union City/Athens systems respectively. At the conclusion of the study reported here. the final subscription levels were 82 83 reported to be 69 percent. 61 percent. and 60 percent respectively. This reflects increases of 7 percent in the Potterville/Dimondale system. 8 percent in the Saranac system. and 9 percent in Union City/Athens. attributable to the free trial marketing technique incorporated in this study. Considering that the penetration rates for the three systems studied had been virtually stable for one to two years (from the time of turning on service to the time this study began). the increases resulting from this relatively short-term marketing effort are substantial. Non-Subscriber Market Information Data about a market can be found in bits and pieces from many different sources (e.g. Chamber of Commerce. Census reports. City Planning offices. etc.). however. these data are rarely in a form that is immediately usable for a cable company. From the research reported here. assessment of the non-subscribers in each of the market areas is complete. detailed. and customized to meet the needs of Horizon Cablevision. The company now has at its disposal a tool for use in developing marketing strategies and making business projections. Discussion In Chapter IV of this study. findings were reported from an extensive assessment of non-subscribers in each of the three communities in which Horizon Cablevision operates a cable system. Trends in television viewing behavior. 84 attitudes toward and perceptions of cable television were discovered among the general group of non-subscribers interviewed. as well as within subgroups of this population. Television viewing time reported by the non-cable subscribers in this study is close to the national average for individual viewers: higher among those who expressed more interest in cable television than among those who were labeled "Untouchables." Attitudes toward cable TV reflected a great deal of sensitivity to price and perceived value. The most common objections to cable television reported were expense. low value for the price. light television viewing. and a lack of interest in television. Perceptions of cable reported by the respondents in the study were generally realistic in terms of fees and number of channels available in the particular cable system in their area. However. reported awareness of cable channels and services among the non-subscribers in this study seems low. Most suggestions for making cable more attractive reflected a universal lack of knowledge of the existing availability of many of the particular items requested. For instance. common requests among non-subscribers regarding increasing the attractiveness of cable included offering specific. programming (e.g. educational. movies. and family programming). most of which is currently available. in abundance. on each of the Horizon systems. Many of the non- subscribers interviewed requested certain services or features of cable that are currently available to them (e.g. 83 remote control channel selector. parental guidance devices. local access facilities. etc.) through Horizon Cablevision. Most of the requests of non-subscribers studied are controllable. and most of the objections to cable should be easily overcome by Horizon. A concentrated effort by the cable company to consider seriously information presented by non-subscribers. and to educate these potential customers about cable service should result in objectives such as increased penetration being achieved. For requests and objections that are not controllable by the cable company. seeking alternatives to offer non-subscribers seems to be the best solution. For example. if a non-subscriber requests a television station or channel that is not available on the system (e.g. WKBD - Detroit). an examination of existing channels to find and offer one with similar characteristics to the requested service (in this case. possibly WSYM - Lansing) may well satisfy the potential subscriber. Of course. non-subscribers cannot be expected to. become readily. paying customers for a service they do not understand. perceive as a poor value. or feel will be unused. Horizon Cablevision and other system operators in the cable industry have a challenge in attempting to educate members of their markets. correct misconceptions existing among non-subscribers. and subjugate objections expressed by these potential subscribers. 86 Recommendgtions It is recommended that each market area be divided into segments of non-subscribers determined by the primary reason for not subscribing. or the principal objection to cable television (e.g. economic. objectionable content. etc.). Based on that segmentation. various marketing approaches can be designed and directed toward each of the groups. The focus of marketing to these groups should be on the benefits of cable. including attempts to overcome objections voiced by potential subscribers. For instance. to those who cannot afford cable (or think they cannot). the marketing information should emphasize how affordable cable is compared to other forms of entertainment (e.g. movies). and accentuate the "low monthly fee." Horizon Cablevision should stress its Discount Pay Plan. which offers a savings if the bill is paid before the fifth of the month. For those who object to content of cable TV programming. the focus of marketing should be on family- oriented programming. C-rated movies. educational and informational programming. These non-subscribers should be shown how much they can receive from cable that is not objectionable. Non-subscribers who have simply "not gotten around to" subscribing should be the easiest to sell. but contact should be initiated by the company. Aggressive marketing should have a high probability of success with these potential subscribers. Several recommendations for marketing to non- 87 subscribers in general have emanated from the research reported here. These include: identifying channels that have low recognition and low viewership and cross- advertising these channels on TV or cable channels that are more heavily viewed and more easily recognized by more viewers: looking for the highest enjoyment ratings for various types of programming and developing general marketing pieces that include emphasis on channels which provide these types of programming: examining the features on which most non-subscribers placed high importance (e.g. improved reception and 24-hour programming) and stressing these in service offerings. Assessing interests expressed in various cable offerings can give a good indication of what the market wants. For example. in each of the three markets in the study. high interest was reported in news and informational services. but virtually no interest was shown in financial news shows or services. The respondents in these markets showed high enjoyment of all types of news (i.e. national. state. and local news). weather and health shows. Among relatively weak interest levels expressed by "Rejectors." Lifetime. The Weather Channel. and CNN were strong. suggesting some possible areas for emphasis in remarketing. In addition. these non-subscribers placed a great deal of importance on news and information channels when they are outlined as features of cable. These characteristics grouped together can give the outline of a package of 88 channels and services to be presented to most of these non- subscribers. General recommendations for marketing programming to non-subscribers with specific demographic characteristics include: targeting family programming to larger households with children. and news. information and health programming to older singles or couples. Movies and music could be emphasized for younger non-subscribers. and for those in lower income brackets. focus could be on basic only service. The data collected can be segmented by single or multiple characteristics. There are virtually limitless combinations of responses to the questions in this study which could be used for developing marketing strategies. I' 'l I' In the research and marketing study reported here only one portion of the market for each cable system was studied: non-subscribers. This may limit the comparisons that can be made within the market. There is probably no way to achieve a 100 percent response rate to such a survey within the particular universe in any of the three markets. Lack of interest in the study. suspicion of door-to-door callers. and seasonal residence in the areas accounted. in part. for the low response rates among non-subscribers. Ideally. in a study of the type reported here. a mechanism would be developed by which retention of cable service by the subscribers acquired during the effort could 89 be tracked. In this particular project. no such plan was implemented because of limited time and resources. However. two to three months after the end of phase II of the study. in each of the three systems. Potterville/Dimondale. Saranac and Union City/Athens. Horizon's subscriber lists were examined to determine the number of subscribers and the penetration rate. In each of the three systems. a calculation was made at that time of the number of subscribers in excess of the number at the beginning of study. This increment of subscribers retaining service was attributed to the new subscribers acquired after the free trial because after three months. in each system. gains in penetration held up. Three months after the conclusion of the study. in the Potterville/Dimondale system. penetration was 67 percent. in Saranac penetration was 60 percent. and in the Union City/Athens system the penetration rate was 87 percent. These levels represent net increases of 5 percent. 7 percent. and 6 percent respectively. for the three systems. above the penetration levels at the beginning of the study. Whenever penetration and subscriber levels were reported in this research. subscribers. regardless of the type of service to which they subscribed (i.e. which combination of channels and services were received). were each considered one unit in the calculation of such levels. It was beyond the scope of this study to evaluate the subscription levels by individual service units such as Basic. Full Service. or particular pay channels. 90 The communities of Potterville/Dimondale. Saranac. and Union City/Athens are similar in terms of several geographic and demographic characteristics. as well as having cable systems operated by the same company. Horizon Cablevision. Although results of the study reported here among these three small suburban cable system areas were extremely consistent. these results may not be generalizable to larger cable systems or even small suburban systems operated by other cable companies or in other geographic areas. It is. however. encouraging to compare the results of this study to those of studies in similar areas throughout the country. recognize some basic consistencies. and see replication. Further. the replication of results across the three systems suggest that the free trial approach would be productive in similar markets. Interviewers used in the project reported here were all Michigan State University students. Although these students did go through an extensive training process for interviewing respondents. they were not trained to be professional salespersons or marketing representatives of Horizon Cablevision. Had professionals been used. the cable company may have experienced even greater increases in penetration levels than results from this project. Collecting market information (i.e. administering an interview during a direct call on a respondent as in the study reported here) allows less time with each potential customer to "make a sale." The direct. in-person calls made 91 to non-subscribers in the systems studied were designed to make an offer to the respondent and. without persuasion or encouragement from the interviewer. allow the non-subscriber to accept or not accept. On the other hand. the atmosphere created by the interview situation and the focus on all aspects of television viewing may have contributed positively to the results. Whether a harder sell. or the low key interview is most productive requires a direct comparison of the two approaches among randomly selected non-subscriber groups. With regard to the design discussed above. to increase the reliability of responses of the study. no contact between either Horizon Cablevision or interviewers and "Acceptors" was initiated between the two phases. In addition. no "Rejector" was re-contacted during the the project. In marketing and sales efforts developed by cable operators. without the aspect of research for academic reporting. subsequent contacts should be included. MW In the research and marketing study reported here. administration of interviews and scheduling installations in the three system areas was managed from a central location. East Lansing. Michigan. For this reason. the study may be atypical among marketing programs in terms of costs incurred. However. there are several expenses that any cable company should consider when undertaking a project of similar nature. The following is an outline of items for 92 which such costs should be considered. 1) Personnel Project Manager Salespersons/Interviewers Technical/Installers Accounting/Administration Customer Service 2) Fieldwork Long Distance Phone Calls Transportation Meals on Location 3) Data Processing 4) Supplies and Services Computer Time Materials Communications Secretarial Services Printing/Duplicating 8) Technical/Equipmenthffice Work Space Telephone Bank Equipment Converters/Cable (adequate inventory to accommodate all "Acceptors") Truck/Auto Office Equipment (Typewriters. Computer. etc.) 93 6) Programming Basic Services Pay Channels 7) Advertising Of course. the costs involved in the design and administration of a project of the type reported here could vary tremendously from system to system. depending upon the nature and size of the particular market. the extent to which market assessment is incorporated. and the type of programming/services included in a free trial offer. A research and marketing campaign of the magnitude that is reported here could be a very expensive undertaking for any cable operation. It is recommended that before initiating a project of this sort. a thorough evaluation of needs and objectives be made. No guarantees can be made for expected revenue increases to cover costs in such an effort. However. it is possible that in a study of this type. the more time. effort. and capital invested. the greater the return. in terms of information. revenues. and profits. SELECTED BIBLIOGRAPHY V I! SELECTED BIBLIOGRAPHY “Agostino. Donald. "Cable Television's Impact on the Audience of Cable Television." lgnLnaL 91 W. 24:3 (Summer 1980): 347-368. Baldwin. Thomas F. and McVoy. D. Stevens. 932i; ngmnniggtign. Englewood Cliffs. New Jersey: Prentice-Hall. Inc.. 1983. Baldwin. Thomas F.: Abel. John D.: and Ducey. Richard V. flgtLgnglitan ALLBL. Communication Technology Laboratory. College of Communication Arts and Sciences. Department of Telecommunication. Michigan State University. East Lansing. Michigan. National Science Foundation. \.Cable/Video Research Center. a division of Opinion Research Corporation. "Segmentation Study of the Urban/Suburban Cable Television Market.“ Paper prepared for the National Cable Television Association. Princeton. New Jersey. April. 1983. J Collins. Janay: Reagan. Joey: and Abel. John. "Predicting Cable Subscribership: Local Factors." lguLnai 21 filggggilting. 27:2 (Spring 1983): 177-183. Colvin. Geoffrey. "The Crowded New World of TV." Egttgne. September 17. 1984. pp. 182-64. Danowski. James A. "An Information Theory of Communication Functions: A Focus on Informational Aging." Ph.D. \/ dissertation. Michigan State University. 1978. Donnelley Marketing Information Services. and Simmons Market Research Bureau. Inc. “The Marketing Resource of the 80's: ClusterPlus." 1983. Ducey. Richard V.: Krugman. Dean M.: and Eckrich. Donald. “Predicting Market Segments in the Cable Industry: The Basic and Pay Subscribers." Jourgal g; Broadcasting. 27:2 (Spring 1983): 188-181. 94 93 Gilbert. Dean. Moderator. "Sales Management Workshop.“ Perrysburg. Ohio: Continental Cablevision. Inc.. (1983). Greenberg. Bradley 5.: D'Alessio. Dave: Heeter. Carrie: and Sipes. Sherri. “The Cableviewing Process." Paper presented at MAPOR. Chicago. Illinois. 1983. Hanson. David P. "An Analysis of Cable Television Subscribers and Non-Subscribers in East Lansing. Michigan." Master's thesis. Michigan State University. 1983. Heeter. Carrie. and Greenberg. Bradley. “Cable and Program Choice." in §£L££LL1£ 522211;: in. Communication. Edited by Dolf Zillman. Hillsdale. New Jersey: Lawrence Erlbaum Associates. in press. Heeter. Carrie: D'Alessio. Dave: Greenberg. Bradley 5.: and McVoy. D. Stevens. “Cableviewing.“ Paper presented at the International Communication Association Convention. Dallas. Texas. May. 1983. International Communications Research. "A Summary of the 1984 ICR/NCTA Cable Satisfaction Study.“ Prepared for the National Cable Television Association. New York. 1984. Krugman. Dean M.: Ducey. Richard V.: and Eckrich. Donald. “Market Composition and Cable Television Use.“ TeleCabIe Corporation. 1980. Krugman. Dean M.. and Eckrich. Donald. "Differences Between Cable and Pay-Cable Audiences." lgnLnal, 91 meadcastinn. 22:4 (August. 1982). Mackey. Carol 8.. and Burbott. Tim. "Disney Subscriber Study." Continental Cablevision of Michigan. Inc.. Madison Heights. Michigan. January. 1984. Mackey. Carol 5.: Thorry. George: Assiff. Judy: and Stern. Jeremy. "Rebuild Analysis." Continental Cablevision of Michigan. Inc.. Jackson. Michigan. February. 1984. “Manhattan Cable to Use TV to Combat Slow Period." Cable NaLkatinn. August. 1984. pp. 8. ”New Direct Mail Boosts Tampa Cable Sales by 80%." Cgble MALkaLLng. January. 1988. p. 10. Nielsen gegott 2g Teievision 1985. A.C. Nielsen Company. Northbrook. Illinois. 1988. ‘4 \4 96 Nie. Norman H.: Hull. C. H.: Jenkins. J. G.: and Brent. D. H. Wmmmmw 2nd ed. New York: McGraw-Hill Book Company. 1978. Russell. Sally. "Marketing the options: Probing effective approaches to marketing cable." Cablayisign. November 8. 1984. p. 56. Simon. Ellis. "Cable System Profile: American Cable of Phoenix." Cable Markating. January. 1985. p. 48. Sparkes. Veronne. "The People Who Don't Subscribe to Cable Television: Who and Why?“ Paper presented at the annual meeting of MAPOR. Chicago. Illinois. 1983. Sparkes. Veronne M. "Public Perception of and Reaction to Multi-Channel Cable Television Service.“ lgnlnal at BLnadcaLLLng. 27:2 (Spring. 1983): 163-178. "Switchout Yields 92 Percent Conversion of Ex-Spotlight Subs " Q2212.M213111BQJ August. 1984. p- 13. Television Audience Assessment. Inc. The Multichannel anLLcmmcnlc A .fitudx 21 Ic1211212n Xicninn in I12 Cabin MALLLLA. Cambridge. Massachusetts. (1983). Thorry. George. Continental Cablevision. Inc.. Boston. Massachusetts. Interview. 24 April 1985. Webster. James G. "The Impact of Cable and Pay Cable Television on Local Station Audiences.” lgnlnai at Blgaggajting. 27:2 (Spring 1983): 119-126. APPENDICI ES APPENDIX A 10 11 12 13 17 19 23 24 APPENDIX A HORIZON CABLEVISION PROGRAMMING WWW 292122222122 Entertainment and Sports Programming Network (ESPN) Cable News Network (CNN) WTBS (Independent) Atlanta Home Box Office (HBO)8 Christian Broadcasting Network (CBN) WGN (Independent) Chicago WUHQ (ABC) Battle Creek WKAR (PBS) East Lansing Local Access WFSL (Independent) Lansing WILX (NBC) Lansing wam (cos: Lansing”! 2112122221122 The Disney Channel8 Cinemax‘ Nickelodeon/Arts USA Network 97 98 2112111121 WM 28 Music Television (MTV) 26 Nashville Network 27 Cable Health Network**4 28 WOR (Independent) New York 29 WKZO (CBS) Kalamazoo 30 WOTV (NBC) Grand Rapids 31 WWMA (Independent) Grand Rapids 1 HBO. Cinemax and The Disney Channel are optional services upon request. *3 Changed call letters to WLNS. July 13. 1984. 88* Changed channel name to Lifetime after this study was completed. Channel AccinomcoLc 2 10 11 12 13 17 19 23 24 23 26 27 28 29 99 flaaig Eatvica Entertainment and Sports Programming Network (ESPN) Local Access wxzo (CBS) Kalamazoo Home Box Office (HBO)! WGVC (PBS) Grand Rapids WOTV (NBC) Grand Rapids Cable News Network (CNN) WTBS (Independent) Atlanta WWMA (Independent) Grand Rapids WZZM (ABC) Grand Rapids Christian Broadcasting Network (CBN) WGN (Independent) Chicago £211.8211122 The Disney Channel8 Cinemax‘ Nickelodeon/Arts USA Network Music Television Nashville Network WLNS (CBS) Lansing WILX (NBC) Lansing Lifetime 100 21111111121 We. 30 WOR (Independent) New York 32 WFSL (Independent) Lansingu * HBO. Cinemax and The Disney Channel are optional services upon request. *4 Changed call letters to WSYM. March 11. 1985. 10 11 12 13 17 19 23 24 23 26 27 28 29 101 WWW 8211282112122 Entertainment and Sports Programming Network (ESPN) Cable News Network (CNN) WTBS (Independent) Atlanta Home Box Office (HBO)* Christian Broadcasting Network (CBN) WGN (Independent) Chicago WUHQ (ABC) Battle Creek WKAR (PBS) East Lansing Local Access WWMA (Independent) Grand Rapids WOTV (NBC) Grand Rapids WKZO (CBS) Kalamazoo £11.LI.S.cu.i.22 The Disney Channel‘ Cinemaxfi Nickelodeon/Arts USA Network Music Television (MTV) Nashville Network Lifetime WOR (Independent) New York WLNS (CBS) Lansing 102 2111111221. 11221111111222: 30 WILX (NBC) Jackson 31 WFSL (Independent) Lansing** 8 HBO. Cinemax and The Disney Channel are optional services available upon request. 3* Changed call letters to WSYM. March 11. 1985. APPENDIX B APPENDIX B TEST MARKET CHARACTERISTICS EQIIQIEIIIQZDIEQBQBIQ System City of Potterville Bummnflmcbm 11211111118911 mmnmcumscucma WM Village of Dimondale mum Maxim mummmmm WM 103 1.302 489 24.4 821.339.00 3.07 7.1% 1.008 347 29.6 823.719.00 2.90 6.3% 104 Windsor Township 120.111.211.211 6.078 WQLW 2.029 11211111118112 33.0 WWW 825,284.00 Wfimmflousehold 2.89 W811: 6.6N Benton Township £22u1.a.t.i.cn 2.405 museum 74s 1111;111:1261: 28.3 WWW 422.794.00 WflMmt-iousahold 3.22 MM 8.8N System Averages Ana 28.8 MHMMW 3.02 MM 823,334.00 W821: 6.5N System Totals 120.111.111.211 10.993 maximum; 3.613 103 Saranac System Village of Saranac Wflflumm Hciian 822 M22122 822222212 122222 mummw Whig. Boston Township 19.211.111.122 WMW Medium M22122.H22222212 122222 N2m222 21.222212 22L 822222212 222221212221 8212 Berlin Township N2m221.21.fl2222h2122 N22122 822 11111222221.me unmmnl2xmcnt.8212 1.421 532 26.9 813.123.00 2.67 12.4% 3.681 1.236 27.9 818.416.00 2.89 9.6N 2.660 631 28.8 819.630.00 3.00 8.6% 106 System Averages 1111111221.an 0 Id flgnaanolg income 11.112111212111121118212 System Totals 11222222111221.202l22 27.9 2.83 817.604.00 10.2% 7.762 2.439 107 Union City/Athens System Village of Union City Egpnlation mnnmmm 112.21.228.22 WWW 11.11111112121me 11222212112201.8212 Union Township 112.221.21.12n 11221222218211.2222st 112111211822 Median Household lncomg NumbctufimLcmmcchMA W211; Village of Athens macaw 1121111111822 Maximum Wfificnfimflmccmm minimum 1.667 607 29.3 814.383.00 2.73 13.9% 2.918 1.017 29.3 816.631.00 2.86 12.8% 960 817.431.00 a 10.0% 108 Athens Township 12221221211 2,272 Mun-22.111211221111422 790 1422120222 32.0 maximum $19,519.00 mummw 2.88 mm 8.8% Sherwood Township 3.222.123.120 2,126 mum 729 112112111122 29.8 WWW 813,402.00 manmm 2.92 WM 18.6% System Averages b A22 29.5 b W31222J222211222220—12 2.85 flgnlgnglg [ncgme 816.213.00 21122111222211.1322: 12.2% System Totals b 2212111211211 9.943 b Mflw 3.142 SOURCE: U.S. Department of Commerce. Bureau of the Census. mnwmw 1M8.§.\.u_nzs2u W 5422.11.11.22; 21.222. pt. 34. Michigan (Washington. D.C.: Government Printing Office. September 1982). pp. 49. 51. 33. 63. 68-89. 73. 75. 77. 89. 92-93. 109 SOURCE: U.S. Department of Commerce. Bureau of the Census. Census 2; the Population: 1980. vol. 1. mm 2.1 1.02 2.222.121.1211. Ch. 8. Mm; WW1 pt. 24. Michigan (Washington. D.C.: Government Printing Office. August 1983]. pp. 9. 11-12. 14-18. 22-24. a Complete figures are not provided by the Census. b Does not include figures from the Village of Athens. APPENDIX C 8 8.50 per foot for underground or aerial installation it over 300' from pole to house. *1 8.50 off each premium service after one is taken. Saranac Subscriptign 82122 Service Charges (One Time Only) 1. Original Installation”l .......................... 822.50 2. Second Set installation ......................... 810.00 3. Set Top Converter Deposit ......................... None (840.00 replacement charge) 4. Set Top Converter Deposit (more than 1 set) ..... 840-00 (refundable upon return) 5. Parental Guidance Device ................. 815.00 each (HBO and/or Cinemax ”lock-out") 6. Service Call Problem with Cable T.V. Equipment ......... No Charge Customer’s T.V. Set is at fault .............. 810.00 Change of Service ............................ 810.00 Monthly Rates: Discount Rate Regular Rate (paid by 5th of month) (paid after 5th) Basic Service 8 8.95 8 9.50 (11 channels. No Converter) Full Service 12.00 13.00 (20 channels. Converter Box) HBO 9.00 Same“ Cinemax 8.50 Same3t (Available only with Full Service) The Disney Channel 9.00 Sameu (Available only with Full Service) Second Outlet 2.50 Same I 8.50 per foot for underground or aerial installation if over 300' from pole to house. it 8.50 off each premium service after one is taken. APPENDIX D APPENDIX D SAMPLE POTTERVILLE/DIMONDALE PHASE I QUESTIONNAIRE 1101112019 CABLEVISION STUDY ADDRESS CAROL mam 517/393-4424 cm (1) ALAN BAIRD 517/645-2661 rmavrrv o (2-5) DATE INTERVIEWR (6-3) INTERVIEWER INSTRUCTIONS: DO NOT READ ANY OF TEE CAPITALIZED WORDS. IN THE CASE OF SCALED ANSWERS OR RANKING QUESTIONS, REPEAT SCALE CATEGORIES 0R ITEMS TO RANK AS NECESSARY. INTRODUCTION: Hello, my name is ( NAME ). I am a student from Michigan State University working with Horizon Cablevision. We are doing a study of television viewing in your area. For our study, we need to speak to people who do not have cable TV. Our records show that you are not a subscriber. Is that correct? IF YES, CONTINUE WITH INTRODUCTION. IF NO. SAY: Thank you for your time. (GIVE HORIZON INFORMATION.) IF RESPONDENT LOOKS UNDER 18, SAM: At this household. I'm supposed to speak with someone 18 years of age or older. Is there someone here I can talk to? ...REPEAT INTRO WHEN PROPER RESPONDENT COMES TO THE DOOR. IF RESPONDENT HAS NO TV, SAY: Thank you for your time. Your household has been selected to receive free cable TV for a month if you are willing to answer a few questions for our research project. Your answers are very important to us. May I come in for a few minutes? The questions will take less than half an hour, and your responses will remain confidential. IF R SAYS: "I DON'T HATCH MUCH TV," SAY: We are very interested in how you feel about television in general. You will be helping us very much. IF R SAYS: "I DON'T KNOW TOO MUCH," SAY: This is not a test and there are no right or wrong answers. He just want to know what you think about important matters. IF R SAYS: "I DON'T HAVE TIME," SAY: We can finish in 15 or 20 minutes and you will be helping us a great deal. IF R PERSISTS,-SAY: Can someone from our project come back at a more convenient time? It is very important that we talk with you. IF R ASKS: "WHO'S IN CHARGE OF THIS STUDY?" SAY: Carol Mackey. a grad- uate student at H50, and Hr. Alan Baird from Horizon Cablevision. You may call them if you like. (PHONE NUMBERS ABOVE) ENTER RESPONDENT'S HOME AND ESTABLISH A COMFORTABLE SETTING. 1.1.3 114 2 Please remember that this is not a test. There are no right or wrong answers. We just want to know what you think. I'd like to start by finding out about how you watch television. First... 1. On a typical weekday, how many hours of television do you watch? (ROUND TO NEAREST HALF) (99) DK/REFUSED (7-8) 2. Counting yourself, how many television viewers are there in your household? 1 2 3 4 5 6 7 8+ (”DR/REFUSED (9) 3. How many television sets are there in your household? 1 2 3 4 5 6 7 8+ (9) DK/REFUSED (10) 4. Is the TV set you usually watch a Black 5 White or Color set? (1) (2) (9) BLACK & WHITE COLOR DK/REFUSED (11) 5. Do you usually watch television alone or with others? (1) (2) 9) A 6. With the programming offered say you are... (1) (2) (3) (4) (9) ALONE WITH OTHERS DK/REFUSED (12) / by the three major networks, would you very satisfied, satisfied, somewhat satisfied, or not satisfied? DK/REFUSED (13) 7. How about with the overall programming on channels other than the three networks? Would you say you are... (1) (2) (3) (4) (9) III! 8. Here is a list of words that very satisfied, satisfied, somewhat satisfied, or not satisfied? nx/Rsmssn (14) are used to describe TV programs. On each line there are two words that are opposites. There are five Spaces in- between. Please pick the space that best describes TV programs for you. There is an example at the top of the page for you to see. (TURN TO NEXT PAGE AND HAND THIS QUESTIONNAIRE TO RESPONDENT) 115 PLEASE PICK THE SPACE THAT BEST DESCRIBES TV PROGRAMS FOR YOU. M: TV PROGRAMS ARE: /. hot cold TV PROGRAMS ARE: A. boring interesting TV PROGRAMS ARE: B. unimportant important TV PROGRAMS ARE: C. exciting relaxing TV PROGRAMS ARE: D. confusing TV PROGRAMS ARE: E. pleasant TV PROGRAMS ARE: F. good TV PROGRAMS ARE: G. gentle TV PROGRAMS ARE: H. repetitive TV PROGRAMS ARE: 1. unique TV PROGRAMS ARE: J. influential not confusing unpleasant bad violent varied commonplace not influential PLEASE RETURN THIS QUESTIONNAIRE TO THE INTERVIEWER - THANK YOU. (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25-26) (27-28) (29-30) (31-32) (33-34) (35-36) (37-38) (39-40) (bl-42) (AB-44) (AS-66) (47-48) (49—50) (51-52) 10. 11. 12. 116 If 10 describes a kind of show you like a great deal and zero describes a kind of show you don't like at all, how would you rate your enjoyment of the following types of shows, 0 through 10? old movies contemporary movies sports events national news state news local news weather soap operas talk shows situation comedies action/adventure shows religious shows documentaries game shows From what source do you How important to you are complete and accurate program listings? you say... rock music shows classical music shows jazz music shows science shows dance shows theatre on TV cartoons local 8 community shows reruns of old series shows about health shows about business shows about government shows about schools stock 8 commodity news (53-54) (55-56) (57-58) (59-60) (61-62) (63-64) (65-66) (67-68) (69-70) (71-72) (73-74) (75-76) (77-78) (79-80) CARD 2 BLANK (1-7) get most of your television program information? (1) NEWSPAPER (2) woan 0r mourn (3) TV GUIDE (4) OTHER (SPECIFY) (9) DK/REFUSED (l) (2) (3) (4) (9) very important, important, somewhat important, or not important? DR/REFUSED Which newspapers do you buy or have delivered regularly? (INTERVIEWER, COUNT. . . (8) Would (9) (10-11) 117 13. Which magazines do you buy or have delivered regularly? (INTERVIEWER, COUNT...) (12-13) 14. How many movies, at a theatre or drive-in, have you been to in the past month? (lb-15) 15. Have you ever subscribed to cable television? (1) YES (2) NO (SKIP TO 0. l6) (9) DK/REFUSED (SKIP T0 Q. 16) (16) 15a. Why did you discontinue your service? (17-18) (RECORD AS STATED) Why don't you presently subscribe to cable television? (RECORD AS STATED) (19-20) 17. What could be done to cable television that would make you more likely to subscribe? (RECORD AS STATED) (21-22) 18. Do you have a friend or relative that has cable television? (1) YES (2) NO (9) DK/REFUSED (23) 19. Have you ever watched cable television at the home of a friend or relative? (1) YES (2) N0 __(9) DK/REFUSED (24) 118 Have you received any literature about cable television? (1) YES (2) NO (9) DR/REFUSED (25) Have you ever been contacted by phone or in-person by Horizon Cablevision? (1) YES (2) NO (9) DR/REFUSED (26) Why do you think someone would pay for cable television? (RECORD AS STATED) (27-28) How much do you think it would cost to have cable television installed in your home? If you're not sure, please give me your best estimate. 5 (ROUND TO NEAREST DOLLAR) (29-31) How much do you think is the average monthly fee for cable television? Again, if you're not sure, please give me your best estimate. $ (ROUND TO NEAREST DOLLAR) (32-34) (INTERVIEWER, DID RESPONDENT DISTINGUISH BETWEEN BASIC AND PAY-TV?) (1) YES (2) NO (9) DK/MISSING (35) How many channels do you think you could receive if you had cable TV? Again, your best estimate is fine. (36-38) The following are cable television channels or services. Please tell me if you have ever heard of them. YES ‘NQ DK/RF A. ESPN, the Entertainment and Sports Programming Network 1 2 9 (39) B. The Nashville Network 1 2 9 (40) C. USA Network 1 2 9 (61) D. Cinemax l 2 9 (42) s. wrss 1 2 9 (43) F. Lifetime 1 2 9 (44) G. HBO, Home Box Office 1 2 9 (45) 119 7 YES ‘NQ DK/RF H. CNN, Cable News Network 1 2 9 (46) I. Nickelodeon/Arts l 2 9 (47) J. The Disney Channel 1 2 9 (48) K. MTV, Music Television 1 2 9 (49) L. CBN, The Christian Broadcasting Network 1 2 9 (50) To make it easy to answer the next few questions...we will use a card with a set of answers I would like you to pick from. (INTERVIEWER, HAND BLUE CARD T0 RESPONDENT) Take a look at the card for a moment. We will use side A first. Now...is everything clear? 28. The following are things that cable television offers. Please tell me how important each one would be in making cable more attractive to you. The categories are...very important, important, somewhat important, and not important. 21 .1. 21. 11.1. _DI FUMI IIUTWEEIEHSTWEE> I Ad“: SKDMEEHNWIBUP IIUTWBFQEHSTWEI) JAh‘ IUCYT IIWTWEFIEHSTWSED 152 APPENDIX I'I APPENDIX H SAMPLE POTTERVILLE/DIMONDALE PHASE II QUESTIONNAIRE HORIZON CABLEVISION STUDY CITY (1) CAROL MACKEY 517/355-7555 INTERVIEW I (2-4) ALAN BAIRD 517/645-2661 CROSS-REP. I (5-7) DATE INTERVIEWER (8-9) INTERVIEWER: DO NOT READ ANY OF THE CAPITALIZED WORDS. IN THE CASE OF SCALED ANSWERS OR RANKING QUESTIONS, REPEAT THE SCALE CATEGORIES OR ITEMS TO BE RANKED AS NECESSARY. Hello, may I please speak with ? (RESPONDENT'S NAME - TAKEN FROM PHONE TALLY SHEET.) INTRODUCTION: Hello, my name is ( NAME ). I am a student from Michigan State University working with Horizon Cablevision. I am calling to ask you a few questions about your free cable TV service. 1. First, since you have had cable television, on a typical weekday, how many hours of television do you watch? . (ROUND TO NEAREST HALF) (IO-12) 2. Do you 22!_watch more, less, or about the same amount of TV as before cable? _(1) MORE _(2) LESS _(3) SAHE _(9) bit/REFUSED (13) 3. Do you usually watch cable TV alone or with others? ___(1) ALONE _(2) WITH OTHERS _(3) BOTH _(9) I'm/REFUSED (16) 4. On a scale of l to S. if I means boring and 5 means interesting, how would you rate cable television? A. BORING (l) : (2) : (3) : (4) : (S) INTERESTING (15) If 1 means unimportant and 5 means important, how would you rate cable TV? B. UNIMPORTANT (I) : (2) : (3) : (4) z (5) IMPORTANT (16) If I means exciting, and 5 means relaxing. how would you rate cable TV? C. EXCITING (I) : (2) : (3) : (4) : (5) RELAXING (17) If 1 means confusing and 5 means not confusing, how would'you rate cable TV? I). CONFUSING (l) : (2) : (3) : (b) : (fl NOT CONFUSING (18) 153 154 If 1 means pleasant and 5 means unpleasant, how would you rate cable TV? E. PLEASANT (1) : (2) : (3) : (4) : (5) UNPLEASANT (19) If 1 means gppd and 5 means 22g, how would you rate cable TV? F. GOOD (1) : (2) : (3) : (4) : (5) BAD (20) If 1 means ggpplg and 5 means violent, how would you rate cable TV? 6. GENTLE (I) : (2) : (3) : (4) : (S) VIOLENT (21) If 1 means repetitive and 5 means varied, how would you rate cable TV? H. REPETITIVE (1) : (2) : (3) : (4) : (5) VARIED (22) If 1 means unique and 5 means commonplace, how would you rate cable TV? I. UNIQUE (1) : (2) : (3) : (4) : (5) COMMONPLACE (23) If 1 means influential and 5 means not influential, how would you rate cable TV? J. INFLUENTIAL (I) : (2) : (3) : (a) : (5) NOT INFLUENTIAL (24) 5. From what source do you get most of your cable program information? (I) NEWSPAPER GUIDE (2) WORD OF MOUTH (3) TV GUIDE MAGAZINE (4) HORIZON PACKET/CHANNEL GUIDE (5) TV ITSELP/CHANGING CHANNELS (6) OTHER (9) DK/REPUSED (25) (SPECIFY) 6. Now that you have cable TV, how important to you are complete and accurate program listings? Would you say... (READ CATEGORIES) (I) very important, (2) important, (3) somewhat important, or (6) not important? (9) DR/REFUSED (26) 7. How many movies, at a theatre or drive-in, have you been to in the past month? (27-28) 8. The following are cable television channels or services. Please tell me if you have ever heard of them. YES §Q_ DK/RF A. ESPN, The Entertainment and Sports Programming Network I 2 9 (29) B. The Nashville Network I 2 9 (30) C. USA Network 1 2 9 (31) D. Cinemax l 2 9 (32) E. WTBS, The Atlanta Superstation I 2 9 (33) (47) (48) (49) (50) (51) (52) (53) (54) lo. 155 3 ‘XES N9 DK/RF F. Lifetime - 1 2 9 G. HBO, Home Box Office 1 2 9 H. CNN, Cable News Network 1 2 9 I. Nickelodeon/Arts 1 2 9 J. The Disney Channel 1 2 9 K. MTV, Music Television 1 2 9 L. CBN, The Christian Broadcasting Network 1 2 9 The following are things that cable television offers. Please tell me how important each one is in making cable more attractive to you. The categories are...very important, important, somewhat important and not important. VIISINIPIL/Ia A. Improved television reception. 1 2 3 4 9 E. Entertainment and information programs 24 hours a day. l 2 3 4 9 C. 20 or more channels of TV. 1 2 3 4 9 D. Movie channels, such as HBO. 1 2 3 4 9 E. Independent TV stations, such as NTBS from Atlanta. 1 2 3 4 9 E. News and information channels like Cable News Network and the 24 hour weather channel. 1 2 3 4 9 We want to know which channels people remember watching when they have cable. Will you please name the channels you recall watching on cable TV? (INTERVIEWER, PROBE TWICE..."Any others?" TO GET AS EXHAUSTIVE A LIST AS POSSIBLE. CHECK (J) EACH CHANNEL MENTIONED.) A.___ CH 2 - ESPN I._ as 10 - LOCAL ACCESS B.__ ca 3 - CNN J.__ CH 11 - WFSL (LANSING 47) c.__ CE I. - urns (ATLANTA) x.___ CB 12 - WILX (LANSING NBC 10) D._ CH 5 - BB0 L.__ CH 13 - WLNS (LANSING CBS 6 (was) E.__ CB 6 - CBN M.__ cs 17 - DISNEY P._ CH 7 - WGN (CHICAGO) N._ CB 19 - CINEMAX 6. cs 8 - WUHQ (BATTLE CREEK 41) o.____,_ CB 23 - NICKELODEON/ARTS H. CH 9 - WKAR (E. LANSING PBS 23) (34) (35) (36) (37) (38) (39) (40) (41) (42) (43) (44) (45) (46) (SS) (56) (57) (58) (59) (60) (61) (62) (63) (64) (65) (66) 11. 12. P. Q. R So T. Since you have had cable, which channels do you watch the most? IASGS 4 CH 24 - USA U. CH 29 - WKZO (KALAHAZOO CBS 3) CB 25 - MTV V. CH 30 - WOTV (GRAND RAPIDS 8) CH 26 - NASHVILLE H. CH 31 - WMA (GRAND RAPIDS 17) CH 27 - LIFETIME X. OTHER (SPECIFY) CH 28 "OR (NEW YORK) (INTERVIEWER, COUNT HOW MANY...) How many days in a typical week would you say (NAME EACH CHANNEL) is watched in your household? A. B. Ch. 2 - ESPN, Sports Network ______DAYS Ch. 3 - CNN, Cable News Network ‘_____ DAYS Ch. 4 - WTBS, The Atlanta Superstation ______DAYS Ch. 5 - HBO, Home Box Office _____ DAYS Ch. 6 - CBN, Christian Broadcasting Network ______ DAYS Ch. 7 - WGN, The Chicago Superstation ______DATS Ch. 8 - WUHQ, Battle Creek Independent Channel 41 ______DAYS Ch. 9 - WKAR, East Lansing PBS Channel 23 _____"DAYS Ch. 10 - Local Access ______DAYS Ch. 11 - NPSL, Lansing Independent Channel 47 ‘_____’DAXS Ch. 12 - WILX, Lansing Channel 10 NBC ______DAYS Ch. 13 - WLNS Lansing Channel 6 CBS (WJIM) _____ DAYS Ch. 17 - The Disney Channel _____ DAYS Ch. 19 - Cinemax _____ DAYS Ch. 23 - Nickelodeon/Arts ______DAYS Ch. 24 - USA Network ______DAXS Ch. 25 - MTV, Music Television ‘_____ DAYS Ch. 26 - The Nashville Network _____ DAYS BLANK (67) (68) (69) (70) CARD l0 (1-9) (IO-11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) l3. 14. 15. 16. 17. 18. 19. 157 5 8. Ch. 27 - Lifetime, Health Channel _____ DAYS T. Ch. 28 - WOR, The New York Superstation _____ DAYS U. Ch. 29 - WKZO, Kalamazoo Channel 3 CBS _____ DAYS V. Ch. 30 - WOTV, Grand Rapids Channel 8 NBC ._____ DAYS W. Ch. 31 — WWMA, Grand Rapids Independent Channel 17 ______DAYS Which are your favorite channels? (RECORD AS STATED) INTERVIEWER, COUNT HOW MANY...) With the overall programming offered on HBO, Home Box Office, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REPUSED How about with the overall programming offered on Cinemax? Would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED With the overall programming offered on The Disney Channel, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or .____(4) not satisfied? (9) DK/REFUSED With the overall programming on the (remaining) basic cable channels, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED And, with the overall service provided by Horizon Cablevision, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or _____(4) not satisfied? (9) DK/REFUSED What is most appealing to you about cable television? (RECORD AS STATED) (30) (31) (32) (33) (34) (35-36) (37) (38) (39) (40) (41) (42-43) 158 20. What do you think could be done to improve cable television? (RECORD AS STATED) (44-45) 21. Would you like to continue receiving cable television in your home? (1) YES (GO TO NEXT PAGE) (2) NO (GO TO Q. 22) (46) 22. Will you please tell me the primary reason you have for not continuing your cable service? (RECORD AS STATED) (47-48) 23. Finally, do you think you will ever subscribe to cable in the future? (1) YES (2) NO (9) DK/REFUSED (49) Thank you very much for your help in our study. We will have your cable service disconnected and have a Horizon Cablevision representative contact you in the next few days to arrange a time tO pick-up your converter box.* * DELETE PICK-UP INFORMATION FOR THOSE WITH CABLE-READY TVs. INTERVIEWER, PLEASE RECORD INTERVIEW LENGTH ON FINAL PAGE. THANK YOU! 159 23. Which services would you like to continue? (INTERVIEWER, READ SERVICES AND RATES. CHECK (V/3 THOSE REQUESTED.) Basic Service @ $ /month (50) HBO @ $ /month (51) Full Service @ $ /month (52) Cinemax @ 5 /month (53) Disney @ 5 /month (54) I would like to verify your name, address and phone number for our records please... (INTERVIEWER, READ INFORMATION BELOW, MAKE ANY NECESSARY ADDITIONS AND/OR CORRECTIONS.) NAME OF PERSON INTERVIEWED NAME FOR RECORDS (IF DIFFERENT FROM ABOVE) ADDRESS P.O. BOX CITY ZIP PHONE (HOME) PHONE (HORK) (IF NO P.O. BOX NUMBER LISTED, ASK: "Is there a Post Office Box number?") Thank you very much for your help in our study. Someone from Horizon Cablevision will be in touch with you in the next few days to give you billing information. INTERVIEWER, PLEASE RECORD INTERVIEW LENGTH..... MINUTES (55-56) APPENDIX 1 APPENDIX I SAMPLE SARANAC PHASE II QUESTIONNAIRE HORIZON CABLEVISION STUDY CITY (1) CAROL MACREY 517/355-7554 INTERVIEW l (2-4) ALAN BAIRD 517/645-2661 CROSS-REF. I (5-7) DATE INTERVIEWER (8-9) INTERVIEWER: DO NOT READ ANY OF THE CAPITALIZED WORDS. IN THE CASE OF SCALED ANSWERS OR RANKING QUESTIONS, REPEAT THE SCALE CATEGORIES OR ITEMS TO BE RANRED AS NECESSARY. Hello, may I please speak with ? (RESPONDENT'S NAME - TAKEN FROM PHONE TALLY SHEET.) INTRODUCTION: Hello, my name is ( NAME ). I am a student from Michigan State University working with Horizon Cablevision. I am calling to ask you a few questions about your free cable TV service. 1. First, since you have had cable television, on a typical weekday, how many hours of television do you watch? . (ROUND TO NEAREST HALF) (IO-12) 2. Do you now watch more, less, or about the same amount of TV as before cable? (1) MORE (2) LESS (3) SAME (9) DK/REFUSED (13) 3. DO you usually watch cable TV alone or with others? (1) ALONE (2) WITH OTHERS (3) BOTH (9) DR/REFUSED (14) 4. On a scale of 1 to S, if 1 means boring and 5 means interesting, how would you rate cable television? A. BORING (l) : (2) : (3) : (4) : (5) INTERESTING (15) If 1 means unimportant and 5 means important, how would you rate cable TV? B. UNIMPORTANT (l) : (2) : (3) : (4) : (5) IMPORTANT (16) If 1 means exciting, and 5 means relaxing, how would you rate cable TV? C. EXCITING (1) : (2) : (3) : (4) : (5) RELAXING (17) If 1 means confusing and 5 means not confusing, how would you rate cable TV? D. CONFUSING (l) : (2) : (3) : (4) : (5) NOT CONFUSING (18) 1(5C) If If If If If If J. Prom what source do you get most of your cable program information? Now that you have cable TV, how important to you are complete and accurate program listings? Would you say... (READ CATEGORIES) (1) very important, (2) important, (3) somewhat important, or 161 1 means pleasant and 5 means unpleasant, how would you rate cable TV? PLEASANT (l) : (2) : (3) : (4) 1 means good and 5 means bad, how would you rate cable TV? GOOD (1) : (2) : (3) : (4) : (5) (5) BAD UNPLEASANT 1 means gentle and 5 means violent, how would you rate cable TV? GENTLE (1) : (2) : (3) : (4) 1 means repetitive and 5 means XEELSS' how would you rate cable TV? REPETITIVE (1) : (2) : (3) : (4) ' 1 means 221323 and 5 means commonplace, how would you rate cable TV? UNIQUE (1) : (2) : (3) : (a) : 1 means influential and 5 means not influential, how would you rate cable TV? INFLUENTIAL (l) : (2) : (3) : (4) (5) (4) not important? (9) DK/REFUSED How many movies, at a theatre or drive-in, have you been to in the past month? The following are cable television channels or services. you A. have ever heard of them. ESPN, The Entertainment and Sports Programming Network The Nashville Network USA Network Cinemax WTBS, The Atlanta Superstation YES 1 VIOLENT (5) VARIED (5) COMMONPLACE Lo 2 (5) NOT INFLUENTIAL (1) NEWSPAPER GUIDE (2) WORD OE MOUTH (3) TV GUIDE MAGAZINE (4) HORIZON PACKET/CHANNEL GUIDE (5) TV ITSELF/CHANGING CHANNELS (6) OTHER (9) DK/REFUSED (SPECIFY) Please tell me if DK/RF 9 9 (19) (20) (21) (22) (23) (24) (25) (26) (27-28) (29) (30) (31) (32) (33) (47) (48) (49) (50) (51) (52) (53) (54) 10. 162 3 , 15% 352 M F. Lifetime l 2 9 G. HBO, Home Box Office 1 2 9 H. CNN, Cable News Network 1 2 9 I. Nickelodeon/Arts 1 2 9 J. The Disney Channel 1 2 9 K. MTV, Music Television 1 2 9 L. CBN, The Christian Broadcasting Network 1 2 9 The following are things that cable television offers. Please tell me how important each one is in making cable more attractive to you. The categories are...very important, important, somewhat important and not important. V_I I S; N; DK/RF A. Improved television reception. 1 2 3 4 9 E. Entertainment and information programs 24 hours a dav. l 2 3 4 9 C. 20 or more channels of TV. 1 2 3 4 9 D. Movie channels, such as HBO. l 2 3 4 9 E. Independent TV stations, such as WTBS from Atlanta. 1 2 3 4 9 F. News and information channels like Cable News Network and the 24 hour weather channel. 1 2 3 4 9 We want to know which channels people remember watching when they have cable. Will you please name the channels you recall watching on cable TV? (INTERVIEWER, PROBE TWICE..."Any others?" TO GET AS EXHAUSTIVE A LIST AS POSSIBLE. CHECK ( ) EACH CHANNEL MENTIONED.) A _ CH 2 - ESPN I.__ CH 10 - WWMA (GRAND RAPIDS 17) B._ CH 3 - LOCAL ACCESS J.__ CH 11 - WZZM (GRAND RAPIDS ABC 13) C.___ CH 4 - mo (RALAMAZOO CBS 3) R.__ CH 12 - CBN D.__CH5-HBO L.__CH13-WGN E._______ CH 6 - WGBC (GRAND RAPIDS 35) M._______ CH 17 - DISNEY F._ CH 7 - WOTV (GRAND RAPIDS NBC 8) N._ CH 19 - CINEMAx G.___ CH 8 - CNN O.__ CH 23 - NICK/ARTS H. CH 9 - WTBS (34) (35) (36) (37) (38) (39) (40) (41) (42) (43) (44) (45) (46) (55) (56) (57) (58) (59) (60) (61) (62) (63) (64) (65) (66) 11. 12. S. T. CH 26 163 I. _ CH 24 - USA u._ CH 29 - LIFETIME CHZS-MTV v.__CH 30-w0R - NASHVILLE N._ CH 32 - WFSL (LANSING 1.7) CH 27 - WLNS (LANSING CBS 6) x._ OTHER (SPECIFY) CH 28 - WILX (LANSING NBC 10) Since you have had cable, which channels do you watch the most? How many days in a typical week would you say (NAME EACH CHANNEL) is watched A Ch. B. Ch. C. Ch. D. Ch. E. Ch. F. Ch. G. Ch. H. Ch. I. Ch. J. Ch. K Ch. L. Ch M. Ch. N. Ch. 0. Ch. P Ch. Q. Ch. R. Ch. (INTERVIEWER, COUNT HOW MANY...) in your household? 2 3 10 ll 12 . 13 17 19 23 24 25 26 ESPN, Sports Network Local Access NKZO, Kalamazoo Channel 3 CBS HBO, Home Box Office NGBC, Grand Rapids Channel 35 HDTV, Grand Rapids Channel 8 NBC CNN, Cable News Network WTBS, The Atlanta Superstation WWMA, Grand Rapids Independent Channel 17 NZZM, Grand Rapids Channel 13 ABC CBN, Christian Broadcasting Network NGN, The Chicago Superstation The Disney Channel Cinemax Nickelodeon/Arts USA Network MTV, Music Television The Nashville Network DAYS DAYS DAYS DAYS __ DAYS __ DAYS __ DAYS _ DAYS __ DAYS _ DAYS __ DAYS __ DAYS __ DAYS __ DAYS __ DAYS __ DAYS __ DAYS DAYS BLANK (67) (68) (69) (70) CARD 2 (1-9) (IO-ll) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) 1654- 5 5. Ch. 27 - WLNS,-Lansing Channel 6 CBS (NJIM) _____ DAYS (30) T. Ch. 28 - WILX, Lansing Channel 10 NBC _____ DAYS (31) U. Ch. 29 - Lifetime, Health Channel _____ DAYS (32) V. Ch. 30 - NOR, The New York Superstation _____ DAYS (33) N. Ch. 32 - WFSL, Lansing Independent Channel 47 _____ DAYS (34) 13. which are your favorite channels? (RECORD AS STATED) INTERVIEW-IR, COUNT How MANY...) (35-36) 14. With the overall programming offered on HBO, Home Box Office, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED (37) 15. How about with the overall programming offered on Cinemax? Would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED (38) 16. With the overall programming offered on The Disney Channel, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED (39) 17. With the overall programming on the (remaining) basic cable channels, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED (40) 18. And, with the overall service provided by Horizon Cablevision, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DK/REFUSED (41) 19. what is most appealing to you about cable television? (RECORD AS STATED) (42-43) 165 20. What do you think could be done to improve cable television? (RECORD AS STATED) (44-45) 21. Would you like to continue receiving cable television in your home? (1) YES (GO TO NEXT PAGE) (2) NO (GO TO Q. 22) (46) 22. Will you please tell me the primary reason you have for not continuing your cable service? (RECORD AS STATED) (47-48) 23. Finally, do you think you will ever subscribe to cable in the future? (1) YES (2) N0 (9) DK/REFUSED (49) Thank you very much for your help in our study. We will have your cable service disconnected and have a Horizon Cablevision representative contact you in the next few days to arrange a time to pick-up your converter box.* * DELETE PICK-UP INFORMATION FOR THOSE WITH CABLE-READY TVs. INTERVIEWER, PLEASE RECORD INTERVIEW LENGTH ON FINAL PAGE. THANK YOU! 166 23. Which services would you like to continue? (INTERVIEWER, READ SERVICES AND RATES. CHECK (V/S THOSE REQUESTED.) Basic Service @ $ /month (50) HBO @ 3 /month (51) Full Service @ 5 /month (52) Cinemax @ 3 [month (53) Disney @ $ /month (54) I would like to verify your name, address and phone number for our records please... (INTERVIEWER, READ INFORMATION BELOW, MAKE ANY NECESSARY ADDITIONS AND/OR CORRECTIONS.) NAME OF PERSON INTERVIEWED NAME FOR RECORDS (IF DIFFERENT FROM ABOVE) ADDRESS P.O. BOX CITY ZIP PHONE (HOME) PHONE (WORK) (IF NO P.O. BOX NUMBER LISTED, ASK: "Is there a Post Office Box number?") Thank you very much for your help in our study. Someone from Horizon Cablevision will be in touch with you in the next few days to give you billing information. INTERVIEWER, PLEASE RECORD INTERVIEW LENGTH..... MINUTES (55-56) APPENDIX J APPENDIX J SAMPLE UNION CITY/ATHENS PHASE II QUESTIONNAIRE mRIzON CABLEVISION STUDY _ ' on! (1) CAROL m‘émr 517/393-4424 mums: I (2—4) ALAN BAIRD 517/645-2661 CROSS-REF. I (5-7) mm: mm (8-9) INTERVIENER: m NOT READ ANY OF THE CAPITALIZED VORDS. IN THE CASE OF SCALE!) ANSWERS 0R RANKING QUESTIONS, REPEAT THE SCALE CATEGORIES OR ITEMS TO BE BANNED AS NECESSARY. Hello, may I please speak with ? (RESPONDENT'S NAME - TAKEN FROM PHONE TALLY SHEET.) mTRODUCTION: Hello, my name is ( NAMEJ ). I am a student from Michigan State University working with Horizon Cablevision. I am calling to ask you a few questions about your free cable TV service. 1. First, since you have had cable television, on a typical weekday, how many hours of television do you watch? . (ROUND TO NEAREST HALF) (lo-12) 2. Do you 93: watch more, less, or about the ease amount of TV as before cable? _(1) mm: _(2) LESS _(3) sum _(9) nun/mm (13) 3. Do you usually watch cable TV alone or with others? _(1) mm: _(2) ma arms _(3) ma _(9) Dx/Rmsrn (14) 4.. On a scale of l to 5, if 1 means boring and 5 means interesting, how would you rate cable television? A. BORING (1) : (2) : (3): (a): (5) INTERESTING (15) If 1 means mimportant and 5 means important, how would you rate cable TV? B. “IMPORTANT (1): (2) : (3) : (4) :45) MORAN! (16) 167 168 2 If 1 means exciting, and 5 means relaxing, how would you rate cable TV? .C. ' EXCITING (1L: (2) : (3) : (4) : (5) RELAXING (17) .If 1 means confusing and 5 means not confusing, how would you rate cable TV? D. CONFUSING _QL: _QL: _QL: _(ng ASL M CONFUSING (18) If 1 means pleasant and 5 means unpleasant, how would you rate cable TV? E. PLEASANT (1L: (2L. (3) : J4) : (5) UNPLEASANT (19) If 1 means g9_o_d and 5 means 35;, how would you rate cable TV? 1?. 6000 Q) : (2) : (3) : (4) : (5) BAD (20) If 1 means ggtLle and 5 means M, how would you rate cable TV? 'G. GENTLE (l) : (2) : (3) : (4) : (5) VIOLENT (21) If 1 means rep_e_titive and 5 means-M, how would you. rate cable TV? H. mun-m (1L: (2) : (3) : (4) : (5) us!!!) (22) If 1 means 9.199.! and 5 ~means consonplac‘e, how would you rate cable TV? 1. mu: (1) : (2L: (3) : (A) : (SI mm (23) If 1 means influential and 5 means not influential, how would you rate cable TV? J. m (l) : (2) : (3) : (4) : (5) NOT INFLUENTIAL (24) 5. Prom what source do you get most of your cable program information? (1) NEWSPAPER GUIDE (2) WED OP mm (3) TV GUIDE MAGAZINE (4) HORIZON PACKET/CHANNEL GUIDE (5) TV ITSELI'IGHANGING CHANNELS _(6) mm____ (9) Ds/mnsxn (25) (SPECIFY) 6. Now that you have cable TV, how important to you are complete and accurate program listings? Would you say... (READ CATWORIES) (1) very important, (2) important, (_3) somewhat important, or (4) not important? (9) DK/REFUSED ' (26) 7. How many movies, at a theatre or drive-in, have you been to in the past month? (27-28) 169 3 8. The following are cable television channels or services. Please tell me if you have ever heard'of thus. YES ‘19 Dt/RH A. ESPN, The Entertaiment and Sports Programming Network 1 2 9 (29) B. The Nashville Network 1 2 9 (30) C. USA Network 1 2 9 (31) D. Cinema 1 2 9 (32) E. ms, The Atlanta Superstation l 2 9 (33) P. Lifetime 1 2 9 (34) 6. HBO, Hue Box Office 1 2 9 (35) H. CNN, Cable News Network 1 2 9 (36) I . Nickelodeon, Arts 1 2 9 (37) J. The Disney Channel 1 2 9 (38) K. MTV, Phaic Television 1 2 9 (39) 1.. CNN, The Christian Broadcasting Network 1 2 9 (40) 9. The following are things that cable television offers. Please tell me how important each one is in making cable more attractive to you. The categories are...vegz gartant, fluent, somewhat imnrtant and pg_t_ grant. 2:. .1. a n _nmr A. Improved television reception. 1 2 3 4 9 (41) B. Entertainment and information programs 24 hours a day. 1 2 3 4 9 (62) C. 20 or more channels of TV. 1 2 3 4 9 (’03) D. Movie channels, such as H30. 1 2 3 4 9 (‘09). E. Independent TV stations, such as was fraAtlanta. 1 2. 3 l.- 9 (45) P. (News and information channels like Cable News Network and the 24 hour ' weather channel. 1 2 3 4 9 (46) 7) a) 9) o) 1) 2) 3) .1.) 5) .6) .7) .3) 10. 14. 170 A He went to know which channels people rmsember watching when they have cable. Will you please name the channels you recall watching on cable TV? (INTERVIENER, PROBE TWICE..."Any others?" TO GET AS EXHAUSTIVE A LIST AS - POSSIBLE. cases (J) EACH CHANNEL MENTIONED.) A._ CH 2 - ESPN N._— CH 17 - DISNBY (59) D._CH3-CNN N._GHl9-CINEMAX (60) C-_ CH 4 - ms (AMA) O.__ CH 23 - NIcmonmN/ARIS (61) D._ CH 5 - HBO N._ CH 24 - USA (62) s._CH6-CBN Q._CH25-er (63) P.__ CH 7 - wGN (CHICAGO) H.— CH 26 - NASHVILLE (64) G.___ CH 6 - HOBO (BATTLE cam 41) s.__ CH 27 - LIFETIME (65) H.___ CH 9 - Hm (E. LANSING PBS 23) r.___ CH 28 - WOR (NIH YORK) (66) I._ CH 10 - LOCAL ACCESS U._ CH 29 - wLNS (LANSING CBS 6 (WJDO) (67) .1._ cm 11 - HHNA (GRAND RAPIDS 17) v.__ CH 30 - NIL: (JACKSON NBC 10) (68) r._ CH 12 - worv (GRAND RAPIDS NBC 8) N._ CH 31 - NPSL (LANSING IND 47) (69) L.__ CH 13 - wrzo (RALAMAZOO CBS 3) x._ 01mm (70) (SPECIFY) Since you have had cable, which channels do you watch the most? CARD 2 BLANK (1-9) (morn, com How MANY...) (IO-11) Which are your favorite channels? (RECORD AS STATED) (mm, com HOB MANY...) _ (12-13) - Nith the overall progrs-ing offered on HBO, Home Box Office, would you say you are... (READ CATEGORIES) _(1) very satisfied, _(2) satisfied, _(3) somewhat satisfied, or _(4) not satisfied? _(9) lit/REFUSED , (14) How about with the overall programing offered on Cinema? Would you say you are... (READ CATEGORIES) ~ . (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) WREPUSED (15) 171 5 15. With the overall programming offered on The Disney Channel, would you say you are... (READ CATEGORIES) ' (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DR/REFUSED (15) 16. With the overall programming on the (remaining) basic cable channels, would you say you are... (READ CATEGORIES) (I) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DR/REPUSED (l7) 17. And, with the overall service provided by Horizon Cablevision, would you say you are... (READ CATEGORIES) (1) very satisfied, (2) satisfied, (3) somewhat satisfied, or (4) not satisfied? (9) DR/REFUSED (18) 18. What is most appealing to you about cable television? (RECORD AS STATED) (19-20) 19. What do you think could be done to improve cable television? (RECORD AS STATED) . ~ (21-22) 20. WOuld you like to continue receiving cable television in your home? (1) TBS (GO TO PAGE) (2) NO (GO TO Q. 21) ‘ (23) 21. Will you please tell me the primary reason youJEave for not continuing your cable service? (RECORD AS STATED) (24-25) 22. Pinally, do you think you will ever subscribe to cable in the future? (1) TBS (2) ND (9) DR/REFUSED (26) Thank you very much for your help in our study. We will have your cable service disconnected and have a Horizon Cablevision representative contact you in the next few days to arrange a time to pick-up your converter boa.* * DELETE PICRPUP INFORMATION FOR THOSE RITE CABLE-READY TVs. I INTERVIEWER. PLEASE RECORD INTERVIEW LENGTH ON FINAL PAGE. THANK YOU! 172 22. Which services would you like to continue? (INTERVIEWER, READ SERVICES AND RATES. CHECK GI) THOSE REQUESTED.) Basic Service 9 5 [month (27) EEO C 8 /month (28) Full Service 8 3 [month (29) Cinema: 9 $____/month (30) Disney 8 $____lmonth (31) I would like to verify your nmee, address and phone number for our records please... (INTERVIEWER, READ INFORMATION BELOW, MAKE ANY NECESSAR! ADDITIONS AND/0R CORRECTIONS.) NAME 0? PERSON INTERVIEWED NAME FOR RECORDS (I? DIFFERENT FROM ABOVE) ADDRESS P.O. DOE CIT! ZIP PHONE (ROME) PHONE (WORK) (IF NO P.O. DOE NUMBER LISTED, ASK: "In there a Post Office No: number?") Thank you very much for your help in our study. Someone from Horizon Cablevision will be in touch with you in the next few days to give you billing information. mum, nus: noon mum mmmm ' W (32-33) APPENDIX K APPENDIX K DEMOGRAPHIC CHARACTERISTICS OF NON-SUBCRIBERS Length of Residence in Area - Years Simian Potterville/Dimondale Saranac Union City/Athens MWMWW 13.8 7.9 8 1mo. 75 16.1 7.0 2 inc. 68 20.7 18.0 1mo. 1mo. 80 Housing Status Exam 259ml filmeglm; 2393.11.94 Potterville/Dimondale 88.4 29.0 1.6 Saranac 87.0 41.8 1.3 Union City/Athens 87.8 31.8 .4 Type of Home b 5mm Potterville/Dimondale Saranac Union City/Athens $1!an SALLL SMEQLMLL 1219.1.” 9.21112 Home 79.0 18.5 2.0 .5 68.8 31.2 ---- -- 73.3 13.1 13.1 .4 Sunni Potterville/Dimondale Saranac Union City/Athens Marital Status 25mm 25mm 70.6 29.4 54.4 45.6 62.4 37.6 173 174 Number of People in the Household Slalom Mean mm Mud MW ’ ______Ma x imum Potterville/Dimondale 2.96 2.81 2 1 7 Saranac 2.72 2.86 1 1 7 Union City/Athens 2.67 2.40 2 1 8 Children Under 12 in the Household w 2119.; 12:12 Potterville/Dimondale 37.4 62.6 Saranac 40.3 89.7 Union City/Athens 36.7 63.3 Highest Level of Education Completed Percent mm W ileum MM Dimondale Aim Less than High School 7.4 17.7 28.9 High School Graduate 38.1 83.2 44.9 Some College 37.7 16.8 15.2 c College Graduate + 16.8 10.1 10.8 d Other ---- 2.8 .4 Age of Respondent e System EQ£3_ Mggiag Egg; ginimum Maximum Potterville/Dimondale 41.3 36.4 29 18 92 Saranac 40.0 34.8 27 18 83 Union City/Athens 45.2 40.8 21 18 91 Sex of Respondent 6.3mm 2111mm :9 ale Potterville/Dimondale 88.9 44.1 Saranac 68.4 34.6 Union City/Athens 64.4 39.8 178 Annual Household income Percent mm W Sauna; gummy. Dimondale Athena Less than 818,000 29.3 48.6 88.6 818.000 - 828.000 21.0 26.4 27.8 828.001 - 838.000 28.3 12.8 8.7 More than 838.000 24.8 12.8 7.9 N 229 72 241 Occupation of Primary Wage Earner Percent f Dimondale Aim: Prof-Tech-Mgr 27.9 18.7 14.6 Clerical 8 Sales 11.7 8.0 9.8 Service 10.0 12.0 8.3 Agricultural 1.7 ---- 2.0 Processing .4 ---- 8.1 Machine Trade 17.8 18.7 11.4 Benchwork 4.2 1.3 1.6 Structural Work 3.7 6.7 8.9 9 Miscellaneous 20.4 24.0 38.4 Unemployed 2.8 10.7 8.9 N 240 78 284 Work Location of Primary Wage Earner film 814112111 25mm .8 Potterville/Dimondale 19.0 81.0 208 Saranac 26.6 71.4 86 Union City/Athens 42.9 83.6 186 176 h Working Hours (Shift) of Primary Wage Earner Percent 8.11.113. animus; Saunas 1111140 Q._t_x_i I W Muse Morning 72.8 47.3 48.7 Afternoon 9.9 12.2 4.1 Night 3.9 ---- 1 6 Part Time .8 1.4 ---- On Call 1.4 2.7 .8 Hours Vary 7.3 10.8 12.2 None-Retired-Unemp. 4.8 28.7 38.8 N 207 74 248 Occupation of Secondary Wage Earner Percent f Qggnpgiign Egttgrvjllg/ nac ggion City/ W A.__thens Prof-Tech-Mgr 32.1 18.7 14.6 Clerical 8 Sales 33.3 18.6 28.0 Service 12.8 36.6 19.2 Agricultural ---- ---- ---- Processing ---- 8.3 1.9 Machine Trade 10.3 8.3 3.8 Benchmark 1.3 ---- 1.9 Structural Work 2.6 10.8 1 9 9 Miscellaneous .4 8.3 21.2 Unemployed 1.3 8.3 8.8 N 78 19 82 Work Location of Secondary Wage Earner 511133 5.13 Town ‘5 Commute Elsewhere 5 Potterville/Dimondale 30.7 69.3 78 Saranac 89.4 70.6 17 Union City/Athens 46.2 87.1 39 I‘l‘l‘l' 177 h Working Hours (Shift) of Secondary Wage Earner Percent Shiil Rollerxillel Saranac Halon Qilli Dimondale Linens Morning 76.1 68.0 67.3 Afternoon 9.9 10.0 4.1 Night 4.2 8.0 4.1 Part Time ---- 8.0 ---- On Call ---- ---- ---- Hours Vary 8.4 8.0 8.2 None-Retired-Unemp. 1.4 10.0 16.3 N 71 20 49 a Other housing status included "living with parents." b Other types of housing included "trailer" (not large enough to be considered a mobile home). 0 This category includes post graduate work (e.g. Master’s and/or Ph.D.). d "Other" included "technical school“ and "special courses." e Minimum age was limited in this study to 18. This explains the differences between the mean and median age in this study and in census data. which includes children. r ".5. Department of Labor. Qieliananl cl Qacunnlional. Illilll. 4th ed.. (Washington. D.C.: 0.5. Government Printing Office. 1977). 9 “Miscellaneous“ included "retired." and the following categories: Motor Freight: Transportation; Packaging and Materials Handling: Advertising Related: Production and Distribution of Utilities: Amusement. Recreation. Motion Picture. Radio and Television. 178 h Shifts were determined by the respondent's starting time (i.e. Morning Shift - starting 8:00 a.m. to 11:89 a.m.. Afternoon Shift - starting 12:00 p.m. to 6:89 p.m.. and Night Shift - starting 7:00 p.m. to 4:89 p.m.). ’7iiiiiililiiiiil“