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News
What’s in store for the college bookstore?
Twice as Many Students Prefer to Shop at the College Bookstore to Shopping Online
Lincoln, Nebr. February 21, 2006
At the same time technology reveals new opportunities for today’s college bookstore, it also fuels new competitive threats. Increases in physical and virtual competition, the effects of enhanced consumer awareness, and changes in product delivery methods combine to present a glimpse into the future of a well defined business model on the verge of significant change.
In a series of surveys conducted by Harris Interactive® and commissioned by Nebraska Book Company, the opinions and perceptions of U.S. college students, faculty members, and bookstore managers were gauged in relation to the future of the college bookstore. These perspectives were then analyzed and formulated into fourteen key college textbook and college bookstore industry insights.
Insight #1 – College Textbooks Remain Central to the Higher Education Experience
The studies clearly show that textbooks are a commonly required item for courses.
- 94% of faculty members require a textbook
- 81% of faculty members consider a textbook to be a very important or extremely important contributor to the overall course experience
Insight #2 – Bookstore Managers Should Focus on Professors as Key Decision Makers
The studies leave little doubt that it is primarily the faculty member who decides which course materials will be used.
- On average, 87% of students say they will comply with textbook recommendations from faculty members.
But ...
- 86% of faculty members do not understand the importance of turning in book orders early to the bookstore
- According to an updated PRIG 2005 survey, 59% of students said they were unable to find a single used textbook for any of their classes.
Insight #3 – Costs are a Secondary Concern to Professors When Selecting Course Materials
When deciding whether or not to consider requiring a textbook for class, the majority of faculty members consider their syllabus and past experience with the textbook.
- Criteria faculty members use to select a specific textbook:
- How well a textbook’s content meshes with the course syllabus: 90%
- Past experience with a textbook: 81%
- Cost of the textbook to students: 44%
Insight #4 – Textbooks and Class Materials Dominate the College Bookstore Business
In total, bookstore managers surveyed report that on average, 68% of the total revenue for bookstores comes from textbook sales.
- 42% of total sales – new textbooks
- 26% of total sales – used textbooks
Business is Brisk ...
- 50% of college bookstores reporting growth
Insight #5 – Today’s College Students are Savvy Shoppers Not Afraid to go Online to Purchase Books
Students will take the time to shop around for textbooks, both in traditional and in online stores.
- 32% of bookstore managers surveyed believe students price shop online; 51% of students report that they do
- 25% of bookstore managers surveyed say students record ISBN numbers in their stores so that they can go to other stores or shop online for a better price; 45% of students say they did exactly this during this academic year
- About half (51%) of the students say they try to find cheaper textbooks online
Insight #6 – Students Prefer Shopping in Bookstores to Shopping Online
Many students have experience buying both in traditional college bookstores and buying online. Traditional bookstores are the preferred source for textbooks.
- 48% of students prefer to shop in the bookstore
- 23% of students prefer to shop online
- 30% of students are neutral
Insight #7 – Textbook Costs for Students are Lower than Commonly Perceived
The Nebraska Book Company studies suggest commonly reported figures substantially overstate the amount students actually spend on textbooks.
- GAO – Annual Expense: $898
- US Dept. of Education – Annual Expense: $850
- According to Students – Annual Expense: $534
Insight #8 – Textbook Costs are a Substantial Financial Burden for Students
Even though textbook costs are not as high as commonly perceived, they are a substantial financial burden for students.
- 85% of students say new textbooks cost far too much
- 28% of student say used textbooks cost far too much
- 50% of students say the cost of textbooks and materials causes an extremely difficult or very difficult financial burden for them
- 80% of students report buying used textbooks whenever possible
Insight #9 – High Textbook Costs are Driven by Many Factors
The textbook publishing and distribution business is complex and there is no consensus on why textbook costs have risen as they have.
Student Perspective
- 77% of students say that publishers want to make more money, and 64% say bookstores want to make more money
Faculty Perspective
- 79% of faculty members say the increased cost of production justifies the rising cost of textbooks
- 70% cite the publishers’ needs to incorporate new technology as a justification for the increased cost of textbooks.
Insight #10 – Demand for Used Textbooks is Far Greater Than the Supply
Demand for used textbooks is high.
- 57% of students prefer used textbooks
- 17% of students prefer new textbooks
- 26% of students are neutral
This year, the average student purchased...
- 3.4 New Textbooks
- 3.7 Used Textbooks
Insight #11 – Students are Not Fully Satisfied with Their Experiences When Selling Textbooks Back
This academic year, students expect to sell back about half (48%) of their textbooks.
- 55% would sell back more books if they knew in advance what they would be worth
- 87% get less money at buyback than they expect
- 67% receive nothing for their books
- 51% do not understand why the bookstore buys some books but not others
Insight #12 – Bundling of Course Materials Frustrates Students and Professors
Bundling often takes bookstore managers and students by surprise.
- Two-thirds (65%) of students say they have experienced unexpected bundling
- 70% of faculty members believe bundling causes the prices of textbooks for students to increase
Insight #13 – Frequency of New Editions is Seen as Causing Prices to Rise
The surveys suggest there is a link between frequent new editions with minor changes and increased textbook prices.
- 89% of faculty members said new editions only contain minor changes
- 90% of faculty members believe new editions cost too much
Insight #14 – The Textbook Market will Continue to be Strong – But the Nature of the Textbook will Evolve
The Nebraska Book Company studies strongly suggest the role of textbooks will change, but the change will be gradual and not a one-time event.
Student Perspective
- 52% say textbooks will stay about the same level of importance
- Students are more likely to seek used textbooks over new textbooks
Faculty Member Perspective
- 84% say textbooks will stay about the same level of importance
- Bookstores will shift more toward merchandise sales
Conclusion
College bookstores can thrive in a world of increasing online competition. As in any business affected by new competition, the success of the bookstore industry rides on its willingness to adapt to change. Bookstore managers must increase their industry and business awareness by identifying competitive threats, combating online competition through collaboration and supplier partnership, eliminating channel conflict, educating the consumer, and boosting customer loyalty.
The white paper containing detailed survey findings and analysis from the Harris Interactive/Nebraska Book Company studies can be found at Nebraska Book Company’s website.
Methodology
Harris Interactive® conducted three surveys within the United States on behalf of the Nebraska Book Company. The college students’ survey was conducted online between April 6 and 14, 2005 among 823 college students who have taken a college course this academic year that required them to purchase textbooks. Figures for age, gender, region, race and class year were weighted where necessary to bring them into line with their actual proportions in the population. Propensity weighting was also used to adjust for respondents’ propensity to be online. In theory, with probability samples of this size, one could say with 95 percent certainty that the overall results have a sampling error of +/- 3.4 percentage points of what they would be if the entire U.S. population of college students had been polled with complete accuracy. This online sample is not a probability sample.
The faculty members’ survey was conducted via telephone from March 21 to April 11, 2005 among 400 college professors and/or department heads who currently teach in institutions with 1,000 students or more and make textbook decisions. The sample was drawn from Market Data Retrieval (MDR) lists. Figures for gender, region, discipline taught and institution size were weighted to bring them into line demographically with that population. In theory, with probability samples of this size, one could say with 95 percent certainty that the overall results have a sampling error of +/- 5 percentage points.
The bookstore managers’ survey was conducted online between July 13 and 29, 2005 among 117 U.S. college bookstore managers. Sample lists were provided by the Nebraska Book Company and included managers from a variety of college bookstores, including stores not affiliated with Nebraska Book Company. The data were not weighted and are therefore only representative of those college bookstore managers who were on list.
About Harris Interactive®
Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value.
Harris Interactive serves clients worldwide through its United States, Europe (www.harrisinteractive.com/europe) and Asia offices, its wholly-owned subsidiary Novatris in Paris, France (www.novatris.com), and through an independent global network of affiliate market research companies.
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