November 24, 1999 (The Editor’s Desk is updated each business day.)
What consumers pay for in a VCR
A major consumers’ magazine reported on 26
characteristics of VCRs in their 1998 buyers’ guide. Of those
characteristics, a BLS study found that consumers paid the most for the
more sophisticated video platforms: Multi-format converters that can play
more than one tape format, dual-deck VCRs, and S-VHS players that produce
superior resolution.
![Impact of selected characteristics on VCR pricing, 1997](https://webarchive.library.unt.edu/web/20120925102128im_/http://www.bls.gov/opub/ted/images/1999/Nov/wk4/art03.gif)
[Chart data—TXT]
Among other price determining characteristics, up-scale brand names and
the latest cutting edge features had the most impact. The feature with the
largest price tag provides on-screen TV listings with one-touch VCR
programming. Other features with a strong impact on price include
"flying head" edit features and "index plus."
A separate analysis shows that the number of features alone has a
significant impact on the price of a VCR: Those VCRs that are "fully
loaded" are generally more expensive no matter what type they are.
These findings were part of a study of quality adjustment techniques
for the Consumer Price Index program. The
technique used to estimate implicit prices for videocassette recorder
characteristics is called hedonic regression. For more information see "Adjusting
VCR prices for quality changes: a study using hedonic methods,"
by Paul R. Liegey and Nicole Shepler, Monthly Labor Review, September
1999.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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Read more »