il purchase price of a prerecorded video cassette tape of a feature length motion pic ture ranges from $19.95 to $129.95 for the vast majority of releases, while the retail rental prices for the same tapes generally range from $1.00 to $3.00 per each 24 hour period (Newcomb, 1990).
The significant price disparity between the retail sale price and the retail rental price for prerecorded video cas sette tape of feature length motion pictures is often cited as the primary reason for consumer preferences for renting (Water man, 1984). There are also other reasons, such as an absence of a desire to build up and maintain a bulky and expensive 3video cassette tape library. Thus, consumer preferences with respect to a number of factors have contributed to the develop ment of a strong and growing market for the rental of pre recorded video cassette tapes.
The newest development in the prerecorded video cassette rental industry is the introduction of distribution through vending machines (Reeves, 1987). Prior to this innovation, rentals of prerecorded video cassette tapes have occurred through retail stores, with all transactions processed by employees. Under the vending machine concept, all rental transactions are processed by a vending machine.
The attraction of the vending machine concept for consu mers is centered in convenience (Reeves, 1987). Vending machines may be located in a wide variety of site types, such as places of work, apartment complexes, within other retail establishments, such as grocery stores or convenience stores, and even in retail video cassette tape sales and rental stores. By making the rental and return of tapes easier for the consu mer, the vending machine concept is expected to draw consumers away from the standard prerecorded video tape rental stores. Surveys have indicated that convenience and availability are foremost among the factors that consumers consider to be important, with respe...