Appendix A: Questionnaire
1. Introduction
As you may be aware, there are strong calls for the parallel importing restrictions to be lifted in New Zealand. Before that occurs we need to be aware of the costs and benefits of doing so.
We would like to discuss with you the views of your organisation about the possible impact to the ________ market of changes to the parallel importing regulations.
Sub Markets
One of the important things to note is that there are different parts of the ________ market that may be affected differently by changes to the law. As we discuss the issues, perhaps you could think about the different sub-markets that exist within the whole ________ market and let us know if you think the sub-markets would be affected differently.
2. Welfare Effects
Prices
The main reason for the calls for changes to the parallel importing laws is the perception that parallel imports will reduce prices paid by New Zealand consumers making them better off.
- Would prices change if there was a relaxation/tightening of the restrictions?
- Would the structure of the prices change e.g. list price versus discounting?
- What are the key drivers of prices e.g. are exchange rates a major factor or is it mainly demand driven?
Volume
- Is volume sensitive to price or vice versa? Will consumers demand more if the price falls?
- Is security of supply an issue?
Quality
- Have there been changes in quality over time?
- Could parallel imports affect the quality of the goods? If so, how?
- Pirated goods?
3. Market Structure
- how, if at all, would the market change if the parallel importing restrictions were changed?
- How would you expect the market to change if the parallel importing restrictions were not changed? What's the counterfactual?
- Has the internet had an impact on domestic sales through personal importing? Will this have an effect in the future?
Distribution
- How would access to new products change?
- Would distribution channels be altered? If so, how?
Support
- Would pre or after sales support be different?
Players
How might the players in the market change? Would existing players leave? New players enter?
4. Interaction Between New and Used
Do used goods have an influence on new good prices and demand?
If so, at what point do they stop having an influence?
How would a change to the restriction on used goods only influence the market?
5. Market Specific Issues
CDs
The Ministry of Commerce has identified that the price of CDs in Australia is dearer than in New Zealand, do you have any views on why this might be the case?
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