The Effects of Social Value, Value for Money, App Rating, and Enjoyment on the Intention to Purchase the Premium Service of the Spotify App
Abstract
The use of music streaming services has been proliferating all around the world, including in Indonesia. While being a leader in music streaming service, Spotify is not at their top performance lately due to having reached the maturity stage, and even shows a decline in the percentage of paid users as compared to the total users. Their growth has also slowed in the past five years. Strategic marketers claim that companies need to fully understand the needs of the consumers to create suitable products and therefore grow their company, and failure to do so is creating marketing myopia and problems. This research was done to find out the effect of social value, value for money, app rating, and enjoyment on the intention to purchase Spotify, specifically the premium version of Spotify. The sample was Spotify users who had been using Spotify for at least one month (both free and premium), aged at least 13 years old, who had a smart device, and were domiciled in Surabaya, Indonesia. 135 samples were used. All independent variables positively and significantly affected the dependent variable, both individually and as a whole. The most dominant factor was the value for money, followed by enjoyment, app rating, and finally, social value. The findings can be used to develop strategies to help improve the performance of freemium businesses, including Spotify.
Keywords: app rating, enjoyment, music streaming, purchase intention, social, technology, value for money
References
[1] Indonesian Internet Service Providers Association (APJII). (2018). Penetrasi & Profil Perilaku Pengguna Internet Indonesia. APJII. Jakarta.
[2] Statista. (2019). Music Subscriber Market Shares 2019. Retrieved from www.statista.com 16 August 2020
[3] App Annie. (2020). The App Analytics and App Data Industry Standard. Retrieved from www.statista.com 9 May 2020
[4] Liu, C. Z., Au, Y. A. and Choi, H. S. (2012). An Empirical Study of the Freemium Strategy for Mobile Apps: Evidence from the Google Play Market. International Conference on Information Systems (ICIS) 2012, vol. 3, pp. 2069–2085.
[5] Brockmann, T., Stieglitz, S. and Cvetkovic, A. (2015). Prevalent Business Models for the Apple App Store. In Wirtschaftsinformatik, Vol 13 Issue 5 pp. 1206-1221.
[6] Spotify AG. (2019). Spotify Website. www.spotify.com.Retrieved from www.statista.com 9 May 2020
[7] Ipsos. (2018). Targeting Millennials using Music Streaming Apps.
[8] Badan Pusat Statistik Indonesia (BPS). (2019). Pendapatan Nasional Indonesia 2014-2018. BPS. Retrieved from www.BPS.com 9 May 2020
[9] Kumar, V. (2014). Making ‘Freemium’ Work. Harvard Business Review. Vol 92(5), 27-29.
[10] Hsu, C. L., Lin, J. C. C. (2015). What Drives Purchase Intention for Paid Mobile Apps? An Expectation Confirmation Model With Perceived Value. Electronic Commerce Research and Applications, vol. 14, issue 1, pp. 46–57.
[11] Sánchez-Fernández, R., Iniesta-Bonillo, M. Á. (2007). The Concept of Perceived Value: a Systematic Review of the Research. Marketing Theory, vol. 7, issue 4, pp. 427–451.
[12] Belk, R. W. (2013). Extended Self in a Digital World. Journal of Consumer Research, vol. 40, issue 3, pp. 477–500.
[13] Del Vecchio, D. (2001). Consumer Perceptions of Private Label Quality: the Role of Product Category Characteristics and Consumer Use of Heuristics. Journal of Retailing and Consumer Services, vol. 8, issue 5, pp. 239–249.
[14] Kim, H. W., Gupta, S. and Koh, J. (2011). Investigating the Intention to Purchase Digital Items in Social Networking Communities: A Customer Value Perspective. Information & Management, vol. 48, issue 6, pp. 228–234.
[15] Kuo, Y. F., Wu, C. M. and Deng, W. J. (2009). The Relationships Among Service Quality, Perceived Value, Customer Satisfaction, and Post-Purchase Intention in Mobile Value-Added Services. Computers in Human Behavior, vol. 25, issue 4, pp. 887–896.
[16] Sweeney, J. C., Soutar, G. N. (2001). Consumer Perceived Value: The Development of a Multiple Item Scale. Journal of Retailing, vol. 77, issue 2, pp. 203–220.
[17] Mahmood, A. (2020). Identifying the Influence of Various Factors of Apps on Google Play Apps Ratings. Journal of Data, Information and Management, vol. 2, issue 1, pp. 15-23.
[18] Chen, Y., Xie, J. (2008). Online Consumer Review: Word-of-Mouth as a New Element of Marketing Communication Mix. Management Science, vol. 54, issue 3, pp. 477–491.
[19] Hsu, C. L., Lin, J. C. C. and Chiang, H. S. (2013). The Effects of Blogger Recommendations on Customers’ Online Shopping Intentions. Internet Research, vol. 23, issue 1, pp. 69–88, 2013.
[20] Dellarocas, C. (2003). The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms. Management Science, vol. 49, issue 10, pp. 1407-1424.
[21] Kotler, P. (2012). Kotler on Marketing. Simon and Schuster.New York p. 272.
[22] Wang, Y. S., Yeh, C. H. and Liao, Y. W. (2013). What Drives Purchase Intention in the Context of Online Content Services? The Moderating Role of Ethical Self-Efficacy for Online Piracy. International Journal of Information Management, vol. 33, issue 1, pp. 199–208.
[23] Mäntymäki, M., Islam, A. N. and Benbasat, I. (2020). What Drives Subscribing to Premium in Freemium Services? A Consumer Value-Based View of Differences Between Upgrading to and Staying with Premium. Information Systems Journal, vol. 30, issue 2, pp. 295-333.
[24] Van der Heijden, H. (2004). User Acceptance of Hedonic Information Systems. Management Information System Quarterly, vol. 28, issue 4, p. 695.
[25] Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. Management Information System Quarterly, vol. 13, issue 3, pp. 319–340.
[26] Thong, J. Y., Hong, S. J. and Tam, K. Y. (2006). The Effects of Post-Adoption Beliefs on the Expectation-Confirmation Model for Information Technology Continuance. International Journal of Human-Computer Studies, vol. 64, issue 9, pp. 799–810.
[27] Knight, D. K., Kim, E. Y. (2007). Japanese Consumers’ Need for Uniqueness: Effects on Brand Perceptions and Purchase Intention. Journal of Fashion Marketing and Management, vol. 11, issue 2, pp. 270–280.
[28] Aharony, N. (2015). Why do students use What’s App? An Exploratory Study. Aslib Journal of Information Management, vol. 67, issue 2, pp. 136–158.
[29] Lu, H. P., Su, P. Y. J. (2009). Factors Affecting Purchase Intention on Mobile Shopping Websites. Internet Research, vol. 19, issue 4, pp. 442–458.
[30] Wu, P. C., Yeh, G. Y. Y. and Hsiao, C. R. (2011). The Effect of Store Image and Service Quality on Brand Image and Purchase Intention for Private Label Brands. Australasian Marketing Journal (AMJ), vol. 19, issue 1, pp. 30–39, 2011.
[31] Fure, H. (2013). Lokasi, keberagaman produk, harga, dan kualitas pelayanan pengaruhnya terhadap minat beli pada pasar tradisional Bersehati Calaca. Jurnal Emba: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, vol. 1, issue 3, pp. 273–283.
[32] Dodds, W. B., Monroe, K. B. and Grewal, D. (1991). Effects of Price, Brand, and Store Information on Buyers’ Product Evaluations. Journal of Marketing Eesearch, vol. 28, issue 3, pp. 307–319, 1991.
[33] Ferdinand, A. (2006). Metode Penelitian Manajemen Pedoman Penelitian untuk Penulisan Skripsi Tesis dan disertai Ilmu Manajemen. Semarang: Badan Penerbit Universitas Diponegoro.
[34] Wang, E. S. T. (2010). Impact of Multiple Perceived Value on Consumers’ Brand Preference and Purchase Intention: a Case of Snack Foods. Journal of Food Products Marketing, vol. 16, issue 4, pp. 386–397.
[35] Hamari, J., Hanner, N. and Koivisto, J. (2020). “Why Pay Premium in Freemium Services?” A Study on Perceived Value, Continued Use and Purchase Intentions in Free-to-Play Games. International Journal of Information Management, vol. 51, p. 102040.
[36] Lovelock, C., Patetrson, P. and Walker, R. (2015). Services Marketing: An Asia-Pacific and Australian Perspective, 6th ed. Pearson, Melbourne
[37] Doh, S. J., Hwang, J. S. (2009). How Consumers Evaluate EWOM (Electronic Word-of-Mouth) Messages. Cyber Psychology & Behavior, vol. 12, issue 2, pp. 193–197.
[38] Cresswel, J. (2013). Qualitative, Quantitative, and Mixed Methods Approaches, 4th ed. SAGE Publishing. United States
[39] Sugiyono (2016), Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung: CV Alfabeta.
[40] Hair, J., et al. (2014). Marketing Research, 4th ed. McGraw-Hill Education. Canada
[41] Ghozali, I. (2013). Aplikasi Analisis Multivariate dengan Program SPSS, 7th ed. Semarang: Badan Penerbit Universitas Diponegoro.
[42] Priyatno, D. (2014). SPSS 22 Pengolah Data Terpraktis. Yogyakarta: Penerbit Andi Offset.