PROPOSED MARKETING STRATEGY BASED ON CONSUMER BEHAVIORAL INTENTION IN USING SPOTIFY; DIFFERENCES BETWEEN FREE AND PREMIUM USERS

• Main Author: Putri Amalina, Nadia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/38215
• Institution: Institut Teknologi Bandung

Digital music revenue, especially paid subscription audio streaming now account for more than half of the global recorded music market. In Indonesia specifically, the market for audio streaming is expected to grow resulting in a market volume of US$0.9m by 2022. In a growing and competitive music-streaming industry, we need to know the behavioral intention factors in freemium music-streaming service that can keep their current both free and premium users. This applies for Spotify, a freemium music streaming platform launched in 2008, and entered to Indonesia market in 2016. Both free and premium users are important for Spotify, as free users generate revenue from advertising, and premium users generate revenue from the subscription fee. Several studies are discussing freemium music-streaming services, but limited addressed the behavioral differences between its free and premium users. This research aims to find out the factors affecting behavioral intention of premium and free users in using Spotify and to find out on what marketing strategy should be applied to keep their current free and premium users and gain more potential user. The research used two analyses, internal analysis and external analysis. The model used for consumer analysis is UTAUT2, which will answer what factors affect the behavioral intention of free and premium user in using Spotify. The data were obtained using questionnaires, to 291 respondents who have already used Spotify before. Validity test, reliability test, multicollinearity test, and multiple linear regression test are conducted. The findings revealed that there are differences between free and premium users. Free user’s behavioral intention in using Spotify is affected by Facilitating Condition (FC) and Habit (H) factors, while premium user’s behavioral intention in using Spotify is affected by Hedonic Motive (HM), Price Value (PV), and Habit (H) factors. These findings provide several implications, in the way how behavioral intention factor is needed to be taken into consideration in order to keep both Spotify’s current free and premium users, and gain more potential users. Moreover, this research’s model also can be used for future studies on other music-streaming services.