THE ASSOCIATION OF PERCEIVED SERVICE QUALITY TO CUSTOMER BEHAVIOUR TOWARDS USE AND PURCHASE INTENTION IN FREEMIUM SERVICES

• Main Author: Eka Sucy, Fadhillah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75480
• Institution: Institut Teknologi Bandung

The rise of the freemium business model has presented challenges for service developers in balancing service quality and generating demand for premium offerings. Some of previous frameworks use to measure service quality in different industries, including telecommunications, banking, music, games, and more. Very limited of the previous studies investigated in the online event as the subject of research. Thus, this study aims to examine the association of service quality dimensions, including tangibility, reliability, responsiveness, assurance, and empathy, the continued use of free services and ,the decision to purchase premium products or features especially in online event. The research focuses on LombaCademy, an online learning media for high school students to prepare for the National Science Olympiad (OSN) that currently develops new online program-sharing sessions. Drawing on data collected from participants of LombaCademy's webinars (N = 220), this research utilized the PLS-SEM method through SmartPLS software. The findings reveal significant positive association between empathy and tangibility and use intention (H4a: empathy 0.249, H5a: tangible 0.267), indicating that participants who perceive higher levels of empathy and tangibility are likelier to continue using LombaCademy's services. Moreover, use intention was found to have a significant direct and total effect on purchase intention, highlighting the importance of fostering use intention to drive purchase behavior. Notably, reliability was identified as another significant predictor of purchase intention. Based on the results, several business implications can be drawn. LombaCademy should focus on enhancing the reliability of its services to build trust and dependability among participants. Additionally, efforts should be directed towards improving empathy and tangibility aspects to further increased use intention, ultimately leading to higher purchase intention. These findings provide valuable insights for LombaCademy's business strategies in the competitive landscape of freemium services, particularly in the education industry. However, it is important to note the limitations of this study. The findings are based on a specific time a sample of participants who have attended LombaCademy's webinars, which may limit generalizability to other service contexts or industries. Future research could explore the moderating effects of contextual factors and further examine the role of emerging technologies to enhance service quality and consumer behavior in online events.