THE IMPACT OF SPOTIFY ADVERTISEMENTS ON FREE ACCOUNTS TO PURCHASE DECISIONS FOR SPOTIFY PREMIUM ACCOUNTS WITH CONSUMER ATTITUDES AS THE MEDIATING VARIABLE

• Main Author: Evelyn Alodia, Jane
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82987
• Institution: Institut Teknologi Bandung

Recently, digital music streaming services have increasingly relied on advertisements to drive revenue and encourage users to upgrade to premium accounts. Previous research reveals that effective advertising can significantly influence consumer attitudes and purchasing decisions. However, there is evidence that ads can cause negative reactions such as annoyance and irritation, impacting user experience. This study analyzes the impact of Spotify advertisements on consumers' purchasing decisions while upgrading from free to premium accounts, with consumer attitude as the mediating variable. This study uses a quantitative approach, with an online survey with 399 responses as the major data source, focusing on Spotify Premium users. The data is examined using descriptive statistics and partial least squares structural equation modelling (PLS-SEM). The findings show that advertising has a significant positive effect on customer attitudes, as well as a significant positive impact on purchase decisions. Furthermore, advertisements have a significant positive impact on purchase decisions when mediated by customer attitudes. The findings show that while advertising positively influences consumer attitudes and purchase decisions, the results show negative reactions such as annoyance and irritation with Spotify advertisements. These findings are supported by respondent feedback, which shows that Spotify ad content, frequency, and timing frequently create disruption. This data is helpful for digital marketers and advertisers who want to improve the success of their campaigns on digital music streaming services like Spotify. It also helps to inform future studies on advertising effectiveness, customer behaviour, and digital marketing techniques.