Drivers of Customers Advocacy in Support of Subscription-based Digital Entertainment Services (NETFLIX)

Vol 6 No 9 (2023): Volume 06 Issue 09 September 2023

Article Date Published : 14 September 2023 | Page No.: 6278-6284 | Google Scholar | Crossref doi for this article

Abstract :

Subscription business models are increasingly gaining attention in recent year, especially entertainment services such as music subscription, streaming TV/movies and video games. One of the service platform that comes to mind is Netflix, a subscription-based video streaming service. Video on demand streaming service currently competing each other quite aggresively where these provider competing by providing different series that exclusively only available on their services or with different versatile pricing package in hope to attract new subscribers while retaining it’s existing subscribers. This call for new strategy for Netflix to maintain it’s position in competition. This research examines the relationship between customer empowerment values and customer advocacy in relation to a digital platform subscription-based consumption. A quantitative approach was employed by conducting a survey of 110 user of Netflix in Indonesia. Data collected was subsequently analyzed using partial least squares structural equation modeling (PLS-SEM) in order to test the formulated hypothesis. The research resulted in an understanding that value-for-choice, value-for-knowledge and value-for-involvement are significant predictors of customer advocacy of the platform. The findings suggest that Customer advocacy is primarily influenced by the level of product choice and convenience also reliable information and privacy security also constitute important elements for providers to deliver in order to promote advocacy behavior from customers using the platform.

Keywords :

Customer Advocacy, Customer Empowerment Values, Customer Experience, Subscription Video On-demand Streaming, Subscription-based Digital Entertainment Services.

References :

  1. Acar, O., & Puntoni. 2016. Customer empowerment in the digital age. Journal of Advertising Research, 56(1), 4–8. https://doi.org/10.1155/2014/943713
  2. Bapna, R., Umyarov, A., & Shi. 2015. Do Your Online Friends Make You Pay? A Randomized Field Experiment on Peer Influence in Online Social Networks.
  3. Bardhi, & Eckhardt. 2012. Access-Based Consumption: The Case of Car Sharing. Retrieved from https://academic.oup.com/jcr/article/39/4/881/1798309
  1. Bischof, S. F., Boettger, T. M., & Rudolph, T. 2020. Curated subscription commerce: A theoretical conceptualization. Journal of Retailing and Consumer Services, 54. https://doi.org/10.1155/2014/943713
  2. Chen, Z., & Berger, J. 2016. How content acquisition method affects word of mouth. Journal of Consumer Research, 43(1), 86–102. https://doi.org/10.1155/2014/943713
  3. Chernev, A., Böckenholt, U., & Goodman, J. 2015. Choice overload: A conceptual review and meta-analysis. Journal of Consumer Psychology, 25(2), 333-358., 25(2), 333–358. https://doi.org/10.1155/2014/943713
  4. 2022. Demystifying the hype of subscription: What is the true potential of subscription and what drives its success? Retrieved from https://www2.deloitte.com/content/dam/Deloitte/de/Documents/consumer-business/Deloitte_-_Subscription_report_2022.pdf
  5. Ellen, R., Florian, S., & Henseler, J. 2021. HTMT2–an improved criterion for assessing discriminant validity in structural equation modeling. Industrial Management & Data Systems. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/13527600710745714/full/html
  1. Hair, Matthews, Ryan, Sarstedt, & Lucy. 2017. PLS-SEM or CB-SEM: updated guidelines on which method to use. https://doi.org/10.1155/2014/943713
  2. Hayes, Montoya, & Rockwood. 2017. The analysis of mechanisms and their contingencies: PROCESS versus structural equation modeling. Retrieved from https://scholar.google.co.id/scholar?q=Riyadi,+S.+(2018).+Faktor+Peningkatan+Kinerja+Melalui+Job+Stress.+Zifatama+Jawara&hl=id&as_sdt=0&as_vis=1&oi=scholart
  1. Hu, H. fen, & Krishen, A. S. 2019. When is enough, enough? Investigating product reviews and information overload from a consumer empowerment perspective. Journal of Business Research, 100(October 2018), 27–37. https://doi.org/10.1016/j.jbusres.2019.03.011
  2. Keller, E. 2007. Unleashing the power of word of mouth: Creating brand advocacy to drive growth. Journal of Advertising Research, 47(4), 448–452. Retrieved from https://www.journalofadvertisingresearch.com/content/47/4/448.short
  3. 2019. WarpPLS 5.0 user manual. Retrieved from

https://scholar.google.co.id/scholar?q=Riyadi,+S.+(2018).+Faktor+Peningkatan+Kinerja+Melalui+Job+Stress.+Zifatama+Jawara&hl=id&as_sdt=0&as_vis=1&oi=scholart

  1. Krafft, M., Arden, C. M., & Verhoef, P. C. 2017. Permission Marketing and Privacy Concerns — Why Do Customers (Not) Grant Permissions? Journal of Interactive Marketing, 39(August), 39–54. https://doi.org/10.1016/j.intmar.2017.03.001
  2. Lawer, C., & Knox, S. 2006. Customer advocacy and brand development. Journal of Product & Brand Management, 15(2), 121-129., 15(2), 121–129. https://doi.org/10.1155/2014/943713
  3. Leba, E. 2020. Selama Pandemi Covid-19, Pelanggan Baru Netflix Mencapai 16 Juta. Retrieved from https://www.kompas.id/baca/hiburan/2020/04/23/netflix-tambah-16-juta-pelanggan-baru-selama-pandemi-covid-19/
  4. Lee, J., Wishkoski, R., Aase, L., Meas, P., & Hubbles, C. 2017. Understanding users of cloud music services: selection factors, management and access behavior, and perceptions. Journal of the Association for Information Science and Technology, 68(5), 1186–1200. https://doi.org/10.1155/2014/943713
  5. Li, C. . 2017. Why do online consumers experience information overload? An extension of communication theory. Journal of Information Science, 43(6), 835–851. https://doi.org/10.1155/2014/943713
  6. Mäntymäki, M., Islam, A. K. M. N., & 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, 30(2), 295–333. https://doi.org/10.1111/isj.12262
  7. Mimoun, M. S. Ben, Garnier, M., & Depledt, D. 2015. My little box, oh my little box… A video-netnographic study on the expression of values in subscription-based e-commerce. Journal of Applied Business Research, 31(3), 1159–1166. https://doi.org/10.19030/jabr.v31i3.9239
  8. Moynagh, & Worsley. 2002. Tomorrow’s consumer: The shifting balance of power. https://doi.org/10.1155/2014/943713
  9. Rakuten Insight. 2021. Number of subscription video on demand (SvoD) subscriptions per user in Indonesia as of May 2021. Retrieved from https://www.statista.com/statistics/1259711/indonesia-number-of-subscription-video-on-demand-subscriptions-per-user-by-gender/
  10. Rangaswami, A., Moch, N., Felten, C., Bruggen, V., Wieringa, & Wirtz, J. 2020. The Role of Marketing in Digital Business Platforms. https://doi.org/10.1155/2014/943713
  11. 2015. Measuring Consumer Satisfaction : Gaining Customer Relation Strategy. Gramedia Pustaka Utama. https://doi.org/10.1155/2014/943713
  12. Ringle, C. M., & Sarstedt, M. 2016. Gain more insight from your PLS-SEM results the importance-performance map analysis. Industrial Management and Data Systems, 116(9), 1865–1886. https://doi.org/10.1108/IMDS-10-2015-0449
  13. Sarstedt, M., Ringle, C. M., & Hair, J. F. 2020. Handbook of Market Research. Handbook of Market Research. https://doi.org/10.1007/978-3-319-05542-8
  14. Sashi, C. ., Brynildsen, G., & Bilgihan, A. 2019. Social media, customer engagement and advocacy. International Journal of Contemporary Hospitality Management, 31(3), 1247–1272. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/13527600710745714/full/html
  1. Schneider, D., Berent, M., Thomas, R., & Krosnick. 2008. Measuring Customer Satisfaction and Loyalty: Improving the “Net-Promoter” Score. 60th Annual Conference of the World Association for Public Opinion Research (WAPOR); Berlin (Germany), 94. Retrieved from http://www.mattberent.net/Netpromoter_-_AAPOR.pdf
  2. Shin, H., Perdue, R., & Pandelaere, M. 2020. Managing customer reviews for value cocreation: An empowerment theory perspective. Journal of Travel Research, 59(5), 792–810. https://doi.org/10.1155/2014/943713
  3. Sweeney, J., Payne, A., Frow, P., & Liu, D. 2020. Customer Advocacy: A Distinctive Form of Word of Mouth., 23(2). https://doi.org/10.1155/2014/943713
  4. Tang, F. 2020. The more interactivity the better? Investigating interactivity, task complexity, and product knowledge in online purchase decisions. Information Technology and Management, 1–11. https://doi.org/10.1155/2014/943713
  5. Umashankar, N., Bhagwat, Y., & Kumar, V. 2017. Do loyal customers really pay more for services? Retrieved from https://link.springer.com/article/10.1007/s11747-016-0491-8
  6. Urban, G. L. 2004. The Emerging Era of Customer Advocacy. Retrieved from https://sloanreview.mit.edu/article/the-emerging-era-of-customer-advocacy/
  7. Vernuccio, M., & Ceccotti, F. 2015. Strategic and organisational challenges in the integrated marketing communication paradigm shift: A holistic vision. European Management Journal, 33(6), 438–449. https://doi.org/10.1155/2014/943713
  8. Wilk, V., Harrigan, P., & Soutar, G. . 2018. Navigating online brand advocacy (Oba): An exploratory analysis. Journal of Marketing Theory and Practice, 26(1–2), 99–116. https://doi.org/10.1155/2014/943713
  9. Wilk, V., Harrigan, P., & Soutar, G. . 2019). Online brand advocacy (OBA): the development of a multiple item scale. Journal of Product & Brand Management., 273, 544–553. https://doi.org/10.1155/2014/943713

How to Cite :

Drivers of Customers Advocacy in Support of Subscription-based Digital Entertainment Services (NETFLIX). Denish Ariesmendi, Ardhi Ridwansyah, Yos Sunitiyoso , 6(9), 6278-6284. Retrieved from https://ijcsrr.org/single-view/?id=12670&pid=12525

Most read articles by the same author(s)

Denish Ariesmendi, Ardhi Ridwansyah, Yos Sunitiyoso,

View

700

Citation

Downloads

Article Details