Willingness to Pay of Filipino Spotify Users: Role of E- Subscription Service Quality and Perceived Value

EasyChair Preprint no. 8715

Abstract

A new era of Filipino consumerism rose brought by the continuous advancement in technology introducing various music streaming service providers including Spotify. Having the option to avail of either free or premium-based subscription paves way to this study’s objective to examine the e-service quality and perceived value of Spotify-users, its direct effects in willingness to pay, and the role of customer satisfaction as a mediator. A total of 253 Spotify-users participated in this study, aged 18 years old and above and residing in the National Capital Region (NCR) of the Philippines. A quantitative research approach and a predictive-causal design was applied in this study which was assessed through a partial least squares-structural equation modeling (PLS-SEM) to evaluate the relationships of the proposed model. The results revealed that e-service quality and perceived value significantly influences customer satisfaction and willingness to pay. Hence, the relationship between customer satisfaction and willingness to pay is also supported. Also, the study shows that customer satisfaction also affects willingness to pay. However, the findings uncovered that there is no connection between customer satisfaction as a mediator between e-service quality and perceived value leading to the user's willingness to pay. This study has implications to Spotify and other companies providing music streaming services. From a managerial standpoint, this study shows that branding, subscription pricing, mode of payment, and variety of songs and artists directly influences the user in continuously availing of a subscription and a non-user to avail of a premium subscription. Application developers on the other hand will have a broad theoretical basis that designing a successful music streaming platform should specifically emphasize user interface design and security features.

Keyphrases: customer satisfaction, e-service quality, perceived value, Spotify, Technology Acceptance Model, Theory of Planned Behavior, willingness to pay

@Booklet{EasyChair:8715,
  author = {Jeren Quipia and Mary Devine Sablas and Karl Kristopher Trampe and Lizel Tumali},
  title = {Willingness to Pay of Filipino Spotify Users: Role of E- Subscription Service Quality and Perceived Value},
  howpublished = {EasyChair Preprint no. 8715},

  year = {EasyChair, 2022}}