The Impact of Freemium Attributes of Music Streaming Services on Consumers’ Purchase Intention in Ch

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The purpose of this research sought to test,examine and analyze how various freemium attributes of music streaming services influence Chinese consumers’ purchase intention towards premium subscription of the online content service.This paper sets the technology acceptance model(TAM)and value-based adoption model(VAM)as the theoretical foundation of the research model to observe how the TAM and VAM model applies in the modern setting of China.Moreover,this research aims to observe whether the influence of freemium attributes and consumers’ purchase intention is mediated by consumers’ perceived ease of use(PEOU)and perceived value(PV)of music streaming services.This research contributes to the incipient music streaming industry of China through an experiment to test different types of freemium attributes on two groups of Chinese respondents.This thesis conducted a combination of experiment and questionnaire for data collection.In total,this research collected 309 suitable responses from Chinese consumers.The collected data was analyzed through One-Way ANOVA and linear regression model to understand and compare the purchase intentions of premium music streaming services between the two groups in the experiment.The results of the research indicate that out of the 12 proposed hypotheses,5 were supported regarding consumers’ purchase intentions towards premium music services when exposed to different freemium attributes.The research found that there are statistically significant differences between Group A and Group B’s purchase intention when exposed to different types of freemium attributes of music streaming services.The findings from the experiment suggest that Group A has overall higher purchase intention when exposed to specific freemium attributes of advertisement intrusiveness,time limitation,control limitation,task rewards gratification and copyrighted restriction.Meanwhile,Group B has higher purchase intention towards freemium attribute of online rewards gratification.When it comes to hypotheses developed to investigate the mediating role of Perceived Ease Of Use(PEOU)and Perceived Value(PV),3 were supported and 3 were rejected for Group A.Meanwhile for Group B,5 hypotheses were supported and 1 was rejected.This research shows perceived ease of use(PEOU)of the TAM has a fluctuating role in mediating the influence of freemium attributes to both group’s purchase intention towards premium music streaming services.On the other hand,while perceived value(PV)from the VAM mediated the influence of task rewards gratification,online rewards gratification and copyrighted restriction to Group B’s purchase intention,it did not do so for Group A’s respondents in terms of task rewards gratification.Key discoveries from this research also reveal that age and income level do not play a significant role in Chinese consumers’ purchase intention towards premium music streaming subscription.To the best of my knowledge,this is the first dissertation to investigate the influence of freemium attributes towards consumers’ purchase intention through an experimental design in China.Through the comprehensive experiment,the outcome of this research can provide music streaming businesses on the market with valuable insights of consumers’ purchase intention when exposed to various freemium attributes.These consumer insights can serve as important strategies for future freemium models on different music streaming services.Especially when knowing which freemium attribute positively or negatively influence consumers’ purchase intention,music streaming businesses can utilize these insights when they are considering new freemium strategies or potentially changing their current strategies to increase revenue and conversion rates of their platforms.As the music streaming industry becomes more mature in the Chinese market,this research contributes to answering key questions and providing valuable insights into the freemium model,along with crucial strategies for music streaming services.
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