The main purpose of this study was to determine the factors that influence the perceived value of adult Generation Y consumers and the intention to adopt streaming services. The study findings indicate that the testability and perceived usability of streaming services have a direct positive impact on Gen Y consumers' intention to adopt streaming services.
INTRODUCTION AND BACKGROUND TO THE STUDY
- INTRODUCTION
- PROBLEM STATEMENT
- RESEARCH AIM AND OBJECTIVES
- Primary objective
- Theoretical objectives
- Empirical objectives
- Hypotheses
- RESEARCH METHODOLOGY
- Literature review
- Empirical study
- STATISTICAL ANALYSIS
- ETHICAL CONSIDERATION
- CONTRIBUTION OF STUDY
- CONCLUSION
H07: The perceived value of streaming services by Generation Y consumers does not significantly and directly positively influence their intention to adopt these services. Ha7: The perceived value of streaming services by Generation Y consumers has a significant and direct positive impact on their intention to adopt these services.
STREAMING SERVICES AND MARKETING
INTRODUCTION
It has been less than a century since individuals started enjoying radio and television entertainment in the comfort of their homes (Ismail, 2017). Film, print, radio and television are all part of the media and entertainment industry (Vault, 2018).
BRIEF HISTORY OF MUSIC AND TELEVISION
- Brief history of music
- Brief history of television
The first home recorders using compact cassette technology were released in the United States in 1964, and the first music albums were released in cassette format in 1966 (Rogers, 2013). It was Philo Farnsworth who applied for a patent for the first electronic television system called the Image Dissector (Britannica, 2020).
MODERN ENTERTAINMENT: STREAMING SERVICES
- A brief history of streaming services
- A brief history of music streaming services
- A brief history of video streaming services
- Current landscape of streaming services
- Global streaming service landscape
- South African streaming services landscape
- Streaming services in South Africa
- Music streaming services
- Video streaming services
Amazon also produces its own original video content such as The Grand Tour and The Man in The High Castle. ShowMax offers their members access to various local and international movies and TV shows (ShowMax, 2018).
STREAMING SERVICE MARKETING
- Advertisement-supported streaming services
- Subscription-based streaming services
This business model is most common among streaming service providers, as this model helps providers secure repeat customers (Campbell, 2020). Streaming service providers that offer original content to their subscribers on an ongoing basis create a loyal fan base (Campbell, 2020).
GENERATION Y
The rapid advancement of technology has made Generation Y individuals accustomed to multitasking, as they tend to use multiple devices continuously and simultaneously (Kane, 2019; Nahai, 2013). Generation Y individuals are more responsive to digital marketing than to traditional media channels (Mcintosh, 2015; KPMG, 2015:18).
SERVICE MARKETING
The output of the video streaming service is intangible as the user consumes the service for entertainment purposes (Homburg et al. If the perceived quality of the consumer matches the intended quality, the service quality will be good, resulting in satisfied consumers (Palmer, 2014).
CONCLUSION
The consumer judges the service performance against the desired performance, which leads to the question whether he will consider the service useful and valuable or not (Aksoy & Basaran, 2017:2). If the consumer finds the service useful and valuable, this will lead to customer satisfaction, which will lead to acceptance/subscription to the service (Joaquim, 2016).
CONSUMER BEHAVIOUR AND STREAMING SERVICES
INTRODUCTION
CONSUMER BEHAVIOUR
- Consumer decision-making process
- Traditional model of decision-making
- Factors influencing consumer decision-making
- Cultural factors
- Social factors
- Personal factors
- Psychological factors
MARKETING MIX AND E-MARKETING MIX
- Background of the marketing mix
- E-marketing
- E-marketing mix
- Product/service
- Price
- Place
- Promotion
- Sales promotion
- Personalisation
- Privacy and security
- Customer service
- Community
- Site
TECHNOLOGY AND MEDIA ADOPTION THEORIES AND MODELS
- Theory of reasoned action
- Technology acceptance model
- Innovation diffusion theory
- Perceived value of a medium model
ANTECEDENTS OF GENERATION Y CONSUMERS’ PERCEIVED
- Perceived usefulness
- Trialability
- Risk avoidance
- Perceived value
- Perceived enjoyment
- Perceived informativeness
HYPOTHESISED RESEARCH MODEL
- The interrelationship between perceived enjoyment and perceived value
- The interrelationship between risk avoidance and perceived value
- The interrelationship between perceive usefulness and perceived value
- The interrelationship between trialability and adoption intention
- The interrelationship between perceived value and adoption intention
CONCLUSION
RESEARCH DESIGN AND METHODOLOGY
INTRODUCTION
This chapter explains the research and methodology used to test this model. Topics covered in this chapter include research paradigm, marketing research process, research design, research approach, sampling strategy, and data collection method.
RESEARCH PARADIGM
- Ontology
- Epistemology
- Methodology
- Theoretical paradigms
Moreover, the philosophical assumptions regarding the nature of reality are essential as they guide the researcher to understand how to create meaning from the data collected. This is significant as it refers to how the researcher assesses, interprets and reports on the knowledge gained (Viljoen, 2016).
MARKETING RESEARCH PROCESS
The stages in Figure 4-1 represent the process the researcher must follow when faced with a research problem. The researcher starts by defining the problem (step 1), then an approach to the problem must be developed (step 2) leading to the formulation of the research design (step 3), which specifies the procedures to be followed in the collect the data (Step 4).
RESEARCH DESIGN
- Exploratory research
- Causal research
- Descriptive research
The purpose of descriptive research design is to describe the characteristics and characteristics of a specific target population (Hair et al. Malhotra identifies two types of descriptive research design techniques: the longitudinal design and the cross-sectional design.
RESEARCH APPROACH
- Qualitative research
- Quantitative research
- Mixed approach
A single cross-sectional design refers to a researcher collecting data from one sample of respondents, while a multiple cross-sectional design involves two or more samples of respondents (Shukla, 2010:38). In order to achieve the main objective of this study, a descriptive research design using a single cross-sectional approach was used.
SAMPLING STRATEGY
- Target population
- Sampling frame
- Sample method
- Probability sampling
- Non-probability sampling
- Sample size
This method is used when the purpose of the research project is not clear (Rucker, 2018). A sampling frame is a representation of the target population elements and can consist of a list or set of guidelines for the identification of the target population (Malhotra et al.
DATA COLLECTION METHOD
- Questionnaire format
- Questionnaire content and layout
- Pre-testing of the questionnaire
- Administration of the questionnaire
Accordingly, the questionnaire for this study consisted of four sections (See Appendix A). The formal questionnaire administration process for this study was conducted between June 2020 and August 2020.
DATA PREPARATION
- Editing
- Coding
- Tabulation
The questionnaire for this study was submitted for approval to the Ethics Committee of the Faculty of Economics and Management, North West University, Vanderbijlpark Campus. None of the questionnaires were discarded due to missing values as the questionnaire formulated in Google Forms requires respondents to answer all questions.
STATISTICAL ANALYSIS
- Factor analysis
- Research design considerations
- Determine the statistical viability
- Determine the factor method
- Determine the number of factors to extract
- Determine the rotational method
- Assess and interpreting the factor matrix
- Descriptive statistics analysis
- Measures of central tendency
- Measures of variability
- Measures of shape
Principal component analysis and common factor analysis are the two basic approaches (Malhotra et al. Once the method of factor analysis is chosen, the researcher must determine the number of factors to be retained (Preacher et al., 2013:29).
STRUCTURAL EQUATION MODELLING
- Define the individual constructs
- Develop and specify the measurement model
- Assess measurement model reliability, validity and fit
- Specify the structural model
- Assess structural model validity
- Draw conclusions and make recommendations
Consequently, once the reliability and validity of the measurement model have been identified, model fit indices should be evaluated. The structural model can be specified once the reliability and validity of the measurement model is established and the fit of the model is identified.
CONCLUSION
However, if the validity of the structural model is not considered sufficient, it is possible to perform additional analyzes based on model diagnostics. Conclusions can be based on the results of the CFA analysis of the main constructs, as well as on the results of the hypothesis testing in the structural model (Malhorta 2010:738).
ANALYSIS AND INTERPRETATION OF EMPIRICAL FINDINGS
INTRODUCTION
PRE-TEST RESULTS
D3 Using streaming services makes it easier to get information about music and video content. D5 In general, streaming services will be a very useful platform for listening to music and watching video content.
DATA GATHERING PROCESS
Trial access to the streaming service will allow me to understand first-hand what the benefits of the services are. Streaming services give me access to video content/music that suits my interests and tastes.
PRELIMINARY DATA ANALYSIS
- Coding
- Data cleaning
- Tabulation of variables
Section D of the questionnaire is shown below in Table 5-5 and represents the main objective of the study. Data cleaning was used to eliminate questionnaires completed by respondents outside the scope of the defined target population of the study.
DEMOGRAPHICAL INFORMATION ANALYSIS
- Sample description
- Streaming services usage and preferences
In the sample, 3.5 percent of respondents reported not using streaming service platforms. However, 3 percent of respondents indicated that they did not use any video streaming service platform.
EXPLORATORY FACTOR ANALYSIS
The personal computer or laptop was favored by 9.8 percent of the sample and the smart television was indicated by 7.9 percent of the sample. According to Chart 9 in Figure 5-3, Generation Y consumers preferred to use WIFI installed at their homes for streaming purposes; this response is accounted for by 74.5 percent of the total sample.
DESCRIPTIVE STATISTICAL ANALYSIS
This implies that Generation Y consumers found streaming services useful and perceived using streaming services as a way to avoid the risks associated with content piracy. Furthermore, Tables 5-8 illustrate that the two factors with the highest standard deviation values are trialability (Std. Dev) and the perceived value of streaming services (Std. Dev, which shows a larger distribution in response to these factors).
CORRELATION ANALYSIS
Additionally, they viewed these services as informative, enjoyable to use, and valuable, and were favorable toward adopting streaming services. The results also confirm the importance of streaming service providers offering an initial free trial period.
MULTI-COLLINEARITY DIAGNOSTICS
As shown in Table 5-9, there is a significant positive correlation between each of the factors, at a significance level of a=0.01. Subsequently, structural equation modeling was used to test the hypotheses, as described in the next section.
HYPOTHESES TESTING
H02: Perceived informativeness does not have an indirect positive influence on Generation Y consumers' intention to use streaming service via its influence on their perceived value of such services. H04: Risk aversion does not have an indirect positive influence on Generation Y consumers' intention to use streaming service via its influence on their perceived value of such services.
STRUCTURAL EQUATION MODELLING
- Measurement model specification
- Structural model
Furthermore, it was hypothesized that perceived value (F3) and testability (F6) have a direct positive influence on Gen Y consumers' intention to adopt streaming services (F5). Trialability and perceived value are factors that directly influence consumers' intention to adopt streaming services.
CONCLUSION
CONCLUSION AND RECOMMENDATION
INTRODUCTION
The findings of this study were reported in chapter 5 and the chapter presented and compared two alternative models in which the impacts of the factors listed above were assessed. This chapter concludes with a discussion of the limitations identified in this study, as well as future opportunities for research arising from these limitations.
OVERVIEW OF THE STUDY
The ethical considerations are discussed in Section 1.6, followed by the contributions of the study (Section 1.7) and the scope of the study (Section 1.8). The concept of entertainment was introduced in section 2.1, accompanied by a brief discussion of the history of music and television (section 2.2).
MAIN FINDINGS OF THE STUDY
Based on the discussion in Section 3.4, Section 3.5 continues to theorize the antecedents that influence the perceived value and intentions of Gen Y mature consumers to adopt streaming services in the South African market. To determine the nological validity of the seven latent factors proposed for inclusion in the measurement model, a correlation analysis (section 5.8) was performed prior to the confirmatory factor analysis.
ACHIEVEMENT OF EMPIRICAL OBJECTIVES
The results of the Structural Model B path analysis showed that perceived informativeness, perceived pleasure, and risk avoidance continue to have a direct positive impact on the perceived value of streaming services by Gen Y consumers, and that testability and perceived value, along with perceived value utility, having a direct influence on the perception of streaming services by Generation Y consumers. Positive influence on the intention of Generation Y consumers to adopt streaming services in South Africa. However, perceived usefulness did not have a significant positive impact on the perceived value of streaming services by Gen Y consumers.
CONTRIBUTION OF THE STUDY
This resulted in an alternative model being specified where perceived usefulness was theorized to have a direct positive influence on adoption intention towards streaming services. The regression path estimates in structural model B were all statistically significant, showing that perceived informativeness, perceived enjoyment, and risk avoidance have a direct positive influence on Generation Y consumers' perceived value of streaming services, and that trialability, perceived value, and perceived usefulness have a direct positive influence on generation Y consumers'.
RECOMMENDATIONS
- Extend the streaming service trial period
- Continually improve on the informativeness of the streaming service
- Focus on the entertainment value of streaming services
- Highlight how subscribing to streaming services mitigates the risks
- Add features to the streaming platform that will contribute to its perceived
Additionally, service providers can look at the option of referrals from friends and family. Streaming service providers may look at the option to enable Gen Y users to use the third.
LIMITATIONS AND FUTURE RESEARCH OPPORTUNITIES
CONCLUDING REMARKS
