Consumer Intention For Premium Subscription In Freemium Services: Exploring Factors Influencing Intention To Upgrade To Premium Of Music Streaming Services In Vietnam.

Abstract

In the era of booming music streaming, understanding consumer behavior regarding premium subscription adoption is pivotal for service providers. This research investigates factors influencing Vietnamese users' intentions to upgrade from free to paid tiers on platforms like Spotify. Grounded in the Theory of Planned Behavior and incorporating perceived values/sacrifices, a conceptual model was developed and empirically tested through an online survey of 333 music streaming platform users in Ho Chi Minh City. The research employs Structural Equation Modelling (SEM) through AMOS software to identify and analyse the main factors that shape repurchase intention, utilising a robust conceptual framework. Results indicated that intention to use premium subscription was influenced by determinants, such as attitude and subjective norms. Moreover, it determined relationships between other elements including perceived value, perceived enjoyment, perceived usefulness and perceived sacrifice. The findings offer strategic recommendations, including enhancing perceived values, competitive pricing, improving payment systems, leveraging social media marketing, and promoting ethical music consumption. This research contributes to the literature on music streaming adoption, offering implications for driving premium subscription growth in emerging markets like Vietnam.