The Influence of Perceived Usefulness, Satisfaction, and Personalization on Subscription Video on Demand Continuance Intentions

Authors

  • Natasya Elora Carissa Universitas Indonesia
  • Muhammad Erlangga Universitas Indonesia
  • Cindy Sonesha Evik Universitas Indonesia
  • Putu Wuri Handayani Universitas Indonesia

DOI:

https://doi.org/10.21512/commit.v17i2.8446

Keywords:

Perceived Usefulness, Satisfaction, Personalization, Subscription Video on Demand, Continuance Intention

Abstract

The rapid development of Subscription Video on Demand (SVoD) services in Indonesia makes it promising. The change in consumers’ behavior from watching movies through television channels and cinemas to online streaming has encouraged industry players to look for innovation. The research aims to analyze factors influencing the intention to continue using SVoD with Netflix as the case study. The research combines two theories, namely Information System Success (ISS) Model and Expectation Confirmation Theory (ECT). The research also adds an aspect of personalization which is one of the characteristics of SVoD services. There are 623 respondents who have used Netflix’s SVoD service at least once (purposive sampling) to participate in the research. The data are analyzed using the covariancebased structural equation model and facilitated using AMOS 26 program. The results indicate that service quality has a positive effect on confirmation. Then, system quality has a positive effect on perceived usefulness, and confirmation has a positive effect on satisfaction. Moreover, satisfaction, perceived usefulness, and personalization positively affect continuance intention to use SVoD services. Based on these results, the research is expected to contribute to SVoD service providers to evaluate their services so that users have the intention to continue using the SVoD services.

Dimensions

Plum Analytics

Author Biographies

Natasya Elora Carissa, Universitas Indonesia

Faculty of Computer Science

Muhammad Erlangga, Universitas Indonesia

Faculty of Computer Science

Cindy Sonesha Evik, Universitas Indonesia

Faculty of Computer Science

Putu Wuri Handayani, Universitas Indonesia

Faculty of Computer Science

References

Y. Pusparisa, “Sederet aplikasi yang pertama dijajal konsumen kala pandemi,” 2020. [Online]. Available: https://shorturl.at/bft68

A. Auditya and Z. Hidayat, “Netflix in Indonesia: Influential factors on customer engagement among millennials’ subscribers,” Journal of Distribution Science, vol. 19, no. 1, pp. 89–103, 2021.

R. Pereira and C. Tam, “Impact of enjoyment on the usage continuance intention of video-ondemand services,” Information & Management, vol. 58, no. 7, 2021.

D. Menon, “Purchase and continuation intentions of Over-the-Top (OTT) video streaming platform subscriptions: A uses and gratification theory perspective,” Telematics and Informatics Reports, vol. 5, pp. 1–15, 2022.

Z. Li, X. Zhao, and G. Ou, “Understanding customer satisfaction in curated subscription services: Moderating roles of subscription time and information disclosure,” Information & Management, vol. 60, no. 6, 2023.

J. H. Jo, J. H. Lee, and S. Cho, “The characteristics of videos on demand for television programs and the determinants of their viewing patterns: Evidence from the Korean IPTV market,” Telecommunications Policy, vol. 44, no. 8, 2020.

D. E. I. R. Mahelingga, “Sirkulasi film platform streaming di Indonesia,” 2021. [Online]. Available: https://osf.io/dnbh5

K. Manifold, “Difference between VOD and OTT and the terms SVOD, AVOD, TVOD,” 2023. [Online]. Available: https://shorturl.at/EOQ03

A. Lidwina, “Efek pandemi, total pelanggan Netflix tembus 200 juta,” 2021. [Online]. Available: https://shorturl.at/vzDJY

Media Partners Asia, “Premium video captures 10% of video streaming minutes in SE Asia,” 2021. [Online]. Available: https://www.digitaltvnews.net/?p=36712

Y. Yu, H. Chen, C. H. Peng, and P. Y. K. Chau, “The causal effect of subscription video streaming on DVD sales: Evidence from a natural experiment,” Decision Support Systems, vol. 157, 2022.

T. Kim, “Critical interpretations of global-local co-productions in subscription video-on-demand platforms: A case study of Netflix’s YG Future Strategy Office,” Television & New Media, vol. 23, no. 4, pp. 405–421, 2022.

K. Y. Wang, A. R. Ashraf, N. T. Thongpapanl, and O. Nguyen, “Influence of social augmented reality app usage on customer relationships and continuance intention: The role of shared social experience,” Journal of Business Research, vol. 166, 2023.

D. K. Maduku and P. Thusi, “Understanding consumers’ mobile shopping continuance intention: New perspectives from South Africa,” Journal of Retailing and Consumer Services, vol. 70, 2023.

M. A. Camilleri and L. Falzon, “Understanding motivations to use online streaming services: Integrating the Technology Acceptance Model (TAM) and the Uses and Gratifications Theory (UGT),” Spanish Journal of Marketing-ESIC, vol. 25, no. 2, pp. 217–238, 2021.

U. Cebeci, O. Ince, and H. Turkcan, “Understanding the intention to use Netflix: An extended technology acceptance model approach,” International Review of Management and Marketing, vol. 9, no. 6, pp. 152–157, 2019.

D. K. Liou, L. C. Hsu, and W. H. Chih, “Understanding broadband television users’ continuance intention to use,” Industrial Management & Data Systems, vol. 115, no. 2, pp. 210–234, 2015.

V. Rahe, C. Buschow, and D. Schl¨utz, “How users approach novel media products: Brand perception of Netflix and Amazon Prime Video as signposts within the German subscription-based video-ondemand market,” Journal of Media Business Studies, vol. 18, no. 1, pp. 45–58, 2021.

J. Sun and Z. Meng, “Research on customer value identification of video-on-demand services based on RFM improved model,” in 2022 2nd International Conference on Computer Science, Electronic Information Engineering and Intelligent Control Technology (CEI). Nanjing, China: IEEE, Sept. 23–25, 2022, pp. 464–467.

M. A. Alfarisi, Y. Fernando, and R. B. Ikhsan, “Impact of interaction, identification, customer satisfaction and customer loyalty on online video on demand,” in 2022 IEEE 8th International Conference on Computing, Engineering and Design (ICCED). Sukabumi, Indonesia: IEEE, July 28–29, 2022, pp. 1–6.

M. Jang, H. Baek, and S. Kim, “Movie characteristics as determinants of download-to-own performance in the korean video-on-demand market,” Telecommunications Policy, vol. 45, no. 7, 2021.

A. Scarlata, J. Douglas, and R. Lobato, “Subscription Video-on-Demand (SVOD) original production in Australia: Evolution or revolution?” Media International Australia, 2022.

Y. Bandung, L. B. Subekti, I. G. B. B. Nugraha, and K. Mutijarsa, “Design and implementation of video on demand system based on MPEG DASH,” in 2020 International Conference on Information Technology Systems and Innovation (ICITSI). Bandung, Indonesia: IEEE, Oct. 19–23, 2020, pp. 318–322.

E. Z. Kurniawan, G. D. M. Tobing, N. Naratama, and A. Anggraeni, “The factors influencing millennials’ continuance intention to use Subscription Video-on-Demand (SVoD) in Jakarta,” in 2021 International Conference on Informatics, Multimedia, Cyber and Information System (ICIMCIS). Jakarta, Indonesia: IEEE, Oct. 28–29, 2021, pp. 356–362.

B. Gao and L. Huang, “Understanding interactive user behavior in smart media content service: An integration of TAM and smart service belief factors,” Heliyon, vol. 5, no. 12, pp. 1–13, 2019.

J. W. Kang and Y. Namkung, “The role of personalization on continuance intention in food service mobile apps: A privacy calculus perspective,” International Journal of Contemporary Hospitality Management, vol. 31, no. 2, pp. 734–752, 2019.

PwC, “After a boom year in video streaming, what comes next?” [Online].

Available: https://www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/consumer-video-streaming-behavior.html

S. J. Putra, A. Subiyakto, I. Yunita, M. N. Gunawan, and Y. Durachman, “Assessing the user satisfaction perspectives of information system: A library case study in Indonesia,” Indonesian Journal of Electrical Engineering and Computer Science, vol. 12, no. 1, pp. 95–101, 2018.

J. Stoll, “Subscription video-on-demand in the U.S. – Statistics & facts,” 2023. [Online]. Available: https://www.statista.com/topics/2702/subscription-video-on-demand/

A. Jeyaraj, “DeLone & McLean models of information system success: Critical meta-review and research directions,” International Journal of Information Management, vol. 54, 2020.

L. Syafiraliany, M. Lubis, and R. W. Witjaksono, “Analysis of critical success factors from ERP system implementation in pharmaceutical fields by information system success model,” in 2019 Fourth International Conference on Informatics and Computing (ICIC). Semarang, Indonesia: IEEE, Oct. 16–17, 2019, pp. 1–5.

F. Wahyudi, H. Respati, and Y. T. Ardianto, “Study on DAPODIK information system: User satisfaction as mediation of system quality and information quality on net benefit,” Information and knowledge Management, vol. 7, no. 7, pp. 53–62, 2017.

K. P. Panolih, “Tren “streaming” VoD yang terus menggeliat,” 2021. [Online]. Available: https://www.kompas.id/baca/metro/2021/03/28/tren-streaming-vod-yang-terus-menggeliat/

X. Amatriain, “Big & personal: data and models behind netflix recommendations,” in Proceedings of the 2nd International Workshop on Big Data, Streams and Heterogeneous Source Mining: Algorithms, Systems, Programming Models and Applications. Association for Computing Machinery, 2013, pp. 1–6.

B. D. Weinberg, “Don’t keep your Internet customers waiting too long at the (virtual) front door,” Journal of Interactive Marketing, vol. 14, no. 1, pp. 30–39, 2000.

Z. Duanmu, K. Ma, and Z. Wang, “Qualityof experience for adaptive streaming videos: An expectation confirmation theory motivated approach,” IEEE Transactions on Image Processing, vol. 27, no. 12, pp. 6135–6146, 2018.

Y. Lu, S. Papagiannidis, and E. Alamanos, “Exploring the emotional antecedents and outcomes of technology acceptance,” Computers in Human Behavior, vol. 90, pp. 153–169, 2019.

R. L. Oliver, “A cognitive model of the antecedents and consequences of satisfaction decisions,” Journal of Marketing Research, vol. 17, no. 4, pp. 460–469, 1980.

T. Yang, F. Yang, and J. Men, “Understanding consumers’ continuance intention toward recommendation vlogs: An exploration based on the dual-congruity theory and expectationconfirmation theory,” Electronic Commerce Research and Applications, vol. 59, 2023.

S. Mardiana, J. H. Tjakraatmadja, and A. Aprianingsih, “Validating the conceptual model for predicting intention to use as part of information system success model: The case of an Indonesian government agency,” Procedia Computer Science, vol. 72, pp. 353–360, 2015.

P. H. Saputro, A. D. Budiyanto, and A. J. Santoso, “Model delone and mclean untuk mengukur kesuksesan e-government kota pekalongan,” Scientific Journal of Informatics, vol. 2, no. 1, pp. 1–8, 2015.

D. Al-Fraihat, M. Joy, R. Masa’deh, and J. Sinclair, “Evaluating e-learning systems success: An empirical study,” Computers in Human Behavior, vol. 102, pp. 67–86, 2020.

Z. Shao, X. Li, Y. Guo, and L. Zhang, “Influence of service quality in sharing economy: Understanding customers’ continuance intention of bicycle sharing,” Electronic Commerce Research and Applications, vol. 40, 2020.

A. K. S. Ong, Y. T. Prasetyo, F. C. Lagura, R. N. Ramos, K. M. Sigua, J. A. Villas, R. Nadlifatin, M. N. Young, and J. F. T. Diaz, “Determining tricycle service quality and satisfaction in the Philippine urban areas: A SERVQUAL approach,” Cities, vol. 137, 2023.

P. Rita, T. Oliveira, and A. Farisa, “The impact of e-service quality and customer satisfaction on customer behavior in online shopping,” Heliyon, vol. 5, no. 10, pp. 1–14, 2019.

N. Eriksson and M. Stenius, “What do regular online grocery shoppers want from online grocers going forward? Suggestions for service quality improvements,” Procedia Computer Science, vol. 219, pp. 201–210, 2023.

K. Nam and N. Seong, “A study on influencing factors for customer satisfaction and the continuing use of social network services in financial industry,” Enterprise Information Systems, vol. 15, no. 3, pp. 395–419, 2021.

R. Agarwal and S. Dhingra, “Factors influencing cloud service quality and their relationship with customer satisfaction and loyalty,” Heliyon, vol. 9, no. 4, pp. 1–15, 2023.

S. Solimun and A. A. R. Fernandes, “The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty,” Journal of Management Development, vol. 37, no. 1, pp. 76–87, 2018.

N. M. Dawi, A. Jusoh, J. Streimikis, and A. Mardani, “The influence of service quality on customer satisfaction and customer behavioral intentions by moderating role of switching barriers in satellite pay TV market,” Economics & Sociology, vol. 11, no. 4, pp. 198–218, 2018.

H. Toring, G. Legaspi, J. Omolon, R. Amadeo, E. Amadeo, Q. Opolentisima, V. Barina, T. Cacho, F. Illustrimo, and S. Cortes, “Evaluation of students’ satisfaction toward an adopted learning management system at Indiana Aerospace University: A structural equation modelling approach,” Asia Pacific Management Review, 2022.

C. Y. Li and Y. H. Fang, “Predicting continuance intention toward mobile branded apps through satisfaction and attachment,” Telematics and Informatics, vol. 43, 2019.

S. S. Robbins and A. C. Stylianou, “Global corporate web sites: An empirical investigation of content and design,” Information & Management, vol. 40, no. 3, pp. 205–212, 2003.

M. L. Wayne, “Netflix, Amazon, and branded television content in subscription video ondemand portals,” Media, Culture & Society, vol. 40, no. 5, pp. 725–741, 2018.

G. B. Akrong, S. Yunfei, and E. Owusu, “Development and validation of an improved DeLone-McLean IS success model-application to the evaluation of a tax administration ERP,” International Journal of Accounting Information Systems, vol. 47, 2022.

S. K. Sharma and M. Sharma, “Examining the role of trust and quality dimensions in the actual usage of mobile banking services: An empirical investigation,” International Journal of Information Management, vol. 44, pp. 65–75, 2019.

Y. Amalia, P. W. Handayani, and I. C. Hapsari, “Actual use of transactional video on demand: The extended of technology acceptance model,” in 2021 International Conference on Informatics, Multimedia, Cyber and Information System (ICIMCIS). Jakarta, Indonesia: IEEE, Oct. 28–29, 2021, pp. 213–219.

S. Leon, “Service mobile apps: A millennial generation perspective,” Industrial Management & Data Systems, vol. 118, no. 9, pp. 1837–1860, 2018.

J. Mtebe and M. Gallagher, “Continued usage intentions of digital technologies post-pandemic through the expectation-confirmation model: The case of a Tanzanian University,” International Journal of Education and Development using Information and Communication Technology, vol. 18, no. 1, pp. 125–145, 2022.

T. Hariguna, A. Ruangkanjanases, B. B. Madon, and K. M. Alfawaz, “Assessing determinants of continuance intention toward cryptocurrency usage: Extending expectation confirmation model with technology readiness,” SAGE Open, vol. 13, no. 1, pp. 1–14, 2023.

A. A. Daneji, A. F. M. Ayub, and M. N. M. Khambari, “The effects of perceived usefulness, confirmation and satisfaction on continuance intention in using Massive Open Online Course (MOOC),” Knowledge Management & ELearning, vol. 11, no. 2, pp. 201–214, 2019.

B. Nascimento, T. Oliveira, and C. Tam, “Wearable technology: What explains continuance intention in smartwatches?” Journal of Retailing and Consumer Services, vol. 43, pp. 157–169, 2018.

M. Ashraf, J. Ahmad, A. A. Hamyon, M. R. Sheikh, and W. Sharif, “Effects of post adoption beliefs on customers’ online product recommendation continuous usage: An extended expectation-confirmation model,” Cogent Business & Management, vol. 7, no. 1, pp. 1–17, 2020.

S. Hong, J. Y. L. Thong, and K. Y. Tam, “Understanding continued information technology usage behavior: A comparison of three models in the context of mobile internet,” Decision Support Systems, vol. 42, no. 3, pp. 1819–1834, 2006.

C. Tam, D. Santos, and T. Oliveira, “Exploring the influential factors of continuance intention to use mobile apps: Extending the expectation confirmation model,” Information Systems Frontiers, vol. 22, no. 1, pp. 243–257, 2020.

X. Lin, M. Featherman, and S. Sarker, “Understanding factors affecting users’ social networking site continuance: A gender difference perspective,” Information & Management, vol. 54, no. 3, pp. 383–395, 2017.

B. N. Anand and R. Shachar, “Targeted advertising as a signal,” QME, vol. 7, pp. 237–266, 2009.

J. Davis, “Why Netflix won at personalization and how personalization helped them win,” 2022. [Online]. Available: https://shorturl.at/cnoLM

Y. Cheng, S. Sharma, P. Sharma, and M. Kulathunga, “Role of personalization in continuous use intention of mobile news apps in India: Extending the UTAUT2 model,” Information, vol. 11, no. 1, pp. 1–24, 2020.

M. Albashrawi and L. Motiwalla, “Privacy and personalization in continued usage intention of mobile banking: An integrative perspective,” Information Systems Frontiers, vol. 21, pp. 1031–1043, 2019.

J. Kim and A. Gambino, “Do we trust the crowd or information system? Effects of personalization and bandwagon cues on users’ attitudes and behavioral intentions toward a restaurant recommendation website,” Computers in Human Behavior, vol. 65, pp. 369–379, 2016.

Y. Luo, L. Yang, Q. Ye, and Q. Liao, “Effects of customization and personalization affordances on perceived value and continuance intention of smartwatch use,” Technological Forecasting and Social Change, vol. 194, 2023.

J. Hair and A. Alamer, “Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example,” Research Methods in Applied Linguistics, vol. 1, no. 3, 2022.

D. T. Sasongko, P. W. Handayani, and R. Satria, “Analysis of factors affecting continuance use intention of the electronic money application in Indonesia,” Procedia Computer Science, vol. 197, pp. 42–50, 2022.

K. M. Biswas, M. Nusari, and A. Ghosh, “The influence of website service quality on customer satisfaction towards online shopping: The mediating role of confirmation of expectation,” International Journal of Management Science and Business Administration, vol. 5, no. 6, pp. 7–14, 2019.

A. Harr, J. Vom Brocke, and N. Urbach, “Evaluating the individual and organizational impact of enterprise content management systems,” Business Process Management Journal, vol. 25, no. 7, pp. 1413–1440, 2019.

N. Ajay Kaushik and R. Potti Srinivasa, “Effect of website quality on customer satisfaction and purchase intention in online travel ticket booking websites,” Management, vol. 7, no. 5, pp. 168–173, 2017.

A. Suzianti and S. A. Paramadini, “Continuance intention of e-learning: The condition and its connection with open innovation,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 7, no. 1, pp. 1–14, 2021.

T. Hariguna, M. T. Lai, C. W. Hung, and S. C. Chen, “Understanding information system quality on public e-government service intention: An empirical study,” International Journal of Innovation and Sustainable Development, vol. 11, no. 2-3, pp. 271–290, 2017.

R. D. Mahande, J. Jasruddin, and Nasir, “Is success model for EDMODO e-learning user satisfaction through TAM on students,” Journal of Educational Science and Technology, vol. 5, no. 2, 2019.

A. Subiyakto, A. R. Ahlan, M. Kartiwi, and S. J. Putra, “Measurement of the information system project success of the higher education institutions in Indonesia: A pilot study,” International Journal of Business Information Systems, vol. 23, no. 2, pp. 229–247, 2016.

K. P. Mark and D. Vogel, “Technology support for engagement retention: The case of BackPack,” Knowledge Management & E-Learning: An International Journal, vol. 1, no. 3, pp. 163–179, 2009.

Y. Ma, “Elucidating determinants of customer satisfaction with live-stream shopping: An extension of the information systems success model,” Telematics and Informatics, vol. 65, 2021.

M. Salam and M. S. Farooq, “Does sociability quality of web-based collaborative learning information system influence students’ satisfaction and system usage?” International Journal of Educational Technology in Higher Education, vol. 17, no. 1, pp. 1–39, 2020.

M. Wilbert, “Comparison of the top 15 VOD platforms: What you need to know [2023 update],” 2023. [Online]. Available: https://www.dacast.com/blog/top-5-vod-platforms-online-video-hosting/

M. Limayem, S. G. Hirt, and C. M. K. Cheung, “How habit limits the predictive power of intention:The case of information systems continuance,” MIS Quarterly, vol. 31, no. 4, pp. 705–737, 2007.

H. Liu, M. Shao, X. Liu, and L. Zhao, “Exploring the influential factors on readers’ continuance intentions of E-Book APPs: Personalization, usefulness, playfulness, and satisfaction,” Frontiers in Psychology, vol. 12, pp. 1–11, 2021.

V. Venkatesh and S. Goyal, “Expectation disconfirmation and technology adoption: Polynomial modeling and response surface analysis,” MIS Quarterly, vol. 34, no. 2, pp. 281–303, 2010.

E. M. Rogers, Diffusion of innovations. Simon and Schuster, 2003.

A. Bahari and R. Mahmud, “Impact of system quality, information quality and service quality on performance,” in 34th Annual Computer Security Applications Conference, vol. 3, no. 2, San Juan, USA, Dec. 3–7, 2018, pp. 1–6.

J. Wu and X. Lu, “Effects of extrinsic and intrinsic motivators on using utilitarian, hedonic, and dual-purposed information systems: A metaanalysis,” Journal of the Association for Information Systems, vol. 14, no. 3, pp. 153–191, 2013

Downloads

Published

2023-09-06
Abstract 968  .
PDF downloaded 832  .