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UNDERSTANDING CUSTOMERS’ USE AND INVESTMENT TRAJECTORIES IN ACCESS-BASED DIGITAL PLATFORMS
Digital revenues from music and video have surpassed the physical revenues and, remarkably, access-based services are solely responsible for the growth of digital revenues, whereas (legal) downloading behavior and revenues from paying for ownership are declining (ERA, 2017; IFPI, 2017). However, access-based digital consumption business models are heavily dependent on customers’ continued use of their services. Through two studies, this research aims to investigate customers’ behavioral trajectories in digital entertainment services. Study 1 examines cross-lagged effects of non-financial personal investment on frequency of use and vice versa, while relating attitudinal and demographical antecedents to both trajectories. Study 2 investigates the moderating influence of financial investment on the relation between non-financial investment on frequency of use in a video streaming service with a freemium business model and studies at what point in time users decide to switch from a free service to a paid service. The results of the first study indicate that there are effects of the frequency of use of a service on the amount of non-financial investment put in the service (i.e. creating a list of favorites for later consumption), but the effects of non-financial investment on frequency of use are only found for women. Furthermore, in line with the self-service literature, perception of hedonic rewards is the strongest predictor of frequency of use and the amount of non-financial investment made in the service. For men, perceived ease of use is negatively related with the amount of non-financial investment made, indicating that men are less likely to see the added value of personal investment, when it is easy to find what they are looking for. Lastly, older people perceive new digital entertainment platforms as less hedonically rewarding, less easy to use and less useful, suggesting that they are more favorably disposed towards traditional forms of entertainment, such as the traditional TV. The results of the second study are still in progress and will be presented at the 2018 GMC conference.
