Netflix in Indonesia: Influential Factors on Customer Engagement among Millennials’ Subscribers

AUDITYA,, A. , & HIDAYAT,, Z. (2021). Netflix in Indonesia: Influential Factors on Customer Engagement among Millennials’ Subscribers. The Journal of Distribution Science, 19(1), 89-103, https://doi.org/https://doi.org/10.15722/jds.19.1.202101.89

copy

Abstract

Purpose: This study is to explore how Netflix Customers' Engagement was influenced by Instagram Content, Perceived Price, Exclusivity, and Motivation in the context of Media Streaming and the role of Willingness to Subscribe as the mediating variable. This study underlines millennial's willingness to engage and the form of engagement. Research design, data, and methodology: The data for this research were collected from 100 Netflix's Millennials subscribers who follow @netflixid Instagram. All the results were analyzed and verified using SEM-PLS. Results: Research findings indicated that Willingness to Subscribe, Exclusivity, Motivation, and Instagram Content positively influenced Customer Engagement among Netflix millennials' subscribers. In contrast, Perceived Price had a negative effect on Customer Engagement. Conclusions: As a consequence, the exclusivity that Netflix offers to its audience by a recommendation algorithm has been proven to increase the engagement. This study also disclosed that the most definite form of positive engagement shown by Netflix millennials' subscribers is a behavioral aspect, where they positively recommend Netflix (word of mouth). The study findings can be a reference for the media streaming industry in their efforts to strengthen the engagement with their customers, especially the millennials, and provide knowledge about consumer behavior in digital technology.

keywords: Customer Engagement, Consumer Behavior, Marketing, Media Streaming, Distribution Science

Reference

Al-Dmour, H. H., Ali, W. K., & Al-Dmour, R. H. (2019). The Relationship Between Customer Engagement, Satisfaction, and Loyalty. International Journal of Customer Relationship Marketing and Management (IJCRMM), 10(2), 35-60. https://doi.org/10.4018/IJCRMM.201904010.

Bhasin, H. (2019). Marketing Strategy of Netflix. Retrieved 10 April, 2020 (actual access date) from https://www.marketing91.com/marketing-strategy-of-netflix/

Bondad-Brown, B. A., Rice, R. E., & Pearce, K. E. (2012). Influences On TV Viewing and Online User-Shared Video Use:Demographics, Generations, Contextual Age, Media Use, Motivations, and Audience Activity. Journal of Broadcasting & Electronic Media, 56(4), 471-493. https://doi.org/10.1080/08838151.2012.732139.

Cha, Y., & Kwon, Y. (2018). Why Korean Young Women Consumers Buy Luxury Goods? The Influence of Cultural Orientation and Media Use. The Journal of Business, Economics, and Environmental Studies, 8(2), 23-32. https://doi.org/10.13106/eajbm.2018.vol8.no2.23.

Cha, S. S., & Lyu, M. S. (2019). Influence of SNS characteristics on The Brand Image of Infant Food Products. The Journal of Industrial Distribution & Business, 10(8), 7-15. https://doi.org/10.13106/ijidb.2019.vol10.no8.7.

Chae, M. J. (2020). The Effects of Message Tone and Formats of CSR Messages on Engagement in Social Media. The Journal of Asian Finance, Economics and Business, 7(10), 501-511. https://doi.org/10.13106/jafeb.2020.vol7.no10.501.

Chiang, C. F., & Jang, S. S. (2007). The Effects of Perceived Price and Brand Image on Value and Purchase Intention:Leisure Travelers' Attitudes Toward Online Hotel Booking. Journal of Hospitality & Leisure Marketing, 15(3), 49-69. https://doi.org/10.1300/J150v15n03_04.

Cho, B. D., Potluri, R. M., & Youn, M. K. (2020). A Study on The Effect of Product Recommendation System on Customer Satisfaction: Focused on The Online Shopping Mall. The Journal of Industrial Distribution & Business, 11(2), 17-23. https://doi.org/10.13106/jidb.2020.vol11.no2.17.

Choi, N. H., Nguyen, Q. M., & Teng, Z. (2019). Effects of Performance, Imagery and Regulatory Focus on Customer Engagement. The Journal of Distribution Science, 17(1), 57-72. https://dx.doi.org/10.15722/jds.17.01.201901.57.

10.

Cvijikj, I. P., & Michahelles, F. (2013). Online Engagement Factors on Facebook Brand Pages. Social Network Analysis and Mining, 3(4), 843-861. https://doi.org/10.1007/s13278-013-0098-8.

11.

Dessart, L., Veloutsou, C., & Morgan-Thomas, A. (2015). Consumer Engagement in Online Brand Communities: A Social Media Perspective. Journal of Product & Brand Management, 24(1), 28-42. https://doi.org/10.1108/JPBM-06-2014-0635

12.

Dunn, M. E., Brinson, N. and Eastin, M. S. (2015). Beyond the Binge: Examining the Influence of Expectancy Outcomes and Self-Regulation on Binge Media Consumption. Proceedings of The Annual Conference of the National Communication Association, Las Vegas, NV, November.

13.

Dolan, R., Conduit, J., Fahy, J., & Goodman, S. (2016). Social Media Engagement Behaviour: A Uses and Gratifications Perspective. Journal of Strategic Marketing, 24(3-4), 261-277. https://doi.org/10.1080/0965254X.2015.1095222.

14.

Given, J., Curtis, R., & McCutcheon, M. (2012). Online video in Australia. International Journal of Digital Television, 3(2), 141-162. https://doi.org/10.1386/jdtv.3.2.141_1.

15.

Hagiu, A., & Lee, R. S. (2011). Exclusivity and Control. Journal of Economics & Management Strategy, 20(3), 679-708. https://doi.org/10.1111/j.1530-9134.2011.00302.x.

16.

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications.

17.

Hsu, M.-H., Chuang, L.-W., & Hsu, C.-S. (2014). Understanding Online Shopping Intention: The Roles of Four Types of Trust and Their Antecedents. Internet Research, 24(3), 332-352. https://doi.org/10.1108/IntR-01-2013-0007.

18.

Indahingwati, A., Launtu, A., Tamsah, H., Firman, A., Putra, A. H. P. K., & Aswari, A. (2019). How Digital Technology Driven Millennial Consumer Behaviour in Indonesia. The Journal of Distribution Science, 17(8), 25-34. https://doi.org/10.15722/jds.17.8.201908.25

19.

Islam, J. U., & Rahman, Z. (2016). Examining The Effects of Brand Love and Brand Image on Customer Engagement: An Empirical Study of Fashion Apparel Brands. Journal of Global Fashion Marketing, 7(1), 45-59. https://doi.org/10.1080/20932685.2015.1110041.

20.

Janiszewski, C., & Cunha Jr, M. (2004). The Influence of Price Discount Framing on The Evaluation of a Product Bundle. Journal of Consumer Research, 30(4), 534-546. https://doi.org/10.1086/380287.

21.

Jung, M. H., Bae, D. I., & Yun, J. C. (2014). The Effects of SNS Characteristics on Purchase Intention. The Journal of Business Economics and Environmental Studies, 4(3), 19-25. https://doi.org/10.13106/eajbm.2014.vol4.no3.19.

22.

Kim, Y. E., & Yang, H. C. (2020). The Effects of Perceived Satisfaction Level of High-Involvement Product Choice Attribute of Millennial Generation on Repurchase Intention: Moderating Effect of Gender Difference. The Journal of Asian Finance, Economics, and Business, 7(1), 131-140. https://doi.org/10.13106/jafeb.2020.vol7.no1.131.

23.

Kim, Y. M., Kireyeva, A. A., & Youn, M. K. (2014). Effects of SNS Characteristics Upon Consumers' Awareness, Purchase Intention, and Recommendation. The Journal of Industrial Distribution & Business, 5(1), 27-37. https://doi.org/10.13106/jidb.2014.vol5.no1.27.

24.

LE, T. T. H., & VO, T. T. (2020). How sWOM Contribution Motivations Vary by Cosmetics and Restaurants in Vietnam. The Journal of Asian Finance, Economics and Business, 7(10), 885-896. https://doi.org/10.13106/jafeb.2020.vol7.no10.885.

25.

Lee, K. K., Jang, S. N., & Kim, P. J. (2012). Research on Purchase Decision Factors to TV Home Shopping Product: Digital Home Appliance. The Journal of Business Economics and Environmental Studies, 2(2), 13-21.

26.

Lee, E., Lee, J. A., Moon, J. H., & Sung, Y. (2015). Pictures Speak Louder Than Words: Motivations for using Instagram. Cyberpsychology, Behavior, and Social Networking, 18(9), 552-556. https://doi.org/10.1089/cyber.2015.0157.

27.

Lister, M., Dovey, J., Giddings, S., Grant, I., & Kelly, K.(2009). New Media: A Critical Introduction. Taylor&Francis.

28.

Littlejohn, S. W., & Foss, K. A. (2009). Encyclopedia of Communication Theory (Vol. 1). Sage.

29.

Liou, D. K., Hsu, L. C., & Chih, W. H. (2015). Understanding Broadband Television Users’ Continuance Intention to Use. Industrial Management & Data Systems, 115(2), 210-234. https://doi.org/10.1108/IMDS-07-2014-0223.

30.

Logan, K. (2011). Hulu. com or NBC? Streaming Video Versus Traditional TV: A Study of an Industry in its Infancy. Journal of Advertising Research, 51(1), 276-287. https://doi.org/10.2501/JAR-51-1-276-287

31.

Matrix, S. (2014). The Netflix Effect: Teens, Binge Watching, and On-Demand Digital Media Trends. Jeunesse: Young People, Texts, Cultures, 6(1), 119-138. https://doi.org/10.1353/jeu.2014.0002.

32.

Mollen, A., & Wilson, H. (2010). Engagement, Telepresence and Interactivity in Online Consumer Experience: Reconciling Scholastic and Managerial Perspectives. Journal of Business Research, 63(9-10), 919-925. https://doi.org/10.1016/j.jbusres.2009.05.014.

33.

Nguyen, V., & Bang, J. (2019). E-tailing & Brand Communication in Facebook: Comparing Germans and Koreans. The Journal of Distribution Science, 17(8), 99-106. https://doi.org/10.15722/jds.17.8.201908.99.

34.

Phuong, N. N. D., & Dat, N. T. (2017). The Effect of Country of Origin on Customer Purchase Intention: A Study of Functional Products In Vietnam. The Journal of Asian Finance, Economics and Business, 4(3), 75-83. https://doi.org/10.13106/jafeb.2017.vol4.no3.75.

35.

Potluri, R. M., Abikayeva, M., Usmanova, N., & Challagundla, S. (2014). A Study on Kazakh Women’s Consumer Behavior. The Journal of Industrial Distribution and Business, 5(4), 5-11. https://doi.org/10.13106/ijidb.2014.vol5.no4.5.

36.

Rissanen, H., & Luoma-Aho, V. (2016). (Un) willing to Engage? First Look at The Engagement Types of Millennials. Corporate Communications: An International Journal, 21(4), 500-515. https://doi.org/10.1108/CCIJ-06-2015-0038.

37.

Rizan, M., Febrilia, I., Wibowo, A., & Pratiwi, R. D. R. (2020). Antecedents of Customer Loyalty: Study from theIndonesia’s Largest E-commerce. The Journal of Asian Finance, Economics and Business, 7(10), 283-293. https://doi.org/10.13106/jafeb.2020.vol7.n10.283.

38.

Rubenking, B., Bracken, C. C., Sandoval, J., & Rister, A. (2018). Defining New Viewing Behaviours: What Makes and Motivates TV Binge-Watching? International Journal of Digital Television, 9(1), 69-85. https://doi.org/10.1386/jdtv.9.1.69_1.

39.

Rubin, A. M. (1983). Television Uses and Gratifications: The Interactions of Viewing Patterns and Motivations. Journal of Broadcasting & Electronic Media, 27(1), 37-51. https://doi.org/10.1080/08838158309386471.

40.

Sawhney, M., Verona, G., & Prandelli, E. (2005). Collaborating to Create: The Internet as a Platform for Customer Engagement in Product Innovation. Journal of Interactive Marketing, 19(4), 4-17. https://doi.org/10.1002/dir.20046.

41.

Singh, A., Kumar, B., & Singh, V. K. (2010). Customer engagement: New Key Metric of Marketing. International Journal of Arts and Sciences, 3(13), 347-356.

42.

Sprott, D., Czellar, S., & Spangenberg, E. (2009). The Importance of a General Measure of Brand Engagement on Market Behavior: Development and Validation of a Scale. Journal of Marketing Research, 46(1), 92-104. https://doi.org/10.1509%2Fjmkr.46.1.92.

43.

Truong, N. X. (2018). The Impact of Hallyu 4.0 And SocialMedia On Korean Products Purchase Decision Of Generation C In Vietnam. The Journal of Asian Finance, Economics, and Business, 5 (3), 81-93. https://doi.org/10.13106/jafeb.2018.vol5.no3.81

44.

Turkle, S. (2005). The Second Self: Computers and the Human Spirit. MIT Press.

45.

Van Doorn, J., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P., & Verhoef, P. C. (2010). Customer Engagement Behavior:Theoretical Foundations and Research Directions. Journal of Service Research, 13(3), 253-266. https://doi.org/10.1177%2F1094670510375599.

46.

Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer Engagement: Exploring Customer Relationships Beyond Purchase. Journal of Marketing Theory and Practice, 20(2), 122-146. https://doi.org/10.2753/MTP1069-6679200201.

47.

Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L.A. (2009). Customer Experience Creation: Determinants, Dynamics, and Management Strategies. Journal of Retailing, 85(1), 31-41. https://doi.org/10.1016/j.jretai.2008.11.001.

48.

Wang, C. L., Zhang, Y., Ye, L. R., & Nguyen, D. D. (2005). Subscription to Fee-Based Online Services: What Makes Consumer Pay for Online Content? Journal of Electronic Commerce Research, 6(4), 304.

49.

Weniger, S. (2010). User Adoption of IPTV: A Research Model. 23rd Bled eConference.

50.

Yusuf, M., Nurhilalia, N., & Putra, A. H. P. K. (2019). The Impact of Product Quality, Price, and Distribution on Satisfaction and Loyalty. The Journal of Distribution Science, 17(10), 17-26. http://dx.doi.org/10.15722/jds.17.10.201910.17.

51.

Zebua, F. (2017). Laporan DailySocial: Survei Video on Demand 2017. Retrieved 15 August 2020 (actual access date) from https://dailysocial.id/post/laporan-dailysocial-survei-video-ondemand-2017.

52.

Zeitchik, S. (2020). Netflix added 10.1 million subscribers this spring as people around the world stayed home. Retrieved 1 July, 2020 (actual access date) from https://www.washingtonpost.com/business/2020/07/16/netflixsubscriber-results-q2/

바로가기메뉴

Article Contents

Vol.19 No.1

Netflix in Indonesia: Influential Factors on Customer Engagement among Millennials’ Subscribers

Abstract

Reference

The Journal of Distribution Science