Streaming services and the disloyal consumer
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School of Business |
Master's thesis
Authors
Date
2023
Department
Major/Subject
Mcode
Degree programme
Marketing
Language
en
Pages
40
Series
Abstract
Today, the streaming services are playing a game of programming and price, but the competition could become more distinguished. Having to constantly acquire new and returning, disloyal customers is an expensive if not unsustainable business strategy, and that is where brand loyalty comes to play. Streaming services, more specifically SVODs (subscription video on-demand) face their biggest challenge in preventing churn: consumers are bound to subscribe and unsubscribe between available services on a whim, not committing to a certain brand. This thesis examines the difficulties access-based, digital services face in creating brand loyalty, and presents ways to create and strengthen the consumer-brand relationship, all the way to becoming an iconic brand. Traditionally, in marketing research and theories such as extended self, consumers identify the most with tangible products you can own and visibly attach to yourself. More recent studies examine these consumer-brand relationships in the digital space as well, but from the point of view of avatars and representing self online. However, this is where SVODs differ: they represent liquid consumption. They are access-based (i.e. not ownership-based), non-tangible services, that consumers use to view entertainment – not to act as themselves on these platforms. This pre-sents a challenge for the formation of loyal consumer-brand relationships and engagement. Through literal review and in-depth interviews of SVOD users, this thesis uncovers existing and underlying perceptions and preferences between the various streaming services, and new strategies for the brands to tackle the challenges that liquid consumption presents to create deeper engagement with their subscribers. Liquid consumption is an ever-more popular consumption model in the digital age and sharing economies. Examining the consumer-brand relationships in this space is relevant beyond streaming services. The findings support the hypothesis of this thesis: the average user does not recognize archetypal differences between the brands. They differentiate the services only between the programming and technical user interface – and the technical side isn’t even important enough to make or break a subscribing deal. The strongest emotional connection the subscribers had with the services was childhood nostalgia and comfort shows and that, in addition to WOM and FOMO, acted as a key drivers in subscribing decisions. SVODs could implement strategies to make the platform emotionally more appealing in itself. Adding more interactive features, customization opportunities and facilitating WOM and other communication between the users could create customer loyalty. Another option would be to enact their chosen brand personas more strongly through marketing. This thesis proves that there are stones left unturned for digital services looking for more loyal customers. From the perspective of marketing research, this thesis bridges the gap between liquid consumption and brand loyalty.Description
Thesis advisor
Töytäri, PekkaKeywords
streaming services, brand loyalty, SVOD, customer retention