Factors Influencing Brand Loyalty Towards Spotify Subscription

Abstract

The development of the music industry and technology has brought the existence of music streaming services. Over the last decade, there are dramatic shifts nowadays in the way people consume music. For instance, music listeners have moved from the use of physical forms including CDs, vinyl and cassettes to digital spaces which mGakes it the most popular and convenient way to consume music. Spotify, namely the biggest music streaming service in the world today is very popular in Indonesia. Music listeners now can easily access to over 50 million songs without owning it and play songs on demand. However, to access Spotify's music library, consumers have to subscribe to Spotify premium monthly. Brand loyalty is very important for today's business, with businesses gaining brand loyalty, consumers tend to choose the brand they've previously chosen and spend on a regular basis compared to other brands. Therefore, knowing the drivers of brand loyalty is important. This research aims to determine the factors influencing brand loyalty towards Spotify subscription. In addition, this research also focuses on which factors influence the most in terms of subscribing to Spotify premium. Quantitative research is done in this study. Primary data were obtained through questionnaire responses that were collected from 136 respondents who had experience in using Spotify premium in Jakarta, Indonesia. Other than that, secondary data were collected from several theoretical sources such as previous studies and relevant journal articles. Data analysis has been done using multiple linear regression analysis to test hypothesized relationships between the variables, namely brand loyalty and brand image, perceived brand quality, customer satisfaction and brand experience. Moreover, the findings of the research show that all of the variables have a positive influence on Spotify's brand loyalty.