Journal of Business and Management
Vol 10, No 3 (2021)

Understanding Generational Perceptions: The Influence of Free Service towards Premium Service Purchase Intention in OMS Platform

Andryani, Hana Aiko (School of Business and Management, Institut Teknologi Bandung)
Chaerudin, Rendra (School of Business and Management, Institut Teknologi Bandung)



Article Info

Publish Date
22 Nov 2021

Abstract

The Online Music Streaming (OMS) platform is one of the biggest contributors towards music industry’s revenue. However, the revenue stream of OMS platform is limited into two sources; premium service and paid advertisements. Most of the users are using the free service of the platform and they are spread between three consecutive generations; generation X, Y, and Z. This research purpose is to (1) identify the difference in how each generation’s age and behavior affect their perceptions towards the free OMS platform; (2) determining its impact towards the intention to convert into premium user. This research involved 402 respondents from Indonesia and is analyzed using the SEM-PLS method. The results show that only generation X has different influence towards their perceptions on OMS platform. Generation Y and Z has significant influence towards their perceived usefulness, perceived enjoyment, and perceived trust. However, the perceived usefulness is the only perception that has significant impact towards their purchase intention. Meanwhile, generation X was found to have insignificant influence towards their perceived trust and none of the perceptions have a significant influence towards their purchase intention of premium service in OMS platform. This research is expected to benefits the OMS Industry and future studies. Keywords : Consumer Perception, Digital Platform, Generational Cohorts, Music Streaming, PartialLinear Regression, Purchase Intention.

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Journal Info

Abbrev

jbm

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal of Business and Management (JBM)is an online journal that is published three times a year. It publishes research papers that give rigorous theoretical and practical insight of business and managament. JBM aims to provide a forum for the dissemination of theory application and research in all ...