Exploring consumer behavior in the music industry. Empirical evidence from Spotify premium users

This paper develops a conceptual model that identifies the driving mechanisms affecting consumers’ purchase intention to renew their paid subscriptions to music streaming premium services. Through the analysis of a sample of 306 premium users of the Spotify online music platform, the model shows the significant influences of both users' hedonic motivations and perceived functional quality on the perceived price value (PPV) of the music service. Furthermore, it shows that this relationship is partially mediated by user habits - resulting from their perception of personal innovativeness, conditions of facilitation and social influence. These results provide useful information to managers and researchers for the definition and analysis of marketing actions aimed at pursuing the loyalty of premium customers and reducing the churn rate.