EVALUATING VALUE FOR MONEY IN SUBSCRIPTION-BASED SERVICES

Abstract

While this study examines consumer perceptions of subscription-based services, in particular entertainment (Netflix), product-based (Amazon Prime), and software (Microsoft 365), it investigates whether similar services are ‘value for money’. As subscription models are becoming increasingly popular in different sectors, it is important to understand what affects consumer satisfaction and perception of value when adopting this model. We took an approach of data gathering through a survey to reach out to large divers’ group of people to get insights about service quality, usage frequency, variety of content, etc. The data were analysed using descriptive statistics and regression analysis, to find out that although demographic variables such as gender and age affect subscription choice, the main drivers of perceived value of money are usage frequency and prior use of the service. The analysis of the data results in the perceived value being found to contract with more use, presumably through habituation or diminishing novelty. Additionally, entertainment and product subscriptions are very satisfactory if new content is provided with convenience, but software subscriptions are valued most for their functional utility. The results of this study provide useful insights for firms seeking to make sense of relationship capital their subscribers possess based on their subscriptions and integrating it with the positive customer impacts for them to better meet the expectations of the consumers.