Do brand geographic location and price value stimulate intentions to premium services? Evidence from Spotify Indonesia

Abstract

In freemium business, the customers can be divided by free users and premium users. The main objective of music streaming provider like Spotify is focused on converting the free users to become premium users, in conjunction with retaining the premium users’ subscription. This study focuses on the first objective which is converting free users by boosting their intentions to upgrade to premium services (IUP). This study uses two independent variables, namely: brand geographic location and price value to explain IUP as dependent variable. Totally 218 respondents are involved. This study confirms that brand geographic location and price value significantly influence IUP. Based on this result, some recommendations and future researches is proposed.