Abstract
The COVID-19 pandemic has limited people's access and mobility, forcing consumers to prefer home video streaming services over going to the cinema. This condition causes a decline in the performance of the cinema film industry but brings blessings to the digital streaming service industry. The growth of the streaming business jumped sharply, and as a result, the competition became increasingly fierce. This chapter analyzes the effect of brand experience, customer value, and user experience on customer satisfaction and loyalty in the millennial generation. Data analysis used Smart PLS-SEM to test the direct, indirect, and total effect of the relationship between variables. The findings of this study indicate that although satisfied with customer service, they are still not loyal. This is due to the ease with which customers switch services, cheap services, and the desire to seek new experiences from the content provided by streaming services.
TopBackground
The impossibility of going to the cinema has forced consumers to watch movies, series, sports, and other entertainment at home (Granados, 2020). People divert activities to meet their entertainment needs through home entertainment and streaming services. Consumers prefer home streaming videos compared to going to theaters. A survey conducted by Morning Consult and The Hollywood Reporter (2020) showed that streaming film and TV became increasingly popular during a pandemic. The Coronavirus pandemic is the main reason they subscribe. Pandemic has provided fortune streaming business to Netflix, increasing more than double the number of new customers, and even Disney+ experiences a surge of 22 million customers (Gontovnikas, 2020). According to Ofcom (2020), since the pandemic, the time spent on streaming services such as Netflix, Amazon Prime Video, and Disney + increased 31% compared to the previous year. This change, due to the time spent watching a subscription streaming service, has almost doubled from before. Research from Marketsandresearch.biz (2021) estimates the streaming size of global cloud videos will grow at the 10.2% CAGR for the next five years.
Key Terms in this Chapter
Customer Loyalty: Is the commitment and willingness of customers to persist in not switching to other brands, being willing to make repeat purchases consistently, and actively recommending the brand of streaming service used to friends or family.
Customer Satisfaction: Is a customer evaluation in the form of feeling happy or disappointed with the performance of streaming services in meeting customer needs and expectations.
Customer Value: Is the benefits customers get from streaming services compared to the effort expended to enjoy the services.
Brand Experience: Is the sensation, feeling, cognition, and behavioral response that customers feel when interacting with a streaming service brand.
User Experience: Is the consumer experience when interacting with streaming service applications to provide convenience for users. This experience can be seen from the ease of using streaming services to maximize all aspects ranging from features, design, and content that can help users achieve their goals when interacting with streaming service applications.
Streaming Services Business: Is a company that provides services using media in the form of audio and video content to user devices via the internet.