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  • The Effect of Gain-Loss Message Framing on Customers’ Purchase Intention Toward Subscription on Video-on-Demand Services

The Effect of Gain-Loss Message Framing on Customers’ Purchase Intention Toward Subscription on Video-on-Demand Services

Student: Aziattseva Anastasiia

Supervisor: Kirill Chmel

Faculty: Faculty of Creative Industries

Educational Programme: Advertising and Public Relations (Bachelor)

Final Grade: 10

Year of Graduation: 2020

In 2019 only 24% of Russian web-users paid for online content, where 6% of them paid for the video content of subscription video-on-demand platforms (Ivi, Okko, Netflix, Amediateka etc.). There are many barriers to pay for the online content and the video subscription particularly. One of the theoretical explanations is proposed as the state of uncertainty that includes increased sensitivity to risks of making online purchases, the intangible nature of the subscription and customers’ irrationality of evaluating costs at the point of sale. In light of this, communication aimed at the elimination of potential losses (loss-framed message) could increase the probability of paying for the subscription. The purpose of the study is to explore the relationship between gain- and loss-message framing and consumers’ purchase intention toward subscription video-on-demand (SVoD) services. The research starts with observing subscription commerce on the internet narrowing down to the market of streaming services. The second chapter examines the consumer behaviour on this market highlighting factors influencing the decision-making process of paying for the subscription and a model of quality of experience using SVoD services. The third chapter presents the theoretical framework of the study, conceptualizing the consumer behaviour in the prospect theory of Kahneman D. and Tversky A. and the gain- and loss-message framing. The fourth chapter is devoted to the description of mixed research design and obtained results. In conclusion, the limitations of the work, its practical relevance and recommendations for future research are provided. The empirical part included an online survey and a between-subject experimental design 2x2 on the Enjoy Survey medium and statistical analysis of the results in the SPSS Statistics. The results of the survey helped to identify key factors influencing the decision-making process of paying for the subscription and reexamine the proposed theoretical model. The experiment included the selected factors framed either on gain or loss outcome and the state of an action (paying for the subscription or refusing to pay). As a result, the hypothesis of a positive relationship between the message framing and the intention to pay for the subscription among consumers with the state of uncertainty was accepted.

Full text (added May 21, 2020)

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