The Impact of Key Factors on Subscription Service Adoption and Retention in Indonesia

As subscription services rise as a popular choice among companies to monetize their services, they must understand the factors that contribute to the success of a subscription service. Consumer behavior and preferences will play an important role to gauge the factors which will eventually lead to a consumer’s continuous use intention of the subscription service. To better understand the customer’s behavior pattern, we built this research using a quantitative method through a questionnaire to find which factors play an important role in a successful subscription service. The study was conducted using a quantitative method through a questionnaire, with 7 hypotheses tested using a research model that expands on an existing model by fellow researchers. The data was collected from 563 valid responses, which were processed using the SmartPLS program. The program allowed for the calculation of the reliability and validity of our data, as well as the path coefficients of the data, which indicated which factors are significant. Upon running the program, we can conclude that the variables are reliable and that all the paths are shown to be significant. Lastly, the program will enable us to calculate the Q2 prediction value to measure the predictive relevance of several sub-variables. The results show that the measurement model has low predictive relevance due to its low Q2 values. The state of the art in the subject of subscription services has advanced in recent years, and a growing amount of research has been done to examine the factors that determine a subscription service's success. By highlighting the importance of perceived value in affecting consumer behavior when it comes to subscription services, this research contributes to existing literature. This study shows the need for a deeper understanding of consumer behavior in subscription services and provides a foundation for further research in this field. By exploring the impact of perceived value on consumer behavior and purchase intentions, this study contributes to a deeper understanding of the underlying factors that drive the success of a subscription service.