Khóa luận tốt nghiệp factors affecting purchase intention in the paid music streaming services in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING

STATE BANK OF VIETNAM

HO CHI MINH UNIVERSITY OF BANKING

PHAM LE QUYNH HOA

FACTORS AFFECTING
THE CUSTOMER’S PURCHASE
INTENTION IN THE PAID MUSIC
STREAMING SERVICES IN HO CHI MINH
CITY

GRADUATION THESIS
Major: BUSINESS ADMINISTRATION
Code: 7 34 01 01


HO CHI MINH CITY - 2022


MINISTRY OF EDUCATION AND TRAINING

STATE BANK OF VIETNAM

HO CHI MINH UNIVERSITY OF BANKING

Student's name: PHAM LE QUYNH HOA
Student’s ID: 050606180118
Class: HQ6-GE08

FACTORS AFFECTING
THE CUSTOMER’S PURCHASE
INTENTION IN THE PAID MUSIC
STREAMING SERVICES IN HO CHI MINH
CITY
GRADUATION THESIS
MAJOR: BUSINESS ADMINISTRATION
CODE: 7 34 01 01
Instructor: PhD. PHAM THI HOA


HO CHI MINH CITY - 2022


TĨM TẮT
Dưới sự phát triển khơng ngừng của nền kinh tế, cơ hội việc làm ngày càng mở
rộng, việc lựa chọn công việc phù hợp với chuyên môn được đào tạo là đề tài thu
hút sự quan tâm của sinh viên sắp tốt nghiệp nói riêng và xã hội nói chung.
Trong quá trình lựa chọn một ứng dụng để nghe nhạc, khách hàng quan tâm đến rất
nhiều yếu tố. Ngoài những quan tâm ứng dụng phải đáp ứng nhu cầu cơ bản là nghe
nhạc và thư giãn, khách hàng còn quan tâm đến nhiều yếu tố hơn như về giá cả, tính
năng, độ bảo mật thơng tin khách hàng. Do vậy, các tổ chức doanh nghiệp luôn đưa
ra những chiến lược kinh doanh nhằm tác động, thúc đẩy đến ý định mua dịch vụ
của khách hàng.
Tác giả thực hiện đề tài “Yếu tố ảnh hưởng đến ý định mua nhạc trực tuyến có trả
phí của khách hàng tại thành phố Hồ Chí Minh” nhằm mục tiêu: (1) Xác định các
yếu tố ảnh hưởng đến ý định mua nhạc trực tuyến có trả phí của khách hàng tại
thành phố Hồ Chí Minh; (2) Đo lường mức độ ảnh hưởng của các yếu tố ảnh hưởng
đến ý định mua nhạc trực tuyến có trả phí của khách hàng tại thành phố Hồ Chí

Minh; (3) Đề xuất một số hàm ý quản trị cho doanh nghiệp nhằm giúp doanh
nghiệp có định hướng phù hợp trong quá trình lên kế hoạch tuyển dụng nhằm thức
đẩy tỷ lệ khách trả tiền cho dịch vụ nghe nhạc trực tuyến. Trong quá trình nghiên
cứu để đạt được kết quả này, tác giả đã đưa ra một mô hình nghiên cứu đề xuất
được phát triển dựa trên tổng quan tài liệu và kế thừa mơ hình TPB đồng thời hiệu
chỉnh một số yếu tố cho phù hợp với bối cảnh nghiên cứu và người tiêu dùng tại
Việt Nam. Quy trình nghiên cứu được thực hiện qua ba bước: một là xây dựng biến,
hai là đánh giá sơ bộ và ba là đánh giá chính thức. Kết quả nghiên cứu cho thấy các
yếu tố như: Intrinsic Rewards, Extrinsic Rewards, Identity Sailience, Psychology
Ownership có tác động thuận chiều đến ý định mua của khách hàng và các yếu tố
mang tính rủi ro như Finance Risk, Product Risk, Security Risk, Time Risk tác động
ngược chiều đến ý định mua dịch vụ của khách hàng.


ABSTRACT
Modern society is developing day by day, people's needs are increasing day by day.
Besides basic needs such as eating, drinking, working, etc., entertainment needs are
also an essential thing in people's daily lives. And music is also one of them, today's
music has become an important part of daily life and listening to music online is an
inevitable trend in the age of technology.
In the process of choosing an application to listen to music, customers pay attention
to many factors. In addition to the application concerns that must meet the basic
needs of listening to music and relaxing, customers are also interested in more
factors such as price, features, customer information security. Therefore, business
organizations always come up with business strategies to influence and promote
customers' intention to buy services.
The author conducts the topic " Factors Affecting The Customer‘s Purchase
Intention In The Paid Music Streaming Services In Ho Chi Minh City" with the aim
of: (1) Determining the factors affecting the intention to buy paid music streaming
services by customers in Ho Chi Minh City; (2) Measuring the influence of factors

affecting the intention to buy paid music streaming services by customers in Ho Chi
Minh City; (3) Proposing some managerial implications for businesses to help
businesses have appropriate orientation in the recruitment planning process in order
to promote the rate of paying customers for online music services.
In the research process to achieve this result, the author has come up with a
proposed research model developed based on the literature review and inherited the
TPB model and adjusted some factors accordingly. research context and consumers
in Vietnam. The research process is carried out through three steps: one is the
construction of the variable, the second is the preliminary assessment and the third
is the formal assessment. Research results show that factors such as Intrinsic
Rewards, Extrinsic Rewards, Identity Sailience, Psychology Ownership have a
positive impact on customers' purchase intention and risk factors such as Finance


Risk, Product Risk, Security Risk, Time Risk have negative effects on customers'
intention to buy services.
The research process is carried out through three steps: one is the construction of the
variable, the second is the preliminary assessment and the third is the formal
assessment. Next, individual in-depth interviews and group interviews were
conducted to explore and develop observed variables used in the measurement of
research concepts and to build theoretical models for research. Information
collection is done through discussion between selected subjects and researchers,
based on the outline outlined in advance. This study is based on the application of
techniques such as Crobach‘s Alpha reliability factor testing, EFA discovery factor
analysis, SEM linear structure model and Bartlett's test. Information was collected
by questionnaires to survey the opinions of customer in Ho Chi Minh City.
According to the results of this study, personal opinion is measured by 5 observed
variables (or 5 criteria). Social support is measured by 4 observed variables.
Academic achievement is measured by 5 observed variables. Internship experience
is measured by 4 observed variables. Financial expectations are measured by four

observed variables. Organizational brand is measured by 3 observed variables. And
finally, the student's intention to apply is measured by 3 observed variables.
The results of the measurement models show that, after adding and adjusting, the
scales achieve reliability and allowable value.
There are three main limitations in this study. First, this essay was only done at the
Banking University of Ho Chi Minh City. Secondly, This study only considers 8
influencing factors, but there are many other factors that can affect customers'
intention to purchase MAAS. Lastly, when responding to a survey, the respondents
may answer honestly or lack interest, leading to a big impact on the research results.


DECLARATION
My name is Pham Le Quynh Hoa, a student in class HQ6-GE08, majoring in
Business Administration with high quality training, Banking University of Ho Chi
Minh City. Ho Chi Minh.
I declare: ―This thesis has not been submitted for a degree at any university. This
thesis is the author's own research work under the guidance of lecturers, the
research results are honest, in which there are no previously published contents or
contents made by others. except for citations that are fully cited in the thesis.‖
Ho Chi Minh City, November 22nd, 2022
Thesis‘s Author
Pham Le Quynh Hoa


ACKNOWLEDGEMENT
First and foremost, I would like to express my heartfelt gratitude to my supervisor,
Dr. Pham Thi Hoa, for providing me with important information as well as good
recommendations for my bachelor's thesis, as well as for his patience, enthusiasm,
and inspiration. Furthermore, I am grateful to not just the professors and lecturers
from Ho Chi Minh University of Banking who supplied me with vital information

and skills throughout my time there. Last but not least, I also want to thank the
examiners for devoting their significant time to reviewing my thesis.


TABLE OF CONTENTS
CHAPTER 1. INTRODUCTION.......................................................................................1

1.1.

Background of the study............................................................................ 1

1.2.

Research Objectives and Research Questions......................................... 4

1.1.
1.1.1.

Research Subjects and The Scope of Research..................................................... 4
Research Subjects.................................................................................................4

1.3.

Research Methodology............................................................................... 5

1.4.

The practical significance of the thesis..................................................... 5

1.5.

Thesis structure.......................................................................................... 6

CHAPTER 2. LITERATURE REVIEW...........................................................................8

2.1.

Previous Empirical Studies........................................................................ 8

2.2.

Theoretical Background and Hypothesis Development.......................14

CHAPTER 3. METHODOLOGY....................................................................................30

3.1. Research Process.......................................................................................... 30
3.2. Survey Design............................................................................................... 32
3.3.

Data Analysis Methods............................................................................ 35

CHAPTER 4. RESEARCH RESULTS AND DISCUSSION........................................ 39
CHAPTER 5. CONCLUSION..........................................................................................46

5.1.

Conclusion................................................................................................. 46

5.2.

Implication................................................................................................ 47

5.3.

RESEARCH LIMITATIONS................................................................... 48

5.4.

FURTHER RESEARCH DIRECTIONS............................................... 48

REFERENCES...................................................................................................................50


APPENDIX.........................................................................................................................53


LIST OF FIGURES
Figure 1 - Proposed Conceptual Model by Vafa Saboori-Deilami and Chang Seob
Yeo (2019)................................................................................................................... 9

Figure 2 - Conceptual Model by J Y Chai, L K K Ken, K H Chan, S X Wan1 and T
T Ting (2021) ............................................................................................................ 11
Figure 3 - Conceptual Model by Mariana Lopes Barata and Pedro Simoes Coelho
(2021) ........................................................................................................................ 12
Figure 4 - Conceptual Model of Thomas M. Wagner and Thomas Hess (2013)..... 14
Figure 5 - Conceptual Model .................................................................................... 21
Figure 6 - Research process ...................................................................................... 30
Figure 7 - Hypothesis Testing ................................................................................... 44

SYMBOLS AND ABBREVIATIONS TABLE
Number

Symbols

Detail name

1

IFPI

International Federation of
Phonographic Recordings

2

TPB

Theory Planned Behavior

3

MSS

Music Streaming Services


CHAPTER 1. INTRODUCTION
1.1.

Background of the study

According to a Q&Me report that conducted a survey based on 1500 people including
18 to 44 years old nationwide in 2021, music is the most favorite entertainment
medium of Vietnamese people with more than 70% of people listening to the survey
music for more than 30 minutes a day. Currently, the popular music listening
applications of Vietnamese people are mostly non-paid applications such as Youtube
Music, Zing Mp3, NhacCuaTui, etc. This is not difficult to understand when Vietnam
is a country that has not had any copyright protection laws for products ranging from
music to movies. But in recent years, the emergence of international music applications
such as Spotify, Apple Music, Itunes, ... has changed the landscape for the Vietnamese
music market.
Streaming is popular in developed music industries. In 2022, streaming grew by 65%
of the total revenue of the global music industry - a marked increase on the prior year‘s
growth rate (+24.3%), and had over 532 millions user of paid subscription accounts,
according to a report released by the International Federation of Phonographic
Recordings (IFPI). The development of streaming contributes to building a civilized
music environment because it is closely tied to the interests of artists, music listeners
and product copyrights. In Vietnam, streaming is at an early stage with great potential:
39,6% of people listen to music streaming services, the average music streaming time
per day is about 1 hour and 11 minutes (Updated January 2022 of We Are Social).
Revenue in the Music Streaming segment is projected to reach US$26.70m in 2022 and
expected to show an annual growth rate (CAGR 2022-2027) of 6.66%, resulting in a
projected market volume of US$36.85m by 2027. The race to win the hearts of
listeners is not only in the criteria of copyright or monopoly business but also in
technical and technological factors to optimize the user's listening experience.
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Researches on Music Streaming Services have attracted special attention from

domestic and foreign researchers. Studies have shown a lot of different factors
affecting the intention to buy as well as use paid music services. D rr et al. 2010
examined different service features‘ influence on people‘s willingness to pay for MaaS
services by surveying 132 MaaS users. D rr 2012 applied the Theory of Planned
Behavior TPB to look behind music pirates‘ intentions to use MaaS and to pay for such
services. A total of 132 music pirates would use the basic, free version but had very
little intention to pay for the premium version. Users‘ subjective norms and attitudes
towards the service proved to have the most predictive power when explaining
people‘s intention to use MaaS. MaaS‘s relative advantage over illegal downloading
influenced users‘ attitudes towards the service. Wagner, Benlian, and Hess (2013) used
the Dual Mediation Hypothesis to investigate whether free versions occur as
advertisements for premium versions within freemium business models. Their results
indicate that there is no advertising effect between free and premium versions. No
other studies have explained users‘ willingness to pay for a service that is also
available for free. Aapeli (2016) applied the UTAUT2 model to suggests that paid
MaaS services should focus on providing their users a good price value and hedonic
pleasure, while exploiting consumers‘ tendency for habitual system usage. Also used
the model UTAUT2, Mariana and Pedro (2021) confirm that habit, performance
expectancy and price value play the most important role in influ- encing the intention
to use a paid music streaming service. Simultaneously, new dimensions such as personalisation, attitude towards piracy and perceived freemium-premium fit arise as having
an additional relevant role in adopting this type of service.
In this thesis, the author choses the Theory of Planned Behavior (TPB) as the
theoretical framework for the conceptual model. The TPB belongs to the most
powerful predictive persuasion theories and has been used several times in the
Information Systems field to measure user acceptance and adoption. One advantage of
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the TPB is its flexibility in allowing new variables (Ajzen, 1991). In past studies
regarding the acceptance of music distribution channels, the TPB was used and

extended successfully e.g., d‘Astous, Colbert and Montpetit, 2005; Plowman and
Goode, 2009). According to Ajzen (1991) the actual behavior is guided by three factors:
evaluations of the behavioral outcomes (attitude), beliefs about the normative
expectations of others (subjective norm), and beliefs about the factors that could
strengthen or weaken the performance of the behavior (perceived behavioral control).
This study inherits and develops the TPB theory with age, gender, and occupation
being the moderating effects on the intention to use paid Music Streaming Services
(MSS) of individual customer in Ho Chi Minh City. The use of this theory to study the
influence of factors on the adoption of MSS has been studied in other countries, but the
context of different countries, different levels of economic development, cultures have
shown that the research results are different, so the previous research results are not
suitable for the context of Vietnam and especially Ho Chi Minh City. In the face of the
rapid development of the music industry, the development of music applications has
been focused by companies in the industry. However, the percentage of people paying
fees to use the service is still modest. Specific studies in the context of Vietnam from
the perspective of customers are pretty rare.
On that basis, studying the factors affecting purchase decisions of customers in paid
music streaming services in Ho Chi Minh City is very important. The findings from
this study can help companies come up with solutions tailored to specific customer
segments. Stemming from the above reasons, the author will use the TPB model with
adjustments and supplements to suit the Vietnamese situation to answer the research
questions which factors affect to the decisions to purchase services of customers,
application usage behavior in Ho Chi Minh, the degree of influence of each factor on
the decision to pay fees or not in the thesis with the topic: Factors Affecting The

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Customer’s Purchase Intention In The Paid Music Streaming Services In Ho Chi
Minh City.

1.2.

Research Objectives and Research Questions

1.2.1. Research Objectives
The study suggests several approaches to innovate and increase quality in order to
develop a business growth plan.
 Identify the factors of paid music streaming services affect on the customer‘s
purchase intention in the paid music streaming services in Ho Chi Minh City.
 Determine the level impact of each factor on consumer purchase decisions.
1.2.2. Research questions
This research is aimed to probe the factors of paid music streaming services which
have significant impact on customers‘ intentions to purchase services in Ho Chi Minh
City. The research questions are:
 Which factors of paid music streaming services affect to the intentions to
purchase services of customers in Ho Chi Minh City?
 To what extent each factor affect customers‘ intentions to purchase services?
1.3.

Research Subjects and The Scope of Research

1.3.1. Research Subjects
 A study of investigating of factors of paid music streaming services which have
significant impact on customers‘ intentions to purchase services in Ho Chi Minh
City.
1.3.2. The Scope of Research
 In term of space: customers in Ho Chi Minh City.
 In term of time: from August to November, 2022

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1.4.

Research Methodology

This study was carried out using a combination of qualitative and quantitative research
methods.
-

Qualitative research method: Conducted in the period of reviewing and
summarizing previously published works at home and abroad in order to clarify
research concepts and build questionnaires. Next, individual in-depth interview
techniques are used to explore and build observed variables used in measuring
research concepts and building theoretical models for research. The collection
of information is done through the form of a survey of the subjects, based on the
outline outlined in advance.

-

Quantitative research method: It is carried out based on the application of
techniques such as Crobach's Alpha reliability test, exploratory factor analysis
EFA, and structural modeling linear SEM. Information was collected by
questionnaire to survey the opinions of consumers in Ho Chi Minh City. Ho Chi
Minh. The estimated sample size is 300. Quantitative research results are used
to verify the discovery results from qualitative research, thereby, evaluate and
conclude about the research problem..

1.5.

The practical significance of the thesis

The combination of factors in the theoretical model of Theory of planned behavior
(Ajzen, 1985, 1991) and the theory of Perceived Value, Perceived Risk to synthesize
new observed variables that have never been considered in the previous study. previous
studies in Vietnam on factors affecting the decision to buy paid online music services.
The topic contributes to determining the factors affecting customers' intention to buy
online music services, specifically studying the impact of customer psychological
aspects, risks in using the product. The topic applies research results for businesses to
have a suitable orientation in the process of promoting customers to pay for online
music services.
5


1.6.

Thesis structure

In addition to the introduction, conclusion, list of references, the thesis content is
structured into 5 chapters:
Chapter 1: Research Overview
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Results
Chapter 5: Conclusion and suggesting solutions

6


CHAPTER 1 SUMMARY

In chapter 1, the author presented the content of the research issues, including the
reasons for choosing the topic, the research objectives and scope, the research methods
and the overall layout of the research topic. This is the basis for the next chapters in
this study.

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