DETERMINANT FACTORS OF CUSTOMER LOYALTY: CASE STUDY OF NETFLIX SUBSCRIPTION VIDEO-ON-DEMAND SERVICE IN INDONESIA

Abstract

The purpose of this study is to identify the determinant factors of customer loyalty towards Netflix's subscription video-on-demand service in Indonesia. The study will focus on two independent variables, namely pricing strategy and habitual behavior, with the mediating variable of customer satisfaction and the dependent variable of customer loyalty. The study will use a quantitative approach, with purposive sampling and the data will be collected through an online survey. The target population for this study is Netflix subscribers in Indonesia aged 18-34 years old. The sample size will be consisting of 129 respondents. The study will use PLS-SEM as the primary analysis tool to test the research model and hypotheses. The study will contribute to the existing literature by providing insights into the factors that influence customer loyalty towards Netflix in Indonesia. The findings of this study are expected to be useful for Netflix in developing effective strategies to improve customer loyalty and retain customers in the highly competitive Indonesian market. The study will also provide insights into the applicability of the PLS-SEM technique in the context of customer loyalty research. In conclusion, this study aims to provide insights into the determinant factors of customer loyalty towards Netflix's subscription video-on-demand service in Indonesia. The study will use PLS-SEM as the primary analysis tool and an online survey to collect data. The result shows that pricing strategy does have a positive impact on customer loyalty which mediated by customer satisfaction, which oppose to the result of habitual behavior which shows a negative impact. The findings of this study are expected to be useful for Netflix in developing effective strategies to improve customer loyalty and retain customers in the highly competitive Indonesian market.