Factors affecting intention to subscribe SVOD in vietnam

The study also confirmed the previous finding of Consumer Innovativeness on intention behavior in SVOD context.. Research Gap Overall, in terms of SVOD previous study, some factors had b

VIETNAM x NATIONAL x UNIVERSITY, HANOI

VIETNAM x JAPAN x UNIVERSITY

VIETNAM x NATIONAL x UNIVERSITY, HANOI

VIETNAM x JAPAN x UNIVERSITY

-

LE PHU KHANH

FACTORS AFFECTING INTENTION TO SUBSCRIBE TO SUBSCRIPTION VIDEO

MAJOR: x BUSINESS ADMINSTRATION

CODE: x 8340101.01

RESEARCHxSUPERVISORS:

Prof Dr MOTONARI TANABU

Dr TRAN HUY PHUONG

Hanoi, 2020

ACKNOWLEDGMENT

First of all, I would like to give my thanks to Prof.Dr Montonari Tanabu and Doctor Tran Huy Phuong for helping and give me a lot of valuable advice during the time I was conducting this master thesis

Second, I would like to thank Prof Matsui, Hanh sensei, Hino sensei, Tuan sensei for giving me comments to improve my thesis on internal defense on

20th May Moreover, I would like to thank the reviewers, including Prof Matsui, Prof.Morita, Hanh sensei Tuan sensei, Lien sensei for giving me comments on final defense on 24th June

In addition, I would like to give many thanks to my family, who has supported me and motivated me a lot in the time I got difficult in doing the thesis

Finally, I would like to give many thanks to my friends, the participants who have supported me to complete the survey

Table of Content

ACKNOWLEDGMENT

LIST OF TABLES

LIST OF FIGURES

LIST OF ABBREVIATION

CHAPTER 1: INTRODUCTION 1

1.1 Research Background 1

1.2 Research Objective 4

1.3 Research Question 4

1.3 Research Subjective and Research Scope 4

1.4 Research Contribution 4

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 6

2.1 Review of related definition and previous research 6

2.1.1 Definition of OTT platform 6

2.1.2 Definition of Streaming 6

2.1.3 Definition of Video on demand (VOD) 7

2.1.4 Definition of Subscription Video on demand (SVOD) 8

2.1.5 Related research & research gap 9

2.2 Review of the relevant theoretical model of technology adoption: 14

2.2.1 Theory of reasoned action (TRA) 14

2.2.2 Theory of planned behavior (TPB) 15

2.2.3 Technology acceptance model (TAM) 15

2.2.4 Unified theory of acceptance and use of technology (UTAUT) 16

2.2.5 Reason why the author choosing UTUAT2 as theoretical framework 18

2.3 Hypothesis development and conceptual model 18

2.3.1 Performance Expectancy 19

2.3.2 Effort Expectancy 20

2.3.3 Social Influences 21

2.3.4 Hedonic Motivation 21

2.3.5 Price Value 22

2.3.6 Facilitating condition 23

2.3.7 Consumer Innovativeness 23

2.3.8 Media exposure 24

2.4 Research conceptual model 27

CHAPTER 3: METHODOLOGY 28

3.1 Research process 28

3.2 Sampling and data collection 29

3.3 Sample Population 29

3.4 Variable and Measuring Instrument 29

3.5 Analysis Method 32

3.5.1 Descriptive analysis 32

3.5.2 Inferential analysis 33

CHAPTER 4: ANALYSIS RESULTS 36

4.1 Data Description 36

4.2 Reliability analysis 38

4.2 Explanatory Factor Analysis 38

4.3.1 Explanatory Analysis for independent variable 38

4.3.2 Explanatory Analysis for dependent variable 40

4.3.3 Explanatory Analysis for moderation variable 40

4.3 Regression Analysis 41

4.4 Moderation Analysis 42

4.5 Hypothesis tested results 44

CHAPTER 5: DISCUSSION AND CONCLUSION 46

5.1 Finding and Discussion 46

5.2 Contribution of the thesis 50

5.3 Implications for SVOD service providers 50

5.4 Limitation and future research direction 52

REFERENCES 54

APPENDIX 1: Questionnaire 65

APPENDIX 2: Cronbach’s alpha analysis 75

APPENDIX 3: Explanatory Analysis 80

APPENDIX 4: Pearson Correlation Analysis 84

APPENDIX 5: Regression analysis 85

APPENDIX 6: Moderation Analysis 86

LIST OF TABLES

Table 2.1: Construct's definition 19

Table 3.1: Measurement Scale of thesis 30

Table 4.1: Cronbach’s alpha for all variable 38

Table 4.2: EFA Results for Independent variable 39

Table 4.3: EFA Results for Dependent Variable 40

Table 4.4: EFA Results for Moderator 40

Table 4.5: Results of Pearson Analysis 41

Table 4.6: Results of regression analysis 41

Table 4.7: Moderation analysis by Hayes 43

LIST OF FIGURES

Figure 2.1: Results study of Cerbeci et al (2019) 9

Figure 2.2: Results study of Ramírez-Corre et al (2018) 10

Figure 2.3: Research results of Sardanelli et al (2019) 11

Figure 2.4: Theory of reasoned action (Fishbein & Ajzen, 1975) 14

Figure 2.5: Theory of planned behavior (Ajzen, 1991) 15

Figure 2.6: Technology acceptance model (Davis, 1989) 16

Figure 2.7: Unified theory of acceptance and use of technology UTAUT (Venkatesh et al., 2003) 17

Figure 2.8: Unified theory of acceptance and use of technology UTAUT2 (Venkatesh et al., 2012) 18

Figure 3.1: Research Model Proposed by Author 27

Figure 4.1: Age group of respondences 27

Figure 4.2: Descriptive data of current users 37

Figure 4.3: Descriptive data of SVOD references channel 37

LIST OF ABBREVIATION

of technology

acceptance and use of technology

CHAPTER 1: INTRODUCTION

1.1 Research Background

Today, thanks to the advancement of technology, people have changed the way they consume media (Shim & Kim, 2018) The development of Broadband Internet paved the way for the multimedia industry to shift from traditional Cable TV to OTT Streaming (Over-the-top Streaming) OTT is superior to the traditional Cable

TV because of 2 characteristics: mobility and internet (Kim et al., 2016) Thus, OTT streaming has become the technology preferred by consumers to entertain (Shim et al., 2018) OTT streaming is well-known for its service called Subscription video on demand (SVOD)

During 2010, the SVOD market was still in the early stage, with the domination

of Netflix However, in 2019, there were a lot of big players joining the SVOD industry, such as Apple, Disney, and WarnerMedia, which pave a new era for the SVOD market known as the name “Streaming Wars” (Ben, 2019) The predict of Pwc Global Entertainment and Media Outlook report showed that the size of this market will be doubling up to $72.8 billion Other results showed that in 2018, traditional cable TV firms had less than 3 million users, while SVOD services revenue increased from 30 billion USD by 2016 to 68 billion USD by 2018 (Yen, 2019)

Despite the success of SVOD in the world, the number of people using this service is still limited in Vietnam According to the figure of Authority of Broadcasting and Electronic Information in 2020, the number of users of the whole SVOD market in Vietnam was 10 million users, which accounts for only 10% market penetration (VTV, 2020) Even the big firm in this industry like Netflix, which has 130 million subscribers in the world (Louis, 2018), is having a low number of users in Vietnam According to ictnew.vn, the number of Netflix subscribers in Vietnam was only 300.000 users, which accounts for just only about 0.31% of the total Vietnamese population (Minh, 2019) Despite the low adoption

level, there still positive evidence showing that this industry has the potential to grow in Vietnam By the analysis of Statista.com in 7/2019, there are more than 54% of Vietnamese frequently using the Internet, and these people will increase by 38% in 2023 Also, another figure showed that Vietnam users spend 6-7 hours each day using the Internet, mainly for entertaining (Statista, 2020) In Vietnam, there are

36 SVOD firms The foreign firms in this industry are Netflix, Apple TV, and the most famous Vietnamese firms in this industry are ClipTV, FPT play VTVcab ON, VTC Now, My K+ NOW,… The revenue growth of the SVOD industry in Vietnam is predicted by up to 113% by 2023 (Statista, 2020) Many foreign SVOD companies are interested in this market For example, the leader of Netflix – one of the big firms in the SVOD industry had a meeting with the Head of the Government Office to make an agreement about entering Vietnam in November 2019 officially (Luu, 2019) This evidence shows that Vietnam is a potential as well as high competition for exploit such online entertainment services like SVOD

For an industry that started to grow like SVOD in Vietnam, since the number of SVOD users in Vietnam was still limited, the finding of consumer insight and user’s psychology in subscription intention to SVOD is necessary

Recently, the number of studies on SVOD is really limited In previous studies, some key factors had been proved to have an impact on subscription intention The most common factors were perceived usefulness and perceived ease of use (Cebeci

et al., 2019; Ramíez-Correa et al., 2017; Sardanelli et al., 2019; Lee et al 2018) For instance, Cebeci et al (2019) using Technology Acceptance Model (TAM), found out that a person who had the perception of usefulness would have the intention to use Netflix in the context of Istanbul, other remaining factors in Cebeci’s study are Perceived Ease of Use, Knowledge and Technology Anxiety In addition, Ramíez-Correa et al (2017) found that a person who had a high enjoyment perception of Netflix would highly have the behavioral intention of using Netflix Some other scholars approached at the angle of movie piracy, which concluded that Moral Judgement and Product Involvement were the two key factors which affecting

subscription intention of movie streaming service by using TPB as a based model (Sardanelli et al., 2019) Although studies about SVOD investigated the subscription intention from different angles, there still theoretical gaps that needs to

be filled First, to the best of the author’s knowledge, most studies were looking at one company (in this case, Netflix) rather than identify factors affecting behavior intention for a whole industry like SVOD, especially in Vietnam Second, there is a lack of research applied UTAUT2 to the domain-specific case like SVOD industries Finally, previous studies were focusing on piracy, technology, finance factors There was a lack of factors related to mass media as well as factors related to consumer’s traits to the behavioral intention of SVOD users

About UTUAT2, this model was the latest one in technology adoption Venkatesh et al (2012) mentioned adding moderator as the way to expand the theory of UTAUT2 Following Vankatesh’s suggestion, many tried to test the role

of Age, Gender, Personalization,… as a moderator to UTAUT2 But to the best of the author, there is no research added Media Exposure to UTAUT2 as a moderator There is reason to prove that Media Exposure can have a moderating effect The fact that consumers made their decision based on the information they gained The amount of information from media exposure can affect the cognitive function of a person (Christakis et al 2018) According to DeFleur, Melvin, and Everett Dennis (1998), enough frequency of media exposure could change one person’s behavior and belief Because of that, Media Exposure can be treated as a moderator The thesis will test the role of Media Exposure whether it has a moderating effect on the UTAUT2 construct

In conclusion, based on theoretical and practical motivation, the author conducts study names “Factors affecting intention to subscribe to SVOD services in Vietnam”

as an MBA thesis topic

1.2 Research Objective

There is a lack of research applied UTAUT2 to understand consumer’s intention

to subscribe to SVOD Therefore, this thesis will test UTAUT2 in the SVOD context as empirical evidence contributes to the SVOD studies

The thesis also tests the role of Consumer Innovativeness and moderating effect

of Media exposure to the UTAUT2 model to expand the approach of Media exposure as moderators and contribute to the theory of UTAUT2

The scope of thisxstudyxwillmainly in Hanoi because they have a huge amount

of people in general and have already aware of SVOD service This study will have

a time range from 2019 to 2020

1.5.Research Contribution

- Theoretical contribution

The thesis applied UTUAT2 since there is no literature of SVOD applied UTAUT2 in the SVOD context, especially in Vietnam there has no study related to subscription video on demand

The study also confirmed the previous finding of Consumer Innovativeness on intention behavior in SVOD context

The study also found the Moderating effect of Mediaxexposurexonthexrelationshipbetween Hedonic Motivation and Intention Behaviors The finding contributed to the UTAUT2 theory because this is the early study that investigates the moderating role of media exposure to UTAUT2

- Practical contribution

The thesis had proposed several solutions to increase the number of subscribers for SVOD service providers

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

2.1 Review of related definition and previous research

2.1.1 Definition of OTT platform

According to the Ministry of Information and Communication of Vietnam (MIC, 2019), Over-the-top (OTT) platform is the media service that uses the internet to transfer content and added values to consumers OTT platform provides content directly to the Internet rather than provides under the management of any Internet Service Provider Thus, it paves a way for OTT platform users to access content on many different devices Another feature of OTT is the recommendation system that supports users to find content that they needed easily

There are three types of OTT services The first one is OTT television, usually called streaming video The example for this type are subscriptionxvideoxonxdemand (SVOD) firms such as Netflix, Amazon Prime, Hulu, … The second types of OTT are OTT messaging/voice calling services OTT messaging/voice calling can be defined as an instant messaging/ voice calling service provided by the third party as an alternative to traditional SMS The most well-known brand for these types is WeChat, Skype, Viber, Zalo, The final types

of OTT platform types are OTT music, known as music streaming Examples of these types are Spotify and YouTube Music (Technavio, 2019) This study will only

be focusing on the first types of OTT, which is video streaming

2.1.2 Definition of Streaming

According to Oxford Dictionaries, Streaming is a method of sending or receiving data (video and audio material) through the internet in a continuous stream (Oxford University Press, 2019) Streaming is similar to the television broadcast, the only difference is that streaming delivers content through the internet

(Austerberry, 2005) In a television broadcast, content is pushed to the user on a certain schedule

With streaming, users can choose content, generally through interaction with the web provider's service There are three ways to transmit multimedia content, listed below:

a Download

Content can be played by users after they have downloaded from the severs The multimedia file received will be stored on computer storage media After received the multimedia file successfully on the user’s side, the user can access the content

on the user’s side can be played immediately

Based on the above definition, it can be concluded that streaming is a method of transferring content to the user via the web in real-time and can be watched without having to wait for downloaded

2.1.3 Definition of Video on demand (VOD)

According to the research of Chen with his collaboration (2014), video on demand (VOD) can be understood as a system that allows users to be able to choose and watch videos that they want regardless of time and place The VOD system can enable users to gain control over the media they watch

Until now, there are many videos on-demand services on the internet which provide free video content such as Youtube, Vimeo, Dailymotion, and others Users

of the service can enjoy content videos that have been uploaded by creators from various fields, such as food, beauty, automotive, music, film, technology, and so on

Based on the above definition, it can be concluded that the video on demand

is a system for watching video shows in a manner interactive where users can freely choose the content and be able to control the content

2.1.4 Definition of Subscription Video on demand (SVOD)

Subscriptionxvideoxonxdemand (SVOD) is defined as a service where users are charged a subcription fee (generally per month) to be able to choose and enjoy content freely provided by the SVOD service providers at any time and anywhere as long as users are connected to the internet (Wayne, 2018) By using OTT technology, SVOD services can have the ability to help users search for entertainment content easily with the help of a recommendation system using A.I and Big Data (Xavier, 2013)

SVOD is also defined as an online entertainment service where users are charged monthly to access to a streaming library consisting of films, television shows and other media content (Stastista, 2019a)

In the world such as Netflix, ESPN+, Hulu, and Vietnam such as FPT Play, K+ Now, Clip TV are some examples of SVOD technology The number of SVOD users in the whole world is going up rapidly from around 283 million users a year

by 2018 to 411 million users by 2022 The younger generation is the one who spends most of the time using SVOD, with users aged 18-24 years spend an average

ofx39 minutesper dayusing SVOD services (Stastista, 2019a)

Based on the above definition, it can be concluded that the subscription video

on demand is a service provided content such as films, television series, documentaries SVOD service providers require a monthly subscription fee, after paying the fee users can access SVOD’s content anywhere and at any time One of

the remarkable features of OTT in general as well as SVOD comes from a recommendation system that helps users find their entertainment content faster

2.1.5 Related research & research gap

Related Research

Recently, there are a few authors have mentioned about subscription intention of SVOD The detail of each research is mention at the following:

Cebeci et al (2019) were one of the pioneer studies in SVOD with the topic

“Understanding the Intention to Use Netflix: An Extended Technology Acceptance Model Approach” UsedxTAMxasxa based theoretical framework on Istanbul context, the study found out Attitude had a direct effect on the intention to use, Perceived Usefulness influenced attitudes, support by the moderating effect of technology anxiety, Knowledge affected both PerceivexEasexofxUse andxPerceivedxUsefulness, Self-efficacy had a positive effect on PerceivedxEasexofxUse

Figure 2.1: Results study of Cerbeci et al (2019)

Cerbeci and his team succeeded in building a comprehensive model predicting intention to subscribe to Netflix However, the study still had some limitations First, this study conducted only in Istanbul, so the generalizability of the finding is still a constraint Second, the factors mentioned are mostly looking at the aspect of technology In reality, subscription intention can be affected by other factors such as Price, Perceived Quality,

Another scholar - Ramírez-Corre with his partners (2018) conducted a topic name “The acceptance of Netflix: a study using structural equations” to investigate customer intention of using Netflix in Brazil The study followed quantitative analysis using TAM for the hedonic information system suggest by Heijden (2004) The result found out that Perceived Usefulness, Perceived Ease of Use, Perceived Enjoyment have a positive relationship with behavior intention, moderating by Experiences

Figure 2.2: Results study of Ramírez-Corre et al (2018)

The study has confirmed one of the major findings of Heijden (2004), augured the importance of two factors about the perception of useful and easy to use, which came from the TAM model Ramirez mentioned that under the context of the hedonic information system, the role of Perceived Enjoyment is more important than the remaining factors The limitation of the research is that Ramirez-Corre just only focusing on four factors: PerceivedxUsefulness, Perceived EasexofxUse, Perceived Enjoyment, and Experience

The study of Lee et al (2018) name “Factors Affecting Online Streaming Subscriptions” investigated the switching intention of consumers from traditional

TV to online streaming service by compared between traditional TV users and online streaming users The results found only Social Trend, Media Option, and Age had significant on subscription intention behavior of online streaming The

sample of study still had some limitations while the majority of respondence mostly from young as 18 to older as 34 age range, which the results tend to represent for young users

A qualitative analysis study had been conducted by Dasgupta and Grover (2019) with the topic “Understanding Adoption Factors Of Over-The-Top Video Services Among Millennial Consumers in India” The study found the most important feature which leads to the adoption of OTT video service is Convenience, Content, Mobility, Cost The research did not have a high generalizability level since it was conducted only in two cities of India Also, OTT service is a nascent concept in India, so the finding may not fully understand the insight of consumers toward OTT video services

Sardanelli et al (2019) investigated the intention to subscribe to movie streaming services in Italy from the perspective of illegal downloading using TPB The study included variables such as Product Involvement (INV), Subjective Norm (SN), Frequency of Past Behaviour (FNB), Moral Judgement (MORAL), Perceived Risk (RISK), Attitude (ATT) The study found out that attitude, frequency of past behavior, and involvement have an important role in explaining the subscription intention of movie streaming services

Figure 2.3: Research results of Sardanelli et al (2019)

The study still has some drawbacks such as limited sample and the level of digital privacy in Italy is still high Longitudinal research was suggested in future studies

Research Gap

Overall, in terms of SVOD previous study, some factors had been agreed to have affected intention to subscribe SVOD or video streaming services such as Perceived Usefulness, Perceived Enjoyment, Perceived Ease of Use, Experience, Knowledge, Content, Cost, Mobility, Convenience, Attitude, Moral Judgement, Perceived Risk, Media Option and Social Trend However, those factors were only focusing on technology and finance aspects There is a lack of concern about factors

in the aspect of media promotion and the factors related to consumer trait to the intention to subscribe to SVOD Moreover, to the best of the researcher’s knowledge, there is no research applied UTUAT2 to the context of SVOD

Therefore, the following study will add Media Exposure to Advertising SVOD message as media promotion aspect and Consumer Innovativeness as consumer trait aspect to have a deep understanding of factors affecting the intention

to subscribe to SVOD

Media exposure to SVOD advertisement as moderator:

During 2010, in SVOD industry, Netflix was the only firm that provided this service, so media and advertising were not quite important as there is no competitor However, recently, due to the intense competition between SVOD platform, media and advertising can be an important factor that contributes to the success of a firm

in this industry There are some reasons which prove that media is important for intention behavior First, usually, consumers made their decision based on the information they gained The amount of information from media exposure can affect the cognitive function of a person (Christakis, 2018) Second, DeFleur, Melvin, and Everett Dennis (1998) state that repetition as well the consistency of the media can change the behavior and belief of a person in the long-term In the case of SVOD, the repetition of advertising can provide information to the audiences about the characteristic of the technology, thus change the way they expect about the easy and useful of technology and the way they think about the

value price of the services Or in another word, media exposure to SVOD advertising can strengthenxthexrelationship between the dependent variables and behavioral intention in UTAUT2

In academic aspects, Media exposure had been tested in many different approaches A Qader (2011) proved that media exposure can have a direct impact

on behavioral intention Other scholars also had the same results (Lee, Koo, & Chung, 2019; Khofanda & Fajarindra Belgiawan, 2018) Some scholars found the media exposure can have a direct impact on human perception (Li X., 2018; Wang, Guo, & Shen, 2011) Media exposure in some case can help to influent brand-recall and purchasing intention (Turley & Shannon, 2000; Sohail & Sana, 2011; Muhammad & Tanveer, 2015) as well as can be initial preparation for the stage of the consumer’s decision-making process (Burton et al, 2019) However, recently, there is a lack of study that tested the moderating role of Media Exposure to the relationship between human perception and behavioral intention, although some researchers have suggested this approach Reynaldo A.Baustista Jr (2017) in the research of the generic drug, suggested the role of media exposure in strengthening the relationship between TPB construct and behavioral intention Another study also suggested about moderating role of Media Exposure, in this case, Media Exposure can strengthen the relationship between buying attitude and perception of value (Jan,

Ji, & Yeo, 2019) Therefore, it is a good opportunity to test whether media exposure can strengthen the relationship between UTAUT2 constructs and behavioral intention

Consumer Innovativeness as additional variables related to consumer’s trait

In many studies about technology acceptance, many researchers tried to test whether factors related to consumer’s traits can affect behavioral intention For example, Qing et al (2012) investigated whether consumer’s lifestyles can predict the purchase intention of fresh fruit in China The study found out that a person with risk-taker and traditionalists traits was likely to have the intention to purchase fresh fruit Although there were many factors relating to consumer’s trait had been

explored by previous researchers, some of them were still not been explored carefully One of them was Consumer Innovative which proposed by Roger (1983)

in his book called “Diffusion of Innovation” Some scholars in the domain of marketing also mentioned this factor (Migley & Downling, 1978; Agarwal & Prasad, 1988; Flynn & Goldsmith, 1993) Consumer Innovative was defined as “the willingness of an individual to try out any new information technology.” (Agarwal

& Prasad, 1988) In other words, a person who has open-minded to newness has a high possibility to accept a technology faster than others as well as more likely to influent others to adopt new technology (Roger, 1983)

On many studies about Consumer Innovativeness, there had been inconsistent in the results of Consumer Innovativeness to Intention Behaviour Some studies proved there was a relationship between these 2 variables (Goldsmith, 2000; Ho & Wu, 2011; Foxall & Bhate, 1991; Paswan & Hirunyawipada, 2006) However, some showed no relationship between them (Im et al., 2003; Chao et al., 2012) Therefore, this study will investigate to what extent Consumer Innovativeness impact Behaviour Intention in the context of SVOD in Vietnam

2.2 Review of the relevant theoretical model of technology adoption:

2.2.1 Theory of reasoned action (TRA)

This theory explains the behavioral intention byxattitudextowardxbehaviorand subjective norm The attitudes toward behavior is “the positive or negative of

an individual toward conducting a behavior to the subject” (Fishbein & Ajzen, 1975), and the subjective norm was defined as the feeling of others when we conducting a behavior

Figure 2.4: Theory of reasoned action (Fishbein & Ajzen, 1975)

The limitation of the Theory of Reason behaviors (TRA) is that this model assumes a person’s cognitive decided his/her behaviors Therefore, the theory of Ajzen cannot explain consumer behaviors if an individual behaves based on his/her habit or behaves unconsciously Moreover, Ajzen just considered the relationship between attitudes and behaviors of an individual itself rather than concerning the social factors In the reality, in some cases, social factors do have affect intention behavior of an individual (Shiau et al., 2012; Rieke et al., 2016)

2.2.2 Theory of planned behavior (TPB)

The theory of plannedxbehavior is an expansion of TRA to enhance the ability to explain behavior which not under control (Ajzen, 1991) The added determinant in TRA is Perceived Behavioral Control

Figure 2.5: Theory of planned behavior (Ajzen, 1991)

According to Aizen (1991): “The Perceived Behavioral control can trigger from each person’s internal (Ability, Determination ) or external (Time, chance,…)”

TPB model was considered as more complete than TRA in explaining consumer behavior

2.2.3 Technology acceptance model (TAM)

In the studies about technology adoption, some scholars have emphasized the relationshipxbetweenxattitudexandxintention behavior Davis (1989) developed TAM

to explain the behavior of consumers toward a specific technology, which emphasized the relationship between attitudes toward technology and intention

behavior TAM was adapted and developed based on the theoretical background of TRA in constructing relationships among factors to explain human behaviors to accept and use an Information System (Davis, 1989)

Figure 2.6: Technology acceptance model (Davis, 1989)

TAM explained usersxacceptance through 2 determinants, which were (1) Perceived Usefulness and (2) Perceived ease of Use In addition, in TAM, the perception of a person who using Information technology can be influenced by environmental factors such as experiences, knowledge, training level, and IT process Different from TRA, this theory emphasized the role of the self-making decision of consumers during the time they consume products

2.2.4 Unified theory of acceptance and use of technology (UTAUT)

To unify all factors relating to the adoption of technology in the field of information system, UTAUT was proposed The intention behaviors can be explained by 4 key elements in this theory

In previous studies, there were arguments that there is a similarity between technology acceptance theories Therefore, Venkatesh et al (2003) suggested it would be better if someone can merge them into one unified theory That is the reason UTAUT has been made to support further study related to the acceptance and used of technology

Figure 2.7: Unified theory of acceptance and use of technology UTAUT

(Venkatesh et al., 2003)

UTAUT was used in many studies There are three kinds of UTAUT application has been made by scholars First, some scholars applied UTAUT in contemporary contexts such as the Internet of Things (IoT) (Sung & Jo, 2018), Mobile Banking (Yu, 2012) Second, some scholars applied Modified UTAUT2 which added other constructs such as culture (Sriwindono & Yahya, 2012), Risk (Eneizan et al., 2019) Third, some studies integrated UTAUT with other models such as Task Technology Fit (TTF) (Zhou et al., 2010) Many studies of UTAUT showed that different contexts will bring different results According to Venkatesh

et al (2003) suggestion, there could be another construct that can be added to the model

Almost all studies concluded that 4 elements of UTAUT can predict the behavioral intention and use behavior However, some scholars showed different results Li and Kishore (2006) when researched about Welog social internet system, found that 4 constructs of UTAUT did not have a good result Therefore, due to the advancement of the information system, Venkatesh et al (2012) had extended UTAUT into UTAUT2 UTAUT2 was believed to be more suitable with the context

of consumer behaviors than the previous UTAUT (Llamas & Stofega, 2009)

UTAUT2 has applied the previous construct with 3 new constructs added: HedonicxMotivation, Price Valuexand Habit

Figure 2.8: Unified theory of acceptance and use of technology UTAUT2

(Venkatesh et al., 2012) 2.2.5 Reason why the author choosing UTUAT2 as theoretical framework

In the past, many previous studies applied TAM, TPB, … in explaining human behavior Each model has its strength and limitation, the next model tends to enhance or explained the previous model As Venkatesh concluded, the UTAUT2 is the model that inherited almost all of the elements of the previous models (TPB, TRA, TAM, UTAUT) Therefore, to explain individual consumers' intention to subscribe to SVOD, UTAUT2 is suitable for this research

2.3 Hypothesis development and conceptual model

The researchxmodel applies six constructs of UTAUT2 Moreover, because the sample of the study is mainly new potential users, the factor Habit will not be mention Consumers need to have rich experiences in using SVOD to generate habit Because the context of this study was focused mainly on potential consumers, so the role of habit may hard to examine (Venkatesh et al., 2012) Along with six constructs of UTAUT2, the author also integrates the role of Consumer Innovativeness and the Moderating role of Media Exposure

Table 2.1: Construct's definition

Performance expectancy The degree to which using technology will provide

benefits to consumers in performingxcertainxactivities (Venkatesh et al., 2012)

Effort Expectancy How easy the users can interact with SVOD

(Venkatesh et al., 2012) Social Influences The extent to which user of SVOD services consider

their behavior associatedxwith otherxpeople’sxbelief (Venkatesh et al., 2012)

Facilitating condition The extent to which SVOD users believe that with the

availability of stable internet connection and devices can support using SVOD services (Venkatesh et al., 2012)

Hedonic Motivation The fun or pleasure derived from using SVOD

(Venkatesh et al., 2012) Price Value The trade-offxbetween the cost paid for using the

technology and the perceived benefits received (Venkatesh et al., 2012)

Consumer Innovativeness The tendency of a consumer to buy a new product and

enjoy the uniqueness of the product (Steenkamp et al., 1999)

Media Exposure Media coverage on SVOD advertising (Reynaldo A

Bautisca, Jr et al, 2017)

2.3.1 Performance Expectancy

Performance expectancy is defined as “the degree to an individual believes that the technology can support him/her to accomplish a certain task” (Davis et al., 1992; Shin, 2009) This factor is similar to Perceived Usefulness in TAM In UTAUT2, Performance expectancy can be understood as “the degree to which

using technology will provide benefits to consumers in performing certain activities” (Venkatesh, 2012) Since one of the remarkable features of SVOD and the OTT platform is film recommendation feature and personalization feature, SVOD can help users searching movies that they want more quickly compared with previous media technology

In previous researches, almost all scholars found a positive relationship between performance expectancy and behavioral intention For example, Van der Heijden (2003) stated that Perceived Usefulness (which similar meaning with Performance Expectancy) has a positive impact on Information systems which focuses on entertainment purposes Performance Expectancy also proved to have a positive impact on behavioral intention in several studies (Baabdullah, 2018; Cebeci

et al., 2019; Yu & Ting, 2011)

Thus, this research hypothesizes that:

H1: Performance x Expectancy will have a positive impact on intention to subscribe

to SVOD in Vietnam

2.3.2 Effort Expectancy

In UTAUT2, effort expectancy wasxdefinedxasxhowxeasy the users can operate the system Davis (1989) foundxthatxanxinformation system which people think it easier to use is more likely to be adopted There are many scholars agreed that effort expectancy can explain the user’s intention Bautista et al (2016) concluded that user’s intention to use social TV system had a high correlation with how they think that system is easy or not Lee (2018) also agreed that there is an impact of online streaming adoption and effort expectancy

Because of that, it is crucial to examine the role of effort expectancy in the context of SVOD in Vietnam

H2: Effort Expectancy will have a positive impact on intention to subscribe to SVOD in Vietnam

2.3.3 Social Influences

Social influence is the degree to which an individual is influenced by the recommendation of other people (Diaz & Loraas, 2010) It is similar to the factor

“subjective norm” defined in TPB by Aijzen (1991)

As in the context of Vietnam, people have a close relationship, and they tend

to live in a closed group society Therefore, the impact of family and friends can be considered as important factors to evoke potential users to have curious about services as well as accept the services

Social influence has been proved to be significant in many different media and entertainment contexts The influence of users’ closest peers will associate with the intention to use music streaming (Dörr et al., 2013) Leong et al (2013) found the recommendation of the user’s peer has a positive impact on intention to use mobile entertainment in Malaysia

to a person will be likely to be accepted (Van der Heijden 2004; Thong et al 2006) This statement was also proved in consumer contexts (Brown and Venkatesh 2005; Childers et al., 2001)

As SVOD is a service focus heavily on entertainment value rather than utilitarian value, the role of hedonic motivation can be considered as one of the important factors explaining consumer intention to subscribe If the consumers feel

the SVOD services are attractive enough, they may tend to adopt SVOD Wong (2014), in the case of mobile-TV, hedonic motivation is one of the most important factors in choosing mobile-TV In the hedonic information system context, the role

of Hedonic Information also proved to have an impact on the intention to use a hedonic information system (Heijden, 2004) Based on this review, the author stated that:

H4: Hedonic Motivation will have a positive impact on intention to subscribe to SVOD in Vietnam

2.3.5 Price Value

An important difference between thexconsumerxusexsetting and the organizational use setting, when UTAUT2 was developed, is the role of price to the users’ behavior The cost and pricing structure may have a significant impact on consumers’ technology use Price Value is defined as “thextrade-off between the cost paid for using thextechnology and the perceived benefits received” (Dodds et al., 1991) As by Venkatesh et al (2003), an important difference between the consumer setting and the organizational setting is that the consumers need to concern about the cost use while employees do not The relationship between price value and subscription intention will be positive if users think that the value of technology is greaterxthanxthexcostxtheyxhave to pay

Price value had been proved to have a positive impact on intention to adopt a technology For example, Prata, Moraes and Quaresma (2012) found that person who tends to think the application has a reasonable price will tend to have a high purchasing intention of mobile application

It is seen that there is still a lot of free option and the illegal option as an alternative for SVOD in the context of Vietnam Therefore, price value is needed to

be mention in the context of SVOD as users need to pay

axsubscriptionxfeexinxorderxto access the content inside SVOD If the price is too

high in comparison with the average income of users, it will be a huge barrier for users to access SVOD Thus:

H5: Price Valuexwillxhave a positiveximpactxon intention to subscribe to SVOD in Vietnam

2.3.6 Facilitating condition

Venkatesh et al (2003) demonstrated this term as “the beliefs of a person on the availability of the infrastructure when using technology” In the context of SVOD, the term facilitating condition is considered as the extent to which SVOD users believe that the availability of stable internet connection and devices that can

be accessed to the internet can support them using SVOD services

The facilitating condition was proved to have a positive impactto behavioral intention in the study of Internet banking (Emad & Michael, 2009) Support for the hypothesis is Wong et al (2014) in the study on the behavioral intention of mobile-

TV

Thus, the study will follow the hypothesis:

H5: Facilitating Condition will have a positive impact on intention to subscribe to SVOD in Vietnam

2.3.7 Consumer Innovativeness

Consumer Innovative (CI) is a factor that will be tested in the context of SVOD in Vietnam Consumer innovativeness refers to “the degree to which the individual willing to try out new ideas” (Midgley and Dowling, 1978) Based on Dabholkar and Bagozzi (2002), personal innovativeness can change individuals’ perceptions of technology The more innovative a person is, the more he/she will want to use new technology

In Vietnam, SVOD services are providing a variety of options to consumers For example, FPT Play provided a lot of other services such as education courses on

Edumall and Sport channels, Netflix provided an option for consumers to download the movie on the computer The variety of services may bring curious to the Vietnamese users, especially the one who has consumer innovativeness Therefore, consumer innovativeness can be a potential factor to explain the intention to subscribe to SVOD in Vietnam

In previous research, some scholar has developed and applied to support the influence of the user’s innovativeness in a different context related to different kind

of technology from purchasing online behavior (Donthu & García, 1999; Goldsmith, 2000), Mobile App Adoption (Sari et al., 2019; Okumus, 2018) Internet of Things (Sung & Jo, 2018) Subscription Based-Online Service (Ramkumar & Woo, 2018)

With the evidence from the literature, consistent with the fact that SVOD is

an Innovation in Media (Christensen et al., 2015), the author expects that the subscription intention of SVOD is positively influenced by Consumer Innovativeness

H7: Consumer Innovativeness will have a positive impact on intention to subscribe

to SVOD in Vietnam

2.3.8 Media exposure

In many years, media exposure had shown its important role in changing the way people think and behave on new services/products Some scholars showed media exposure had a direct effect not only on human perception but also on behavioral intention Media exposure in this thesis is defined as media coverage for SVOD advertising Since a lot of scholars has found media exposure can have a direct effect to consumer’s perception (Li X., 2018; Wang, Guo, & Shen, 2011) and direct effect to consumer intention (Lwin et al., 2014; A- Qader & Zainuddin, 2011),

it is possible that media exposure may have a moderating effect between UTAUT2 constructs and consumer intention to subscribe to SVOD as many constructs of UTAUT2 related to the perception of a person It is likelyxthat thexmore a person is exposed to advertising, the more chance a person could change his/her perception

toward SVOD, and that change in perception can lead to subscribe intention Or in other words, the expectation of performance, easy to use, price value, hedonic, and facilitating condition will be strengthened under the effect of media exposure Hence,

H8: The greater the media exposure to SVOD advertisement, the effect of performance expectancy on the subscription intention will be reinforced

H9: The greater the media exposure to SVOD advertisement, the effect of effort expectancy on the subscription intention will be reinforced

H10: The greater the media exposure to SVOD advertisement, the effect of social influence on the subscription intention will be reinforced

H11: The greater media exposure to SVOD advertisement, the effect of facilitating conditions on the subscription intention will be reinforced

H12: The greater media exposure to SVOD advertisement, the effect of hedonic motivation on the subscription intention will be reinforced

H13: The greater media exposure to SVOD advertisement, the effect of price value

on the subscription intention will be reinforced

In the study on diffusion of innovation, Consumer Innovativeness was widely accepted as the factor affecting the intention to adopt a new product However, understand what factors can accelerate the speed rate of adoption among these types of consumers can help better to expand the knowledge of diffusion (Roger, 1983) Robertson (1967) claimed that there could be variables that can switch the rate of adoption In the field of diffusion research, Media exposure had been agreed as an importantxdriverxofxinnovation diffusion and has a significant impact on innovators (Bass, 1969) One of the remarkable characteristics of Media exposure is the ability to spread huge information about innovations to a large audience rapidly (Roger, 2003) As a result, enough amount of information can transfer the consumer into a final behavior decision On the other hand, a person

with consumer innovative trait tend to actively seek for new information and idea about the product, thus make them easier to be early adopters (Migley & Downling, 1978) Therefore, when these two requirements (the information push of media and information gained when users actively seeking) are met, an innovative person will have a large amount of information compared to non-innovative persons, thus accelerating the adoption speed rate of SVOD product In another word, the study proposed a hypothesis:

H14: The greater media exposure to SVOD advertisement, the stronger the effect of consumer innovativeness on the subscription intention will be reinforced

2.4 Research conceptual model

The following model is the research model of the thesis proposed by the author:

Figure 2.9: Research Model Proposed by Author

H12 H8 H9 H10 H11 H13 H14

H5 H6 H7

CHAPTER 3: METHODOLOGY

3.1 Research process

The study will follow the steps shown in the figure below:

Figure 3.1: Research process proposed by author

Review previous study to

finalize research objective

population, sample and

scale and measurement

Develop questionnaire

basedxonxpreviousxstudy

Plot test questionnaire

Data collection

Analyze and interpret

the results with SPSS

Conclusion and suggestion

3.2 Sampling and data collection

Sample size

The minimum amount of sample required for research is equal to the number of observable items in the questionnaire multiple by 5 (Hair et al., 2013) This study will follow this formula for deciding the sample size

This study has 30 construct items, which means the total sample size is 30 * 5 = 150

in minimum

3.3 Sample Population

The survey questionnaire has been sent in Google From Online and delivered to people who acknowledged SVOD services and are user’s SVOD services to give a better sample to the research objective To make sure that requirement is met, a majority of the sample came from the author’s network on Facebook as well as the questionnaire was delivered to some Movie/ TV show/ Live sport Hobby Group to make sure it matched with the potential users Also, the term of SVOD was explained carefully in the questionnaire The survey was conducted from 25th March

to 15th April The author has collected 250 surveys, 38 answers had been eliminated from data analysis due to 15 respondents answering the same answer, and 23 respondents not aware of SVOD In another word, there are 212 responses were valid to process in data analysis

3.4 Variable and Measuring Instrument

The measures of this research were applied from the previous study and modified to

be suitable for the research object: Subscription Video-on-demand In which the questionnaire was based on the UTAUT2 model (Venkatesh et al., 2012) The questionnaire will follow Likert 5-point scale

The adding variable – Consumer Innovativeness was applied from a previous study

of Agarwal & Prasad (1988) An example of one of the items is “If I heard about

new information technology, I would look for ways to experiment with it” The questionnaire will follow Likert 5-point scale

Another construct added name “Media exposure to Advertisement for SVOD” was adopted by Stroup and Brandstetter (2018) There are 3 items included in this study, for example: “During the past 30 days when you watch TV, how often do you see

an advertisement for SVOD?” The questionnaire will follow verbal frequency point scale, ranging from 1 = “Never”, 2 = “Rarely”, 3 = “Sometime”, 4 =

5-“Frequently”, 5 = “Very Frequently” respectively

The final construct Behavioural intention is adopted by Venkatesh et al (2003) The questionnaire will follow Likert 5-point scale.The pilot test had been conducted with 20 people who already had a certain knowledge of SVOD and users of SVOD

to check the questionnaire in Vietnamese was confusing or not After the pilot test, some items were removed due to the participant’s feedback on confusion meaning The final observation elements are presents as follows:

Table 3.1: Measurement Scale of thesis

Performance

Expectancy

PE1 1 I expect using SVOD improves my

productivity in searching film/TV show

Venkatesh

et al (2012)

PE2 2 I expect using SVOD help me searched

film/TV show quickly

PE3 3 I expect that I can save time using SVOD

service when searching for film/TV show

PE4 4 I expect that SVOD service is very useful

to my life in general

Effort EE1 1 Learningxhowxto use SVOD is easy for

me

Venkatesh

Expectancy EE2 2 I find SVOD easyxtoxuse et al (2012)

Davis (1989)

EE3 3 Itxisxeasyxforxmextoxbecomexskillfulxat

SI1 1 Peoplexwhoxare importantxtoxmexthink

thatxIxshouldxusexSVOD

Venkatesh

et al (2012) SI2 2 People whoxinfluence my behavior think

that I should use SVOD

SI3 3 People whosexopinions that I value prefer

that I use SVOD

Hedonic

Motivation

HM1 1 UsingxSVODxisxfun Venkatesh

et al (2012) HM2 2 UsingxSVODxisxenjoyable

HM3 3 UsingxSVODxisxveryxentertaining

Price Value PV1 1 SVOD is reasonably priced Venkatesh

et al (2012) PV2 2 SVOD is a good value for money

PV3 3 At the current price, SVOD provide a

good value Facilitating

condition

FC1 1 I have enough resourced to use SVOD

(Internet/ smart TV / card credit / online payment method)