DOI QR코드

DOI QR Code

Customization, Network Effect, Service Quality and Customer Loyalty : An Investigation of Music Streaming Services

고객화, 네트워크 효과, 서비스 품질 및 고객 충성도 : 음원 스트리밍 서비스를 중심으로

  • Received : 2019.10.17
  • Accepted : 2019.10.23
  • Published : 2019.10.31

Abstract

The global music industry has been growing steadily every year. In particular, the proportion of music streaming services in the overall market are expanding. It shows same pattern in domestic market. Also, several companies are providing music streaming services competitively. It is clear that there is growing interest in effective operations of music streaming services. In this study, we examine the impact of customization and network effect on service quality and customer loyalty. We collect survey data and analyze relationships between latent variables using structural equations modeling. We find that customization and network effect of music streaming services positively affect service quality. However, the effect of customization on customer loyalty is not significant and there is a negative effect of network effect on customer loyalty. Finally, we find that service quality works as a mediator between customization and customer loyalty, and service quality also works as a mediator between network effect and customer loyalty.

Keywords

References

  1. 뉴시스, "플로 바이브 'AI' 추천으로 멜론 아성에 도전장... 음원 시장 격전 속으로", 2018. Available at http://www.newsis.com/view/?id=NISX20181220_0000509093(Accessed May 26. 2019).
  2. 임동훈, AMOS 24 구조방정식 모형, 파주 : 자유아카데미, 2017.
  3. 위키트리, "음악 스트리밍 서비스 뭘 고르면 좋을까?(8가지 음악 스트리밍 앱 비교)", 2018. Available at https://www.wikitree.co.kr/main/news_view.php?id=354392 (Accessed May 26. 2019).
  4. 조선비즈, "카카오, '멜론' 모바일 업데이트... 이용자 데이터로 큐레이션 강화", 2019. Available at http://biz.chosun.com/site/data/html_dir/2019/04/25/2019042502261.html (Accessed May 23. 2019).
  5. 통계청(2016), "콘텐츠산업조사 : 음악산업 : 연령별 업종별 종사자 현황", 2016. Available at http://kosis.kr/statHtml/statHtml.do?orgId=113&tblId=DT_113_STBL_1024825&vw_cd=MT_ZTITLE&list_id=113_11308_004&seqNo=&lang_mode=ko&language=kor&obj_var_id=&itm_id=&conn_path=MT_ZTITLE (Downloaded April 16. 2019).
  6. Achrol, R.S. and L.W. Stern, "Environmental Determinants of Decision-Making Uncertainty in Marketing Channels", Journal of Marketing Research, Vol.25, No.1, 1988, 36-50. https://doi.org/10.1177/002224378802500104
  7. Anderson, E.G., G.G. Parker, and B. Tan, "Platform Performance Investment in the Presence of Network Externalities", Information Systems Research, Vol.25, No.1, 2013, 152-172. https://doi.org/10.1287/isre.2013.0505
  8. Anderson, J.C. and J.A. Narus, "A Model of Distributor Firm and Manufacturer Firm Working Partnerships", Journal of Marketing, Vol.54, No.1, 1990, 42-58. https://doi.org/10.1177/002224299005400304
  9. Asvanund, A., K. Clay, R. Krishnan, and M.D. Smith, "An Empirical Analysis of Network Externalities in Peer-to-Peer Music-Sharing Networks", Information Systems Research, Vol.15, No.2, 2004, 155-174. https://doi.org/10.1287/isre.1040.0020
  10. Bagozzi, R.P., Y. Yi, and K.D. Nassen, "Representation of measurement error in marketing variables : Review of approaches and extension to three-facet designs", Journal of Econometrics, Vol.89, No.1, 1998, 393-421. https://doi.org/10.1016/S0304-4076(98)00068-2
  11. Baron, R.M. and D.A. Kenny, "The moderator-mediator variable distinction in social psychological research : Conceptual, strategic, and statistical considerations", Journal of Personality and Social Psychology, Vol.51, No.6, 1986, 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
  12. Basu, A., T. Mazumdar, and S.P. Raj, "Indirect Network Externality Effects on Product Attributes", Marketing Science , Vol.22, No.2, 2003, 209-221. https://doi.org/10.1287/mksc.22.2.209.16037
  13. Bauer, H.H., T. Falk, and M. Hammerschmidt, "eTransQual : A transaction process-based approach for capturing service quality in online shopping", Journal of Business Research, Vol.59, No.7, 2006, 866-875. https://doi.org/10.1016/j.jbusres.2006.01.021
  14. Bettencourt, L.A. and K. Gwinner, "Customization of the service experience : the role of the frontline employee", International Journal of Service Industry Management, Vol.7, No.2, 1996, 3-20. https://doi.org/10.1108/09564239610113442
  15. Brady, M.K. and J.J. Cronin, "Some New Thoughts on Conceptualizing Perceived Service Quality : A Hierarchical Approach", Journal of Marketing, Vol.65, No.3, 2001, 34-49. https://doi.org/10.1509/jmkg.65.3.34.18334
  16. Chen, L., Y.-Q. Li, and C.-H. Liu, "How airline service quality determines the quantity of repurchase intention-Mediate and moderate effects of brand quality and perceived value", Journal of Air Transport Management, Vol.75, 2019, 185-197. https://doi.org/10.1016/j.jairtraman.2018.11.002
  17. Cheng, H.K. and Y. Liu, "Optimal Software Free Trial Strategy : The Impact of Network Externalities and Consumer Uncertainty", Information Systems Research, Vol.23, No.2, 2011, 488-504. https://doi.org/10.1287/isre.1110.0348
  18. Chiu, C.-M., H.-L. Cheng, H.-Y. Huang, and C.-F. Chen, "Exploring individuals' subjective well-being and loyalty towards social network sites from the perspective of network externalities : The Facebook case", International Journal of Information Management, Vol.33, No.3, 2013, 539-552. https://doi.org/10.1016/j.ijinfomgt.2013.01.007
  19. Chu, P.-Y., G.-Y. Lee, and Y. Chao, "Service Quality, Customer Satisfaction, Customer Trust, and Loyalty in an E-Banking Context", Social Behavior and Personality : An International Journal, Vol.40, No.8, 2012, 1271-1283. https://doi.org/10.2224/sbp.2012.40.8.1271
  20. Chung, J.H. and T.H. Yoo, "Government policy, network externalities and mobile telecommunication services : evidence from OECD countries", Applied Economics, Vol.47, No. 21, 2015, 2173-2183. https://doi.org/10.1080/00036846.2015.1005816
  21. Coelho, P.S. and J. Henseler, "Creating customer loyalty through service customization", European Journal of Marketing, Vol.46, No.3/4, 2012, 331-356. https://doi.org/10.1108/03090561211202503
  22. Cronin Jr, J.J. and S.A. Taylor, "Measuring service quality : a reexamination and extension", Journal of Marketing, Vol.56, No.3, 1992, 55-68. https://doi.org/10.1177/002224299205600106
  23. de Ruyter, K., P. Peeters, and J. Bloemer, "Investigating drivers of bank loyalty : the complex relationship between image, service quality and satisfaction", International Journal of Bank Marketing, Vol.16, No.7, 1998, 276-286. https://doi.org/10.1108/02652329810245984
  24. Devaraj, S., M. Fan, and R. Kohli, "Examination of online channel preference : using the structure-conduct-outcome framework", Decision Support Systems, Vol.42, No.2, 2006, 1089-1103. https://doi.org/10.1016/j.dss.2005.09.004
  25. Entwistle, T.W. and B.R. Lewis, "Managing the Service Encounter : A Focus on the Employee", International Journal of Service Industry Management, Vol.1, No.3, 1990, 41-52. https://doi.org/10.1108/09564239010001136
  26. Eum, S.-W., C.-O. Ahn, and H.-S. Rhim, "The Impact of Customization of TV Home Shopping Mobile Applications on Service Quality and Customer Loyalty", Journal of the Korean Society for Quality Management, Vol.47, No.2, 2019, 255-269. https://doi.org/10.7469/JKSQM.2019.47.2.255
  27. Fitzsimmons, J.A., M.J. Fitzsimmons, and S. Bordoloi, Service Management : Operations, Strategy, Information Technology, McGraw-Hill New York, NY, 2008.
  28. Fornell, C. and D.F. Larcker, "Structural equation models with unobservable variables and measurement error : Algebra and statistics", Journal of Marketing Research, Vol.18, No.3, 1981, 382-388. https://doi.org/10.1177/002224378101800313
  29. Fornell, C., M.D. Johnson, E.W. Anderson, J. Cha, and B.E. Bryant, "The American customer satisfaction index : nature, purpose, and findings", Journal of Marketing, Vol.60, No.4, 1996, 7-18. https://doi.org/10.2307/1251898
  30. Gale, B., B.T. Gale, and R.C. Wood, Managing Customer Value : Creating Quality and Service that Customers Can See, Simon and Schuster, 1994.
  31. Gilmore, J.H. and B.J. Pine, "The four faces of mass customization", Harvard Business Review, Vol.75, No.1, 1997, 91-102.
  32. Gronroos, C., "A service quality model and its marketing implications", European Journal of Marketing, Vol.18, No.4, 1984, 36-44. https://doi.org/10.1108/EUM0000000004784
  33. Gupta, S. and C.F. Mela, "What is a free customer worth? Armchair calculations of nonpaying customers' value can lead to flawed strategies", Harvard Business Review, Vol. 86, No.11, 2008, 102-109, 138.
  34. Hart, C.W.L., "Mass customization : conceptual underpinnings, opportunities and limits", International Journal of Service Industry Management, Vol.6, No.2, 1995, 36-45. https://doi.org/10.1108/09564239510084932
  35. Hsu, C.-L. and J.C.-C. Lin, "An empirical examination of consumer adoption of Internet of Things services : Network externalities and concern for information privacy perspectives", Computers in Human Behavior, Vol.62, 2016, 516-527. https://doi.org/10.1016/j.chb.2016.04.023
  36. Hulland, J., "Use of partial least squares(PLS) in strategic management research : A review of four recent studies", Strategic Management Journal, Vol.20, No.2, 1999, 195-204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7
  37. Iacobucci, D., A. Ostrom, and K. Grayson, "Distinguishing service quality and customer satisfaction : the voice of the consumer", Journal of Consumer Psychology, Vol.4, No.3, 1995, 277-303. https://doi.org/10.1207/s15327663jcp0403_04
  38. IFPI., Digital Music Report, International Federation of the Phonographic Industry, 2019.
  39. Kaliappen, N., H. Hilman, and A. Abubakar, "Market orientation and performance : The mediating effect of service quality and moderating effect of star rating system", Journal of Business and Retail Management Research, Vol.11, No.3, 2017, 165-178.
  40. Kalinic, Z. and V. Marinkovic, "Determinants of users' intention to adopt m-commerce : an empirical analysis", Information Systems and eBusiness Management, Vol.14, No.2, 2016, 367-387.
  41. Katz, M.L. and C. Shapiro, "Network externalities, competition, and compatibility", American Economic Review, Vol.75, No.3, 1985, 424-440.
  42. Katz, M.L. and C. Shapiro, "Systems competition and network effects", Journal of Economic Perspectives, Vol.8, No.2, 1994, 93-115. https://doi.org/10.1257/jep.8.2.93
  43. Kline, R.B., Principles and practice of structural equation modeling, Guilford publications, 2015.
  44. Kuo, Y.-F., C.-M. Wu, and W.-J. Deng, "The relationships among service quality, perceived value, customer satisfaction, and postpurchase intention in mobile value-added services", Computers in Human Behavior, Vol.25, No.4, 2009, 887-896. https://doi.org/10.1016/j.chb.2009.03.003
  45. Lee, K. and C. Yu, "Assessment of airport service quality : A complementary approach to measure perceived service quality based on Google reviews", Journal of Air Transport Management, Vol.71, 2018, 28-44. https://doi.org/10.1016/j.jairtraman.2018.05.004
  46. Li, M., Z.Y. Dong, and X. Chen, "Factors influencing consumption experience of mobile commerce : A study from experiential view", Internet Research, Vol.22, No.2, 2012, 120-141. https://doi.org/10.1108/10662241211214539
  47. Liebowitz, S.J. and S.E. Margolis, "Network Externality : An Uncommon Tragedy", Journal of Economic Perspectives, Vol.8, No.2, 1994, 133-150. https://doi.org/10.1257/jep.8.2.133
  48. Lin, C.-P. and A. Bhattacherjee, "Elucidating individual intention to use interactive information technologies : The role of network externalities", International Journal of Electronic Commerce , Vol.13, No.1, 2008, 85-108. https://doi.org/10.2753/JEC1086-4415130103
  49. Lin, K.-Y. and H.-P. Lu, "Why people use social networking sites : An empirical study integrating network externalities and motivation theory", Computers in Human Behavior, Vol.27, No.3, 2011, 1152-1161. https://doi.org/10.1016/j.chb.2010.12.009
  50. Loiacono, E.T., R.T. Watson, and D.L. Goodhue, "WebQual : A measure of website quality, Marketing theory and applications", Marketing Theory and Applications, Vol.13, No.3, 2002, 432-438.
  51. Martin-Domingo, L., J.C. Martin, and G. Mandsberg, "Social media as a resource for sentiment analysis of Airport Service Quality(ASQ)", Journal of Air Transport Management, Vol.78, 2019, 106-115. https://doi.org/10.1016/j.jairtraman.2019.01.004
  52. Ostrom, A. and D. Lacobucci, "Consumer Trade-Offs and the Evaluation of Services", Journal of Marketing, Vol.59, No.1, 1995, 17-28. https://doi.org/10.1177/002224299505900102
  53. Parasuraman, A., V.A. Zeithaml, and A. Malhotra, "ES-QUAL : A multiple-item scale for assessing electronic service quality", Journal of Service Research, Vol.7, No.3, 2005, 213-233. https://doi.org/10.1177/1094670504271156
  54. Parasuraman, A., V.A. Zeithaml, and L.L. Berry, "A conceptual model of service quality and its implications for future research", Journal of Marketing, Vol.49, No.4, 1985, 41-50. https://doi.org/10.1177/002224298504900403
  55. Parasuraman, A., V.A. Zeithaml, and L.L. Berry, "Servqual : A multiple-item scale for measuring consumer perceptions of service quality", Journal of Retailing, Vol.64, No.1, 1988, 12-40.
  56. Samat, N., M.C. Lo, and T. Ramayah, "Market orientation, service quality and organizational performance in service organizations in Malaysia", Asia-Pacific Journal of Business Administration, Vol.3, No.1, 2011, 8-27. https://doi.org/10.1108/17574321111116379
  57. Santos, J., "E-service quality : a model of virtual service quality dimensions", Managing Service Quality : An International Journal, Vol.13, No.3, 2003, 233-246. https://doi.org/10.1108/09604520310476490
  58. Simonson, I., "Determinants of Customers' Responses to Customized Offers : Conceptual Framework and Research Propositions", Journal of Marketing, Vol.69, No.1, 2005, 32-45. https://doi.org/10.1509/jmkg.69.1.32.55512
  59. Srinivasan, S.S., R. Anderson, and K. Ponnavolu, "Customer loyalty in e-commerce : an exploration of its antecedents and consequences", Journal of Retailing, Vol.78, No.1, 2002, 41-50. https://doi.org/10.1016/S0022-4359(01)00065-3
  60. Sun, B., J. Xie, and H.H. Cao, "Product Strategy for Innovators in Markets with Network Effects", Marketing Science , Vol.23, No.2, 2004, 243-254. https://doi.org/10.1287/mksc.1040.0058
  61. Sundbo, J., "The Service Economy : Standardisation or Customisation?", The Service Industries Journal, Vol.22, No.4, 2002, 93-116. https://doi.org/10.1080/714005099
  62. Surprenant, C.F. and M.R. Solomon, "Predictability and Personalization in the Service Encounter", Journal of Marketing, Vol.51, No.2, 1987, 86-96. https://doi.org/10.1177/002224298705100207
  63. Thirumalai, S. and K.K. Sinha, "Customization of the online purchase process in electronic retailing and customer satisfaction : An online field study", Journal of Operations Management, Vol.29, No.5, 2011, 477-487. https://doi.org/10.1016/j.jom.2010.11.009
  64. Vilares, M.J., D. Ball, and P.S. Coelho, "Service personalization and loyalty", Journal of Services Marketing, Vol.20, No.6, 2006, 391-403. https://doi.org/10.1108/08876040610691284
  65. Wang, G., J. Wang, X. Ma, and R.G. Qiu, "The effect of standardization and customization on service satisfaction", Journal of Service Science , Vol.2, No.1, 2010, 1-23. https://doi.org/10.1007/s12927-010-0001-3
  66. Wang, R. and Z. Wang, "Consumer Choice Models with Endogenous Network Effects", Management Science , Vol.63, No.11, 2016, 3944-3960. https://doi.org/10.1287/mnsc.2016.2520
  67. Wang, Y.-S. and Y.-W. Liao, "The conceptualization and measurement of m-commerce user satisfaction", Computers in Human Behavior, Vol.23, No.1, 2007, 381-398. https://doi.org/10.1016/j.chb.2004.10.017
  68. Wolfinbarger, M. and M.C. Gilly, "eTailQ : dimensionalizing, measuring and predicting etail quality", Journal of Retailing, Vol.79, No.3, 2003, 183-198. https://doi.org/10.1016/S0022-4359(03)00034-4
  69. Wu, J.-H., Y.-C. Chen, and L.-M. Lin, "Empirical evaluation of the revised end user computing acceptance model", Computers in Human Behavior , Vol.23, No.1, 2007, 162-174. https://doi.org/10.1016/j.chb.2004.04.003
  70. Yang, J. and E.S. Mai, "Experiential goods with network externalities effects : An empirical study of online rating system", Journal of Business Research, Vol.63, No.9-10, 2010, 1050-1057. https://doi.org/10.1016/j.jbusres.2009.04.029
  71. Yeh Shao, Y. and Y.M. Li, "Building trust in m-commerce : contributions from quality and satisfaction", Online Information Review, Vol.33, No.6, 2009, 1066-1086. https://doi.org/10.1108/14684520911011016
  72. Yoo, B. and N. Donthu, "Developing a scale to measure the perceived quality of an Internet shopping site (SITEQUAL)", Quarterly Journal of Electronic Commerce, Vol.2, No.1, 2001, 31-45.
  73. Zeithaml, V.A., A. Parasuraman, and A. Malhotra, "Service Quality Delivery through Web Sites : A Critical Review of Extant Knowledge", Journal of the Academy of Marketing Science, Vol.30, No.4, 2002, 362-375. https://doi.org/10.1177/009207002236911
  74. Zhang, S., L. Zhao, Y. Lu, and J. Yang, "Do you get tired of socializing? An empirical explanation of discontinuous usage behaviour in social network services", Information and Management, Vol.53, No.7, 2016, 904-914. https://doi.org/10.1016/j.im.2016.03.006
  75. Zhou, T., "An empirical examination of continuance intention of mobile payment services", Decision Support Systems, Vol.54, No.2, 2013, 1085-1091. https://doi.org/10.1016/j.dss.2012.10.034
  76. Zhu, Y. and Z. Bao, "The role of negative network externalities in SNS fatigue", Data Technologies and Applications, Vol.52, No.3, 2018, 313-328. https://doi.org/10.1108/DTA-09-2017-0063