The Effect of Message Reframing and Perceived Risk on Intention to Subscribe among Consumers of Subscription Business

Abstract

Subscription business model can be traced back from the newsletter subscription that has been started long time ago It is back in trend and has been experiencing tremendous growth in the few years with the advancement of technology Subscription business models are based on the idea where customers need to pay monthly or yearly fee to enjoy a product or service Most of researches on subscription business gained the data from consumer that actually has been using music streaming service (either becoming paying user or as free trial user) This present study investigates consumers’ condition before deciding to subscribe and attempt to fill the gap present especially related to message reframing and perceived risk on consumers’ evaluation based on pennies-a-day and perceived risk literatures This is experimental study with 212 respondents that were hired to Amazon MTurk platform The result of this study found that people will show higher intention to subscribe when the fee of subscription is framed in less aggregate form than if it is framed in more aggregate form and free trial period lower the perceived risk of consumer The lower consumer perceived the risk the higher intention to subscribe of consumer The limitations and future research directions were also presented

Date of Award	2019
Original language	English
Supervisor	Miin-Jye Wen (Supervisor)