Willingness to Pay a Premium Price for Streaming Services: The Role of Trust in Services

  • Luísa AugustoEmail author
  • Sara Santos
  • Pedro Espírito Santo
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 167)


Online business has seen a strong growth, namely, the on-demand digital streaming service, which means that the brands have a constant concern in the provision of an increasingly high-quality technology service to meet the needs of consumers. Closely associated with this quality is the convenience of the service and the sophistication of it, the trust, and the willingness to pay a premium price. Thus, this work aims to understand if there is availability to pay a premium price for this type of service. In this way, we constructed a questionnaire that was self-administered by 156 users of Netflix branded streaming services. Our study highlights the mediating role of trust in the effects that the sophistication and convenience of service have on the willingness to pay a premium price. In this way, this study brings contributions to the academy and to the business world.


Streaming Willingness to pay premium price Trust Convenience Sophistication 


  1. 1.
    Aaker, J.L.: Dimensions of brand personality. J. Mark. Res. 34(3), 347–356 (1997)CrossRefGoogle Scholar
  2. 2.
    Anselmsson, J., Vestman Bondesson, N., Johansson, U.: Brand image and customers’ willingness to pay a price premium for food brands. J. Prod. Brand Manag. 23(2), 90–102 (2014)CrossRefGoogle Scholar
  3. 3.
    Barnes, S.J., Corbitt, B.J.: Mobile banking: concept and potential. IJMC 1(3), 273–288 (2003)CrossRefGoogle Scholar
  4. 4.
    Brennan, L.: How Netfix Expanded to 190 Countries in 7 Years. Harvard Business Review. Last accessed 14 July 2019
  5. 5.
    Chang, M.Y., Chen, K., Pang, C., Chen, C.M., Yen, D.C.: A study on the effects of service convenience and service quality on maintenance revisit intentions. Comput. Stand. Interfaces 35(2), 187–194 (2013)CrossRefGoogle Scholar
  6. 6.
    Chaudhuri, A., Holbrook, M.B.: The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. J. Mark. 65, 81–93 (2001)CrossRefGoogle Scholar
  7. 7.
    Chen, Y.H., Lin, T.P., Yen, D.C.: How to facilitate inter-organizational knowledge sharing: the impact of trust. Inf. Manag. 51(5), 568–578 (2014)CrossRefGoogle Scholar
  8. 8.
    Chiu, C.M., Huang, H.Y., Yen, C.H.: Antecedents of online trust in online auctions. Electron. Commer. Res. Appl. 9, 148–159 (2010)CrossRefGoogle Scholar
  9. 9.
    Dewar, N.: What are brands good for? MIT Sloan Manag. Rev. 46(1), 86–94 (2004)Google Scholar
  10. 10.
    Dwivedi, Y.K., Kapoor, K.K., Chen, H.: Social media marketing and advertising. Mark. Rev. 15(3), 289–309 (2015)CrossRefGoogle Scholar
  11. 11.
    Farquhar, J.D., Rowley, J.: Convenience: a services perspective. Mark. Theory 9(4), 425–438 (2009)CrossRefGoogle Scholar
  12. 12.
    Fornell, C., Larcker, D.F.: Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 18(1), 39–50 (1981)CrossRefGoogle Scholar
  13. 13.
    García-Fernández, J., Gálvez-Ruíz, P., Fernández-Gavira, J., Vélez-Colón, L., Pitts, B., Bernal-García, A.: The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers. Sport Manag. Rev. 21(3), 250–262 (2018)CrossRefGoogle Scholar
  14. 14.
    Golembiewski, R.T., McConkie, M.: The centrality of interpersonal trust in group processes. In: Cooper, C.L. (ed.) Theories of Group Process. John Wiley, New York (1975)Google Scholar
  15. 15.
    Gorla, N., Somers, T.M., Wong, B.: Organizational impact of system quality, information quality, and service quality. J. Strateg. Inf. Syst. 19(3), 207–228 (2010)CrossRefGoogle Scholar
  16. 16.
    Hair, J., Black, W., Babin, B., Anderson, R.: Multivariate Data Analysis: global Edition, 7th edn. Pearson Higher Education, New York (2010)Google Scholar
  17. 17.
    Hair, J., Hult, G., Ringle, C., Sarstedt, M.: A Primer on Partial Least Squares Structural Equation Modeling. SAGE Publications, PLS-SEM) (2016)zbMATHGoogle Scholar
  18. 18.
    Henseler, J., Ringle, C.M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modeling. J. Acad. Mark. Sci. 43(1), 115–135 (2015)CrossRefGoogle Scholar
  19. 19.
    Lin, L.Y.: The relationship of consumer personality trait, brand personality and brand loyalty: an empirical study of toys and video games buyers. J. Prod. Brand Manag. 19(1), 4–17 (2010)CrossRefGoogle Scholar
  20. 20.
    Maroco, J.: Análise Estatística com o SPSS. 6ª Edição. Pêro Pinheiro: Report Number (2014)Google Scholar
  21. 21.
    Netemeyer, R.G., Krishnan, B., Pullig, C., Wang, G., Yaci, M., Dean, D., Ricks, J., Ferdinand, W.: Developing and validating measures of facets of cus-tomer-based brand equity. J. Bus. Res. 57(2), 209–224 (2004)CrossRefGoogle Scholar
  22. 22.
    Powers, T., Advincula, D., Austin, M.S., Graiko, S., Snyder, J.: Digital and social media in the purchase decision process: a special report from the advertising research foundation. J. Advert. Res. 52(4), 479–489 (2012)CrossRefGoogle Scholar
  23. 23.
    Ramaseshan, B., Tsao, H.Y.: Moderating effects of the brand concept on the relationship between brand personality and perceived quality. J. Brand Manag. 14(6), 458–466 (2007)CrossRefGoogle Scholar
  24. 24.
    Ramasubramanian, S., Murphy, C.J.: Experimental studies of media stereotyping effects. In: Webster, M., Jr., Sell, J. (eds.), Laboratory Experiments in the Social Sciences, pp. 385–402. Elsevier Academic Press, San Diego, CA, US (2014)CrossRefGoogle Scholar
  25. 25.
    Roy, S.K., Shekhar, V., Lassar, W.M., Chen, T.: Customer engagement behaviors: the role of service convenience, fairness and quality. J. Retail. Consum. Serv. 44, 293–304 (2018)CrossRefGoogle Scholar
  26. 26.
    Seiders, K., Voss, G., Godfrey, A., Grewal, D.: SERVCON: development and validation of a multidimensional service convenience scale. J. Acad. Mark. Sci. 35(1), 144–156 (2007)CrossRefGoogle Scholar
  27. 27.
    Thomson, M., MacInnis, D.J., Park, C.W.: The ties that bind: measuring the strength of consumers’ emotional attachments to brands. J. Consum. Psychol. 15(1), 77–91 (2005)CrossRefGoogle Scholar
  28. 28.
    Thomson, M.: Human brands: investigating antecedents to consumers’ strong attachments to celebrities. J. Mark. 70(3), 104–119 (2006)CrossRefGoogle Scholar
  29. 29.
    Vaala, S.E., Jordan, A.B.: Chapter 15—Children’s learning in a mobile media environment: policies, practices, and possibilities. In: Blumberg, F.C., Brooks, P.J. (eds.), Cognitive Development in Digital Contexts, pp. 305–324. Academic Press, San Diego (2017)Google Scholar
  30. 30.
    Washburn, J.H., Plank, R.E.: Measuring brand equity: an evaluation of a consumer-based brand equity scale. J. Mark. Theory Pract. 10(1), 46–62 (2002)CrossRefGoogle Scholar
  31. 31.
    Wentzel, D.: The effect of employee behavior on brand personality impressions and brand attitudes. J. Acad. Mark. Sci. 37(3), 359–374 (2009)CrossRefGoogle Scholar
  32. 32.
    Yale, L., Venkatesh, A.: Toward the construct of convenience in consumer research. ACR North American Advances (1986). Last Accessed 6 July 2019

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Luísa Augusto
    • 1
    Email author
  • Sara Santos
    • 2
  • Pedro Espírito Santo
    • 3
  1. 1.Centro de Estudos Em Educação, Tecnologias E Saúde, Instituto Politécnico de ViseuViseuPortugal
  2. 2.Instituto Politécnico de ViseuViseuPortugal
  3. 3.Instituto Politécnico de Coimbra, ESTGOHOliveira do HospitalPortugal

Personalised recommendations