Advances in Consumer Research
Issue 4 : 2675-2683
Original Article
The Psychology of Subscription Models: Exploring Consumer Retention and Value Perception in the Digital Economy
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Designation: Assistant Professor Department: Commerce Institute: SRM Institute of science and Technology District: chennai City: chennai State: Tamil Nadu
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Designation: Associate Professor Department: MBA Institute: Sinhgad Institute of Business Administration and Research District: Pune City: Pune State: Maharashtra
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Director Array Research Pvt Ltd
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Designation: Associate Professor.Department: Commerce Institute:
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Ambedkar College Aundh , Pune.-411067.District: Pune City: Pune.State:Maharashtra
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Librarian/ asst. prof. IPS Academy ,DAVV Indore
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Assistant Professor,Management department IPS Academy, DAVV Indore
Abstract

The subscription economy has redesigned the configuration of consumer markets in the realm of digital economy, turning the art of revenue creation and value perception, as well as customer retention, upside down. This paper explores psychological groundwork through which individuals subscribe to these services, including perceived value, loss aversion, commitment and behavioral inertia. The research study uses mixed-method research tools, i.e., behavioral survey, user analytics, and qualitative interviews within streaming, SaaS, and e-commerce sites to discover important cognitive triggers that determine long-term subscription choices. It can be seen that the customers display a high inclination towards relating scheduled pay and convenience, as well as exclusivity, though they are more susceptible to value decrease. The analysis also examines how customization, transparency of prices and trial onboarding can lessen churning. The findings are placed in digital ecosystems of Spotify, Netflix, and Amazon Prime. It is also implications to the designers of platforms, marketers and policymakers who seek to harness the same value ethically and thus maintain the autonomy of consumers

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