NGUYEN DUY HUNG MUSIC STREAMING SERVICES: FACTORS DRIVING GEN-Z CUSTOMERS BUYING INTENTION IN HANOI NGUYEN DUY HUNG BACHELOR IN MARKETING VIETNAM NATIONAL UNIVERSITY, HANOI BACHELOR OF BUSINESS (MARKETING) HELP UNIVERSITY MAY, 2025 MAY, 2025 MUSIC STREAMING SERVICES: FACTORS DRIVING GEN-Z CUSTOMERS BUYING INTENTION IN HANOI BY NGUYEN DUY HUNG Graduation Project Submitted to Vietnam National University, Hanoi – International School in Partial Fulfilment of the Requirements for the Degree of Bachelor of Marketing and Department of Business Studies, HELP University, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (Marketing) Hons ACKNOWLEDGEMENT I would like to take this opportunity to express my sincere thanks to all the individuals and organizations that have supported me throughout my graduation project. Over the past four years of study at the International School – Vietnam National University Hanoi and Help University, I have been fortunate to receive tremendous guidance and support from my teachers, family, and friends. I am deeply grateful to my academic advisor, Assoc. Nguyen Phuong Mai, for her invaluable mentorship, constant encouragement, and insightful feedback throughout the entire research process.
Her expertise and wisdom have been crucial to the successful completion of this project. I would also like to thank my friends both in Vietnam and Malaysia for their continuous support, understanding, and assistance. Their help in reviewing my work and offering their perspectives has been greatly appreciated. They have stood by my side through both challenges and victories, providing not only academic help but also personal encouragement.
Their friendship has been a constant source of strength, allowing me to persevere and achieve my goals. A special thanks goes to the faculty and staff of the International School, Vietnam National University, for creating a conducive environment for learning and research. Lastly, I would like to express my heartfelt appreciation to my family for their unwavering love, support, and encouragement. Without them, this journey would not have been possible.
Hanoi, March 24 2025 Sincerely, Nguyen Duy Hung BUSINESS DEPARTMENT BACHELOR OF BUSINESS MGT400 GRADUATION PROJECT DECLARATION FORM Name: NGUYEN DUY HUNG Student ID: 21070724 – E2300067 Programme of Studies: BUSINESS (MARKETING) HONS Title of Project/Dissertation: MUSIC STREAMING SERVICES: FACTORS DRIVING GEN- Z CUSTOMERS BUYING INTENTION IN HANOI Name of Supervisor(s): Assoc. NGUYEN PHUONG MAI Declaration: In accordance with the appropriate regulations, I hereby submit the above Graduation Project forexamination and I declare that: (i) I have read and understood the sections on Plagiarism found in the University’s “GeneralInformation to Students” Handbook and certify that the Graduation Project embodies the results of my own work. (ii) I have adhered to the ‘Harvard system of referencing’ or a system acceptable as per “The Referencing Guide” for referencing, quotations and citations in my Graduation Project. Eachcontribution to, and quotation in my Graduation Project from the work of other people has been attributed, and has been cited and referenced.
(iii) I have not allowed and will not allow, anyone to copy my work with the intention of passingit off as his or her own work. (iv) I am aware that I may have to forfeit the degree in the event that plagiarism has beendetected after the award. (vi) I am aware that my Graduation Project may be used by my supervisor(s) and/or HELPUniversity for further research or any collaborative work, and under no circumstances whatsoever would claim any rights to the said work. Signature: Date: March 24, 2025 ii ABSTRACT The adoption of paid music streaming services is a growing trend, especially among Generation Z consumers, who are reshaping the digital music landscape.
This study examines the factors that influence Gen Z's intention to adopt subscription-based music streaming services in Hanoi, Vietnam. Since the rise of music streaming platforms has disrupted the traditional music industry, the challenge of converting free users to paid subscribers remains a key issue. Using an extended version of the Unified Theory of Acceptance and Use of Technology (UTAUT2) model, this research explores constructs such as performance expectancy, effort expectancy, hedonic motivation, habit, price value, facilitating conditions, social influence, involvement and interest, attitude toward piracy, and personal innovativeness. A survey of 389 Gen Z respondents in Hanoi provides quantitative data, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).
The study finds that performance expectancy, hedonic motivation, personal innovativeness, and attitude toward piracy are the most significant predictors of paid subscription intention. Price value, habit, and facilitating conditions also play important roles, while involvement and interest, along with social influence, were not significant. These findings offer valuable insights for music streaming service providers, enabling them to design targeted marketing strategies that increase user conversion from free to premium services. This research contributes to the understanding of consumer behavior in the context of digital music services and provides practical implications for improving the adoption of paid music streaming services among Generation Z consumers in Vietnam.
Keywords: Music Streaming, UTAUT2, Gen Z, Digital Music Consumption, Subscription Models, Freemium vs. Premium, Technology Adoption, Piracy Attitudes iii LIST OF ABBREVIATIONS BI Behavioral Intention EE Effort Expectancy FC Facilitating Conditions HM Hedonic Motivation HT Habit II Involvement and Interest PE Performance Expectancy PI Personal Innovativeness PV Price Value SI Social Influence TRA Theory of Reasoned Action TAM Technology Acceptance Model TPB Theory of Planned Behavior UTAUT Unified Theory of Acceptance and Use of Technology UTAUT2 Extended Unified Theory of Acceptance and Use of Technology IFPI International Federation of the Phonographic Industry MaaS Music as a Service IS Information System DMS Digital Music Services MSS Music Streaming Services UB Use Behavior PU Perceived Usefulness iv PEOU Perceived Ease of Use PBC Perceived Behavioral Control SN Subjective Norm SBMS Subscription-Based Music Services v TABLE OF CONTENT ACKNOWLEDGEMENT. iii LIST OF ABBREVIATIONS. iv TABLE OF CONTENT .vi LIST OF FIGURES.
ix TABLE OF TABLES .ix CHAPTER 1: INTRODUCTION .4 Scope of the Research .5 Significance of the Study .6 CHAPTER 2: THEORETICAL BACKGROUND .1 The Evolution of the Music Industry .2 Music Streaming Service .3 Unified Theory of Acceptance and Use of Technology (UTAUT and UTAUT2) .4 Conceptual Framework and Hypotheses .9 Involvement and Interest (II) .10 Attitude Towards Piracy (AP) .3 Data Collection Method .4 Data Analysis Techniques. 24 CHAPTER 4: RESULTS AND DISCUSSIONS .1 Common method bias (Harman’s single-factor) .1 Collinearity of the structural model .2 Path Coefficient results .2 Limitation and future research. 74 viii LIST OF FIGURES Figure 1.1: Global recorded music industry revenues 1999 -2024 (US$ billions) .2: Vietnam digital audio market (Million USD) .1: Spotify's Global Monthly Active Users and Premium Subscribers (2011– 2024) .2: The proposed conceptual framework .3: Structural model results .47 TABLE OF TABLES Table 3.1: Descriptive statistics of sample characteristics .2: Harman's single-factor test result .3: Outer loading results .4: Construct reliability and validity .5: Discriminant validity results (Fornel & Larker's criterion) .6: Discriminant validity results (Heterotrait-monotrait ratio (HTMT)) .7: Inner VIF results .9: Hypothesis testing results .51 ix CHAPTER 1: INTRODUCTION 1.1 Problem Statement Since the dawn of mankind, music has always been an integral part of civilizations all around the world. It is a universal form of expression that few can truly despise, holding deeply personal bonds with each individual, serving as an art form that strives to feed our souls (Stafford, 2010; Naveed et al.
For its immense importance throughout the course of human development, the emergence of an industry built upon the basis of this art form is inevitable. Music as an industry involves such a wide range of businesses, initially revolving around record labels with business activities including production, distribution, promotion, and profitability. Record labels held a dominant position in the music industry for a significant period by the mid-twentieth century through their control over the production and consumption of physical copies (Barata & Barata, 2023). However, from the early 2000s onward, the industry witnessed a disruption caused by the appearance of new information technologies, traditional structure gradually gave way to the digital era, where consumers gained greater decision-making power (Massarotto, 2021).
As the shift in the music industry paradigm continued, it necessitated a fundamental transformation in the business model, effectively reinventing the industry itself. Notably, the emergence and rapid expansion of streaming services have reshaped the way people consume music, moving the industry from ownership- based to service-based consumption, with user numbers continuing to grow (IFPI, 2024). The transformation of revenue streams over time has vividly captured the drastic evolution of the music industry (see figure 1. 1 2 In Vietnam, music streaming services have gained significant popularity since the official entry of Apple Music as the first major music streaming platforms to enter the Vietnamese market, with notable platform being Spotify, Apple Music, and Youtube Music.
This development has contributed to the creation of a million-dollar industry primarily driven by music streaming revenue (Statista, 2025), with revenue projected to reach $72.36 million in 2027, effectively quadrupling within a decade (see figure 1. However, despite the widespread availability of these platforms and the provision of premium offerings with innovative features at affordable prices, converting free users into paid subscribers remains a persistent challenge. Many consumers still tend to choose alternatives like free versions or methods like music piracy and downloads. Moreover, the factors influencing the buying intention of Generation Z consumers in Hanoi toward paid music streaming services remain underexplored in existing research.2: Vietnam digital audio market (Million USD) 4 Source: (Long et al.2 Research Objectives RO1: Investigate the factors influencing consumer adoption intention toward music streaming service 1.3 Research Questions RQ1: What are the key factors influencing Generation Z consumers’ intention to adopt paid music streaming services in Hanoi, Vietnam? 1.4 Scope of the Research This study explores the adoption intention of Gen-Z consumers regarding premium (paid) music streaming services by evaluating influential factors.
The focus of this research is on Generation Z (Gen-Z) consumers whose age is between 18-26 living in Hanoi, Vietnam. The research will focus specifically on Gen-Z individuals who are active users of leading music streaming platforms in Vietnam, which include Apple Music, YouTube Music, and Spotify. Geographically, the study is limited to Hanoi, an urban center with high technological penetration and a representative Gen-Z population, while other cities, rural areas, and international contexts are excluded. The study will be conducted over the course of six months, from 09/2024 to 03/2025 with a two-month survey on consumer intention to adopt music streaming service.
The study utilizes a quantitative approach for broad generalization of behavior patterns, based on a conceptual framework developed from the UTAUT2 model along with context-extended variables (Personal Innovativeness, Involvement and Interest, and Attitude toward Piracy. The data will be collected through a structured survey using Google Form, employing convenience and snowball sampling techniques. A total of 385 valid responses are targeted to ensure meaningful and statistically reliable results, the survey form will be published to an audience of mainly university students and young professionals. While the study acknowledges the broader behavioral and psychological dimensions of digital consumption, it does not evaluate actual purchasing behavior or long-term retention of paid users.
The other generational groups, geographic locations, or forms of entertainment fall outside the research’s scope. With clear boundaries delineated, the 5 research ensures feasibility, clarity, and relevance, offering valuable insights into the adoption behavior of Gen-Z consumers in the Vietnamese music streaming market without extending beyond its defined jurisdiction.5 Significance of the Study This research provides great value regarding theoretical and practical domains. From an academic perspective, this research expand the body of knowledge on consumer behavior in the digital environment by applying and extending the UTAUT2 model within the online music listening services context in Vietnam. While previous studies have predominantly concentrated on Western contexts, this study addresses a geographic and demographic gap by focusing on Generation Z consumers in Hanoi, one of Vietnam's largest urban centers.
The addition of contextual variables such as personal innovativeness and attitudes toward piracy enhances the ability to explain behavior in the digital entertainment environment. Practically, the study provides actionable insights for music streaming service providers in Vietnam.