Investigating Perceived Digital Switching Cost and Customer Satisfaction-Loyalty Model on Video on Demand

Recently, the number of video-on-demand (VOD) subscribers increased as subscribers enjoyed watching various content during COVID-19. VOD platforms give captivating, inspiring, and commercial-free binge-watching experiences. As 75% of VOD growth was contributed by Indonesia and Thailand, VOD’s marketing practices and programming decisions using network brand identity approaches in Indonesia. Therefore, the competition of network provider companies is becoming more competitive. After examining VOD’s approach to network provider companies, this study considers the brand loyalty of VOD’s subscribers to Indonesian network providers. We use an online poll (survey) with 117 respondents to determine the factors influencing brand loyalty, customer satisfaction, perceived digital value, and perceived digital switching cost. The Structural Equation Modeling-Partial Least Square (SEM-PLS) approach and the Bootstrap parameter estimation method are utilized to ascertain the link between these latent variables. The study’s findings indicate that perceived digital value and perceived digital switching significantly affect brand loyalty. Based on the findings, we suggest implications to improve and maintain the value and price of the services.