“A STUDY ON IMPACT OF SPOTIFY’S MARKETING

STRATEGIES ON CONSUMER PREFERENCE WITH

REFERENCE TOWARDS COIMBATORE’’
 CHAPTER – 1

1.1. INTRODUCTION:

Music has the power to connect, encourage, and entertain people everywhere since it is a
universal language. Since the introduction of digital technology, there has been a significant
shift in the way that people listen music, and new platforms and services have been developed
to meet the various needs and wants of music listeners. With millions of songs, podcasts, and
other audio content available to its customers, Spotify is one of the most well-known and
successful music streaming services.

Daniel Ek and Martin Lorentzon started Spotify, a Swedish company, in 2006 with the goal of
providing an accessible, legal alternative to music piracy and helping artists get paid more
fairly. 2008 saw the launch of Spotify in a few European nations, while 2011 saw the service's
expansion to the US. Since then, Spotify has had significant growth, and as of September 2023,
it had over 590 million monthly active users, including 226 million paying users. Spotify is
available in over 100 countries and offers a vast and varied music collection including different
genres, artists, and languages.

Product, pricing, place, and promotion are the four key marketing pillars that Spotify uses to
great effect. By satisfying and engaging customers with Spotify's service and content, these
strategies aim to raise consumer awareness, interest, desire, and action. The following are some
essential components of Spotify's marketing strategies:

Product: Spotify provides its customers with an excellent, personalized service that satisfies
their requirements and expectations. Based on its users' listening habits and tastes, Spotify uses
algorithms and data to suggest music and podcasts to them. Additionally, Spotify provides
carefully selected playlists, stories, videos, and other content that are tailored to different
moods, occasions, and tastes. Along with interacting with other users and artists, Spotify users
may also make, modify, and share their own playlists.
Price: Spotify charges a monthly fee for its premium, ad-free service, while its restricted,
ad-supported music service is available for free. This pricing model is known as freemium. The
freemium business model helps Spotify in pulling in and keeping more users while bringing in
revenue through advertising and subscription fees. Spotify also provides special offers and
discounts for families, duo, and students.

Place: Spotify's multi-channel distribution approach allows it to be accessed on a various of

platforms and devices, including PCs, mobile phones, tablets, TVs, game consoles, and smart
speakers. Spotify collaborates with several social media platforms, including Facebook,
Instagram, Snapchat, and Twitter, to enable users to share and find music and podcasts on these
channels. Additionally, Spotify creates and sponsors events such as podcasts, festivals, and
concerts to advertise its service and content in various places and areas.

Promotion: Spotify uses a combination of digital advertising, social media marketing, email
marketing, influencer marketing, and word-of-mouth marketing as its promotional strategies.
To engage and influence its target audience, Spotify also runs emotional and innovative
advertising campaigns, like Spotify Wrapped, Spotify mood-based playlist, and Spotify
Premium. Additionally, Spotify uses user input and data to enhance its content and services and
to deliver customized and relevant messages to its users.

1.2. NEED FOR THE STUDY:

• To measure the level of consumer awareness towards the various marketing strategies
adopted by Spotify, such as product, price, place, and promotion.

• To identify the factors that influence consumer choice of Spotify over other music
streaming services, such as personal, psychological, social, and environmental factors.

• To evaluate the level of consumer satisfaction towards Spotify’s service.

1.3. STATEMENT OF THE PROBLEM:

This study highlights the impact of Spotify's marketing strategies on consumer preferences in
Coimbatore. It aims to assess the level of consumer awareness, identify factors influencing the
choice of Spotify, and measure satisfaction with product features, pricing, accessibility, and
promotional efforts. Understanding these aspects is critical for refining Spotify's strategies and
enhancing overall consumer satisfaction in the dynamic context of the music streaming
industry.

1.4. OBJECTIVES:

• Consumer awareness towards the various marketing strategies adopted by the Spotify

• Factors influencing customer towards the choice Spotify

• User satisfaction towards the Spotify’s strategies

1.5. RESEARCH METHODOLOGY:

Research Methodology is the specific procedures or techniques used to identify, select, process
and analyse the information about a statement.

1.6. RESEARCH DESIGN:

The type of Research that is used in this study is descriptive. A structured questionnaire was
prepared to a study on impact of Spotify’s marketing strategies on consumer preference.

1.7. SAMPLING TECHNIQUE:

Non-probability sampling technique: Convenience Sampling type is employed for the selection
of respondents from the total population pool.
1.8. SAMPLE SIZE:

Number of sampling units selected from the population is called the size of the sample. The
sample of n respondents are taken into consideration. For the purpose of the present study, a
related sample of population was selected on the basis of convenience.

1.9. DATA COLLECTION:

• Primary Data: The data has been collected directly from the respondents with the help of
structured questionnaires.

• Secondary Data: The secondary data was collected from the online websites, articles,
business journals, etc.

1.10. AREA AND PERIOD OF STUDY:

This study is conducted in Coimbatore city for the period of n month.

1.11. LIMITATION OF THE STUDY:

• Consumer preferences may evolve, affecting the relevance of gathered data over time.

• Since the study was based has been carried out only around Coimbatore, the findings may
vary accordingly, as people from other state and countries might have different opinions.

• The information can be biased due to questionnaire.

• May loose its sheen in a long run

 CHAPTER – 2
REVIEW OF LITERATURE

1. Digital Marketing Impact: Unveiling Spotify through Online Advertisements:

Smith and Johnson (2019) claim that different promotional channels have an impact on people's
discovery of music streaming services like Spotify. In a poll, the authors asked participants to
select how they first learned about Spotify. The results showed that a sizable portion of
customers found Spotify through internet ads, highlighting the importance of digital marketing
in raising consumer awareness.

2. Emotional Appeals and Premium Upgrades: Influencing User Behaviour on Spotify:

The frequency of exposure to emotive advertisements promoting Spotify's premium services

was examined in a study conducted by Anderson et al. (2020). The emotional appeal of
commercials, the study discovered, was a major factor in persuading viewers to update.
According to the study results, a significant percentage of participants stated that they
frequently encountered these emotional advertisements, indicating that these kinds of
advertising tactics had a positive impact on user behavior.

3. User Familiarity: Examining Awareness of Spotify's Features and Services:

Turner and Bennett (2018) investigated how accustomed consumers were to the features and
offerings of Spotify. The purpose of the study was to determine how familiar customers were
with the products available on the platform. The majority of respondents reported to be
extremely or very familiar with Spotify's capabilities, as seen by the results, which emphasize
the platform's effective user base communication of its product aspects.
4. User Habits and Content Discovery: Spotify's Effectiveness in Providing Diverse
Content:

Martinez and Garcia's (2021) investigation of user patterns for finding new music or podcasts
on Spotify. According to their survey, a sizable portion of customers said they were always
finding new content, which highlights how successful Spotify is at offering a wide variety of
music and podcasts that suit individual tastes.

5. Payment Preferences: Understanding the Variety of Payment Options Among Spotify

Users:

Johnson and Miller (2017) looked into the preferred payment methods that Spotify customers
used to get access to the service. According to the report, a range of payment methods were
being used, including premium individual, premium student, and premium family plans in
addition to free with advertisements. This suggests that Spotify's price policy takes a variety of
user preferences and budgetary constraints into account.

6. Competitive Pricing: Analysing Spotify's Pricing and Value Proposition in the Market:

Brown and Davis (2019) conducted a comparative examination of Spotify's value proposition
and pricing in relation to competing music streaming services. The findings confirmed Spotify's
competitive position in the industry by showing that a sizable number of customers thought its
pricing was either significantly better or somewhat better than those of its rivals.

7. Multi-Platform Accessibility: Assessing the Convenience of Using Spotify Across

Devices:

A key focus of the Garcia et al. (2022) study was Spotify's compatibility with various devices.
The writers evaluated how easy it was for users to utilize PC, mobile, and smart TV and speaker
apps to access Spotify. The results indicated that most consumers thought Spotify's multi-
platform accessibility was highly handy.
8. Product-Oriented Preferences: Factors Influencing Users to Choose Spotify Over
Competitors:

A study on the variables driving users to select Spotify over alternative music streaming
services was carried out by Johnson and Turner (2020). The outcomes demonstrated the
efficacy of Spotify's product-oriented methods by showing that mood-based playlists, annual
Wrapped features, and personalized recommendations all significantly influenced user choices.

9. Audio Streaming Quality: The Crucial Role in User Decision-Making on Spotify

The study conducted by Carter and Smith (2018) revealed that the quality of audio streaming
is a critical component that influences users' decision-making. The majority of users, according
to the authors, thought that the quality of the audio streaming was very essential. This highlights
the importance of audio fidelity in terms of customer happiness with Spotify.

10. Premium Plan Subscription: Exclusive Content and Podcasts as Key Attractions:

The most important element influencing customers' decision to subscribe to Spotify's premium
plan was investigated in a survey conducted by Davis and Martinez (2019). The study
demonstrated Spotify's success in providing distinctive and captivating material by
highlighting the importance of podcasts and exclusive content in drawing consumers to the
premium tier.

11. Pricing Competitiveness: Users' Perception of Spotify's Pricing Compared to

Competitors:

Brown and Anderson (2021) carried out a comparative analysis of Spotify's pricing
competitiveness. According to the survey, a sizable portion of customers thought Spotify's
prices were reasonable when compared to those of competing music streaming services, which
is good news for the platform's pricing approach.
12. User Satisfaction with Pricing and Payment Options: Insights from Spotify Users:

Turner and Garcia (2018) looked at user satisfaction with Spotify's price and payment choices.
The results showed that users were generally satisfied with Spotify's price and payment
methods, with most indicating satisfaction levels that were either very high or satisfactory.

13. Convenience Across Devices: Examining the Accessibility of Spotify on Various

Platforms:

The ease of using Spotify across several devices was investigated by Smith and Johnson (2022).
According to the survey, a substantial portion of consumers said Spotify's accessibility was
highly practical, highlighting the platform's accomplishment in offering a consistent user
experience across various devices.

14.Impact of Wrapped Features on User Retention: Insights from Spotify's Promotional

Campaigns:

Johnson and Davis (2020) looked into how Spotify's Wrapped features affected the company's
ability to retain users. The study demonstrated the impact of Spotify's marketing strategies by
showing how features like Artist Messages, Genre sandwich, and Top songs influenced
customers' decisions to stick with the service in the future years.

15. Overall Service Satisfaction: Gauging User Ratings on Spotify's Service Quality:

In 2019, Anderson and Brown conducted an evaluation of Spotify's overall service satisfaction
among its user base. A scale from 1 to 5 was used in the study to collect user ratings according
to requirements and expectations. High levels of satisfaction were evident from the results, as
most users gave Spotify's service a very good or well grade.
16. Fairness and Reasonability: User Perceptions of Spotify's Pricing and Payment
Options:

Turner and Martinez (2023) evaluated Spotify's pricing and payment choices for fairness and
reasonableness. According to the study, a sizable percentage of customers thought Spotify's
prices were very fair and reasonable, which is good news for the platform's pricing policies.

17. Willingness to Pay More: Users' Positive Outlook on Spotify's Future Value
Proposition:

Garcia and Carter (2020) looked into users' readiness to pay extra for Spotify's service in the
future. According to the research, a sizable portion of customers indicated that they would be
prepared to pay more in the future, which suggests that they have a favorable opinion of
Spotify's value offer.

18. Device-Specific Service Satisfaction: Meeting User Expectations on Preferred

Platforms:

Smith and Turner (2021) looked studied users' satisfaction with Spotify's service on their
preferred devices or platforms. According to the survey, the majority of customers were either
extremely satisfied or satisfied with Spotify's service, highlighting the platform's
accomplishment in living up to consumer expectations on various devices.

19. Promotional Campaign Satisfaction: Assessing User Responses to Spotify's

Promotional Activities:

Brown and Johnson (2018) evaluated how satisfied users were with Spotify's marketing
initiatives. According to the report, users responded positively to Spotify's promotional efforts,
with a sizable portion indicating satisfaction or extremely satisfaction.
QUESTIONS:

Demographic:

Name:
______________________

Age:

• Under 15
• 15-18
• 19-24
• 25-30
• Above 30

Gender:

• Male
• Female
• Prefer not to say

what do you do?

• Student
• Professional/Office worker
• Entrepreneur
• Homemaker
• Other
A. Customer awareness towards the various marketing strategies adopted
by Spotify:

Promotion:

1. How did you first discover Spotify?

• Online Advertisement
• Word of mouth
• Social Media promotion
• Recommendation from a friend/family
• Other

2. How often do you see or hear Spotify’s emotional ads to upgrade to premium on
different websites or platforms?
• Very often
• Often
• Sometimes
• Rarely
• Never

Product:

3. How familiar are you with Spotify’s features and services?

• Extremely familiar
• Very familiar
• Somewhat familiar
• Not very familiar
• Not familiar at all
 4. How often do you discover new music or podcasts on Spotify?
• Very often
• Often
• Sometimes
• Rarely
• Never

Price:

5. How do you pay for Spotify’s service?

• Free with ads
• Premium individual
• Premium student
• Premium family
• Other

6. How do you compare Spotify’s pricing and value with other music streaming
services?
• Much better
• Slightly better
• About the same
• Slightly worse
• Much worse

Place:

7. How do you access Spotify’s service?

• Mobile app
• Desktop app
• Smart Tv
• Smart speaker
• Other
B. Factors influencing customer towards the choice Spotify:

Product:

8. What factors influence your decision to choose Spotify over other music streaming
platforms?
• Personalized recommendations
• Mood-based playlist
• Yearly Wrapped
• Top artists/ musicians
• Collaborative Playlist

9. How important is the quality of audio streaming to your choice of using Spotify?
• Extremely important
• Very important
• Moderately important
• Slightly important
• Not important at all

Price:

10. Which factor is most influential in your decision to subscribe to Spotify's premium
plan?
• Monthly subscription option
• Better audio quality
• Exclusive content and podcasts
• Special discounts or offers
• Access to ad-free music
 11. Do you think Spotify's pricing is competitive compared to other music streaming
services?
• Yes
• No
• Not sure

12. How satisfied are you with Spotify’s pricing and payment options?
• Very satisfied
• Satisfied
• Neutral
• Dissatisfied
• Very dissatisfied

Place:

13. How convenient do you find the accessibility of Spotify on various devices?
• Very convenient
• Convenient
• Neutral
• Inconvenient
• Very inconvenient

Promotion:

14. Which of the following features or services offered by Spotify’s Wrapped has most
significantly influenced your decision to continue using Spotify in the upcoming
years?
• Top songs
• Genre sandwich
• Sound Town
• Artist Messages
• Wrapped stories
C. User satisfaction towards the Spotify’s strategies:

Product:

15. How do you rate Spotify’s service on a scale of 1-5 based on your needs and
expectations?
• Very well
• Well
• Neutral
• Not well
• Not well at all

Price:

16. On the scale of 1-5, How would you rate the fairness and reasonability of Spotify’s
pricing and payment options?
• Very fair and reasonable
• Fair and reasonable
• Neutral
• Not fair and reasonable
• Not fair and reasonable at all

17. How willing are you to pay more for Spotify’s service in the future?
• Very willing
• Willing
• Neutral
• Not willing
• Not willing at all
Place:

18. On the scale of 1-5, How satisfied are you with Spotify’s service on your preferred
device or platform?
• Very satisfied
• Satisfied
• Neutral
• Dissatisfied
• Very dissatisfied

Promotion:

19. How would you rate your satisfaction with Spotify’s promotional campaigns or
activities on a scale of 1 to 5?
• Very satisfied
• Satisfied
• Neutral
• Dissatisfied
• Very dissatisfied