The Influence of Product Diversity and Pricing on Repurchase Intention on the Disney Plus

Hotstar Streaming Platform in Indonesia (A Survey Among Users of the Disney Plus
Hotstar Streaming Platform in Bandung)
Agnesia Sabtani
Widyatama University
Agnesia.2433@widyatama.ac.id

ABSTRACT
This study aims to investigate the influence of product diversity and pricing on the repurchase
intention of Disney Plus Hotstar consumers. The research methodology employed in this study is
descriptive and verification research. The population for this study consists of online film
streaming enthusiasts who have previously or are currently subscribed to Disney Plus Hotstar and
are located in Bandung City. The sampling technique used is non-probability sampling, with a total
of 120 respondents as the sample size. Data was collected through questionnaires, interviews,
observations, literature review, and analyzed using SPSS version 26. The analytical methods used
in this study include the Spearman's rank correlation coefficient and coefficient of determination
at a significance level of 5%. The findings of this study reveal that product diversity and pricing
simultaneously influence repurchase intention. Furthermore, when examined separately, product
diversity significantly influences repurchase intention, as well as pricing having a significant
impact on repurchase intention. Product diversity and pricing together contribute to 50.3% of the
repurchase intention, while the remaining 49.7% is influenced by other factors beyond the scope
of this research.
Keywords: Product Diversity, Pricing, Repurchase Intention, Online Film Streaming, Disney Plus
Hotstar Indonesia.

Keywords: Product Diversity, Price, Repurchase Intention, Online Film Streaming, Disney Plus
Hotstar Indonesia

1. INTRODUCTION growing rapidly, including Indonesia

The development of the which has a large market in the
entertainment industry in the world is entertainment industry such as the
film industry Since the existence of Gambar 1.1 Streaming Charts
Sumber : JustWatch (2022)
the film industry in Indonesia, people
This graph show the magnitude of the
have become interested in watching
movie streaming market opportunity
movies, even watching movies has
in Indonesia causes movie streaming
become one of the most preferred
service business players to compete
entertainment activities by the public.
with each other. One of them is
Watching movies is usually done in
Disney Plus Hotstar which has a high
cinema, television, laser discs, VCDs
presence in Indonesia. Disney Plus
and DVDs. with the advances in
Hotstar has expanded in Indonesia
digital technology and followed by
since 2019 and has the second highest
COVID- 19 pandemic, people's
number of subscribers in Indonesia as
habits and lifestyles have changed,
of early 2022.
back then people usually watched
movies in cinemas but now watching
movies can be easily done through
online streaming platforms. This has
made Indonesia named as one of the
largest market countries in the movie
streaming category with 83 million
subscribers by 2022. The first movie Gambar 1.2 Pengguna Aktif Platform
streaming platform to appear in Streaming di Indonesia
Sumber : Snapchart Pada Liputan6.com (2022)
Indonesia was Netflix, followed by
Viu, Prime video, Disney Plus
The author found a problem with
Hotstar, HBO Go, and et cetera (etc.).
Disney Plus Hotstar in Indonesia,
which lost several active users at the
end of 2022. In the data, it was
recorded that Disney Plus Hotstar
only had 2.4 million active users at
the end of 2022, which initially had 5
million active users at the beginning
of 2022.
 Based on this, the researcher business context, marketing involves
conducted a pre-survey to 30 building beneficial value- laden
respondents who have subscribed to exchange relationships with
the Disney Plus Hotstar to get an customers.". According to The
initial overview of Product Diversity American Marketing Association
and Price on Repurchase intention in (AMA) as quoted by Kotler and
the Disney Plus Hotstar Streaming Armstrong (2021:2600) is as follows:
Platform. From the results of the pre- "Marketing is the activity, set of
survey, it can be interpreted that it institutions, and processes for
turns out that the diversity of Disney creating, communicating, delivering,
Plus Hotstar products is still relatively and exchanging offers that have value
low, and the pricing variable on for customers, clients, partners, and
Disney Plus Hotstar, the lack of society at large."
variety in subscription plans may 2.2 Marketing Mix
make some consumers feel less The definition of marketing mix
flexible in choosing the option that according to Kotler & Armstrong
best suits their needs and budget. As a (2021:98) is as follows: "The
result, some consumers may be more marketing mix is a set of tactical
likely to look for other platforms that marketing tools that the company
provide more diverse subscription blends to produce the response it
packages and suit their preferences. wants in the target market. The

2. LITERATURE REVIEW marketing mix consists of everything

2.1 Marketing the company can do to engage

The definition of marketing quoted by consumers and deliver customer

Philip Kotler & Gary Armstrong value." Meanwhile, the definition of

(2021:98) is as follows: "Marketing is marketing mix according to Thabit &

the social and managerial process by Raewf (2018) is as follows: "The

which individuals and organizations marketing mix is a combination of

obtain what they need and want various marketing decision variables,

through creating and exchanging strategies, tactics, and methods used

value with others. In a narrower by an organization to effectively

 market its products and services to a
specific group of target customers."
2.3 Product
According to Kotler & Armstrong
(2021:954), a product is everything
that can be offered to a market for
attention, acquisition, use,
consumption that can satisfy wants or
needs. A product encompasses more
than tangible objects, such as cars,
clothes, or smartphones. Broadly
defined, a product also includes
services, events, people, places,
organizations, and ideas or
combination of all these.
2.4 Product Diversity
According to Kotler and Armstrong
(2021:993), product diversity is the
collection of all product lines and
items offered by a seller
consumers. Meanwhile, Simamora
(2016:441) defines product diversity
as the variety of product lines and
elements offered by a seller to
consumers.
2.5 Price
The definition of price according to
Kotler & Armstrong (2021:1210) is
as follows: "Price is the amount of
money charged for a product or
service. More broadly, price is the
sum of all the values that customers
give up to gain the benefits of having
or using a product or service.
Historically, price has been the major
factor affecting buyer choice."
Meanwhile, the definition of price
or according to Tjiptono (2019:218) is
as follows: "Price as the only element
of the marketing mix that generates
revenue or income for the company."
2.6 Repurchase Intention
There are several definitions of
Repurchase Intention from previous
a research as follows: Zullaihah and
Harini (2021) explained the definition
of repurchase intention as follows:
"Repurchase intention is a consumer's
desire and action to repurchase a
product, due to the satisfaction
to received that matches the desired
outcome from a product. A brand that
has embedded itself in the customer's
heart will lead the customer to
continue purchasing or
repurchasing." Meanwhile,
(Maulidya et al., 2021:209) explained
the definition of repurchase intention
as follows: "Repurchase intention is
an action or response to make a repeat
purchase after experiencing
satisfaction with a product and
 becoming loyal to a brand."
According to (Wardi, Y. 2022), the
definition of repurchase intention is
as follows: "Repurchase intention, or
repurchase interest, is essentially a
customer behaviour where customers
respond positively to the quality of a
company's services and intend to
revisit or buy the company's products
again."
3. RESEARCH METHODS
The research model used in this study
is a quantitative research model with
the grand marketing mix theory put
forward by Kotler and Keller, which
relates to product diversity and price.
researchers used descriptive and
varied methods. Then the population
took from online streaming movie
connoisseurs, and for the sample were
people who had subscribed or
currently subscribed to Disney Plus
Hotstar in the city of Bandung.
Research data were taken from
questionnaires and library research
which were analysed using multiple
linear regression analysis.
4. RESULT
The data presented is the result of
respondents' feedback in the
questionnaire. From these responses,
the product diversity, pricing, and
purchase intention on Disney Plus
Hotstar can be a considered positive.
Based on Partial Regression
Coefficient Testing results, it can be
concluded that Product Diversity has
a positive influence on repurchase
intention because the significance
value is 0.000, which is smaller than
0.005. Additionally, the Price also has
a positive influence on repurchase
intention as the significance value is
0.000, which is smaller than 0.005.
And last, based on the Simultaneous
Regression Coefficient Testing result,
it can be concluded that Product
diversity and price have a
simultaneous effect on repurchase
intention, obtaining an F value of
59.129, which is greater than the
critical F value of 3.07. Furthermore,
product diversity and price contribute
significantly, accounting for 50.3% in
influencing repurchase intention.
5. CONCLUSION
Respondents' views on Product
Diversity, Pricing, and Repurchase
Intention for Disney Plus Hotstar in
Indonesia:
a. Respondents perceived Disney
Plus Hotstar's product diversity
 positively. Despite its reputation significantly influences Repurchase
for action content from Marvel, Intention. Variety in Disney Plus
the platform offers a variety of Hotstar's offerings plays a crucial role
genres like Kdrama, Anime, and in driving customers' intention to
Comedy. This diversity attracts repurchase. Furthermore, the Pricing
audiences with different variable significantly impacts
preferences. Some respondents Repurchase Intention. Thus, the
found subscription payment ease hypothesis connecting pricing and
to be lacking, potentially affecting repurchase intention is supported. In
customer satisfaction. terms of determination, Product
b. Pricing was well-received. Diversity and Pricing contribute
Affordable options such as significantly (50.3%) to influencing
Monthly and Annual plans at Rp Product Diversity. The remaining
39,000 and Rp 199,000 were influence (49.7%) is attributed to
noted. However, stability in other unobserved factors. These may
subscription pricing received include product quality, brand
lower scores, suggesting awareness, and development. The
perceived fluctuation and its results also confirm that both Product
impact on affordability and Diversity and Pricing significantly
satisfaction. impact Repurchase Intention for
c. Overall, Disney Plus Hotstar's Disney Plus Hotstar. This affirms the
repurchase intention is positive. hypothesis suggesting a relationship
Respondents were inclined to between product diversity and
share positive reviews on social repurchase intention. The positive
media, influencing potential impact of product diversity on
customers. However, it ranked customer's intent to continue using
lower as the primary streaming Disney Plus Hotstar's service is
platform, suggesting other factors evident.
influencing platform choice. 6. RECOMMENDATION
Results from individual hypothesis For other researchers, it is
testing suggest that Product Diversity recommended to use this study as a
reference to enhance their various payment options such as
understanding of the influence of credit cards, debit cards, bank
product diversity and pricing on transfers, digital wallets, and
repurchase intention in the context of operator-specific subscription
film streaming platforms like Disney payment options could enhance
Plus Hotstar. Furthermore, customer convenience.
researchers are encouraged to explore Additionally, implementing a
repurchase intention considering "one-click payment" option
stronger influential variables such as where payment details are stored
product quality, customer service, could simplify the subscription
user experience, and other factors that renewal process. By applying
influence customers' repurchase these suggestions, Disney Plus
decisions. A comprehensive study can Hotstar can improve the payment
provide a deeper and more accurate experience, overall customer
understanding of the factors affecting satisfaction, and ease of
customer repurchase intention in the subscription management.
streaming film industry, offering b. The research findings indicate
valuable insights for effective that respondents perceived the
strategy and policy development. And "Affordability" indicator of
for Practical Suggestions is : Pricing, which reflects the
a. Based on the research findings, it stability of pricing offered to
is evident that respondents' consumers, with a relatively low
perception of the "Consistency" average score of 3.81. To address
indicator of Product Diversity, this, Disney Plus Hotstar can
which relates to ease of establish and offer stable pricing
subscription payment, received a that suits the needs and
relatively low average score of affordability of Indonesian
3.93. To improve this, Disney audiences. Implementing a long-
Plus Hotstar can focus on term pricing strategy can help
enhancing and diversifying mitigate pricing fluctuations. For
payment methods. Providing instance, setting a stable
subscription price for a longer
period, such as a year, could
provide price certainty and
minimize unexpected changes. If
price adjustments are necessary,
clear communication should be
provided to consumers regarding
the reasons and timing of the
changes. Providing ample notice
allows consumers to prepare and
make informed decisions.
Furthermore, offering
subscription packages with a
"price lock" option for a specified
period can be considered. For
instance, locking in a subscription
price for a year with an option for
a fixed renewal price. Involving
consumers in pricing decision
making through surveys or direct
feedback can help tailor pricing to
their preferences and limitations.
Disney Plus Hotstar can
incentivize longer subscription
commitments by offering special
discounts or exclusive offers,
encouraging customer retention
and loyalty. Active monitoring of
subscription prices and offerings
from competitors in the streaming
market is advised. This allows
Disney Plus Hotstar to adjust
pricing strategies to remain
competitive while maintaining
price stability for consumers.
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