The Associated of Perceived Service Quality to Customer Behaviour Towards Use and Purchase Intention in Freemium Services

Abstract

The rise of the freemium business model has presented challenges for service developers in balancing service quality and generating demand for premium offerings. This study examines the relationship between perceived service quality, continued use of freemium services, and the decision to purchase premium content in the context of online events. The research focuses on LombaCademy, an educational platform who currently developing new online program names sharing sessions. Drawing on data collected from participants of LombaCademy's webinars (N = 220), this research utilized the PLS-SEM method through SmartPLS software. the objectives of the study are to examine the impact of service quality dimensions, including tangibility, reliability, responsiveness, assurance, and empathy, on continued use of free services and the decision to purchase premium products or features. The findings reveal significant positive relationships between empathy and tangibility to use intention. Moreover, use intention was found to have a significant direct and total effect on purchase intention, highlighting the importance of fostering use intention to drive purchase behaviour. Notably, reliability was identified as another significant predictor of purchase intention These findings provide valuable insights for LombaCademy's business strategies in the competitive landscape of freemium services, particularly in the education industry. However, it is important to note the limitations of this study. The findings are based on a specific time and a sample of participants who have attended LombaCademy's webinars, which may limit generalizability to other service contexts or industries. Future research could explore the moderating effects of contextual factors and examine the role of emerging technologies to further enhance service quality and consumer behaviour in online events.