CB T123WSB 6 Group 3 Group Report Spotify

GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student name: Ta Hoang Nhi Student ID number: 21000530
Student name: Tran Ngoc Thanh Ngan Student ID number: WSU21000044
Student name: Dau Nguyen Mai Anh Student ID number: 21000858
Student name: Nguyen Do Quynh Nhu Student ID number: 21001353
Student name: Nguyen Le Thu Trang Student ID number: B1112010618

UNIT AND TUTORIAL DETAILS
Unit name: Consumer Behavior Unit number: CB-T123WSB-6

Tutorial/Lecture: Class day and time: Tuesday - 12:00 PM
Lecturer or Tutor name: Dr. Dinh Tien Minh
ASSIGNMENT DETAILS
Title: CB-T123WSB-6_ Group Report_ Spotify_Group 3

Length: 2100 Due date: 3/4/2023 Date submitted: 3/4/2023
DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s work or
from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs for
the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).
Student’s signature: Hoang Nhi

Student’s signature: Thanh Ngan
Student’s signature: Mai Anh
Student’s signature: Quynh Nhu
Student’s signature: Thu Trang
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not
been signed.
Consumer Behavior
SPOTIFY
REPORT
Group 3
Tạ Hoàng Nhi
Trần Ngọc Thanh Ngân
Nguyễn Đỗ Quỳnh Như
Đậu Nguyễn Mai Anh
Nguyễn Lê Thu Trang
CB - T123WSB - 6
Lecturer:
Dr. Dinh Tien Minh
AGENDA
Spotify Group Report 2023

1. Market Overview
2. SWOT Analysis
3. Target market of brand and

brand's key competitors
4. The problems and

objectives of the company
5. Research Objectives
6. Theories
7. Summary of the focus group
8. The data analysis and

consumer insights
9. Recommendations
10. References
11. Appendix
04
1
MARKET
OVERVIEW
Spotify Group Report
05
MUSIC STREAMING
IN VIETNAM
The development of the Internet and social networks has

increased the number of people using online music platforms,
but the situation of taking copyrighted works of musicians is
complicated. Vietnam is using technology to protect grey
matter and intellectual property from digital music (Tu An,
2022). After entering, Spotify has revolutionized the
Vietnamese market by introducing new colours and changing
the way people listen to music (An Viet, n.d.).
Thu Do (2021) found that streaming has been a major

contributor to the growth of the global music industry, with
an increase of 18.5%. Ms.Phung Lan Khanh - Head of Universal
Music Vietnam, reported that only a few percent of
Vietnamese people listen to music in the paid market, with
those who can afford to listen to copyrighted music or
register for VIP being 30-40%. The data from We Are Social,
Vietnam has 72% of the population uses smartphones and 71
minutes of music streaming time per day.

06
2
SWOT
ANALYSIS
07
SPOTIFY
STRENGTH WEAKNESS
Customers want to listen to

Brand reputation (Appendix A)
music and own the song for free
Provide high-quality copyright
music, free/paid, experience on or at a lower price
any device. Pushing for a subscription
Unique features to renew itself Require Internet connectivity
with personalization, music (Internet and data usage, n.d.)
selection, and themed The number of songs that can
playlists. be downloaded is limited even
A huge music library of over 35 with a premium subscription
million songs (Aguiar & For a free subscription, they will
Waldfogel, 2021). be bothered by ads and cannot
use some features such as
downloading songs.
OPPORTUNITY THREAT
Compete with big companies
Podcasting market (Özel, 2022). like Apple, Amazon,...
Unique ideas that have Some artists criticized Spotify
attracted many big investors (Hesmondhalgh, 2020) and
Partnership (Appendix B.a) pulled their music from the
Artists' endorsements (Appendix platform for unreasonable
B.b). payments (TinNhac.com, 2021).
For the Vietnamese music
market:
+ Limited number of playlists in the
Vietnamese music industry.
+ Vietnamese people are
accustomed to freeing use, making
it difficult to enter the market.
APPLE MUSIC - THE KEY COMPETITOR
WEAKNESS
STRENGTH WEAKNESS
Offers a massive 100 million The most likely reason for fewer
songs (Apple Music, n.d.). subscriptions is a lack of
Lets customers view videos accessibility and free versions.
without being interrupted by A pricey service.
advertisements. Although Apple Music's 3-
A family subscription plan month free trial appears to be a
(Arditi, 2017). strength, the company is
Three months trial before suffering a high percentage of
customers can pay. (Carter, rejections after the free trial.
n.d.).
OPPORTUNITY THREAT
Establishing a positive Apple Music's revenue could be

connection with social media threatened by other streaming
firms to enhance their offerings. platforms.
Internet market: Digital
marketing allows music
streaming services to reach a
larger audience.
Innovation: can help develop
distinctive products and
services.
New services: may profit from
new offerings to widen its client
base.

3
TARGET MARKET
OF BRAND AND
BRAND’S KEY
COMPETITORS
10
Target market
Spotify launched in Vietnam in March 2021, aiming to
target the young demographic in its marketing efforts.
According to Start.io (2022), the target market for
Spotify in Vietnam is likely to be young adults,
particularly Millennials (19,4%) and Gen Z (66,4%). The
gender distribution is almost equal, with males
accounting for 52.7% and females accounting for
47.3%.
Moreover, Vietnam is a country with a growing middle
class, and it may target those with disposable income
and interested in consuming audio content. It also
targets Vietnamese-speaking ex-pats and foreigners
living in Vietnam who speak English and use Spotify as
their preferred music streaming service (Spotify
Advertising, 2022).
Spotify Advertising (2022) provides customized
playlists and podcasts for specific music genres and
interests, targeting audiences in Vietnam with a
youthful, technologically inclined, and enthusiastic
focus.

11
Key Competitor
In late June 2015, Apple Music was a major competitor
to Spotify, with 72 million global subscribers (Statista,
2020). Apple Music is compatible with a wide range of
devices, including IOS and Android. The service offers
three subscription options for students (29,000
VND/month), individuals (59,000 VND /month), and
families (89,000 VND /month), and provides access to
70 million ad-free songs, offline playlist playback, live
radio stations, and seamless syncing (Apple Music,
2020).
Apple Music attracts ambitious and determined
individuals who are high-earning students,
professionals, and managers. Apple Music targets a
diverse, aged group of 18-30, mostly belonging to the
middle and upper classes. According to the Business
Research Methodology (2019), the audience consists of
individuals with a lifestyle characterized by Aspirer
Succeeder and Explorer.
12
4
THE PROBLEMS
AND OBJECTIVES
OF THE
COMPANY
13
THE PROBLEMS
Analysts predict that Spotify will struggle in
Vietnam, where customers frequently sign up
for free music websites (Mai Chi, 2018). Typical
evidence clearly shows the consumption
behavior of Vietnamese people, during the first
month of the trial, the number increased
exponentially daily. But starting to collect fees,
the number of users dropped without
stopping, as evidenced by services such as
Apple Music or Netflix in this market
(Tapchitaichinh, 2021).

14
Spotify provides its service at a really high price if
compared with other online music-sharing services in
Vietnam like ZingMP3 or Nhaccuatui. Therefore, the
challenge for this brand in Vietnam is extremely difficult
shortly (Dan Tri, 2018).
Besides, Spotify also faces the problem of using unethical
music. The action of digital music piracy does not incite
moral wrongness in Vietnamese customers. In April 2017,
hackers can change normal Zing Mp3 accounts into
accounts for VIP use within 10 years after this platform
released a new version with some holes (Dan Tri, 2018). It
is worth mentioning that plenty of videos about how to
hack accounts are spreading rapidly just because they
refused to pay 30,000 VND/month for this platform by
using their services.

15
Objectives
This study will mainly focus on reducing
the proportion of consumers using
unethical music and identify alternative
pricing strategies to make the Spotify
service more appealing and affordable
for users. These goals can be
approached by identifying factors and
behaviours of audio piracy digital music
in Vietnam.
SPOTIFY

16
5
RESEARCH
OBJECTIVES

17
Research
Objectives
With the above problems, this article is
provided recommendations to help Spotify
achieve its goals. The textbook theory can be
used to analyze the problem. It also organizes
Gen Z focus groups with qualitative research to
examine how young consumers use streaming
services. From there, understanding consumer
preferences helps Spotify solve piracy and gain
subscribers.

18
6
THEORY

19
List of open-ended
Theory questions
Why/ How to apply
applied What/Why/How/
Which
Price plays a vital service role. If

the price is so high, it cannot How do you feel about
compete with other competitors Spotify's premium price?
Chapter 1:
Consumer What price can you pay
Behavior and for music service?
Businesses should strive for
Marketing Which platform do you
customer satisfaction to remain
Strategy
customers and actively pursue it pay to listen to music?
- LO3:
to remain successful, as customer
+ Price, Which features do you
satisfaction is more important for
Customer find is necessary for a
growth than customer
satisfaction
acquisition. Keeping customers platform to meet your
satisfied is the only way to keep needs?
them satisfied
How brand awareness

affects your purchases?
Chapter 8: What is the barrier to

Perception upgrading to Spotify
-LO5:
Perception is an important factor premium?
Understand the
in determining customer How does it feel to use
application of
willingness to pay more for a
learning to Spotify basic and Spotify
product they perceive and gain its
brand premium? (if they use)
value, as evidenced by the
positioning,
element of Spotify support. What differences
equity, and
leverage between music
platforms do you use?
(price, service, or
quality?)

20
7
SUMMARY OF
THE FOCUS
GROUP

21
We segregated participants into two
smaller samples based on age to
conduct our focus group interview. The
first group consisted of six interviewees
aged 18-24, while the second group was
aged 25-34, with only two respondents.
The interviews were conducted through
Zoom, an online communication
platform, and the interviewees were not
mandated to turn on their videos.
(Appendix C)

22
8
DATA ANALYSIS
&
CONSUMER INSIGHTS

23
Data Analysis
Data showed that the impression of infringement
among focus group members is neutral. The most
widely accepted response to infringement was "normal"
and "legal" when asked about the feelings when
engaging in infringement. Only respondent A considers
their behavior to be unlawful if it was used to steal
digital audio for the purpose of selling it. Moreover,
Spotify has become increasingly popular, with usage
and paying for subscription streaming services
becoming "inconvenient" and "unpleasant". The
influence of a reference group on the perception and
pirate tendencies of the focus group is explored to
understand the root cause of digital music piracy.
Interviewees perceive their friends' and family members'
behaviour as normal and socially appropriate due to the
context. Respondent A suggested piracy is a serious
issue that can be explained by reference groups and
social conventions.

24
Data Analysis
The utilisation of Spotify has become increasingly
popular with users gaining familiarity with the
platform's features. The user has expressed
dissatisfaction with the lack of song selection,
inability to skip 30-second advertisements, and
difficulty sharing their account with others, hindering
their initial experience with Spotify. Undoubtedly, this
has impacted the probability of their enrollment in a
monthly subscription. After an experiment, 62.5% of
participants expressed discontent with the
fundamental amenities and linked unfavourable
emotions to using Spotify, which was deemed
incompetent and disregarded for any forthcoming
determinations. Furthermore, data suggests that
people are not subscribed to other streaming services,
as evidenced by using other's free music streaming
such as Youtube, Soundcloud, ZingMP3, and
Nhaccuatui.

25
Data Analysis
On the other hand, three respondents E, F and H had
purchased the premium version of Spotify. Premium
features appeal to users for personal playlists and share
them on social media, high-fidelity audio streaming,
download for offline use, unrestricted song stopping, and
advertisements. Although third-party purchases
Premium accounts from a cheaper price (indicating that
the third party engaged in infringement), requiring users
to share both their account and the monthly charge.
After conducting a thorough analysis, it's safe to say that
Spotify's basic and limited functionality has left many
consumers unsatisfied with the platform. Analysis reveals
that Spotify's basic and limited functionality has caused
dissatisfaction among consumers. As a result, the
demand for Spotify Basic and Premium has decreased,
indicating that users who subscribe to Premium may
have been influenced by their social circle and obtained
their account through questionable means.

26
Consumer
Insights
Young individuals prioritise their self-image and
peer groups influence their behavior, as evidenced
by data from five non-users and three Spotify
Premium subscribers. When queried regarding the
rationale behind their acquisition of Spotify over
other available options, the correspondents cited
their capacity to discern superior musical content
and the platform's diverse range of genres as
fulfilling their requirements. Thus, Spotify's
premium subscribers can experience a sense of
intellectual refinement due to its extensive music
collections and the ability to share customized
playlists.

27
9
RECOMMENDATIONS

28
Promoting and
providing more
services
About the pricing problem, Spotify should take some
actions like promoting and providing more services to
compete with other platforms. For example,
promotion - a discount for the holiday season. Using
influencers on social media to raise awareness of the
young generation and collaborating with artists to
create privileges for only users on Spotify, for instance,
songs that are only copyrighted on Spotify, and goods
for Spotify users. Moreover, not only upgrading
premium to have various songs and no ads but also
sound quality and eye-catching interface. All of them
will make customers feel deserve to pay despite the
high price.

29
Needs to highlight
strong examples of
a few specific
copyright violations
To make Vietnamese customers think carefully about
downloading music legally, the Vietnamese music
company needs to highlight strong examples of a few
specific copyright violations. These people should be
relevant so that people may relate to them. The
objective is to make the buyer consider: "What if I am
next pushed to court?". When the new digital music
payment service is available, the purpose of such an
intimidation strategy is to make use of consumers'
fear of being punished as an incentive to switch to
the updated service. This collaborative effort will need
to be organized.

30
Change their
weakness into
their strength
According to the SWOT analysis, Spotify needs to

improve in a few areas to compete with other
platforms. To reduce internet reliance, they can
offer offline services to free subscribers, even in a
limited capacity. They can show fewer
advertisements in between songs. They should
invest in improving their security system. If they can
overcome these obstacles, they will be stronger
than ever.

31
10
REFERENCES
32
Aguiar, L., & Waldfogel, J. (2021). Platforms, power, and
promotion: Evidence from Spotify playlists*. The Journal
of Industrial Economics, 69(3), 653-691.
doi:10.1111/joie.12263.
Âm nhạc trực tuyến “mỏ vàng” mới của ngành công
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22, 2023, from https://thudomultimedia.vn/am-nhac-
truc-tuyen-mo-vang-moi-cua-nganh-cong-nghiep-noi-
dung-so/
An. (2022, February 27). “Đánh thức” thị trường nhạc trực
tuyến ngàn tỷ của Việt Nam. Retrieved March 22, 2023,
from https://baodautu.vn/danh-thuc-thi-truong-nhac-
truc-tuyen-ngan-ty-cua-viet-nam-d161183.html
Apple Music. (n.d.). Retrieved March 20, 2023, from
https://www.apple.com/vn/apple-music/
Arditi, D. (2017). Digital subscriptions: The unending
consumption of music in the Digital Era. Popular Music and
Society, 41(3), 302-318. doi:10.1080/03007766.2016.1264101
Armstrong, M., & Richter, F. (2020, February 13).
Infographic: The World's most popular music streaming
services. Retrieved March 19, 2023, from
https://www.statista.com/chart/20826/music-streaming-
services-with-most-subscribers-global-fipp/
Carter, C. (n.d.). How streaming services changed the way
we listen to and pay for Music. Retrieved March 20, 2023,
from https://egrove.olemiss.edu/hon_thesis/1453/?
utm_source=egrove.olemiss.edu%2Fhon_thesis%2F1453&
utm_medium=PDF&utm_campaign=PDFCoverPages
FPT Telecom chính thức đóng cửa nhacso.net. (2016,
October 4). ZingNews.vn. https://zingnews.vn/fpt-
telecom-chinh-thuc-dong-cua-nhacsonet-
post686799.html

33
Hesmondhalgh, D. (2020). Is music streaming bad for
musicians? problems of evidence and argument. New Media
and Society, 23(12), 3593-3615. doi:10.1177/1461444820953541
IFPI. (2021). Engaging with Music. https://www.ifpi.org/wp-
content/uploads/2021/10/IFPI-Engaging-with-Music-
report.pdf
Internet and data usage. (n.d.). Retrieved March 20, 2023,
from https://support.spotify.com/us/article/internet-and-
data-usage/
LuatMinhKhue.vn. (n.d.). Những trường hợp bị coi là vi
phạm bản quyền tác giả về hoạt động kinh doanh trên
internet ? Công Ty Luật TNHH Minh Khuê.
https://luatminhkhue.vn/nhung-truong-hop-bi-coi-la-vi-
pham-ban-quyen-tac-gia-ve-hoat-dong-kinh-doanh-tren-
internet--.aspx
News, V. (n.d.). Báo VietnamNet. VietNamNet News.
Retrieved March 16, 2023, from
https://vietnamnet.vn/en/will-spotify-trigger-a-battle-in-
the-online-music-market-E198924.html
NHẠC SỐ - Thị Trường Việt Nam với những tiềm năng hứa
hẹn. (n.d.). Retrieved March 22, 2023, from
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nam-trong-thoi-dai-moi-159.html
Những yếu tố ảnh hưởng đến hành vi mua hàng trực tuyến
ngẫu hứng và mua hàng trực tuyến liên tục ở Việt Nam.
(2021, May 18). Tạp Chí Tài Chính.
https://tapchitaichinh.vn/nhung-yeu-to-anh-huong-den-
hanh-vi-mua-hang-truc-tuyen-ngau-hung-va-mua-hang-
truc-tuyen-lien-tuc-o-viet-nam.html

34
Özel, S. (2022). Spotify effect in new podcast markets.
combined model proposal for analysis of increasing
interest in podcasting: The case of Turkey. El Profesional
De La Información. doi:10.3145/epi.2022.sep.01
Q&Me Vietnam Market Research. (2015, March 27).
Vietnamese Music Life. Retrieved March 8, 2023, from
Q&Me Vietnam Market Research website:
https://www.slideshare.net/asiaplus_inc/vietnamese-
music-life l
Spotify Advertising. (2022a). How to find your target
audience | Spotify Advertising. Retrieved from
ads.spotify.com website: https://ads.spotify.com/en-
US/news-and-insights/how-to-find-your-target-
audience/
Spotify Advertising. (2022b). Target audience types with
examples and use cases | Spotify Advertising. Retrieved
from ads.spotify.com website:
https://ads.spotify.com/en-US/news-and-insights/types-
of-target-audience/
Start.io. (2022, June 27). Spotify Target Market
Segmentation – User Demographics & Audience
Targeting Strategy for 2022. Retrieved from Start.io - A
Mobile Marketing and Audience Platform website:
https://www.start.io/blog/spotify-target-market-
segmentation-user-demographics-audience-targeting-
strategy/
Statista. (2023). Vietnam: leading apps to stream music
2021. Retrieved from Statista website:
https://www.statista.com/statistics/1255930/vietnam-
leading-apps-for-music-streaming/

35
TheLEADER.VN. (2018, May 18). “Green giant” Spotify in
the battle of winning Vietnamese digital music users |
E.TheLEADER. Retrieved from e.theleader.vn website:
https://e.theleader.vn/green-giant-spotify-in-the-battle-of-
winning-vietnamese-digital-music-users-
20180505171155073.htm
TinNhac.com. (2021, April 20). Thêm Một Idol Chỉ Trích
Spotify vì Lợi Nhuận kiếm được TỪ Lượt Stream Quá ít!
Retrieved March 20, 2023, from https://tinnhac.com/them-
mot-idol-chi-trich-spotify-vi-loi-nhuan-kiem-duoc-tu-luot-
stream-qua-it-144927.htm
trang, congnghe. (2018, March 15). Những điểm mà Spotify
không bằng các dịch vụ nghe nhạc Việt Nam.
Trangcongnghe.vn. https://trangcongnghe.vn/cong-
nghe/tin-ict/118804-nhung-diem-spotify-khong-tot-bang-
nhaccuatui-zing-mp3.html
Trí, D. (n.d.). Spotify vào Việt Nam, người Việt có chịu chi
tiền để nghe nhạc? Báo Điện Tử Dân Trí. Retrieved March
16, 2023, from https://dantri.com.vn/suc-manh-so/spotify-
vao-viet-nam-nguoi-viet-co-chiu-chi-tien-de-nghe-nhac-
20180314070835492.htm
ZingMP3. (n.d.). Ứng dụng Zing MP3 cho mobile, tablet.
Retrieved March 8, 2023, from Zing MP3 website:
https://mp3.zing.vn/huong-dan/about
ZingMP3. (n.d.-b). Zing MP3 VIP - Trải nghiệm không gian
âm nhạc đẳng cấp của Zing Mp3. Retrieved April 2, 2023,
from Mp3 Vip website: https://zingmp3.vn/vip

36
11
APPENDIX

37
APPENDIX A:
According to Statista, Spotify is the most
reputable music streaming company in the
world in 2019.

38
APPENDIX B.a:
Spotify combined with Facebook
APPENDIX B.b:
Spotify for artists

39
APPENDIX C:

40
APPENDIX D:

41
Link video interview +
transcript:
https://docs.google.com/spread
sheets/d/1Yjwlp0p8oXcTGH5-
fwRraznh6FHh51cxS5X2Cl8gzV
o/edit?usp=sharing
Link Discussion Guide:
https://docs.google.com/docu
ment/d/1ubAOx2Bm0YVQyQru
y95VBWOQFljUToQhC8J_GKqs
kl8/edit?usp=sharing

42

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GROUP ASSIGNMENT COVER SHEET

Student name: Ta Hoang Nhi Student ID number: 21000530

Student name: Tran Ngoc Thanh Ngan Student ID number: WSU21000044

Student name: Dau Nguyen Mai Anh Student ID number: 21000858

Student name: Nguyen Do Quynh Nhu Student ID number: 21001353

Student name: Nguyen Le Thu Trang Student ID number: B1112010618

Unit name: Consumer Behavior Unit number: CB-T123WSB-6

Title: CB-T123WSB-6_ Group Report_ Spotify_Group 3

Student’s signature: Hoang Nhi

Spotify Group Report 2023

3. Target market of brand and

4. The problems and

7. Summary of the focus group

8. The data analysis and

Spotify Group Report

The development of the Internet and social networks has

Thu Do (2021) found that streaming has been a major

Spotify Group Report

Spotify Group Report

Customers want to listen to

Establishing a positive Apple Music's revenue could be

Spotify Group Report 09

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

compared with other online music-sharing services in

Vietnam like ZingMP3 or Nhaccuatui. Therefore, the

challenge for this brand in Vietnam is extremely difficult

shortly (Dan Tri, 2018).

Besides, Spotify also faces the problem of using unethical

music. The action of digital music piracy does not incite

moral wrongness in Vietnamese customers. In April 2017,

hackers can change normal Zing Mp3 accounts into

accounts for VIP use within 10 years after this platform

released a new version with some holes (Dan Tri, 2018). It

is worth mentioning that plenty of videos about how to

hack accounts are spreading rapidly just because they

refused to pay 30,000 VND/month for this platform by

using their services.

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Price plays a vital service role. If

How brand awareness

Chapter 8: What is the barrier to

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report

Spotify Group Report