Behavioural Economics and Consumer Retention

Consumers’ Insights into How Marketing Strategies Influence OTT Platform Preferences

Abstract

Behavioural economics combines disciplines from psychology and economics to understand how consumers make real-world decisions, especially on OTT platforms. With the rapid growth of these OTT platforms, many platforms are incorporating behavioral economics into their marketing strategies to enhance consumer retention. This study aims to understand from the consumers’ point of view how they feel about various marketing strategies that influence their choice of OTT platforms. The paper understands the underlying factors for a consumer’s loyalty to OTT platforms. This was conducted through a quantitative survey through Google Forms, collecting around 76 responses across diverse age groups in India to capture consumer perspectives on marketing used by these OTT platforms. The findings thereby reveal that strategies such as personalized recommendations, content quality, pricing psychology, and the subscription models significantly affect a consumer’s loyalty over certain OTT platforms, with weekly content releases and personalized recommendation algorithms being the prime factor. These insights help suggest that understanding marketing strategies through the lens of behavioural economics can help understand the underlying goals of the firm. It also offers an educational and policy relevance for firms and institutions to apply ethical, consumer-focused behavioural design in competitive markets.