UNDERSTANDING SUBSCRIPTION BASED
MARKETING AND CONSUMER BASED
PERCEPTION
Priyanshu Vaswani
Abstract
Subscription-based marketing has emerged as a dominant strategy in the modern consumer
landscape, offering businesses a sustainable revenue model while fostering long-term
customer relationships. This study explores the effectiveness of subscription-based marketing
by analysing consumer perception, preferences, and engagement within the 18 to 30 age
demographic. Using a mixed-method approach, primary data is collected through structured
surveys targeting students and early-career professionals. The research employs probability,
non-probability, and convenience sampling techniques to gain insights into purchasing
behaviours, brand loyalty, and factors influencing subscription decisions. The study aims to
identify key drivers behind consumer retention, willingness to subscribe, and perceived value
of subscription services, providing valuable implications for marketers aiming to optimize
their strategies.
Key Words: Subscription-based marketing, consumer perception, brand loyalty, purchasing
behaviour
Introduction
Subscription-based marketing has transformed consumer behaviour, yet its long-term impact
on loyalty and satisfaction remains under-explored. This study examines consumer
motivations, challenges, and business strategies to optimize retention. With the model's rapid
growth across industries, understanding its dynamics is vital for businesses to adapt and
remain competitive in changing markets.
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Research Objectives
To Study the Impact of Personalisation on Consumer Purchase Decisions in Digital
Marketing
To Analyse Consumer Trust in Influencer Marketing and Its Effect on Brand
Perception
To Examine the Role of Emotional Branding in Shaping Consumer Loyalty
Review of Literature
Fig No. 1 Concept Map
(Source: Self)
The influence of digital marketing on consumer buying decisions in Egypt is the focus of this
study. It looks at how consumer behaviour is influenced by social media, search engines, and
online advertisements. Trust, brand perception, and personalised content stood out as core
factors that affect purchasing decisions. It also emphasises that engagement through digital
and e-commerce are methods in enhancing customer experiences and consequently increasing
brand loyalty and conversion rate. The findings suggest that any effective digital marketing
strategy is necessary to influence consumer behaviour and uphold the market existence.
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Companies must hence evolve into the ever-changing digital trends if they want to remain in
competition. To conclude, digital marketing is very influential in dictating consumer
decisions, and hence a worthy investment for brands who intend to operate in the more
dynamic market of Egypt. (Omar A.M, 2020)
The focus of this research is to see the effect of biased personalised recommendation on the
consumer decision. It shows that such recommendations shape the perceived value and
desirability of products and hence increase their purchase likelihood. However, biases
entrenched in recommendations can lead to poor decision-making and a loss of consumer
trust. The study indicates ethical implications from biased algorithms and stresses the
importance of transparency in the processes of recommendation. The finding suggests that
firms need a careful balance between personalisation and fairness in order to retain consumer
confidence and loyalty. The conclusion states that suggested recommendations promote
convenience while application of consumer data and recommendation algorithms in an
ethical way will assure that businesses maintain a positive image and avoid long-term adverse
effects on customer trust. (Bo Xiao, 2018)
The study has investigated the influence of digital marketing strategies and their effect on
consumer buying behaviour for the Indian passenger car market. It observes that online
advertisements, social media interaction, and brand websites exert considerable influence on
consumer preferences. Digital marketing increases brand awareness, intention to purchase,
and satisfaction. Trust and credibility are major factors affecting decision-making. The study
emphasises that personalised marketing efforts help to create better consumer relationships
and foster brand loyalty. It concludes that car brands must harness digital platforms
effectively to connect with their customers, strengthen brand positioning, and work toward
sales generation. This finding suggests that strategic digital marketing is the key to
maintaining competitiveness in the changing automotive market of India. (Rekha Dahiya,
2018)
This study explores the influence of influencer credibility and message value on consumer
trust in branded content on social media. It finds that when high-quality content and credible
influencers work in tandem, they are found to heighten engagement and trust among
consumers. Authenticity, transparency, and expertise are important components affecting
these perceptions. The research indicates that brand alignment and transparency among
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influencers develop enhanced consumer trust. Businesses should foster long-term
collaborations with influencers to continue preserving brand credibility rather than pursuing
one-time engagements. Henceforth, good influencer marketing strategies build not only trust
in brands but also enhance consumer loyalty and purchase intention in this digitised
marketplace. (Chen Lou, 2019)
This research concerns the way influencer marketing relates to brand admiration and
intention for a purchase online in an emerging market. It finds that influencer credibility,
relatability, and engagement with content are some of the determinants of consumer trust and
brand affinity. Consumers are more likely to buy products that are marketed by influencers
that they perceive as authentic and knowledgeable. The study goes on to demonstrate how
emotional connections play a major role in cementing brand relationships. Hence, it is
concluded that influencer marketing is an effective tool for companies to engage consumers,
make online sales, and form enduring brand loyalty. The study concludes by stating that
brands have to strategically engage influencers to ensure maximum impact and establish
consumer trust in the digital ecosystem. (Jay Trivdedi, 2020)
Examining influencer marketing in detail, this study deems that while influencer
endorsements build consumer trust and engagement, excessive brand promotions may turn
consumers towards cynicism. Authenticity, consistency, and interest alignment are crucial to
sustaining credibility. The study suggests that consumer trust relies on influencer-follower
relationships and the sincerity of promotional content. Going forward, brands need to
establish trust and credibility through long-term partnerships with influencers. In conclusion,
while influencer marketing is highly effective, authenticity and transparency are key to
maintaining consumer confidence in a cluttered digital advertising space. (Do Yuon Kim,
2021)
The effect of emotional branding on the performance of born-global companies was
examined in this study. When brands achieve emotional ties with consumers, they tend to
forge an increased brand loyalty and trust, facilitating even greater success in international
markets. The study argues that storytelling, brand personality, and emotional appeal are vital
in building a strong relationship with consumers. From the research, born-global companies
should utilize emotional branding to differentiate themselves in competitive international
markets. Findings conclude that emotional branding strategies catalyse, sustain, even promote
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that act of engaging the consumer and thus the growth of the business, becoming a significant
competitive advantage for brands that operate globally. The concept enables the business to
have a long-standing presence and deep connection with its customers across worldwide
markets. (Kalanit Efrat, 2019)
This study investigates how emotional structures shape the relationship between customer
satisfaction and brand loyalty. It finds that emotional attachment and brand trust interact to
augment consumer loyalty even when satisfaction levels fluctuate. By this account, brands
strong on emotional relationships are better positioned to retain customers than brands that
stood solely on functional benefits. This research suggests that emotional engagement
strategies should be at the centre of any business endeavour aimed at buttressing brand
loyalty and ensuring the long-term retention of consumers. Findings conclude that emotional
structures fundamentally drive brand success and underlie the need to build meaningful
relationships with consumers beyond mere transactional satisfaction. (Davood Ghorbanzadeh,
2020)
The link between brand experience and brand loyalty, with emotions taking centre stage, is
the discussion in this study. Positive experiences promote strong emotional ties, increasing
the customer's loyalty. Sensory experiences, affective experiences, and behavioural
experiences are proffered toward the direction of creating stronger bonds. Therefore, brands
should strive for memorable experience delivery in order to gain that emotional connection.
The findings indicate emotional branding will exist as an important factor in creating long-
term customer relationships and surviving fierce competition. Thus, the researchers have laid
emphasis on the argument that brands that invest in emotional engagement strategies will
achieve an increased number of customers who adopt high loyalty toward the brand, therefore
benefiting the overall brand performance. (Rania B. Mostafa, 2021)
Research Methodology
This study will target youth from 18 to 30 years, including both genders, with educational
levels from undergraduates to postgraduates. The subject population collectively includes
students and professionals at the commencement of their respective careers living in different
places with varying degrees of financial dependence. At least 100 respondents, with the help
of probability, non-probability, and convenience sampling, will be surveyed. Primary data
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will be gathered through structured surveys or questionnaires together with the analysis using
graphical analysis that offers a visualisation for the trends in subscription-based marketing
and consumer perception.
Primary Data Survey
Graph No. 1: To what extent do you agree: 'I am more likely to subscribe to a service if it offers
personalized recommendations based on my interests'
(Source: Self)
Graph No. 2: How much do you trust influencer recommendations for subscription services?
pg. 6
(Source: Self)
Graph No. 3: To what extent do you feel emotionally connected to a brand that you consistently purchase
from?
(Source: Self)
The bar chart titled "Impact of Personalized Recommendations on Subscription
Likelihood Across Age Groups” presents data on how different age groups perceive the role
of personalized recommendations in influencing their subscription decisions. The responses
are categorized into five levels: Strongly Disagree, Somewhat Disagree, Neutral, Somewhat
Agree, and Strongly Agree.
From the data, the 18-24 age group shows the highest receptiveness to personalization, with
21 respondents somewhat agreeing that personalized recommendations would make them
more likely to subscribe. However, only one respondent strongly agreed. In contrast, older
age groups (30-42) displayed lower enthusiasm, with most responses falling under neutrality
or disagreement. This aligns with broader consumer trends, where Gen Z and Millennials are
more accepting of AI-driven content curation on platforms like Netflix and Spotify, while
older consumers remain sceptical of algorithm-generated suggestions. The lack of strong
agreement across all age groups suggests that while personalization can enhance subscription
experiences, it must be implemented transparently to maintain consumer trust and control
over choices.
The bar chart titled "Trust in Influencer Recommendations for Subscription Services
Across Age Groups" illustrates how different age groups perceive influencer endorsements
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when making subscription-related decisions. The responses are classified into Strongly
Untrustworthy, Somewhat Untrustworthy, Neutral, Somewhat Trust, and Strongly Trust.
Among the 18-24 age group, influencer trust levels were mixed—19 respondents rated
influencer endorsements as "Strongly Untrustworthy," while 11 rated them as "Somewhat
Untrustworthy." Some respondents remained neutral, while only a few expressed trust in
influencer recommendations. This suggests that younger consumers, despite being the
primary audience for many subscription-based services, are growing increasingly sceptical of
paid sponsorships and influencer endorsements. The distrust may stem from oversaturation of
influencer marketing and frequent controversies surrounding misleading promotions. Given
this shift, brands may need to explore alternative marketing strategies, such as leveraging
micro-influencers, peer recommendations, and organic user-generated content instead of
traditional influencer partnerships.
The bar chart titled "Emotional Connection to Brands Based on Consistent Purchases
Across Age Groups" examines how emotionally attached consumers feel to brands they
repeatedly purchase from. Responses are categorized into Strongly Disagree, Somewhat
Disagree, Neutral, Somewhat Agree, and Strongly Agree.
Among the 18-24 age group, 27 respondents somewhat disagreed with the idea that they feel
emotionally connected to brands they consistently purchase from, while 14 strongly
disagreed. A similar trend was observed in older age groups, indicating a general lack of
emotional attachment toward subscription-based services. This finding is particularly
concerning for brands that rely on long-term customer retention. To address this, companies
must invest in stronger brand storytelling, personalized engagement, and community-building
strategies to foster deeper emotional connections with their audience.
The analysis of the three graphs reveals significant trends in consumer behaviour towards
subscription-based marketing, particularly in relation to personalization, influencer trust, and
emotional connection with brands. The first graph highlights that personalization influences
subscription likelihood, especially among younger consumers (18-24), with 21 respondents
somewhat agreeing. However, the overall lack of strong agreement across all age groups
suggests that while personalization is a valuable feature, consumers remain cautious about
algorithm-driven recommendations. The second graph indicates a decline in trust towards
influencer endorsements, with a majority of younger respondents (18-24) rating them as
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"strongly untrustworthy" or "somewhat untrustworthy." This suggests that traditional
influencer marketing may no longer be as effective, pushing brands to explore alternative
engagement strategies like micro-influencers and peer recommendations. The third graph
demonstrates that emotional attachment to brands is weak across all age groups, with a
significant portion of respondents expressing neutrality or disagreement. This lack of
emotional connection poses a challenge for subscription brands that rely on customer
retention. Overall, the data suggests that while personalization and influencer marketing
remain key components of subscription-based strategies, brands must prioritize
authenticity, transparency, and deeper consumer engagement to foster long-term
loyalty and trust.
Conclusion
Subscription-based marketing significantly impacts consumer behaviour, with
personalization, influencer trust, and emotional connection playing key roles. The study
reveals that while younger consumers (18-24) are receptive to personalized
recommendations, overall trust in algorithm-driven suggestions remains cautious. Influencer
endorsements are losing credibility, as many respondents perceive them as untrustworthy,
indicating a shift towards alternative engagement strategies like micro-influencers and peer
recommendations. Additionally, emotional attachment to subscription brands is weak across
all age groups, posing challenges for long-term customer retention. To enhance consumer
loyalty, brands must prioritize authenticity, transparency, and meaningful engagement
through storytelling and community-building initiatives. The findings suggest that while
personalization and influencer marketing remain relevant, businesses must adapt to evolving
consumer preferences by fostering deeper connections and trust. Future research could
explore long-term consumer behaviour as these individuals transition into different life
stages, providing further insights into the sustainability of subscription-based business
models. Ultimately, brands that evolve with consumer expectations will sustain long-
term success.
Bibliography
Bibliography
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