PRINCIPAL COMPONENT ANALYSIS OF GENERATIONAL PREFERENCES REGARDING OVERTHE- TOP SERVICES – A HUNGARIAN CASE STUDY

Abstract

The rise of video streaming services has not only increased the popularity of the platforms available, but has also changed the way households consume content, displacing the options offered by traditional television. The orientation was to apply a specific interdisciplinary scientific approach, combining economics and sociology, due to the research area of the study. The advantages/disadvantages of streaming platforms may play a role in the perceptions of different age groups of users by the service provider they choose. The aim of the research is to focus on the different video streaming consumption habits of the various generations (Generation X, Generation Y, Generation Z) as customers of Netflix, HBO Max, and Disney+, the widely known video streaming providers as reflected in the literature review. A Likert-scale questionnaire survey was considered the most appropriate method to achieve this objective. In order to test the hypothesis on the relationship between generations and video streaming usage a principal component analyses by generation was applied. The separation of variables resulted in the establishment of two groups, namely manipulation (indicating the influence of the traditional way of life) and enjoyment (influencing the choice and customer retention of service providers). The results of the study indicate that the generational characteristics of consumers partly show different patterns of service use, and that the impact of service use on traditional lifeways differs between generations. The analysis highlights the importance of further researches in this area, as the factors explored can be extended to other important issues in the future.