Study on Impact of Neuroeconomics Tactics used by Streaming Services Companies (Eg. Netflix, Spotify) on Genz's Purchase Intentions in Ahmedabad City

This paper reflects on how the neuroeconomics strategies employed by streaming companies, like Netflix and Spotify, affect Generation Z's purchasing intentions in Ahmedabad City. Neuroeconomics endeavors to be an integrative science that explains how neuroscience and psychology will intervene in or complement economics to develop knowledge about understanding consumer decision-making processes and those factors that influence buying behavior. Having established such neuroeconomic theories, streaming service companies then hunt them under the guise of optimized user experience with visual and auditory stimuli and tailored recommendations to keep the user interested and waiting for another subscription or purchase. The effects of such strategies are pretty important to understand for the Gen Z audience - a bunch of kids known for their tech-savvy nature and instant gratification. This paper investigates how streaming applications make use of cognitive biases arising from loss aversion to dopamine-driven reward systems and social proof influencing the buying behavior of young consumers. A mixed method approach was used on a representative sample of Gen Z youths by surveys and interviews in Ahmedabad to collect the data. Overall, the findings from this study are expected to be very informative on how neuroeconomic strategies will or will not impact the consumption behavior of Gen Z in the streaming industry. This would be followed by actionable recommendations for companies about how they can maximize their marketing efforts to resonate more effectively with this emergent market going forward. As neuroeconomics and consumer behavior begin to intermix, streaming services stand to increase users' engagement, amplify sales, and cultivate long-term customer loyalty with Gen Z among urban India.