Exploring consumer preferences in cloud archiving - a student's perspective

Abstract

Cloud storage has seen an increasing rise in demand and diffusion. Consequently, the cloud storage market is also becoming an increasingly commoditised market. That is, homogenous products are offered at equal prices, and this offer makes it more difficult for cloud storage providers to generate revenue and differentiate themselves from their competitors. Therefore, it is vital for providers to precisely understand customer preferences so that these can be targeted with appropriate services. To examine these preferences, we conduct a choice experiment and analyse choice decisions gathered from 340 German students by means of a conjoint analysis. We perform an individual-level analysis of preferences, which reveals significant differences and heterogeneity within the sample. By using a subsequent cluster analysis, we identify three distinct customer segments that also show significant differences in, for example, the perceptions of information privacy and risks. Our findings contribute to the literature by uncovering the preference structure and trade-offs that users make in their choice of storage services when employed for the purpose of archiving. We conclude the study with a discussion of practical implications that can aid cloud storage providers in service design decisions, and highlight the limitations associated with our research approach and drawn sample.