Optimal Software Feature-Limited Freemium Model Design: A New Consumer Learning Theoretical Framework
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Oliver Francis Koch & Alexander Benlian, 2017. "The effect of free sampling strategies on freemium conversion rates," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(1), pages 67-76, February.
- Marius F. Niculescu & D. J. Wu, 2014. "Economics of Free Under Perpetual Licensing: Implications for the Software Industry," Information Systems Research, INFORMS, vol. 25(1), pages 173-199, March.
- Kathleen R. Conner, 1995. "Obtaining Strategic Advantage from Being Imitated: When Can Encouraging "Clones" Pay?," Management Science, INFORMS, vol. 41(2), pages 209-225, February.
- Ramnath K. Chellappa & Shivendu Shivendu, 2005. "Managing Piracy: Pricing and Sampling Strategies for Digital Experience Goods in Vertically Segmented Markets," Information Systems Research, INFORMS, vol. 16(4), pages 400-417, December.
- Wagner, T. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 66722, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Shin-yi Wu & Pei-yu Chen, 2008. "Versioning and Piracy Control for Digital Information Goods," Operations Research, INFORMS, vol. 56(1), pages 157-172, February.
- Hsing Kenneth Cheng & Yipeng Liu, 2012. "Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty," Information Systems Research, INFORMS, vol. 23(2), pages 488-504, June.
- Amir Heiman & Bruce McWilliams & Zhihua Shen & David Zilberman, 2001. "Learning and Forgetting: Modeling Optimal Product Sampling Over Time," Management Science, INFORMS, vol. 47(4), pages 532-546, April.
- Hsing Kenneth Cheng & Shengli Li & Yipeng Liu, 2015. "Optimal Software Free Trial Strategy: Limited Version, Time-locked, or Hybrid?," Production and Operations Management, Production and Operations Management Society, vol. 24(3), pages 504-517, March.
- Cheng, Hsing Kenneth & Tang, Qian Candy, 2010. "Free trial or no free trial: Optimal software product design with network effects," European Journal of Operational Research, Elsevier, vol. 205(2), pages 437-447, September.
- Wagner, C. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63495, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Wagner, T. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 69900, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Yifan Dou & Marius F. Niculescu & D. J. Wu, 2013. "Engineering Optimal Network Effects via Social Media Features and Seeding in Markets for Digital Goods and Services," Information Systems Research, INFORMS, vol. 24(1), pages 164-185, March.
- Atanu Lahiri & Debabrata Dey, 2018. "Versioning and Information Dissemination: A New Perspective," Information Systems Research, INFORMS, vol. 29(4), pages 965-983, December.
- Hemant K. Bhargava & Vidyanand Choudhary, 2008. "Research Note--When Is Versioning Optimal for Information Goods?," Management Science, INFORMS, vol. 54(5), pages 1029-1035, May.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Lei Zhou & Yue Qi & Xinshang You, 2023. "Research on Time to Market and Pricing of Platform Products in a Competitive Environment," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Marius F. Niculescu & D. J. Wu, 2014. "Economics of Free Under Perpetual Licensing: Implications for the Software Industry," Information Systems Research, INFORMS, vol. 25(1), pages 173-199, March.
- Xiaoyan Chen & Wei Geng, 2022. "Enroll now, pay later: optimal pricing and nudge efforts for massive-online-open-courses providers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 1003-1018, June.
- Jyotishka Ray & Syam Menon & Vijay Mookerjee, 2020. "Bargaining over Data: When Does Making the Buyer More Informed Help?," Information Systems Research, INFORMS, vol. 31(1), pages 1-15, March.
- Sadat Reza & Hillbun Ho & Rich Ling & Hongyan Shi, 2021. "Experience Effect in the Impact of Free Trial Promotions," Management Science, INFORMS, vol. 67(3), pages 1648-1669, March.
- Kevin J. Boudreau & Lars Bo Jeppesen & Milan Miric, 2022. "Competing on freemium: Digital competition with network effects," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1374-1401, July.
- Tang, Hua & Chen, Jing & Ai, Xingzheng & Li, Xiaojing & He, Haojia, 2023. "First-party content decision under competitive hardware/software platforms: Free vs. charge," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1068-1083.
- Yanqing Han & Zongming Zhang, 2018. "Impact of free sampling on product diffusion based on Bass model," Electronic Commerce Research, Springer, vol. 18(1), pages 125-141, March.
- Guofang Nan & Xingtao Li & Zan Zhang & Minqiang Li, 0. "Optimal pricing for new product entry under free strategy," Information Technology and Management, Springer, vol. 0, pages 1-19.
- Shivendu Shivendu & Zhe (James) Zhang, 2015. "Versioning in the Software Industry: Heterogeneous Disutility from Underprovisioning of Functionality," Information Systems Research, INFORMS, vol. 26(4), pages 731-753, December.
- Zijun (June) Shi & Kaifu Zhang & Kannan Srinivasan, 2019. "Freemium as an Optimal Strategy for Market Dominant Firms," Marketing Science, INFORMS, vol. 38(1), pages 150-169, January.
- Manmohan Aseri & Milind Dawande & Ganesh Janakiraman & Vijay S. Mookerjee, 2020. "Ad-Blockers: A Blessing or a Curse?," Information Systems Research, INFORMS, vol. 31(2), pages 627-646, June.
- Zibo Liu & Zhijie Lin & Ying Zhang & Yong Tan, 2022. "The Signaling Effect of Sampling Size in Physical Goods Sampling Via Online Channels," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 529-546, February.
- Guofang Nan & Xingtao Li & Zan Zhang & Minqiang Li, 2018. "Optimal pricing for new product entry under free strategy," Information Technology and Management, Springer, vol. 19(1), pages 1-19, March.
- Jalili, Monire & Çil, Eren B. & Pangburn, Michael S., 2024. "Pricing and structuring product trials: Separate versus mixed wine tastings," European Journal of Operational Research, Elsevier, vol. 312(2), pages 668-683.
- Hsing Kenneth Cheng & Yipeng Liu, 2012. "Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty," Information Systems Research, INFORMS, vol. 23(2), pages 488-504, June.
- Yi, Zelong & Li, Fan & Ma, Lijun, 2019. "The impact of distribution channels on trial-version provision with a positive network effect," Omega, Elsevier, vol. 85(C), pages 115-133.
- Daniel Halbheer & Florian Stahl & Oded Koenigsberg & Donald R. Lehmann, 2013. "Digital Content Strategies," Working Papers 329, University of Zurich, Department of Business Administration (IBW).
- Wu, Lingli & Deng, Shiming & Jiang, Xuan, 2018. "Sampling and pricing strategy under competition," Omega, Elsevier, vol. 80(C), pages 192-208.
- Martin Adam & Konstantin Roethke & Alexander Benlian, 2022. "Gamblified digital product offerings: an experimental study of loot box menu designs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 971-986, June.
- Falko Lucht, 2019. "The Success of the Freemium Business Model. How Riot Games flourishes with a free to play game," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 29(1), pages 114-124, December.
More about this item
Keywords
freemium strategy; feature-limited freemium model; mathematical modeling; optimization model; software versioning; pricing strategies; consumer learning; cross-module synergies; network effects;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:9:y:2021:i:9:p:944-:d:542053. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.