Free no more - investigating customer reactions to unexpected free-to-fee switches
| Autor: | Gerrit Cziehso, Monika Kukar-Kinney, Tobias Schaefers |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Marketing
Service (business) 05 social sciences Business model Freemium Price introduction Reduction (complexity) Price fairness Feature (computer vision) 0502 economics and business Fairness perceptions 050211 marketing Business Free-to-fee switch 050203 business & management Industrial organization Cannibalization |
| Zdroj: | Journal of Business Research. 101:229-242 |
| ISSN: | 0148-2963 |
| DOI: | 10.1016/j.jbusres.2019.03.050 |
| Popis: | Many companies struggle with the consequences of introducing prices for previously free services, known as free-to-fee switches. We compare an unexpected forced free-to-fee switch, in which continued usage is only possible if the fee is paid, to a freemium switch, which entails the option to use a service with reduced features for free. Integrating price fairness theory and the concept of cannibalization, three experimental studies reveal detrimental effects of free-to-fee switches on fairness perceptions, attitude toward the company, and purchase intentions, which may partly be attenuated by a freemium switch. Furthermore, we examine different levels of feature reduction as a way for improving the effectiveness of free-to-fee switches. Overall, the findings question the common practice of unexpectedly introducing freemium business models, contribute to a better understanding of customer reactions to free-to-fee switches, and provide recommendations for companies intending to introduce a price for free services. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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