The Freemium Effect: Why Consumers Perceive More Value with Free than with Premium Offers
ICIS 2015
Published: Jan 1, 2015
Abstract
Continuous evolution of digital technology not only changes the way people communicate, it also fundamentally alters how companies generate revenue. Services like Dropbox, Skype, LinkedIn or Spotify successfully implement the freemium business model of concurrent free and priced premium versions. This paper will investigate the consequences of offering basic features for free. Based on research complementing the relationship between quality and...
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