Koch, Oliver Francis ; Benlian, Alexander (2017)
The Effect of Free Sampling Strategies on Premium Conversion Rates.
In: Electronic Markets, 27 (1)
doi: 10.1007/s12525-016-0236-z
Artikel, Bibliographie

Kurzbeschreibung (Abstract)

Freemium business models, where companies offer a free basic and a value-enhanced paid version of a product, have become ubiquitous across software, games and a broad range of web services. Despite the many benefits of freemium, most firms suffer from too few premium subscribers (3–5 %), which challenges their profitability. Although free trials have helped improve premium conversions, research hitherto has paid little attention towards what works effectively. Therefore, we examine the effect of two common free trial strategies on consumers’ conversion likelihood: Freefirst, where consumers start in the free and then opt into a trial of the premium version and Premiumfirst, where things are experienced in reverse order. Based on a contest-based online experiment with 225 subjects, our analysis reveals that in contrast to Freefirst, Premiumfirst significantly increases conversion propensity and that this positive effect is greater when the premium and the free version are more similar.

Typ des Eintrags:	Artikel
Erschienen:	2017
Autor(en):	Koch, Oliver Francis ; Benlian, Alexander
Art des Eintrags:	Bibliographie
Titel:	The Effect of Free Sampling Strategies on Premium Conversion Rates
Sprache:	Englisch
Publikationsjahr:	2017
Ort:	Heidelberg
Verlag:	Springer Nature
Titel der Zeitschrift, Zeitung oder Schriftenreihe:	Electronic Markets
Jahrgang/Volume einer Zeitschrift:	27
(Heft-)Nummer:	1
DOI:	10.1007/s12525-016-0236-z
Kurzbeschreibung (Abstract):	Freemium business models, where companies offer a free basic and a value-enhanced paid version of a product, have become ubiquitous across software, games and a broad range of web services. Despite the many benefits of freemium, most firms suffer from too few premium subscribers (3–5 %), which challenges their profitability. Although free trials have helped improve premium conversions, research hitherto has paid little attention towards what works effectively. Therefore, we examine the effect of two common free trial strategies on consumers’ conversion likelihood: Freefirst, where consumers start in the free and then opt into a trial of the premium version and Premiumfirst, where things are experienced in reverse order. Based on a contest-based online experiment with 225 subjects, our analysis reveals that in contrast to Freefirst, Premiumfirst significantly increases conversion propensity and that this positive effect is greater when the premium and the free version are more similar.
Fachbereich(e)/-gebiet(e):	01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete > Fachgebiet Information Systems & E-Services
Hinterlegungsdatum:	23 Feb 2017 14:15
Letzte Änderung:	18 Jun 2024 06:42
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Verfügbare Versionen dieses Eintrags

• The Effect of Free Trial Strategies on Premium Conversion Rates. (deposited 07 Okt 2016 12:11)
  • The Effect of Free Trial Strategies on Premium Conversion Rates. (deposited 23 Feb 2017 14:12)
    • The Effect of Free Sampling Strategies on Premium Conversion Rates. (deposited 23 Feb 2017 14:15) [Gegenwärtig angezeigt]

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