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Optimizing the composition of paid content in a freemium model
Schmitt, Daniela
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Stahl, Florian
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Iyengar, Raghuram
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Dokumenttyp:
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Präsentation auf Konferenz
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Erscheinungsjahr:
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2018
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Veranstaltungstitel:
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2018 INFORMS 40th Annual ISMS Marketing Science Conference
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Veranstaltungsort:
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Philadelphia, PA
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Veranstaltungsdatum:
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13.-16.06.2018
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Sprache der Veröffentlichung:
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Englisch
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Einrichtung:
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Fakultät für Betriebswirtschaftslehre > Quantitatives Marketing und Konsumentenverhalten (Stahl 2013-)
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Fachgebiet:
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330 Wirtschaft
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Freie Schlagwörter (Englisch):
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Digital Product Management , Freemium Business Model , Customer Subscription Behavior
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Abstract:
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Many companies try to sell subscriptions for their digital products using a freemium revenue model. Such a business model typically implies offering a low-end version of the product for free and a high-end version for a fee. For instance, a news publisher may offer some content for free to all customers while placing other content behind a paywall. Little is known about how the characteristics of the content determine whether it would be free or paid. Using individual-level consumption data from an online news publisher that employs a freemium model, we quantify the impact of the quality and quantity of paid content on the demand for subscriptions. Using the findings from our empirical analysis, we develop a framework for setting a freemium strategy (i.e., the ratio of free versus paid content) optimal for revenue maximization.
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 Suche Autoren in
BASE:
Schmitt, Daniela
;
Stahl, Florian
;
Iyengar, Raghuram
Google Scholar:
Schmitt, Daniela
;
Stahl, Florian
;
Iyengar, Raghuram
ORCID:
Schmitt, Daniela, Stahl, Florian  ORCID: https://orcid.org/0000-0002-2846-3424 and Iyengar, Raghuram
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