Experience Effect in the Impact of Free Trial Promotions

Published Online:https://doi.org/10.1287/mnsc.2020.3613

References

  • Athey S, Imbens GW (2006) Identification and inference in nonlinear difference-in-differences models. Econometrica 74(2):431–497.CrossrefGoogle Scholar
  • Bala R, Bhardwaj P, Chen Y (2013) Offering pharmaceutical samples: The role of physician learning and patient payment ability. Marketing Sci. 32(3):522–527.LinkGoogle Scholar
  • Bawa K, Shoemaker R (2004) The effects of free sample promotions on incremental brand sales. Marketing Sci. 23(3):345–363.LinkGoogle Scholar
  • Chellappa RK, Shivendu S (2005) Managing piracy: Pricing and sampling strategies for digital experience goods in vertically segmented markets. Inform. Systems Res. 16(4):400–417.LinkGoogle Scholar
  • Cheng HK, Liu Y (2012) Optimal software free trial strategy: The impact of network externalities and consumer uncertainty. Inform. Systems Res. 23(2):488–504.LinkGoogle Scholar
  • Cheng HK, Tang QC (2010) Free trial or no free trial: Optimal software product design with network effects. Eur. J. Oper. Res. 205(2):437–447.CrossrefGoogle Scholar
  • Cheng HK, Li S, Liu Y (2015) Optimal software free trial strategy: Limited version, time-locked, or hybrid? Production Oper. Management 24(3):504–517.CrossrefGoogle Scholar
  • Ching AT, Erdem T, Keane MP (2013) Learning models: An assessment of progress, challenges, and new developments. Marketing Sci. 32(6):913–938.LinkGoogle Scholar
  • Datta H, Foubert B, Van Heerde HJ (2015) The challenge of retaining customers acquired with free trials. J. Marketing Res. 52(2):217–234.CrossrefGoogle Scholar
  • DeGroot MH (1970) Optimal Statistical Decisions (McGraw-Hill, New York).Google Scholar
  • Dey D, Lahiri A, Liu D (2013) Consumer learning and time-locked trials of software products. J. Management Inform. Systems 30(2):239–268.CrossrefGoogle Scholar
  • Erdem T, Keane MP (1996) Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Sci. 15(1):1–20.LinkGoogle Scholar
  • Foubert B, Gijsbrechts E (2016) Try it, you’ll like it—Or will you? The perils of early free-trial promotions for high-tech service adoption. Marketing Sci. 35(5):810–826.LinkGoogle Scholar
  • Hamm BC, Perry M, Wynn HF (1969) Effect of a free sample on image and attitude. J. Advertising Res. 9(4):35–37.Google Scholar
  • Haugh L (1979) Build franchise through sampling. Advertising Age 50(47):64.Google Scholar
  • Heckman J, Robb R (1985) Alternative methods for evaluating the impact of interventions: An overview. J. Econometrics 30(1–2):239–267.CrossrefGoogle Scholar
  • Heckman J, Robb R (1986) Alternative methods for solving the problem of selection bias in evaluating the impact of treatments on outcomes. Wainer H, ed. Drawing Inferences from Self-Selected Samples (Springer, New York), 63–107.CrossrefGoogle Scholar
  • Heckman J, Ichimura H, Todd PE (1997) Matching as an econometric evaluation estimator: Evidence from evaluating a job training programme. Rev. Econom. Stud. 64(4):605–654.CrossrefGoogle Scholar
  • Heckman J, Ichimura H, Smith J, Todd P (1998) Characterizing selection bias using experimental data. Econometrica 66(5):1017–1098.CrossrefGoogle Scholar
  • Heiman A, Muller E (1996) Using demonstration to increase new product acceptance: Controlling demonstration time. J. Marketing Res. 33(4):422–430.CrossrefGoogle Scholar
  • Heiman A, McWilliams B, Shen Z, Zilberman D (2001) Learning and forgetting: Modeling optimal product sampling over time. Management Sci. 47(4):532–546.LinkGoogle Scholar
  • Imbens GW, Wooldridge JM (2009) Recent developments in the econometrics of program evaluation. J. Econom. Literature 47(1):5–86.CrossrefGoogle Scholar
  • Iyengar R, Ansari A, Gupta S (2007) A model of consumer learning for service quality and usage. J. Marketing Res. 44(4):529–544.CrossrefGoogle Scholar
  • Jain D, Mahajan V, Muller E (1995) An approach for determining optimal product sampling for the diffusion of a new product. J. Product Innovation Management 12(2):124–135.CrossrefGoogle Scholar
  • Jensen R (2007) The digital provide: Information (technology), market performance, and welfare in the South Indian fisheries sector. Quart. J. Econom. 122(3):879–924.CrossrefGoogle Scholar
  • Joseph K, Mantrala M (2009) A model of the role of free drug samples in physicians’ prescription decisions. Marketing Lett. 20(1):15–29.CrossrefGoogle Scholar
  • Kim JH, Allenby GM, Rossi PE (2002) Modeling consumer demand for variety. Marketing Sci. 21(3):229–250.LinkGoogle Scholar
  • Kim JY, Natter M, Spann M (2014) Sampling, discounts or pay-what-you-want: Two field experiments. Internat. J. Res. Marketing 31(3):327–334.CrossrefGoogle Scholar
  • Lambrecht A, Tucker C (2013) When does retargeting work? Information specificity in online advertising. J. Marketing Res. 50(5):561–576.CrossrefGoogle Scholar
  • Lehmann DR, Esteban-Bravo M (2006) When giving some away makes sense to jump-start the diffusion process. Marketing Lett. 17(4):243–254.CrossrefGoogle Scholar
  • Lim N, Ahearne MJ, Ham SH (2009) Designing sales contests: Does the prize structure matter? J. Marketing Res. 46(3):356–371.CrossrefGoogle Scholar
  • Ling R, Oreglia E, Aricat R, Panchapakesan C, O’Lwin M (2015) The use of mobile phones among trishaw operators in Myanmar. Internat. J. Comm. 9:3583–3600.Google Scholar
  • Lucas AM, Mbiti IM (2012) Access, sorting, and achievement: The short-run effects of free primary education in Kenya. Amer. Econom. J. Appl. Econom. 4(4):226–253.CrossrefGoogle Scholar
  • Manchanda P, Chintagunta PK (2004) Responsiveness of physician prescription behavior to salesforce effort: An individual level analysis. Marketing Lett. 15(2):129–145.CrossrefGoogle Scholar
  • Manchanda P, Xie Y, Youn N (2008) The role of targeted communication and contagion in product adoption. Marketing Sci. 27(6):961–976.LinkGoogle Scholar
  • McGuinness D, Gendall P, Mathew S (1992) The effect of product sampling on product trial, purchase and conversion. Internat. J. Advertising 11(1):83–92.CrossrefGoogle Scholar
  • Meyer E (1982) Sampling builds better business. Advertising Age 53(29):M–22.Google Scholar
  • Miller G, Mobarak AM (2014) Learning about new technologies through social networks: Experimental evidence on nontraditional stoves in Bangladesh. Marketing Sci. 34(4):480–499.LinkGoogle Scholar
  • Mizik N, Jacobson R (2004) Are physicians “easy marks”? Quantifying the effects of detailing and sampling on new prescriptions. Management Sci. 50(12):1704–1715.LinkGoogle Scholar
  • Montoya R, Netzer O, Jedidi K (2010) Dynamic allocation of pharmaceutical detailing and sampling for long-term profitability. Marketing Sci. 29(5):909–924.LinkGoogle Scholar
  • Nelson P (1970) Information and consumer behavior. J. Political Econom. 78(2):311–329.CrossrefGoogle Scholar
  • Niculescu MF, Wu DJ (2014) Economics of free under perpetual licensing: Implications for the software industry. Inform. Systems Res. 25(1):173–199.LinkGoogle Scholar
  • Park CH, Park YH, Schweidel DA (2018) The effects of mobile promotions on customer purchase dynamics. Internat. J. Res. Marketing 35(3):453–470.CrossrefGoogle Scholar
  • Poushter J (2016) Smartphone ownership and internet use continues to climb in emerging economies. Pew Research Center Global Attitudes & Trends (February 22), https://www.pewresearch.org/global/2016/02/22/smartphone-ownership-and-internet-usage-continues-to-climb-in-emerging-economies/.Google Scholar
  • Prahalad CK (2012) Bottom of the pyramid as a source of breakthrough innovations. J. Product Innovation Management 29(1):6–12.CrossrefGoogle Scholar
  • Rabin RC (2007) Free drug samples? Bad idea, some say. New York Times (May 1), https://www.nytimes.com/2007/05/01/health/01cons.html.Google Scholar
  • Sahni NS, Wheeler SC, Chintagunta P (2018) Personalization in email marketing: The role of noninformative advertising content. Marketing Sci. 37(2):236–258.LinkGoogle Scholar
  • Scott CA (1976) The effects of trial and incentives on repeat purchase behavior. J. Marketing Res. 13(3):263–269.CrossrefGoogle Scholar
  • Scott CA, Yalch RF (1980) Consumer response to initial product trial: A Bayesian analysis. J. Consumer Res. 7(1):32–41.CrossrefGoogle Scholar
  • Smith JA, Todd PE (2005) Does matching overcome Lalonde’s critique of nonexperimental estimators? J. Econometrics 125(1–2):305–353.CrossrefGoogle Scholar
  • Smith RE, Swinyard WR (1983) Attitude-behavior consistency: The impact of product trial vs. advertising. J. Marketing Res. 20(3):257–267.CrossrefGoogle Scholar
  • Tucker C, Zhang J (2011) How does popularity information affect choices? A field experiment. Management Sci. 57(5):828–842.LinkGoogle Scholar
  • Wang CA, Zhang XM (2009) Sampling of information goods. Decision Support Systems 48(1):14–22.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.