Spillover Effects and Freemium Strategy in the Mobile App Market

Published Online:https://doi.org/10.1287/mnsc.2022.4619

References

  • Aguiar L (2017) Let the music play? Free streaming and its effects on digital music consumption. Inform. Econom. Policy 41:1–14.CrossrefGoogle Scholar
  • AppAnnie (2015) The state of play: A look at the growth of Google Play. Accessed November 15, 2022, https://s3.amazonaws.com/files.appannie.com/reports/The-State-of-Play-Google-IO-2015-EN.pdf.Google Scholar
  • Appel G, Libai B, Muller E, Shachar R (2020) On the monetization of mobile apps. Internat. J. Res. Marketing. 37(1):93–107.CrossrefGoogle Scholar
  • Arora S, ter Hofstede F, Mahajan V (2017) To free, or not to free: The implications of offering free versions for the performance of paid mobile apps. J. Marketing 81(6):62–78.CrossrefGoogle Scholar
  • Bawa K, Shoemaker R (2004) The effects of free sample promotions on incremental brand sales. Marketing Sci. 23(3):345–363.LinkGoogle Scholar
  • Boudreau KJ (2018) Amateurs crowds & professional entrepreneurs as platform complementors. NBER Working Paper No. 24512, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Brecko K (2022) New features free of charge? Intertemporal product versions and pricing in the software market. Marketing Sci., ePub ahead of print August 23, https://doi.org/10.1287/mksc.2022.1389.Google Scholar
  • Chellappa RK, Mehra A (2018) Cost drivers of versioning: Pricing and product line strategies for information goods. Management Sci. 64(5):2164–2180.Google Scholar
  • Chen H, Duan W, Zhou W (2017) The interplay between free sampling and word of mouth in the online software market. Decision Support Systems 95:82–90.CrossrefGoogle Scholar
  • Cheng HK, Liu Y (2011) Optimal software free trial strategy: The impact of network externalities and consumer uncertainty. Inform. Systems Res. 23(2):488–504.LinkGoogle Scholar
  • Chevalier J, Goolsbee A (2003) Measuring prices and price competition online: Amazon.com and BarnesandNoble.com. Quant. Marketing Econom. 1(2):203–222.CrossrefGoogle Scholar
  • Chiou L, Tucker C (2013) Paywalls and the demand for news. Inform. Econom. Policy 25(2):61–69.CrossrefGoogle Scholar
  • Datta H, Knox G, Bronnenberg BJ (2017) Changing their tune: How consumers’ adoption of online streaming affects music consumption and discovery. Marketing Sci. 37(1):5–21.LinkGoogle Scholar
  • Dey D, Lahiri A (2016) Versioning: Go vertical in a horizontal market? J. Management Inform. Systems 33(2):546–572.CrossrefGoogle 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
  • 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
  • Garg R, Telang R (2013) Inferring app demand from publicly available data. Management Inform. Systems Quart. 37(4):1253–1264.CrossrefGoogle Scholar
  • Ghose A, Han SP (2014) Estimating demand for mobile applications in the new economy. Management Sci. 60(6):1470–1488.LinkGoogle Scholar
  • Godes D, Silva JC (2012) Sequential and temporal dynamics of online opinion. Marketing Sci. 31(3):448–473.LinkGoogle Scholar
  • Gu X, Kannan PK, Ma L (2018) Selling the premium in freemium. J. Marketing 82(6):10–27.CrossrefGoogle Scholar
  • Halbheer D, Stahl F, Koenigsberg O, Lehmann DR (2014) Choosing a digital content strategy: How much should be free? Internat. J. Res. Marketing 31(2):192–206.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
  • Hoang A-P, Kauffman RJ (2018) Content sampling, household informedness, and the consumption of digital information goods. J. Management Inform. Systems 35(2):575–609.CrossrefGoogle Scholar
  • Hong Y, Pavlou PA (2014) Product fit uncertainty in online markets: Nature, effects, and antecedents. Inform. Systems Res. 25(2):328–344.LinkGoogle Scholar
  • Jain D, Mahajan V, Muller E (1995) An approach for determining optimal product sampling for the diffusion of a new product. J. Production Innovation Management 12(2):124–135.CrossrefGoogle Scholar
  • Kannan PK, Pope BK, Jain S (2009) Practice prize winner—Pricing digital content product lines: A model and application for the National Academies Press. Marketing Sci. 28(4):620–636.LinkGoogle Scholar
  • Kosner AW (2015) Apple App Store revenue surge and the rise of freemium app pricing. Accessed November 15, 2022, https://www.forbes.com/sites/anthonykosner/2015/01/11/apple-app-store-revenue-surge-and-the-rise-of-the-freemium.Google Scholar
  • Kretschmer T, Peukert C (2020) Video killed the radio star? Online music videos and recorded music sales. Inform. Systems Res. 31(3):776–800.LinkGoogle Scholar
  • Kummer M, Schulte P (2019) When private information settles the bill: Money and privacy in Google’s market for smartphone applications. Management Sci. 65(8):3470–3494.LinkGoogle Scholar
  • Lahiri A, Dey D (2018) Versioning and information dissemination: A new perspective. Inform. Systems Res. 29(4):965–983.LinkGoogle Scholar
  • Lambrecht A, Misra K (2016) Fee or free: When should firms charge for online content? Management Sci. 63(4):1150–1165.LinkGoogle Scholar
  • Lee Y-J, Tan Y (2013) Effects of different types of free trials and ratings in sampling of consumer software: An empirical study. J. Management Inform. Systems 30(3):213–246.CrossrefGoogle Scholar
  • Lee C, Kumar V, Gupta S (2017) Designing freemium: Strategic balancing growth and monetization. Preprint, submitted July 26, https://dx.doi.org/10.2139/ssrn.2767135.Google Scholar
  • Lee S, Zhang J, Wedel M (2021) Managing the versioning decision over an app’s lifetime. J. Marketing 85(6):44–62.Google Scholar
  • Li X, Bresnahan T, Yin P-L (2016) Paying incumbents and customers to enter an industry: Buying downloads. Preprint, submitted September 4, https://dx.doi.org/10.2139/ssrn.2834564.Google Scholar
  • Li H, Jain S, Kannan PK (2019) Optimal design of free samples for digital products and services. J. Marketing Res. 56(3):419–438.CrossrefGoogle Scholar
  • Liang C, Shi Z, Raghu TS (2019) The spillover of spotlight: Platform recommendation in the mobile app market. Inform. Systems Res. 30(4):1296–1318.LinkGoogle Scholar
  • Liu CZ, Au YA, Choi HS (2014) Effects of freemium strategy in the mobile app market: An empirical study of Google Play. J. Management Inform. Systems 31(3):326–354.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
  • Papies D, Eggers F, Wlömert N (2011) Music for free? How free ad-funded downloads affect consumer choice. J. Acad. Marketing Sci. 39(5):777–794.CrossrefGoogle Scholar
  • Pauwels K, Weiss A (2008) Moving from free to fee: How online firms market to change their business model successfully. J. Marketing 72(3):14–31.CrossrefGoogle Scholar
  • Runge J, Wagner S, Claussen J, Klapper D (2016) Freemium pricing: Evidence from a large-scale field experiment. Preprint, submitted December 21, http://dx.doi.org/10.2139/ssrn.2888471.Google Scholar
  • Schoenmueller V, Netzer O, Stahl F (2020) The polarity of online reviews: Prevalence, drivers and implications. J. Marketing Res. 57(5):853–877.CrossrefGoogle Scholar
  • Shoemaker RW, Shoaf FR (1975) Behavioral changes in the trial of new products. J. Consumer Res. 2(2):104–109.CrossrefGoogle Scholar
  • Statista (2019) Worldwide mobile app revenues in 2014 to 2023. Accessed July 15, 2020, https://www.statista.com/statistics/269025/worldwide-mobile-app-revenue-forecast/.Google Scholar
  • Statista (2020a) Number of available applications in the Google Play store from December 2009 to September 2020. Accessed November 15, 2020, https://www.statista.com/statistics/266210/number-of-available-applications-in-the-google-play-store/.Google Scholar
  • Statista (2020b) Number of available apps in the Apple App Store from 2008 to 2020. Accessed November 15, 2020, https://www.statista.com/statistics/268251/number-of-apps-in-the-itunes-app-store-since-2008/.Google Scholar
  • Sunada T (2020) Consumer learning in a durable-goods environment and profitable free trials. Working paper, University of Rochester, Rochester, NY.Google Scholar
  • Wang C, Zhang X (2009) Sampling of information goods. Decision Support Systems 48(1):14–22.CrossrefGoogle Scholar
  • Wu F, Huberman BA (2008) How public opinion forms. Christos Papadimitriou, Shuzhong Zhang, eds. Internet and Network Economics. Lecture Notes in Computer Science (Springer, Berlin), 334–341.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.