TY - GEN
T1 - Service Pricing and Strategy Selection of Freemium Model Considering Users' Stickiness
AU - Liu, Xuwang
AU - Zhou, Biying
AU - Qi, Wei
AU - Guo, Xiwang
AU - Wang, Jiacun
AU - Tang, Ying
N1 - Publisher Copyright:
© 2022 IEEE.
PY - 2022
Y1 - 2022
N2 - In the freemium business model, how to price value-added services and design effective strategy to achieve the sustainability of value-added services promotion is of great significance to enterprises. By constructing a monopolistic freemium enterprise, this paper uses a Multinational Logit model (MNL model) to analyze value-added services pricing and two kinds of value-added services promotion strategies (the quality reduction strategy of basic product and the price discount strategy of value-added services) with heterogeneous sticky-users demand, and then discusses the optimal promotion strategy. The results show that: Both the quality reduction strategy of basic product and the price discount strategy of value-added services can have positive impacts on the profit of enterprise. The sticky users demand valuation plays a positive role in promoting the optimal profit of enterprise. The optimal promotion strategy is the price discount strategy of value-added services. This study can provide a theoretical basis and decision support for the operation and management of the freemium enterprises.
AB - In the freemium business model, how to price value-added services and design effective strategy to achieve the sustainability of value-added services promotion is of great significance to enterprises. By constructing a monopolistic freemium enterprise, this paper uses a Multinational Logit model (MNL model) to analyze value-added services pricing and two kinds of value-added services promotion strategies (the quality reduction strategy of basic product and the price discount strategy of value-added services) with heterogeneous sticky-users demand, and then discusses the optimal promotion strategy. The results show that: Both the quality reduction strategy of basic product and the price discount strategy of value-added services can have positive impacts on the profit of enterprise. The sticky users demand valuation plays a positive role in promoting the optimal profit of enterprise. The optimal promotion strategy is the price discount strategy of value-added services. This study can provide a theoretical basis and decision support for the operation and management of the freemium enterprises.
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U2 - 10.1109/SMC53654.2022.9945276
DO - 10.1109/SMC53654.2022.9945276
M3 - Conference contribution
AN - SCOPUS:85142717377
T3 - Conference Proceedings - IEEE International Conference on Systems, Man and Cybernetics
SP - 456
EP - 461
BT - 2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022 - Proceedings
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022
Y2 - 9 October 2022 through 12 October 2022
ER -