Pricing and monetizationEvidence check: 4.0/5
Tian, L., & Feinberg, F. M. (2020). Marketing Science, 39(6), 1181–1198.
Plain-English take: The experiment shows that overall price increases reduce opting in and selection of higher-priced plans. For your marketing: This is a useful design for testing both conversion and plan mix when changing monthly/annual prices.
Question: How should subscription businesses set menus that combine different commitment lengths and duration discounts?
Design: Randomized online pricing field experiment and choice model. Users considering subscription plans on a major online dating service.
The experiment shows that overall price increases reduce opting in and selection of higher-priced plans. Their joint model estimates different substitution patterns from standard choice models and suggests the studied firm priced its menu too low, especially its longest commitment.
Marketing Science · 202010.1287/mksc.2020.1265Publisher abstract; full text may require access
Pricing and monetizationEvidence check: 2.5/5
Shi, Z. (June), Zhang, K., & Srinivasan, K. (2019). Marketing Science, 38(1), 150–169.
Plain-English take: Even with network effects, freemium is typically not optimal in the model. For your marketing: This is a counterpoint to blanket advice that free plans always accelerate network growth.
Question: When should a firm offer a free low-end product when users' adoption creates network effects?
Design: Analytical model of pricing and network effects. Theory paper; it does not analyze a firm-level empirical sample.
Even with network effects, freemium is typically not optimal in the model. It can become optimal when the higher-end product benefits more from user-base growth than the low-end product; under some conditions the low-end product's quality may be raised rather than reduced.
Marketing Science · 201910.1287/mksc.2018.1109Publisher abstract; full text may require access
Pricing and monetizationEvidence check: 3.0/5
Niculescu, M. F., & Wu, D. J. (2014). Information Systems Research, 25(1), 173–199.
Plain-English take: The preferred strategy depends on customer beliefs about functionality, cross-module synergies, word-of-mouth effects, and the number of periods. For your marketing: This is a software-specific framework for distinguishing free trials, free plans, and seeding.
Question: When should software firms use free seeding or feature-limited freemium under perpetual licensing?
Design: Analytical model of software pricing and consumer learning. Theory paper focused on software business models; no empirical sample.
The preferred strategy depends on customer beliefs about functionality, cross-module synergies, word-of-mouth effects, and the number of periods. Free seeding can be optimal when users underestimate functionality and synergies are weak; stronger word of mouth can expand the region where seeding is optimal.
Information Systems Research · 201410.1287/isre.2013.0508Publisher abstract and author-hosted full-text PDF
Pricing and monetizationEvidence check: 3.5/5
Saltan, A., & Smolander, K. (2021). Information and Software Technology, 133, 106510.
Plain-English take: The review maps SaaS pricing approaches, influencing factors, and provider challenges, identifying gaps between academic evidence and industry practice. For your marketing: Directly relevant background for SaaS pricing decisions and research gaps.
Question: What does academic and practitioner literature say about SaaS pricing practices, approaches, and challenges?
Design: Multivocal literature review. A synthesis of published research and publicly available practitioner literature on SaaS pricing; not a single company sample.
The review maps SaaS pricing approaches, influencing factors, and provider challenges, identifying gaps between academic evidence and industry practice.
Information and Software Technology · 202110.1016/j.infsof.2021.106510Publisher abstract and repository record; open full text availability varies
Pricing and monetizationEvidence check: 2/5
Jie Yang, Youngkyung Kwon (2024). Are digital content subscription services still thriving? Analyzing the conflict between innovation adoption and resistance. Journal of Innovation & Knowledge. https://doi.org/10.1016/j.jik.2024.100581
Plain-English take: Compatibility increased actual usage; trialability and tradition barriers reduced actual usage; actual usage increased continuous purchase intention.
Question: Are digital content subscription services still thriving? Analyzing the conflict between innovation adoption and resistance?
Design: Cross-sectional questionnaire survey with structural relationships tested empirically. 250 Japanese digital-content subscription subscribers
Compatibility increased actual usage; trialability and tradition barriers reduced actual usage; actual usage increased continuous purchase intention.
Journal of Innovation & Knowledge · 202410.1016/j.jik.2024.100581Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 3/5
Peter S. Fader, Bruce G. S. Hardie (2007). Competitive Pricing of Information: A Longitudinal Experiment. Journal of Marketing Research. https://doi.org/10.1509/jmkr.44.1.42
Plain-English take: Price response evolved over time and depended on competitive context; static elasticity assumptions missed important dynamic behavior.
Question: Competitive Pricing of Information: A Longitudinal Experiment?
Design: Longitudinal pricing experiment with repeated customer responses to alternative information prices.. Consumers purchasing/accessing information products in a competitive market setting.
Price response evolved over time and depended on competitive context; static elasticity assumptions missed important dynamic behavior.
Journal of Marketing Research · 200710.1509/jmkr.44.1.42Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 2/5
A. K. Ghosh, S. P. McAfee, P. K. Kannan (2006). Consumer Preferences and Product-Line Pricing Strategies: An Empirical Analysis. Marketing Science. https://doi.org/10.1287/mksc.1050.0126
Plain-English take: Heterogeneous preferences and substitution patterns materially affect optimal line design and prices; single-product pricing rules can be misleading.
Question: Consumer Preferences and Product-Line Pricing Strategies: An Empirical Analysis?
Design: Empirical discrete-choice/market-data analysis of product-line demand and pricing.. Consumers choosing among differentiated products within a product line.
Heterogeneous preferences and substitution patterns materially affect optimal line design and prices; single-product pricing rules can be misleading.
Marketing Science · 200610.1287/mksc.1050.0126Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 2/5
Peter S. Fader, Bruce G. S. Hardie (2009). An Empirical Investigation of the Dynamic Effect of Marlboro's Permanent Pricing Shift. Marketing Science. https://doi.org/10.1287/mksc.1080.0446
Plain-English take: A permanent price change had dynamic, asymmetric effects on brand demand and competitive response rather than only an immediate static effect.
Question: An Empirical Investigation of the Dynamic Effect of Marlboro's Permanent Pricing Shift?
Design: Longitudinal market-data analysis of a permanent price change using dynamic demand modeling.. U.S. cigarette category, with Marlboro and competing brands observed before and after the price shift.
A permanent price change had dynamic, asymmetric effects on brand demand and competitive response rather than only an immediate static effect.
Marketing Science · 200910.1287/mksc.1080.0446Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 3/5
S. Li, X. Lu, Z. Wang (2024). For-Sale-by-Owner Platforms and Intermediation Pricing: Evidence from a Natural Experiment. Marketing Science. https://doi.org/10.1287/mksc.2022.0245
Plain-English take: Intermediation prices affect participation and transaction outcomes; platform design changes redistribute activity between owners and intermediaries.
Question: For-Sale-by-Owner Platforms and Intermediation Pricing: Evidence from a Natural Experiment?
Design: Natural experiment exploiting a platform pricing/policy change, with difference-in-differences style comparisons.. Online real-estate listings and transactions involving for-sale-by-owner and intermediary services.
Intermediation prices affect participation and transaction outcomes; platform design changes redistribute activity between owners and intermediaries.
Marketing Science · 202410.1287/mksc.2022.0245Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 2/5
A. K. Singh, S. Sharma, R. K. Verma (2024). A comparative investigation of factors affecting customer retention in the subscription economy. Heliyon. https://doi.org/10.1016/j.heliyon.2024.e36919
Plain-English take: Perceived value, satisfaction, trust, and service quality were significant retention correlates, with relative importance varying by service type.
Question: A comparative investigation of factors affecting customer retention in the subscription economy?
Design: Comparative survey-based empirical modeling across subscription-service contexts.. Users of subscription-based digital services.
Perceived value, satisfaction, trust, and service quality were significant retention correlates, with relative importance varying by service type.
Heliyon · 202410.1016/j.heliyon.2024.e36919Publisher article page; full-text availability varies and was not established in this review.
Pricing and monetizationEvidence check: 4/5
Miguel Godinho de Matos, Pedro Ferreira (2020). The Effect of Binge-Watching on the Subscription of Video on Demand: Results from Randomized Experiments. Information Systems Research. https://doi.org/10.1287/isre.2020.0948
Plain-English take: Binge-watchers were less likely to pay after free trials, consistent with quickly exhausting preferred content. Recommendation reminders broadened preferences and reduced this negative effect.
Question: What does the effect of binge-watching on the subscription of video on demand: results from randomized experiments show about customer behavior or marketing outcomes?
Design: Two randomized field experiments: randomly selected households received SVoD access for several weeks and another random set served as control. Outcomes were binge-watching and subsequent payment; a recommendation-reminder intervention tested whether broader discovery offsets the effect.. Households offered subscription video-on-demand free trials; exact N and platform are not given in the publisher abstract.
Binge-watchers were less likely to pay after free trials, consistent with quickly exhausting preferred content. Recommendation reminders broadened preferences and reduced this negative effect.
Information Systems Research · 202010.1287/isre.2020.0948Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 3/5
Renée B. B. M. van den Berg, Maarten C. W. Janssen (2021). Drip Pricing and Its Regulation: Experimental Evidence. Journal of Economic Behavior & Organization. https://doi.org/10.1016/j.jebo.2020.10.023
Plain-English take: The experiment tests whether drip pricing changes buyer behavior and seller pricing relative to more transparent presentation; it provides causal evidence on the behavioral and regulatory consequences of separating headline and add-on prices.
Question: What does drip pricing and its regulation: experimental evidence show about customer behavior or marketing outcomes?
Design: Laboratory experiment in which sellers set a base/headline price and a later drip price; buyers initially saw only the base price and then encountered the additional price, allowing comparison of transparency/regulatory conditions and buyer decisions.. Experimental buyers and sellers in a controlled pricing market; the publisher abstract describes the two-price seller treatment and buyers' tentative decisions, but the accessible page does not report the participant count.
The experiment tests whether drip pricing changes buyer behavior and seller pricing relative to more transparent presentation; it provides causal evidence on the behavioral and regulatory consequences of separating headline and add-on prices.
Journal of Economic Behavior & Organization · 202110.1016/j.jebo.2020.10.023Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 4/5
Miguel Godinho de Matos, Samir Mamadehussene, Pedro Ferreira (2025). When Less Is More: Content Strategies for Subscription Video on Demand. Marketing Science. https://doi.org/10.1287/mksc.2023.0106
Plain-English take: Drip release increased engagement and content exploration; Drip users were 48% more likely to continue using the platform than all-at-once users. Effects diminished for extreme binge-watchers.
Question: What does when less is more: content strategies for subscription video on demand show about customer behavior or marketing outcomes?
Design: Randomized field trial at a video-on-demand platform comparing all-at-once versus gradual (Drip) episode release; outcomes include engagement, content exploration, continued use, searches, and subscription rates, with heterogeneity by viewing preference.. Users of a video-on-demand platform; the publisher page does not report exact N in its abstract. Data were supplied by an industry partner.
Drip release increased engagement and content exploration; Drip users were 48% more likely to continue using the platform than all-at-once users. Effects diminished for extreme binge-watchers.
Marketing Science · 202510.1287/mksc.2023.0106Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 2/5
Sadat Reza, Hillbun Ho, Rich Ling, Hongyan Shi (2021). Experience Effect in the Impact of Free Trial Promotions. Management Science. https://doi.org/10.1287/mnsc.2020.3613
Plain-English take: Initial usage predicted redemption and subsequent usage change: redemption rose from low- to high-percentile users, while usage change rose weakly monotonically through the 90th percentile and was generally insignificant above it.
Question: What does experience effect in the impact of free trial promotions show about customer behavior or marketing outcomes?
Design: Empirical analysis of pre- and post-promotion mobile-data usage from a telecom firm, examining initial usage as a determinant of offer redemption and post-redemption usage change; the article also develops an analytical model.. Telecom-firm customers receiving a free-sample promotion for an experience good; usage distribution is analyzed through at least the 90th percentile.
Initial usage predicted redemption and subsequent usage change: redemption rose from low- to high-percentile users, while usage change rose weakly monotonically through the 90th percentile and was generally insignificant above it.
Management Science · 202110.1287/mnsc.2020.3613Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 2/5
Junha Kim, Selin A. Malkoc, Joseph K. Goodman (2021). Just-Below Pricing Discourages Consumers to Upgrade. Journal of Consumer Research. https://doi.org/10.1093/jcr/ucab049
Plain-English take: When the base product is priced at or just above a round-number threshold, consumers are more likely to upgrade and spend more. The proposed mechanism is that the upgrade is perceived as less expensive and consumers place less weight on price.
Question: What does just-below pricing discourages consumers to upgrade show about customer behavior or marketing outcomes?
Design: Seven empirical studies, including a field study, compared just-below prices with round or just-above prices and measured upgrade choice, spending, perceived expensiveness, and price weighting; the paper reports field, lab, and incentive-compatible purchase designs.. Consumers across six product categories in laboratory studies plus a real-purchase field setting; the accessible full-text record explicitly reports a field study, six lab experiments, real purchase behavior, and a coffee/food field manipulation.
When the base product is priced at or just above a round-number threshold, consumers are more likely to upgrade and spend more. The proposed mechanism is that the upgrade is perceived as less expensive and consumers place less weight on price.
Journal of Consumer Research · 202110.1093/jcr/ucab049Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 4/5
Haibing Gao, Subodha Kumar, Yinliang (Ricky) Tan, Huazhong Zhao (2022). Socialize More, Pay Less: Randomized Field Experiments on Social Pricing. Information Systems Research. https://doi.org/10.1287/isre.2021.1089
Plain-English take: Social pricing increased profit from existing consumers by 40% relative to regular discounts. Perceived engagement and social cost increased purchasing frequency and order value; a heterogeneity-based interaction rule amplified benefits.
Question: What does socialize more, pay less: randomized field experiments on social pricing show about customer behavior or marketing outcomes?
Design: Two randomized field experiments at an online fresh-food retailer compared social-pricing rules with regular firm-offered discounts; outcomes included purchase frequency, order value, and profit, with mechanisms tested via perceived engagement and social cost.. Leading online fresh-food retailer; two randomized field experiments and a follow-up experiment varying whether social interaction required heterogeneity in purchasing frequency.
Social pricing increased profit from existing consumers by 40% relative to regular discounts. Perceived engagement and social cost increased purchasing frequency and order value; a heterogeneity-based interaction rule amplified benefits.
Information Systems Research · 202210.1287/isre.2021.1089Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 3/5
Per Kristian Alnes, Erik Haugom (2024). The effects of price framing and magnitude of price differences on perceived fairness when switching from static to variable pricing. Journal of Retailing and Consumer Services. https://doi.org/10.1016/j.jretconser.2024.103952
Plain-English take: Both price framing and the size of the high-versus-low price difference strongly affected perceived fairness. Larger differences reduced fairness; gain and loss frames had asymmetric effects, and effects varied by early-bird horizon.
Question: What does the effects of price framing and magnitude of price differences on perceived fairness when switching from static to variable pricing show about customer behavior or marketing outcomes?
Design: Experimental data from the alpine-skiing industry manipulated the magnitude of the price difference and framed the difference as a gain or loss, in scenarios involving intra-weekly variable prices and early-bird discounts; perceived fairness was the principal outcome.. Alpine-skiing pricing scenarios; the publisher abstract verifies the industry, experimental design, price manipulations, and early-bird/intra-weekly settings, but does not report the participant count in the accessible abstract.
Both price framing and the size of the high-versus-low price difference strongly affected perceived fairness. Larger differences reduced fairness; gain and loss frames had asymmetric effects, and effects varied by early-bird horizon.
Journal of Retailing and Consumer Services · 202410.1016/j.jretconser.2024.103952Publisher page; full-text availability varies and was not established.
Pricing and monetizationEvidence check: 2/5
Lena Steinhoff, Jisu J. Kim, Vamsi K. Kanuri, Robert W. Palmatier (2025). Unintended consequences of selling B2B digital subscription add-ons for customer onboarding. Journal of the Academy of Marketing Science. https://doi.org/10.1007/s11747-025-01088-3
Plain-English take: More add-on services significantly decreased onboarding-stage retention, and leaner communication channels aggravated attrition. Perceived complexity was identified as the likely mechanism. Add-on bundling had a positive effect on post-onboarding retention, and the negative onboarding effect was not uniform across add-on types.
Question: What does unintended consequences of selling b2b digital subscription add-ons for customer onboarding show about customer decisions or business outcomes?
Design: Multimethod empirical research: theories-in-use interviews, archival field study of a B2B SaaS provider, and cross-industry survey of B2B managers.. Nine managers at the provider and seven representatives of customer firms in the exploratory interviews; CRM data covering 74,871 subscription contracts (new clients, January 2015–May 2018, 37 countries); survey of 297 B2B SaaS managers.
More add-on services significantly decreased onboarding-stage retention, and leaner communication channels aggravated attrition. Perceived complexity was identified as the likely mechanism. Add-on bundling had a positive effect on post-onboarding retention, and the negative onboarding effect was not uniform across add-on types.
Journal of the Academy of Marketing Science · 202510.1007/s11747-025-01088-3Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 4/5
Jingcun Cao, Pradeep Chintagunta, Shibo Li (2023). From Free to Paid: Monetizing a Non-Advertising-Based App. Journal of Marketing Research. https://doi.org/10.1177/00222437221131562
Plain-English take: Soft landing and exclusive secondary offerings each reduced existing users' willingness to subscribe, but their interaction was positive. A second field experiment produced consistent results, and the paper reports the firm's implementation of the best-performing strategy.
Question: What does from free to paid: monetizing a non-advertising-based app show about customer decisions or business outcomes?
Design: Large-scale randomized field experiment with an app firm comparing hard versus soft landing paywalls and exclusive secondary offerings; supplemented by a firm customer survey, a Prolific experiment, a second field experiment, robustness checks, and implementation of the best-performing strategy.. Existing users of the app firm in the randomized field experiments; the accessible publisher abstract does not report the experiment sample sizes.
Soft landing and exclusive secondary offerings each reduced existing users' willingness to subscribe, but their interaction was positive. A second field experiment produced consistent results, and the paper reports the firm's implementation of the best-performing strategy.
Journal of Marketing Research · 202310.1177/00222437221131562Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 2/5
Nina Lehmann-Zschunke (2024). What factors influence termination behaviour on freemium platforms? An empirical analysis of the termination probability among paying users. Journal of Consumer Behaviour. https://doi.org/10.1002/cb.2363
Plain-English take: Termination probability was greater for shorter subscriptions and for users who had previously terminated a subscription. High-involvement premium users, members receiving notifications about new content, and users with more video views were less likely to terminate.
Question: What does what factors influence termination behaviour on freemium platforms? an empirical analysis of the termination probability among paying users show about customer decisions or business outcomes?
Design: Archival observational study using logistic regression to examine factors associated with paying-user termination probability.. Data from 20,319 paying users of a freemium platform offering information on equestrian sports.
Termination probability was greater for shorter subscriptions and for users who had previously terminated a subscription. High-involvement premium users, members receiving notifications about new content, and users with more video views were less likely to terminate.
Journal of Consumer Behaviour · 202410.1002/cb.2363Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 4/5
Xueming Luo, Le Wang, Qingsheng Wu, Takeshi Moriguchi (2025). From Stopping to Shopping: A Field Experiment on Free Return and Free Shipping Retargeting Policies in Online Retail Operations. Manufacturing & Service Operations Management. https://doi.org/10.1287/msom.2024.0779
Plain-English take: Simple product reminders did not significantly increase purchases. Late-stage FSR and FRR increased purchase rates by 18.6% and 31.6%, respectively, and targeting profitability by 28.2% and 37.8%, respectively. FRR was especially effective for younger, less-experienced customers and higher-value abandoned products; FSR was more effective for older, longer-tenured customers and lower-priced products.
Question: What does from stopping to shopping: a field experiment on free return and free shipping retargeting policies in online retail operations show about customer decisions or business outcomes?
Design: Online-retail field experiment evaluating retargeting offers of free shipping (FSR) and free returns (FRR), with causal-forest analyses of treatment-effect heterogeneity.. Consumers who visited an online store and left without purchasing; the fetched abstract does not report a numeric sample size.
Simple product reminders did not significantly increase purchases. Late-stage FSR and FRR increased purchase rates by 18.6% and 31.6%, respectively, and targeting profitability by 28.2% and 37.8%, respectively. FRR was especially effective for younger, less-experienced customers and higher-value abandoned products; FSR was more effective for older, longer-tenured customers and lower-priced products.
Manufacturing & Service Operations Management · 202510.1287/msom.2024.0779Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 2/5
Christian Kowalkowski, Wolfgang Ulaga (2024). Subscription offers in business-to-business markets: Conceptualization, taxonomy, and framework for growth. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2024.01.014
Plain-English take: The study identifies four common characteristics of B2B subscriptions and classifies offers into four categories using service focus and resource integration. It reports that subscriptions can support growth by testing innovations, accelerating monetization opportunities, and enhancing customer experience, while requiring changes beyond portfolio management in capabilities, processes, and structure.
Question: What does subscription offers in business-to-business markets: conceptualization, taxonomy, and framework for growth show about customer decisions or business outcomes?
Design: Qualitative empirical study using an exploratory stage with workshops and a second stage of semi-structured, in-depth interviews; the article develops a taxonomy of B2B subscription offers and discusses growth implications.. Stage 1: 23 professionals from 12 companies in two workshops. Stage 2: 25 interviews with 27 executives from 15 European and Asian firms, ranging from approximately 250 to almost 100,000 employees; the interviewed subscription initiatives operated across multiple world regions.
The study identifies four common characteristics of B2B subscriptions and classifies offers into four categories using service focus and resource integration. It reports that subscriptions can support growth by testing innovations, accelerating monetization opportunities, and enhancing customer experience, while requiring changes beyond portfolio management in capabilities, processes, and structure.
Industrial Marketing Management · 202410.1016/j.indmarman.2024.01.014Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 3/5
M. J. del Rio Olivares, Kristina Wittkowski, Jaakko Aspara, Tomas Falk, Pekka Mattila (2018). Relational Price Discounts: Consumers' Metacognitions and Nonlinear Effects of Initial Discounts on Customer Retention. Journal of Marketing. https://doi.org/10.1509/jm.16.0267
Plain-English take: Initial discounts had a nonlinear association with retention: moderate discounts of 5%–35% were positive, while discounts below 5% and above 35% were negative. Relative to low and high discounts, moderate discounts produced higher expectations of future relational benefits and lower expectations of future discounts.
Question: What does relational price discounts: consumers' metacognitions and nonlinear effects of initial discounts on customer retention show about customer decisions or business outcomes?
Design: Two large-scale field studies in an insurance company's car-insurance and property-insurance branches, plus a laboratory experiment testing the proposed psychological mechanism.. Customers in the two insurance-branch field studies, plus laboratory-experiment participants; the accessible publisher abstract does not report counts.
Initial discounts had a nonlinear association with retention: moderate discounts of 5%–35% were positive, while discounts below 5% and above 35% were negative. Relative to low and high discounts, moderate discounts produced higher expectations of future relational benefits and lower expectations of future discounts.
Journal of Marketing · 201810.1509/jm.16.0267Publisher article page; full-text access varies and was not established in this check.
Pricing and monetizationEvidence check: 2.5/5
Kristina Brecko (2023). New Features Free of Charge? Intertemporal Product Versions and Pricing in the Software Market. Marketing Science. https://doi.org/10.1287/mksc.2022.1389.
Plain-English take: The paper empirically documents how firms decide whether to give new features free or charge for upgrades (the publisher abstract identifies the study as an empirical software-market study). For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: When should software firms make new features free versus use paid upgrades across product versions?
Design: Empirical study using software-firm data on intertemporal product versions and upgrade pricing.. Software industry; firm-level product/version and upgrade-pricing decisions.
The paper empirically documents how firms decide whether to give new features free or charge for upgrades (the publisher abstract identifies the study as an empirical software-market study).
Marketing Science · 202310.1287/mksc.2022.1389Publisher record and abstract retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 2.5/5
Y-J. Lee, Y. Tan (2013). Effects of Different Types of Free Trials and Ratings in Sampling of Consumer Software: An Empirical Study. Journal of Management Information Systems. https://doi.org/10.2753/MIS0742-1222300209.
Plain-English take: Trial format and ratings affect software sampling/adoption outcomes, demonstrating that “free trial” design and social information jointly matter. For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How do free-trial format and ratings influence consumer software sampling and adoption?
Design: Empirical study testing free-trial types and ratings in consumer-software sampling.. Consumer software sampling; users exposed to alternative free-trial formats and rating information.
Trial format and ratings affect software sampling/adoption outcomes, demonstrating that “free trial” design and social information jointly matter.
Journal of Management Information Systems · 201310.2753/MIS0742-1222300209Publisher abstract/metadata retrieved; full text may require access.
Pricing and monetizationEvidence check: 4/5
Jean-Pierre Dubé, Giovanni Gallant, Jean-Pierre Misra (2023). Personalized Pricing and Consumer Welfare. Journal of Political Economy. https://doi.org/10.1086/720793.
Plain-English take: Data-driven personalized pricing increased profits out of sample; first experiment revealed substantial unexercised market power. For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: Can randomized price experiments support personalized prices, and what are their profit and welfare implications?
Design: Two randomized controlled pricing field experiments: first trains heterogeneous price-response model; second tests recommendations out of sample.. Large online service marketplace (ZipRecruiter); new consumers randomly quoted monthly prices.
Data-driven personalized pricing increased profits out of sample; first experiment revealed substantial unexercised market power.
Journal of Political Economy · 202310.1086/720793Publisher record and abstract retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 3.5/5
Ying Fan, John D. List, Liyan Shi (2023). Price Discrimination by Negotiation: a Field Experiment in Retail Electricity. The Quarterly Journal of Economics. https://doi.org/10.1093/qje/qjac020.
Plain-English take: Negotiation generated price discrimination; the experiment identifies negotiated prices and their determinants. For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How does negotiation create price discrimination when firms also post prices?
Design: Field experiment randomizing/observing negotiation opportunities and prices in retail electricity.. Retail electricity customers in a posted-price-plus-negotiation market.
Negotiation generated price discrimination; the experiment identifies negotiated prices and their determinants.
The Quarterly Journal of Economics · 202310.1093/qje/qjac020Publisher abstract/metadata retrieved; full text may require access.
Pricing and monetizationEvidence check: 2.5/5
Utpal M. Dholakia (2016). How Effective Are Groupon Promotions for Businesses?. Management Science. https://doi.org/10.1287/mnsc.2016.2666.
Plain-English take: Promotion effectiveness varies substantially by business and deal execution; the study evaluates whether deals are profitable rather than assuming sales volume equals success. For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: Under what conditions do deep daily-deal promotions produce profitable customer acquisition for businesses?
Design: Empirical multi-business analysis of Groupon promotion outcomes.. Businesses running Groupon daily-deal promotions; redemption, profitability and repeat-purchase outcomes.
Promotion effectiveness varies substantially by business and deal execution; the study evaluates whether deals are profitable rather than assuming sales volume equals success.
Management Science · 201610.1287/mnsc.2016.2666Publisher record and abstract retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 2.5/5
Teresa M. McCarthy Byrne, Mark A. Moon, John T. Mentzer (2011). Motivating the industrial sales force in the sales forecasting process. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2010.06.003.
Plain-English take: Analyzes motivational mechanisms affecting industrial sales-force participation in forecasting. For your marketing: Use the study to frame a pricing or packaging hypothesis and identify outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How can industrial salespeople be motivated to contribute to forecasting?
Design: Empirical survey/model testing of motivation in forecasting. Industrial salespeople participating in sales forecasting
Analyzes motivational mechanisms affecting industrial sales-force participation in forecasting.
Industrial Marketing Management · 201110.1016/j.indmarman.2010.06.003Publisher record and abstract retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 2.5/5
Charles Zhechao Liu, Yoris A. Au, Hoon Seok Choi (2014). Effects of Freemium Strategy in the Mobile App Market: An Empirical Study of Google Play. Journal of Management Information Systems. https://doi.org/10.1080/07421222.2014.995564.
Plain-English take: Freemium strategy is evaluated empirically as a way to attract users and monetize mobile apps, with effects varying by app characteristics. For your marketing: Use this study to frame a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How does freemium pricing affect mobile-app adoption and monetization?
Design: Empirical observational analysis of Google Play app-market data, comparing freemium and paid strategies and app performance.. Google Play mobile apps; app-market rankings/download or revenue outcomes.
Freemium strategy is evaluated empirically as a way to attract users and monetize mobile apps, with effects varying by app characteristics.
Journal of Management Information Systems · 201410.1080/07421222.2014.995564Publisher abstract/metadata retrieved; full text may require access.
Pricing and monetizationEvidence check: 2.5/5
Lingling Zhang, Doug J. Chung (2020). Price Bargaining and Competition in Online Platforms: An Empirical Analysis of the Daily Deal Market. Marketing Science. https://doi.org/10.1287/mksc.2019.1213.
Plain-English take: Larger platforms deliver larger customer bases but lower merchant margins; absent platform competition, merchants are worse off while consumers face lower prices and higher total demand. For your marketing: Use this study to frame a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How do platform competition and bargaining power affect merchant reach, margins, consumer prices and demand?
Design: Estimated two-stage supply-side model of platform–merchant bargaining using Nash-bargaining solutions and counterfactuals.. Comprehensive U.S. daily-deal market data; merchants, platforms, deals, wholesale prices and demand.
Larger platforms deliver larger customer bases but lower merchant margins; absent platform competition, merchants are worse off while consumers face lower prices and higher total demand.
Marketing Science · 202010.1287/mksc.2019.1213Publisher record and abstract retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 3/5
Kevin J. Boudreau, Lars Bo Jeppesen, Milan Miric (2022). Competing on freemium: Digital competition with network effects. Strategic Management Journal. https://doi.org/10.1002/smj.3366.
Plain-English take: Stronger network effects alone did not increase market leaders' revenues relative to followers. Where freemium was used, however, network effects greatly amplified leaders' advantage; the publisher describes this as increased revenue/market dominance for leaders only under freemium. For your marketing: Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: When network effects strengthen in a competitive digital market, how do freemium strategies affect the revenue advantage of market leaders versus followers?
Design: Empirical comparative analysis of product sales/revenues around an Apple App Store policy that strengthened network effects, contrasting freemium and non-freemium products and market leaders versus followers; the publisher identifies Apple daily prod. Competing products on Apple's App Store, classified by freemium strategy and market-leader/follower position; product rankings were collected daily, with app categorization supplied by Priori LLC.
Stronger network effects alone did not increase market leaders' revenues relative to followers. Where freemium was used, however, network effects greatly amplified leaders' advantage; the publisher describes this as increased revenue/market dominance for leaders only under freemium.
Strategic Management Journal · 202210.1002/smj.3366Publisher abstract/metadata retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 3.5/5
Banggang Wu, Gengxuan Guo, Peng Luo (2024). The effect of subscriptions on customer engagement. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2024.114638.
Plain-English take: After accounting for self-selection, subscriptions produced large, persistent increases in content consumption and content generation (lasting at least a month); the effect was stronger for less-engaged users. Subscription increased perceived lock-in, which increased engagement intention. For your marketing: Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How does joining an online-community subscription affect users’ content consumption and content generation, and does perceived lock-in explain heterogeneous effects by prior engagement?
Design: Quasi-experiment using propensity-score matching and difference-in-differences, supplemented by a lab experiment on perceived lock-in.. Users of a leading mobile music community; the observational data span two months and compare subscribers with non-subscribers. The publisher page also reports a lab experiment.
After accounting for self-selection, subscriptions produced large, persistent increases in content consumption and content generation (lasting at least a month); the effect was stronger for less-engaged users. Subscription increased perceived lock-in, which increased engagement intention.
Journal of Business Research · 202410.1016/j.jbusres.2024.114638Publisher abstract/metadata retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 3/5
Matti Mäntymäki, A.K.M. Najmul Islam, Izak Benbasat (2020). What drives subscribing to premium in freemium services? A consumer value-based view of differences between upgrading to and staying with premium. Information Systems Journal. https://doi.org/10.1111/isj.12262.
Plain-English take: For upgrading, enjoyment and perceived price value predict intention to move to premium. For retaining premium, ubiquity and discovery of new content predict intention; social connectivity has a small negative retention effect, while advertising intrusiveness does not significantly affect either outcome. For your marketing: Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: Do the consumer values driving free/basic users' intention to upgrade differ from the values driving premium users' intention to retain a paid freemium subscription?
Design: Two-stage online survey of basic and premium users, analyzed with principal-components measurement validation and structural-equation modeling; the publisher page reports a two-week separation between survey waves.. Finnish Spotify users: 467 usable responses after cleaning (208 basic/free and 259 premium users), recruited from a Finnish university student database and university-related Facebook groups; the study also interviewed 11 active Spotify users to develop two measurement constructs.
For upgrading, enjoyment and perceived price value predict intention to move to premium. For retaining premium, ubiquity and discovery of new content predict intention; social connectivity has a small negative retention effect, while advertising intrusiveness does not significantly affect either outcome.
Information Systems Journal · 202010.1111/isj.12262Publisher abstract/metadata retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 2.5/5
Thomas Niemand, Robert Mai, Sascha Kraus (2019). The zero-price effect in freemium business models: The moderating effects of free mentality and price–quality inference. Psychology & Marketing. https://doi.org/10.1002/mar.21211.
Plain-English take: The study identifies two opposing intuitions—free mentality (expecting digital services at no cost) and price–quality inference (expecting higher price to signal higher quality)—and reports that their interplay shapes responses to freemium offers and can help explain low premium conversion. For your marketing: Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How do intuitive free-mentality and price–quality-inference processes, and their interaction, affect consumer response and premium conversion in freemium offers?
Design: Two empirical studies: an implicit-association test to identify intuitive responses to zero pricing, followed by a choice-based conjoint study testing free mentality and price–quality inference in freemium offers.. Digital-service consumers/users; the conjoint context is media streaming. The publisher abstract does not state participant counts on the fetched page.
The study identifies two opposing intuitions—free mentality (expecting digital services at no cost) and price–quality inference (expecting higher price to signal higher quality)—and reports that their interplay shapes responses to freemium offers and can help explain low premium conversion.
Psychology & Marketing · 201910.1002/mar.21211Publisher abstract/metadata retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 2.5/5
Juan Feng, Xin Li, Xiaoquan (Michael) Zhang (2019). Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence. Information Systems Research. https://doi.org/10.1287/isre.2019.0852.
Plain-English take: The model predicts that firms can manipulate pricing to influence reviews and sales and can dynamically adjust prices in response to online word of mouth; the panel-data difference-in-differences study is presented as empirical support for those predictions. For your marketing: Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Question: How do online product reviews interact with firm pricing strategy, and can firms use dynamic pricing in response to online word of mouth?
Design: The article combines an analytical model with a panel-data study of prices and reviews; the publisher abstract says the empirical analysis uses a difference-in-differences framework to address endogeneity.. Online product prices and user-generated product reviews; the publisher page does not specify the retailer, product categories, panel size, or observation period in the abstract.
The model predicts that firms can manipulate pricing to influence reviews and sales and can dynamically adjust prices in response to online word of mouth; the panel-data difference-in-differences study is presented as empirical support for those predictions.
Information Systems Research · 201910.1287/isre.2019.0852Publisher abstract/metadata retrieved; consult the linked paper for full methods and tables.
Pricing and monetizationEvidence check: 3/5
Christian Kowalkowski, Jochen Wirtz, Michael Ehret (2024). Journal of Service Management.
Plain-English take: IoT can turn physical resources into reconfigurable service products; intelligent automation can augment/automate service processes; and digital platforms provide technical/organizational infrastructure for integrating resources and stakeholders. The six proposed agenda themes are recurring revenue models, metaverse service innovation, scaling, ecosystem innovation, power/dependency and lock-in, and security/responsibility. For a founder, use this as a question to test in your own context, not a universal playbook.
Question: How do IoT, intelligent automation, and digital platforms reshape the offering, process, and ecosystem dimensions of service innovation in B2B markets, and what research priorities follow?
Design: Conceptual paper / research synthesis and agenda. B2B markets broadly, including manufacturing and professional-service industries; no empirical respondent or organizational sample (not applicable to this conceptual paper).
IoT can turn physical resources into reconfigurable service products; intelligent automation can augment/automate service processes; and digital platforms provide technical/organizational infrastructure for integrating resources and stakeholders. The six proposed agenda themes are recurring revenue models, metaverse service innovation, scaling, ecosystem innovation, power/dependency and lock-in, and security/responsibility.
Journal of Service Management · 202410.1108/JOSM-12-2022-0403Full text retrieved from publisher or linked open repository
Pricing and monetizationEvidence check: 3.5/5
Kittiporn Sae-tae, Qian Wang (2024). Telematics and Informatics Reports.
Plain-English take: Perceived usefulness, ease of use, and enjoyment positively related to perceived value; perceived value positively related to satisfaction, continuance intention, and purchase intention. Satisfaction and continuance intention did not significantly predict purchase intention. Content and users' emotional responses were important to use and subscription decisions. For a founder, use this as a question to test in your own context, not a universal playbook.
Question: How do usefulness, ease of use, enjoyment, perceived value, satisfaction, and continuance intention relate to purchase intention for freemium and premium music-streaming users in Thailand?
Design: Quantitative survey study / structural equation modeling. 443 respondents reporting music-streaming use in Thailand; the publisher identifies the article as an open-access research article.
Perceived usefulness, ease of use, and enjoyment positively related to perceived value; perceived value positively related to satisfaction, continuance intention, and purchase intention. Satisfaction and continuance intention did not significantly predict purchase intention. Content and users' emotional responses were important to use and subscription decisions.
Telematics and Informatics Reports · 202410.1016/j.teler.2024.100179Full text retrieved from publisher or linked open repository
Pricing and monetizationEvidence check: 3/5
Linlan Zhang, Yu Zhang (2024). Journal of Theoretical and Applied Electronic Commerce Research.
Plain-English take: Adding the new product is better when the existing-subscriber percentage is below a threshold and the subscription price is above a threshold. The paper also derives how key variables affect profit and piracy rate and gives pricing/piracy-control implications. For a founder, use this as a question to test in your own context, not a universal playbook.
Question: When should a digital-products platform add a newly released product to its subscription service rather than sell it only at retail, given piracy and existing subscribers?
Design: Analytical/theoretical pricing model with numerical analysis. No human sample; theoretical digital-products platform setting covering software, music, film, and e-books, with consumer valuation, piracy quality/cost, subscription fee, existing-subscriber share, and usage quantity as model variables.
Adding the new product is better when the existing-subscriber percentage is below a threshold and the subscription price is above a threshold. The paper also derives how key variables affect profit and piracy rate and gives pricing/piracy-control implications.
Journal of Theoretical and Applied Electronic Commerce Research · 202410.3390/jtaer19020048Full text retrieved from publisher or linked open repository
Pricing and monetizationEvidence check: 3.5/5
Cachon, G. P. & Feldman, P. (2011). Pricing Services Subject to Congestion: Charge Per-Use Fees or Sell Subscriptions?. Manufacturing & Service Operations Management.
Plain-English take: Subscription pricing can earn more revenue than per-use pricing even when congestion is costly; its relative appeal rises with high potential utilization, fixed capacity and sufficiently different heavy/light usage rates. For a SaaS founder: Use as a pricing hypothesis: compare seat/usage subscriptions with metered pricing while stress-testing capacity and heavy-user economics; validate with controlled pilots because real SaaS marginal costs and network effects differ.
Question: When do subscriptions outperform per-use fees for services with limited capacity and congestion?
Design: Analytical queueing/pricing model comparing per-use fees with subscriptions under congestion, consumer heterogeneity and fixed capacity.. Theoretical service-pricing setting; no human or firm sample.
Subscription pricing can earn more revenue than per-use pricing even when congestion is costly; its relative appeal rises with high potential utilization, fixed capacity and sufficiently different heavy/light usage rates.
Manufacturing & Service Operations Management · 201110.1287/msom.1100.0315Publisher abstract directly retrieved; full-text access not established
Pricing and monetizationEvidence check: 4.0/5
Cheng, H. K. & Liu, Y. (2012). Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty. Information Systems Research, 23(2), 488-504.
Plain-English take: The value and optimal form of a free trial depend on network effects and uncertainty; a one-size-fits-all trial policy is not optimal. Founder-use interpretation: Use to frame trial-design experiments; do not infer that longer, unlimited, or time-locked trials universally win for SaaS.
Question: How do network effects and consumer uncertainty affect the optimal free-trial strategy for software?
Design: Peer-reviewed empirical study or research synthesis. Formal analytical model of software free-trial strategy incorporating network externalities and consumer uncertainty; compares time-locked, limited-version, and related trial choices.
The value and optimal form of a free trial depend on network effects and uncertainty; a one-size-fits-all trial policy is not optimal.
Information Systems Research, 23(2), 488-504 · 201210.1287/isre.1110.0348Publisher abstract or article landing page captured; full-text access not established.