Advertising · 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.
Experience Effect in the Impact of Free Trial Promotions
Management Science · 2021
Summary
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.
For your marketing
Possible founder application
Use this paper as evidence about experience effect in the impact of free trial promotions in the stated context; compare its population, treatment and outcome with your own decision.
Reported result
What the study found
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.
Research question
What the authors investigated
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.
Sample and setting
Telecom-firm customers receiving a free-sample promotion for an experience good; usage distribution is analyzed through at least the 90th percentile.
Scope and transfer
Limitations to keep in view
Conservative inference: this is one telecom firm’s mobile-data experience good and a promotion analyzed with observational usage data, so effects may not transfer to other free trials or products. Full-text methods and correction history were not independently checked.
Research sources
Candidate study metadata and reported evidence were cross-checked against a direct publisher-page retrieval; the full article was not independently reviewed.