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J·BJon BishopIndependent growth marketer

Pricing · Peer-reviewed empirical study or research synthesis

The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content

MIS Quarterly: Management Information Systems · 2023

Angela Aerry Choi, Ki Eun Rhee, Chamna Yoon, Wonseok Oh

Summary

Wait-for-free pricing generated new demand and increased serialized-content sales, with sustained long-run profits in the reported setting. As users accumulated free episodes, conversion to instant purchase rose up to a threshold and then declined; one free episode could raise purchase likelihood by up to 13%. Founder-use interpretation: Use this as a question to test in your own product context, not as a universal benchmark. The publisher describes digital entertainment rather than B2B software and does not disclose the platform/sample count in the record. Thus transfer to SaaS trial design, usage limits, and enterprise pricing is an open empirical question.

For your marketing

Possible founder application

Use this as a question to test in your own product context, not as a universal benchmark. The publisher describes digital entertainment rather than B2B software and does not disclose the platform/sample count in the record. Thus transfer to SaaS trial design, usage limits, and enterprise pricing is an open empirical question.

Reported result

What the study found

Wait-for-free pricing generated new demand and increased serialized-content sales, with sustained long-run profits in the reported setting. As users accumulated free episodes, conversion to instant purchase rose up to a threshold and then declined; one free episode could raise purchase likelihood by up to 13%.

Research question

What the authors investigated

The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content?

Design

Combination of analytical/economic modeling and empirical assessment of wait-for-free consumer behavior, including switching from waiting to immediate purchase.

Sample and setting

Serialized digital entertainment content on online platforms, where users can wait to obtain an episode free or pay immediately. The publisher record does not disclose the platform identity or a respondent count.

Scope and transfer

Limitations to keep in view

The publisher describes digital entertainment rather than B2B software and does not disclose the platform/sample count in the record. Thus transfer to SaaS trial design, usage limits, and enterprise pricing is an open empirical question.

Research sources

Publisher record directly retrieved with Firecrawl (reference 01a122ca-77a7-7024-b16c-30ca56d78a4a); summary is a careful paraphrase of the accessible record.

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