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Title Toward Sustainable Freemium Software: The Roles Of User Satisfaction And Use Context
ID_Doc 74359
Authors Kim, J; Lee, J; Zo, H
Title Toward Sustainable Freemium Software: The Roles Of User Satisfaction And Use Context
Year 2018
Published Journal Of Electronic Commerce Research, 19, 3
DOI
Abstract Freemium software provides basic features free of charge and premium features for additional payment. It is a prevailing business model in the software industry. The model could be a long-awaited solution for software providers suffering from sustainability and retention problems. However, software providers are still experiencing low conversion rates from free users to paid users. Satisfactory services do not guarantee additional spending by free users for services. User satisfaction with core services has been considered a key component of user loyalty. However, this belief is being challenged. This study investigates the effect of satisfaction on loyalty intentions (continuance intention and intention to purchase) of freemium software. The study develops a research model based upon the use context framework including user characteristics, relational characteristics, and marketplace characteristics. The results from a series of regressions show that satisfaction affects continuance intention but does not influence purchase intention although it indirectly affects purchase intention by interacting with various characteristics. The results suggest several strategies that freemium software providers can pursue according to their objectives. Rather than satisfactory services, interactions among users or carefully designed additional features can lead to sustainable profitability.
Author Keywords Freemium software; User satisfaction; User loyalty; Use context
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Social Science Citation Index (SSCI)
EID WOS:000442215000001
WoS Category Business
Research Area Business & Economics
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