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What drives subscribing to premium in freemium services? A consumer value-based view of differences between upgrading to and staying with premium
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2020 | Information Systems Journal | Citations: 0
Authors: Mäntymäki, Matti; Islam, A. K. M. Najmul; Benbasat, Izak

Abstract: Fostering the conversion of free users to premium subscribers and retaining thos ... Expand

Abstract: Fostering the conversion of free users to premium subscribers and retaining those premium users are critical objectives for freemium service providers. Building on consumer value theory, we empirically examine the differences between basic and premium users in terms of the emotional, functional, social, epistemic, and economic values driving basic users' decisions to upgrade to premium subscriptions and premium users' decisions to retain their paid subscriptions. We employ enjoyment, intrusiveness of advertising in the free subscription, ubiquity, social connectivity, the discovery of new content, and the price value of the premium subscription as drivers of intentions and test our model using data from a leading digital content service that employs the freemium model. Our results show that enjoyment and price value of the premium subscription predict the intention to upgrade to premium, whereas the intention to retain the premium subscription is driven by ubiquity and the discovery of new content. Interestingly, social connectivity has no effect on the intention to upgrade but does have a small negative effect on the intention to retain the premium subscription. Contrary to our expectations, intrusiveness of advertising in the free subscription had a negative effect on the price value of the premium subscription. Collectively, our results imply that the intention to retain the premium subscription is influenced by attribute-level value perceptions such as ubiquity, the discovery of new content, and social connectivity whereas the intention to upgrade is driven by benefits, ie, enjoyment and price value of the premium subscription. Collapse

Semantic filters: consumer value theory

Topics: advertising management digital service decision making Spotify user behavior

Methods: theory development survey qualitative interview SEM tool theoretical contribution

Theories: consumer value theory mean end chain theory theory of consumption value
Predicting smartphone brand loyalty: Consumer value and consumer-brand identification perspectives
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2016 | International Journal of Information Management | Citations: 0
Authors: Yeh, Ching-Hsuan; Wang, Yi-Shun; Yieh, Kaili

Abstract: a b s t r a c tWith the growth and competition of the smartphone industry, deve ... Expand

Abstract: a b s t r a c tWith the growth and competition of the smartphone industry, developing a better understanding of what drives consumers' loyalty to smartphone brands has become an important issue for academics and practitioners. This study hypothesizes four determinants of smartphone brand loyalty based on the perspectives of consumer value and consumer-brand identification. Furthermore, this study also explores the moderating effects of age and gender differences on the determination process of smartphone brand loyalty. Data collected from 157 respondents was tested against the research model using a partial least squares (PLS) approach. The results indicate that functional value, emotional value, social value, and brand identification have a positive influence on smartphone brand loyalty. Of the two moderators, results show that age enhances the emotional value-brand loyalty and social value-brand loyalty linkages but weakens the brand identification-brand loyalty relationship. However, gender does not play a moderating role in the determination of smartphone brand loyalty. The results of this study provide several important theoretical and practical implications for smartphone brand management. Collapse

Semantic filters: consumer value theory

Topics: customer loyalty smartphone mobile phone mobile system mobile entertainment

Methods: survey partial least squares regression data transformation exploratory factor analysis statistical power analysis

Theories: consumer value theory socioemotional selectivity theory big five model
The Value of Life Histories in Researching the Adoption and Use of M-Services

2004 | European Conference On Information Systems | Citations: 0
Authors: McManus, Patricia

Abstract: Mobile services are a very important part of the e-commerce landscape. Although ... Expand

Abstract: Mobile services are a very important part of the e-commerce landscape. Although research has been conducted on what services people use and what value they attach to those services we know little about why people attach those perceived values. The theory of consumer value provides a theoretical framework to examine the adoption of mobile services. We use a life history research methodology to demonstrate that a biographical account can help in uncovering the “why” of perceived value. The life histories used in the paper highlight that the approach can be used to explain adoption and use of a product in relation to a person’s lifestyle, needs, and experiences. From the examples, we can see that mobile services often have a functional value attached to them at the outset but social and epistemic value can follow when people are keen to experiment and feel part of a social community of use. Collapse

Semantic filters: consumer value theory

Topics: mobile business communities of practice mobile system computer hardware technology adoption

Methods: biographical research qualitative interview personal interview experiment

Theories: consumer value theory theory of consumption value

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What drives subscribing to premium in freemium services? A consumer value-based view of differences between upgrading to and staying with premium

Predicting smartphone brand loyalty: Consumer value and consumer-brand identification perspectives

The Value of Life Histories in Researching the Adoption and Use of M-Services