This dissertation provides an overview of current marketing trends in a digital environment. Special characteristics of digital goods such as the indestructability, transmutability, non-rivalry and reproducibility are assessed in order to obtain an understanding of an optimal price determination. Different pricing approaches are discussed and evaluated. Offering digital goods based on a Freemium pricing strategy can have diverse impacts on sales of a company. Previous studies have shown that free samples embrace the positive effects of quality approval, complementary purchases, attention creation and the accelerate appearance of network effects. Further, negative effects such as quality dismissal, free availability and the thread of piracy through the ease of reproducibility can occur. This dissertation assesses those effects on mobile Apps with a Freemium pricing strategy. A framework based on an equation is created and tested on reliability. The results show that promotional effects and improved brand perceptions are a major benefit for providers, while the impact of complementary purchases and digital piracy has less impact than expected. A case study of a comparative example from the mobile gaming industry will outline the theoretical framework with a practical illustration.
Date of Award | 2015 |
---|
Original language | English |
---|
Awarding Institution | - Universidade Católica Portuguesa
|
---|
Supervisor | Pedro Celeste (Supervisor) |
---|
- Freemium
- Pricing strategies
- Digital goods
- Free sample
- Mobile gaming
- Mestrado em Gestão: Programa Internacional
The Freemium equation: managerial considerations on pricing in the Mobile App Industry
Brücker, A. (Student). 2015
Student thesis: Master's Thesis