26 June, 2018: The Research & Publications office at IIM Bangalore will host a talk on ‘Selling the Premium in Freemium’, by Prof. PK Kannan, from the University of Maryland, on July 06, as part of its Research Seminar series.
Prof. Kannan will explain the context and methodology of research investigations on how to increase the effectiveness of a freemium model by extending the product line as a means to spur demand for the existing premium version in the presence of the free version. He will quote from a randomized field experiment with an online content provider, the National Academies Press, which offers book titles in a PDF format for free and sells the paperback format for a premium, to show that paperback titles accompanied by an additional premium format, either an e-book or a hardcover format, have higher sales than those in the control condition. The positive impact on paperback sales is stronger for titles that are more popular and/or lower in price, and the effect of introducing the e-book format is higher when the e-book price is closer to the paperback price. By analyzing customer choices at the individual level, Prof. Kannn’s research confirms the existence of compromise effect and attraction effect in the extended product line setting, which is a contribution not only in the freemium context but also to the product line literature.
Speaker Profile: https://www.rhsmith.umd.edu/directory/pk-kannan
Title: Selling the Premium in Freemium
Speaker: P. K. Kannan, University of Maryland
Date: 06.07.2018, Venue: P12 @ 11AM
26 June, 2018: The Research & Publications office at IIM Bangalore will host a talk on ‘Selling the Premium in Freemium’, by Prof. PK Kannan, from the University of Maryland, on July 06, as part of its Research Seminar series.
Prof. Kannan will explain the context and methodology of research investigations on how to increase the effectiveness of a freemium model by extending the product line as a means to spur demand for the existing premium version in the presence of the free version. He will quote from a randomized field experiment with an online content provider, the National Academies Press, which offers book titles in a PDF format for free and sells the paperback format for a premium, to show that paperback titles accompanied by an additional premium format, either an e-book or a hardcover format, have higher sales than those in the control condition. The positive impact on paperback sales is stronger for titles that are more popular and/or lower in price, and the effect of introducing the e-book format is higher when the e-book price is closer to the paperback price. By analyzing customer choices at the individual level, Prof. Kannn’s research confirms the existence of compromise effect and attraction effect in the extended product line setting, which is a contribution not only in the freemium context but also to the product line literature.
Speaker Profile: https://www.rhsmith.umd.edu/directory/pk-kannan
Title: Selling the Premium in Freemium
Speaker: P. K. Kannan, University of Maryland
Date: 06.07.2018, Venue: P12 @ 11AM