Price promotions and “freemium” app monetization

Runge, Julian; Levav, Jonathan; Nair, Harikesh S.

doi:10.1007/s11129-022-09248-3

Cited by 9 publications

(1 citation statement)

References 31 publications

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“…In contrast, the freemium model, exemplified by games like Path of Exile, offers a different approach. With freemium games, players can play the game from start to finish without paying a cent [21]. However, they also have the option to purchase additional content or features that enhance their gameplay experience.…”

Section: B Business Modelsmentioning

confidence: 99%

Framework for Ethically Designed Microtransactions in the Metaverse

Sánchez-Adame,

Monroy-Rodríguez,

Mendoza

et al. 2023

IEEE Access

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Microtransactions, small in-app purchases within virtual environments, have become increasingly prevalent in modern gaming, often leading to addictive behaviors and financial burdens, particularly among young male players. The potential consequences of such microtransactions within the metaverse extend beyond gaming, as they provide companies with unprecedented control over user experiences and the ability to capitalize personal data for targeted advertising and manipulative practices. This article presents a comprehensive framework for the ethical analysis and design of microtransactions in the metaverse to address these concerns. This three-dimensional framework explores Motivation, Engagement, and Fairness to evaluate the impact of microtransactions on user autonomy, social interactions, and overall fairness. Additionally, the paper conducts a running example on World of Warcraft to assess the alignment of its microtransaction design choices with the proposed ethical principles. By shedding light on these issues, this article aims to raise awareness among consumers, developers, and policymakers about the need for responsible practices, consumer protection, and privacy preservation in the metaverse. It emphasizes fostering collaboration and transparency to safeguard users from misuse while promoting a user-centric metaverse ecosystem. Design, ethics, metaverse, microtransactions, video games. INDEX TERMS

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Section: B Business Modelsmentioning

confidence: 99%

Framework for Ethically Designed Microtransactions in the Metaverse

Sánchez-Adame,

Monroy-Rodríguez,

Mendoza

et al. 2023

IEEE Access

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What factors influence termination behaviour on freemium platforms? An empirical analysis of the termination probability among paying users

Lehmann‐Zschunke

2024

J of Consumer Behaviour

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Because of growing digitalization, consumers are confronted with more and more new technologies. Digital ecosystems and digital platforms are of great importance in this context. One possibility for monetizing the services offered on digital platforms is the freemium pricing model. In light of increasing competition, it is important for platform operators to know as much as possible about the usage behaviour of their consumers. In particular, they need to know what factors influence the termination behaviour of paying users. The empirical study is based on data from 20,319 paying users of a freemium platform that offers information on equestrian sports. Using a logistic regression, several possible influencing factors on the probability of termination are examined. Among other things, the study shows that the termination probability is greater if the paying user has chosen a shorter subscription. Users who have already terminated their subscription before their current one are also at greater risk of churn. Premium users with high levels of involvement and members who receive notifications about new content on the platform are less likely to quit. The number of video views is also negatively related to the termination probability. Freemium providers can use this information to predict terminations and take appropriate action, such as special offers for users at risk of termination.

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Investigating complementarities in subscription software usage using advertising experiments

Zeller,

Narayanan

2024

Quant Mark Econ

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Price promotions and “freemium” app monetization

Cited by 9 publications

References 31 publications

Framework for Ethically Designed Microtransactions in the Metaverse

Framework for Ethically Designed Microtransactions in the Metaverse

What factors influence termination behaviour on freemium platforms? An empirical analysis of the termination probability among paying users

Investigating complementarities in subscription software usage using advertising experiments

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