Investigating factors that affect willingness to pay: An analysis on freemium social media apps
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/25765 |
Resumo: | While social media has grown in popularity and usage in recent years, little is known about users' willingness to pay for the premium version of them. In this study, we investigate how consumers' perceived value is associated with their intention to use freemium services and to purchase premium content. We employ data gathered through an online survey (N=200) among the users of freemium social media networks, like LinkedIn, YouTube, Reddit and Flickr and tested 15 different hypotheses, using PLS-SEM. Firstly, we find support for the security hypothesis proposed in this study, indicating that if users value the security component of the freemium social media, they will have a higher intention to use the service overall. Secondly, the higher quality of the freemium service leads to higher usage intentions, which further leads to higher purchase intentions. Thirdly, the price value of freemium services shows to have a negative association with the intention to purchase premium content. Fourthly, social platform community is found to positively affect premium purchases. Lastly, we find support for the usage frequency hypothesis proposed in this study, indicating that if a user establishes a habit of using a social media, he will eventually decide to buy the premium version. The current study's findings contribute to the uniqueness of the freemium business model, implying that increasing perceived value of the freemium service, improving security, or increasing usage frequency can all contribute to and subtract from future profitability via increased retention on the one hand and reduced monetization on the other. |
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Investigating factors that affect willingness to pay: An analysis on freemium social media appsFreemiumSocial media networksQualityPreços -- PricesEnjoymentAdvertisementSegurança -- SecurityUsage frequencyMedia sociais -- Social mediaQualidadeDivertimentoPublicidade -- PublicityFrequência de utilizaçãoWhile social media has grown in popularity and usage in recent years, little is known about users' willingness to pay for the premium version of them. In this study, we investigate how consumers' perceived value is associated with their intention to use freemium services and to purchase premium content. We employ data gathered through an online survey (N=200) among the users of freemium social media networks, like LinkedIn, YouTube, Reddit and Flickr and tested 15 different hypotheses, using PLS-SEM. Firstly, we find support for the security hypothesis proposed in this study, indicating that if users value the security component of the freemium social media, they will have a higher intention to use the service overall. Secondly, the higher quality of the freemium service leads to higher usage intentions, which further leads to higher purchase intentions. Thirdly, the price value of freemium services shows to have a negative association with the intention to purchase premium content. Fourthly, social platform community is found to positively affect premium purchases. Lastly, we find support for the usage frequency hypothesis proposed in this study, indicating that if a user establishes a habit of using a social media, he will eventually decide to buy the premium version. The current study's findings contribute to the uniqueness of the freemium business model, implying that increasing perceived value of the freemium service, improving security, or increasing usage frequency can all contribute to and subtract from future profitability via increased retention on the one hand and reduced monetization on the other.Embora as redes sociais tenham crescido em popularidade e utilização nos últimos anos, pouco se sabe sobre a vontade dos utilizadores de pagar pela versão premium das mesmas. Neste estudo, investigamos como o valor percebido pelos consumidores está associado à sua intenção de utilizar os serviços freemium e de adquirir conteúdos premium. Investigamos os dados recolhidos através de um inquérito online (N=200) e testamos 15 hipóteses diferentes, utilizando PLS-SEM. Em primeiro lugar, encontrámos suporte para a hipótese de Segurança proposta neste estudo, indicando que os utilizadores que valorizam a componente de segurança nas redes sociais freemium terão uma maior intenção de utilizar o serviço. Em segundo lugar, a maior qualidade da rede social leva a maiores intenções de utilização, o que leva a maiores intenções de compra. Em terceiro lugar, o valor do preço dos serviços freemium mostra ter uma associação negativa com a intenção de compra de conteúdos premium. Em quarto lugar, observámos que a comunidade social afeta positivamente as compra da versão premium. Finalmente, encontrámos apoio para a hipótese de frequência de utilização proposta neste estudo, indicando que se um utilizador estabelecer o hábito de utilizar uma rede social freemium, acabará por decidir comprar a versão premium. As conclusões do presente estudo realçam a singularidade do modelo de negócio freemium, implicando que o aumento do valor percebido do serviço, a melhoria da segurança, ou o aumento da frequência de utilização podem contribuir ou subtrair da rentabilidade futura através do aumento da retenção ou da redução da monetização.2022-07-08T13:51:12Z2022-03-23T00:00:00Z2022-03-232022-01info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/25765TID:203031636engFaria, Ana Margarida Tomé deinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:51:20Zoai:repositorio.iscte-iul.pt:10071/25765Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:25:25.022844Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
title |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
spellingShingle |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps Faria, Ana Margarida Tomé de Freemium Social media networks Quality Preços -- Prices Enjoyment Advertisement Segurança -- Security Usage frequency Media sociais -- Social media Qualidade Divertimento Publicidade -- Publicity Frequência de utilização |
title_short |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
title_full |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
title_fullStr |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
title_full_unstemmed |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
title_sort |
Investigating factors that affect willingness to pay: An analysis on freemium social media apps |
author |
Faria, Ana Margarida Tomé de |
author_facet |
Faria, Ana Margarida Tomé de |
author_role |
author |
dc.contributor.author.fl_str_mv |
Faria, Ana Margarida Tomé de |
dc.subject.por.fl_str_mv |
Freemium Social media networks Quality Preços -- Prices Enjoyment Advertisement Segurança -- Security Usage frequency Media sociais -- Social media Qualidade Divertimento Publicidade -- Publicity Frequência de utilização |
topic |
Freemium Social media networks Quality Preços -- Prices Enjoyment Advertisement Segurança -- Security Usage frequency Media sociais -- Social media Qualidade Divertimento Publicidade -- Publicity Frequência de utilização |
description |
While social media has grown in popularity and usage in recent years, little is known about users' willingness to pay for the premium version of them. In this study, we investigate how consumers' perceived value is associated with their intention to use freemium services and to purchase premium content. We employ data gathered through an online survey (N=200) among the users of freemium social media networks, like LinkedIn, YouTube, Reddit and Flickr and tested 15 different hypotheses, using PLS-SEM. Firstly, we find support for the security hypothesis proposed in this study, indicating that if users value the security component of the freemium social media, they will have a higher intention to use the service overall. Secondly, the higher quality of the freemium service leads to higher usage intentions, which further leads to higher purchase intentions. Thirdly, the price value of freemium services shows to have a negative association with the intention to purchase premium content. Fourthly, social platform community is found to positively affect premium purchases. Lastly, we find support for the usage frequency hypothesis proposed in this study, indicating that if a user establishes a habit of using a social media, he will eventually decide to buy the premium version. The current study's findings contribute to the uniqueness of the freemium business model, implying that increasing perceived value of the freemium service, improving security, or increasing usage frequency can all contribute to and subtract from future profitability via increased retention on the one hand and reduced monetization on the other. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-07-08T13:51:12Z 2022-03-23T00:00:00Z 2022-03-23 2022-01 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/25765 TID:203031636 |
url |
http://hdl.handle.net/10071/25765 |
identifier_str_mv |
TID:203031636 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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