How Consumers Assess Free E-Services: The Role of Benefit-Inflation and Cost-Deflation Effects

被引:18
作者
Huettel, Bjoern A. [1 ,2 ]
Schumann, Jan Hendrik [2 ]
Mende, Martin [3 ]
Scott, Maura L. [4 ]
Wagner, Christian J. [2 ]
机构
[1] Univ Passau, Innstr 27, D-94032 Passau, Germany
[2] Univ Passau, Chair Mkt & Innovat, Passau, Germany
[3] Florida State Univ, Coll Business, Mkt, Tallahassee, FL 32306 USA
[4] Florida State Univ, Coll Business, Business Adm, Tallahassee, FL 32306 USA
关键词
zero-price effect; nonmonetary costs; nonmonetary value contributions; free; e-services; CUSTOMER ENGAGEMENT; PERCEIVED RISK; PRICE; ZERO; PAY; ADVERTISEMENTS; RECIPROCITY; ACCEPTANCE; FRAMEWORK; ATTITUDES;
D O I
10.1177/1094670517746779
中图分类号
F [经济];
学科分类号
02 ;
摘要
Despite the ubiquity of free e-services (e.g., free music/video streaming services), little empirical research has examined how consumers assess such service offerings. This research reveals the crucial role of consumer-perceived nonmonetary costs (NMCs; e.g., related to advertising intrusiveness) to better explain the zero-price effect (ZPE). Four experiments show that free e-services elicit positive affect in consumers, which leads to two distinct effects that drive the ZPE: a benefit-inflation effect, such that consumers overemphasize the benefits of free e-services, and a cost-deflation effect, such that they also judge the corresponding NMCs as lower. Furthermore, the authors find that the social norm of reciprocity increases consumers' acceptance of NMCs. This research provides managerial guidance on how to better market free service offerings. Companies that consider providing basic and premium offerings should include a free basic option, which increases consumers' benefit perceptions, lowers their perceptions of NMCs, and consequently increases demand for this service option. Finally, the findings help managers model the trade-off between immediate additional revenue generated by the fees consumers pay for a premium option and the revenue stream that a free basic option generates (e.g., through higher advertising revenues).
引用
收藏
页码:267 / 283
页数:17
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