Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty

• 成果类型: Article
• 署名作者: Cheng, Hsing Kenneth; Liu, Yipeng
• 署名单位: State University System of Florida; University of Florida; University of Scranton
• 刊物名称: INFORMATION SYSTEMS RESEARCH
• ISSN/ISSBN: 1047-7047
• DOI: 10.1287/isre.1110.0348
• 发表日期: 2012
• 页码: 488-504
• 关键词: product trial; PIRACY

摘要

Many software firms offer a fully functional version of their products free of charge, for a limited trial period, to ease consumers' uncertainty about the functionalities of their products and to help the diffusion of their new software. This paper examines the trade-off between the effects of reduced uncertainty and demand cannibalization, uncovers the condition under which software firms should introduce the time-locked free trial software, and finds the optimal free trial time. As software firms have the option of providing free trial software with full functionalities but a limited trial time or limited functionalities for an unlimited trial time, we develop a unified framework to provide useful guidelines for deciding which free trial strategy is preferred in the presence of network externalities and consumer uncertainty.