From Freemium to Premium App Services: The Expectation Confirmation Model and Two-Factor Theory
Abstract
The freemium strategy is a widely adopted model in the mobile app industry, offering users free access to basic features while enticing them to pay for premium content. Successfully navigating the boundary between these two app types is crucial for developers. This study aimed to examine the impact of perceived values on satisfaction, dissatisfaction, and the intention to pay in utilitarian apps, drawing on the two-factor theory and the expectation confirmation model. Additionally, the study proposed that hygiene factors should be integrated into freemium apps, reserving motivating factors for premium apps. This study used an online survey to collect 552 participants and analyzed by structural equation modeling. The empirical model provided insights into the fundamental determinants of motivating factors transitioning from freemium to premium apps. Results indicated that social and emotional values positively influence satisfaction, with satisfaction potentially mediating purchase intention. Furthermore, functional value reduces dissatisfaction and increases purchase intention. This study distinguished social and emotional values as motivational factors and functional values as hygiene factors. The findings offered valuable guidance to software companies for developing useful and profitable apps.
DOI: https://doi.org/10.54663/2182-9306.2023.v11.n21.112-131
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International Journal of Marketing, Communication and New Media
ISSN: 2182-9306
DOI: 10.54663/2182-9306
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