Title Factors influencing consumers’ decision to switch from freemium to premium online services /
Translation of Title Faktoriai, darantys įtaką vartotojų sprendimui pereiti nuo nemokamų („freemium“) prie mokamų („premium“) internetinių paslaugų.
Authors Ugras, Ceren
Full Text Download
Pages 97
Keywords [eng] Freemium Business Model, Consumer Behavior, Premium Service Adoption, Consumption Value Theory, Perceived Value, Satisfaction, Continued Use
Abstract [eng] 71 page, 22 figures, 14 tables, 187 citations. Problem formulation: The factors influencing consumer transitions from freemium to premium services in the context of digital business models are explored to provide a comprehensive understanding of consumer behavior using theoretical frameworks such as the Consumption Value Theory (CVT). Aim of this research: To analyze how functional, social, emotional, and epistemic value dimensions, as well as mediating variables like satisfaction and continued use, affect the intention to upgrade from freemium to premium services. The current research is divided into three major parts: literature analysis, research methods, and the analysis of research results. The literature review provided an overview of the freemium business model and the theoretical foundations relevant to understanding consumer behavior in this context. This part introduced the variables influencing the intention to upgrade, including functional value (e.g., ubiquity), social value (e.g., peer influence), emotional value (e.g., enjoyment), and epistemic value. The literature analysis also highlighted the mediating roles of satisfaction and continued use, as well as psychological phenomena such as the sunk cost effect, in shaping user decisions. Following the literature analysis, the research aimed to investigate the relationships between these value dimensions, mediating variables, and intention to upgrade. A quantitative online survey was chosen as the data collection method. The survey consisted of 30 questions, including 24 designed to measure the theoretical model's variables and 6 demographic questions to better understand the respondent profiles. In total, 317 valid responses were collected, providing insights into user behavior in freemium models, particularly within content-driven services like YouTube and Spotify. The findings confirm that functional value (e.g., ubiquity) significantly influences satisfaction and intention to upgrade, while social value (e.g., peer influence) plays a critical role in driving premium transitions. Emotional factors like enjoyment from free services and psychological effects such as the sunk cost effect also contribute to user decisions. The mediating roles of satisfaction and continued use were found to be significant, aligning with theoretical expectations and offering actionable insights for businesses. The study acknowledges limitations, such as the relatively small sample size and the focus on content-driven services, which may limit the generalizability of the findings. Nonetheless, this research contributes to the understanding of consumer behavior in freemium models and provides practical recommendations for optimizing user acquisition and conversion strategies.
Dissertation Institution Vilniaus universitetas.
Type Master thesis
Language English
Publication date 2025