How to give away software with successive versions

被引:19
作者
Jiang, Zhengrui [1 ]
机构
[1] Iowa State Univ, Coll Business, Ames, IA 50011 USA
关键词
Free software; Bass model; Multi-generation diffusion model; Software versions; Software promotion;
D O I
10.1016/j.dss.2010.05.004
中图分类号
TP18 [人工智能理论];
学科分类号
081104 ; 0812 ; 0835 ; 1405 ;
摘要
Free software offer as a promotional tool has been employed by software firms of all sizes. In this research. we propose an extended multi-generation diffusion model that separates substitution from switching, and develop methodologies to help a firm determine the optimal number of free adoptions for each version. Our analyses show that due to the word-of-mouth effect, free offer can help increase a firm's total profit for all versions of a product. Furthermore, we find that in the presence of low-valuation free adopters, the optimal number of high-valuation free adopters decreases, the total number of free adopters increases, and the total profit improves substantially as a result. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码:430 / 441
页数:12
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