Optimal software upgrade strategy: Should we sell products or premium services in the presence of piracy?

作者：

Highlights：

• We compare two strategies when a firm introduces an upgrade in piracy environment.

• The piracy conversion rate increases in the piracy cost under freemium strategy.

• Premium services may reduce the price competition in the presence of piracy.

• Which strategy dominates depends on consumer preferences and product value.

摘要

•We compare two strategies when a firm introduces an upgrade in piracy environment.•The piracy conversion rate increases in the piracy cost under freemium strategy.•Premium services may reduce the price competition in the presence of piracy.•Which strategy dominates depends on consumer preferences and product value.

论文关键词：Economic analysis,Marketing strategy,Piracy,Policy analytics,Premium services,Pricing strategy,Software upgrades

论文评审过程：Received 30 August 2017, Revised 16 February 2018, Accepted 16 February 2018, Available online 17 February 2018, Version of Record 26 March 2018.

论文官网地址：https://doi.org/10.1016/j.elerap.2018.02.004