Optimal Software Free Trial Strategy: Limited Version, Time-locked, or Hybrid?
Article first published online: 2 JUN 2014
© 2014 Production and Operations Management Society
Production and Operations Management
How to Cite
Optimal Software Free Trial Strategy: Limited Version, Time-locked, or Hybrid? Production and Operations Management (2014), doi 10.1111/poms.12248, et al.
- Article first published online: 2 JUN 2014
- Accepted manuscript online: 7 MAY 2014 02:13AM EST
- Manuscript Accepted: MAR 2014
- Manuscript Received: MAY 2013
- University of Florida
- Shanghai University of Finance and Economics
- software free trial;
- network effects;
- hybrid free trial
Limited version, time-locked, and hybrid are three software free trial strategies employed by software firms to exploit increased installed base and/or reduction of consumers' uncertainty about software quality. We develop an analytical model to examine these three software free trial strategies. We find that the hybrid strategy weakly dominates the limited and time-locked versions, and the intensity of the network effects is a key factor determining which strategy is optimal.