発表

1B-007

Don't hesitate to do Free Trial for a YouTube!

[Main Author] Kyungmin Lee:1
[連名発表者・登壇者] Jaehwi Kim:1
1:Psychology department of Chung-Ang University

Introduction

Various Contents platforms such as YouTube and Netflix hold time limited free trial promotions (i.e., 1 month free). In that free trial is automatically changed to paid service after a certain period of time, not only the free trial but also the status after the free trial is considered when deciding whether to participate in free trial. A person makes a decision by evaluating future results, and the satisfaction that an individual feel depends on the relative size compared to a particular target (Kahneman and Tversky, 1979), so the end of the free trial is perceived as a loss. At this time, the intent to participate in the free trial promotion may be low, depending on the nature of the loss aversion. Losses are largely evaluated and overvalued because they draw more attention than gains (Baumeister et al, 2001). So consumers have a nature of loss aversion. Therefore, it has been argued that the level of perception and attention to loss should be presented to reduce in the decision making process (Song Kyun seok and Bum Sang gyu, 2012). Because people tend to consider decision problems one at a time, they often isolate one problem from other choices that can be pending, and from future opportunities to make similar decisions (Kahneman and Lovallo, 1993). So this study aims to prevent consumers from recalling the status after the free trial by having them make explicit choice whether to use the rest of free trial. Then, consumer will make less attention to the paid status and Basically, the gains are perceived to be greater when seperated (Thaler, 1999), so dividing the free trial two through choice makes the perceived gain larger. Thus, the strategy of giving explicit choice can increase the participate intention toward the free trial. And it will be mediated by the magnitude of perceived loss (status after free trial) and gain (duration of free trial).

Method

At first, all participants were told brief introduction of experiment and the explanation about service holding free trial. And then all participants read the situation statement describing the scenario of being able to cancel the free trial if the experience is not satisfied. After that, participants were assigned randomly in two conditions which is either explicit choice condition or control condition. In explicit choice condition, they were manipulated thorough statement ´ After 15 days, you can choose to keep or cancel using the rest of free trial(15 days) ´. Finally, participants reported to questionnaire which is consist of dependent variable(participate intention toward free trial ) and mediator (perceived gain of free trial, loss which is status after free trial ).

Results

As a result of manipulation check, the free trial will be felt positive but status after free trial will be perceived as a negative outcome. As a result of hypothesis testing, subjects under explicit choice conditions will be more willing to participate in free trial promotion than participants under control conditions. It will be mediated by magnitude of perceived gain of free trial and a loss due to paid status after the free trial.

Discussion

Content platforms offer free trial promotions to consumers, encouraging them to switch to paid services. Marketers of the content platform assume that they will experience it unconditionally if they provide consumers with a month free of charge. However, according to this study, consumers may not be able to enter the free trial even though the service is available for free. We thought that consumers hesitate to do free trial because of the negative event after an free trial. This study aims to increase the intention of participating in the free trial through strategy giving explicit choice. So we thought it would reduce the magnitude of perceived loss and increasing the size of perceived gain about duration of free trial.

References

Kahneman, D., Tversky A.(1979). Prospect theory, an analysis of decision under risk , 263-292.

Baumeister, R. F., Bratslavsky, E., Finkenauer, C., and Vohs, K. D. (2001). Bad is stronger than good. Review of general psychology , 5(4), 323-370.

Song Kyun-seok, Pan Sang-gyu. (2012). Time-distance and analytical-level effects of loss hedge propensity. Consumer Culture Research, 15(3), 47-65

Kahneman, D., and Lovallo, D. (1993). Timid choices and bold forecasts ¦ A cognitive perspective on risk taking. Management science , 39(1), 17-31.

Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral decision making , 12(3), 183-206.

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