The Zero Price Effect of Mobile Internet Information Goods

Abstract

While Mobile Internet marketers or content providers promote free offers as incentives to elicit consumer purchase behavior, limited research has investigated the effectiveness of zero-price offers. Thus, it becomes important for Mobile Internet marketers or content providers to assess how zeroprice offers are perceived by consumers. This study first explored consumers’ perceptions of free information goods in Mobile Internet. A follow-up study interpreted and determined consumers’ response to bundling of information goods with some free offers. The findings suggested that (1) Zeroprice made an effect on mobile internet information goods, and it is in accordance with Kristina Shampanier, Nina Mazar and Dan Ariely’s zero-price model; (2) The role of zero-price effect in bundling information goods pricing strategy is confirmed, when some information goods in the bundling is free, the demand of this information goods bundling would have a significant increase, it would induce consumers’ purchase intention. The result will supply the guidance for the Mobile Internet marketers or content providers when they want to use zero price as a promotion tool to improve the business performance.