The theory behind freemium pricing is that:
A)this model is great for companies that do not want to make money
B)it is illegal and unethical
C)customers perceive value in the free service and then are more willing to pay
D)customers are "guilted" into purchasing

Question

Quizplus · Accepted Answer

The theory behind freemium pricing is that customers perceive value in the free service and then are more willing to pay. By giving customers a free taste of the product or service, they are more likely to see its value and be willing to pay for additional features or an upgraded version. This model has been successful for many companies, such as Spotify and Dropbox.

The Theory Behind Freemium Pricing Is That