Free content encourages a latent dialog between the potential
consumer and actual consumers (through their reviews and
testimonials).
(7) Money back warranties or guarantees. These are really
forms of free content. The consumer is safe in the knowledge
that he can always return the already consumed content and get
his money back. In other words, it is the consumer who decides
whether to transform the content from free to paid by not
exercising the money back guarantee.
(8) Relative pricing. Information available on the Web is
assumed to be inherently inferior and consumers expect pricing
to reflect this "fact". Free content is perceived to be even
more shoddy. The coupling of free ("cheap", "gimcrack")
content with paid content serves to enhance the RELATIVE VALUE
of the paid content (and the price people are willing to pay
for it). It is like pairing a medium height person with a
midget - the former would look taller by comparison.
(9) Price rigidity. Free content reduces the price elasticity
of paid content. Normally, the cheaper the content - the more
it sells.
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