Optimal Pricing In Freemium Business Model With Considering Customer Sharing

With the development of information technology,information products have changed people in various aspects.Competitors will emerge when information products enter into the market.High fixed costs,low variable costs and network externality of information products make it price differently from other products.Reasonable pricing strategy of the product is the key to determine the profitability of the product provider and the success of the product.It is known that when products enter into the market,merchants will launch various means of promotion,which is also true for information products.It is considered that if the customers of the product can attract more potential customers by sharing product information,then they can receive rebates from the supplier,and the new customers will also get the same discount.Product pricing strategy under the customer sharing model is studied mainly from the following aspects:The existence of monopolies in the market situation is firstly analyzed.Product provider launch free products in low version and charged products in high version,then customers select goods type according to their needs,and then the profit function model is constructed.Based on this,to establish two different customer sharing model that consider and not consider the impact of the network externality new markets on the original market.To study the impact of the number of customer shares and the supplier rebate coefficient on product revenue in both.Then compare the performance of the share model with respect to the non-sharing model of product revenue advantage,and the different influence of sharing number on optimal return factor in the different sharing moder.Research indicates,the product revenue in share mode increases as the number of people sharing,when the product pricing is low,the product yield decreases with the increase of the rebate coefficient,when the product price is high,the product return is affected by the number of shares with the change of the rebate coefficient.In addition,when the number of people sharing is small,the rebate coefficient is greater that consider the new market on the original market has a network of externalities.When customers share is more,the results are just the opposite.Finally,on the basis of the research,under the premise of analyzing Tencent's current e-mail market share,take Tencent's free e-mail and charged enterprise e-mail as the object,use specific values to show the benefits for customers of sharing information products.,and provide the basis for industry decision-making.