Research Proposal
Title
Relationship between two different business mobile applications models – freemium and premium - and consumer buying habits in mobile app industry
Background
This research proposal focuses on different e-business models and their relationship with the consumer buying behaviour. This research is part of digital marketing strategy field as it specifically examines e-business models in mobile industry. As the research will be examined from the consumer point-of-view, it is also to do with consumer behaviour.
With the rise of the new business models emerging due to technological innovations, various ways to monetize digital content created by firms emerge. The link between different business models and the purchasing behaviour in mobile app industry is the focus of attention of this research project. There is a certain relationship suggested by some primary literature resources, however this relationship is applicable only to very specific types of mobile apps.
The rationale behind the project is that as business models for e-businesses are vaguely analysed in the current academic literature and therefore this research aims to explore this field in more detail.
Research Aims & Objectives
Overall Aim
The overall aim of this project is to examine the relationship between two business models –freemium and premium - and consumer purchasing habits in mobile application (app) industry.
Objectives
To identify whether people are more likely to spend on in-app purchases or on access to an app.
To investigate whether the relationship in two distinct software markets – iOS and Android - is the same.
To identify whether particular purchasing choice is associated with any other variable such as age, gender, type of an app, etc.
To formulate conclusions on the relationships found and develop a theory.
Hypothesis
As the relationship between two variables (business models and purchasing habits) is not established by academic theory, the direction of the
Relationship between two different business mobile applications models – freemium and premium - and consumer buying habits in mobile app industry
Background
This research proposal focuses on different e-business models and their relationship with the consumer buying behaviour. This research is part of digital marketing strategy field as it specifically examines e-business models in mobile industry. As the research will be examined from the consumer point-of-view, it is also to do with consumer behaviour.
With the rise of the new business models emerging due to technological innovations, various ways to monetize digital content created by firms emerge. The link between different business models and the purchasing behaviour in mobile app industry is the focus of attention of this research project. There is a certain relationship suggested by some primary literature resources, however this relationship is applicable only to very specific types of mobile apps.
The rationale behind the project is that as business models for e-businesses are vaguely analysed in the current academic literature and therefore this research aims to explore this field in more detail.
Research Aims & Objectives
Overall Aim
The overall aim of this project is to examine the relationship between two business models –freemium and premium - and consumer purchasing habits in mobile application (app) industry.
Objectives
To identify whether people are more likely to spend on in-app purchases or on access to an app.
To investigate whether the relationship in two distinct software markets – iOS and Android - is the same.
To identify whether particular purchasing choice is associated with any other variable such as age, gender, type of an app, etc.
To formulate conclusions on the relationships found and develop a theory.
Hypothesis
As the relationship between two variables (business models and purchasing habits) is not established by academic theory, the direction of the
References: Anon, 2012. A&N Media to trial freemium model in update to Bamboozle mobile game. New Media Age, [e-journal]. Available through: Expanded Academic ASAP database website: [Accessed 20 November 2012]. Anon, 2011. Going freemium. Technology & Learning, [e-journal] 31 (8), 10. Available through: Expanded Academic ASAP database website: [Accessed 20 November 2012]. Anon, 2011 Bekkelund, K. J., 2011. Succeeding with freemium: Exploring why companies have succeeded & failed with freemium. Specialization Project. Norwegian University of Science and Technology. Available at: [Accessed 20 November 2012]. Bryman, A., 2012. Social Research Methods. 4th ed. Oxford: Oxford University Press. Bryman, A. and Bell, E., 2011. Business Research Methods, 3rd ed. Oxford: Oxford University Press. Business Wire, 2010. PayPal Unveils New Payment Solution for Digital Goods [online] Available at: [Accessed 20 November 2012]. Bustos, L., 2012. Mobile Games: The Economics of Freemium [Infographic][online] Available at: [Accessed 27 November 2012]. Casadesus-Masanell, R. and Ricart, J. E., 2010. From Strategy to Business Models and onto Tactics. Long Range Planning, [e-journal] 43 (2-3), 195-215. Available through: SciVerse Database: [Accessed 20 November 2012]. Chaffey, D. and Smith, PR, 2008. eMarketingeXcellence: Planning and optimizing your digital marketing, 3rd ed. Oxford: Butterworth-Heinemann . Chaffey, D., 2002. E-Business and E-Commerce Mangament. Essex: Pearson Education Limited. Kalakota, R. and Robinson, M., 1999. E-Business: Roadmap for Success. Reading: Addison Wesley Longman, Inc. Leung, C.H., 2007. Evolution of the Business Model. Master. Technology Management Martin, E McElroy, J. C., Paula, C. and Fenton, J. B., 1995. Absenteeism and performance as predictors of voluntary turnover. Journal of Managerial Issues, [online]. Available at: [Accessed 27 November 2012]. Moore, J., C. And Brylinsky, J. A., 1993. Spectator effect on team performance in college basketball. Journal of Sport Behaviour, [online]. Available at: [Accessed 27 November 2012]. Osterwalder, A., 2004. The business model ontology a proposition in a design science approach. Ph. D. Universite de Lausanne. Available at: [Accessed 20 November 2012]. Reynolds, M., 2000. Beginning E-Commerce with Visual Basic, ASP, SQL Server 7.0 and MTS. Birmingham: Wrox Press Ltd. Reminyi, D., Williams, B., Money, A. and Swartz, E., 2000. Doing Research in Business and Management: An introduction to process and method. London: Sage. Sako, M., 2012. Business models for strategy and innovation. Communications of the ACM [online] Available at: [Accessed 20 November 2012]. Saunders, M., Lewis, P Teece, D. J., 2010. Business Models, Business Strategy and Innovation. Long Range Planning, [e-journal] 43 (2-3), 172-194. Available through: SciVerse Database: [Accessed 20 November 2012]. York, T., 2012. Why Freemium is Dominating Mobile [online] Available at: [Accessed 20 November 2012]. Zikmund, W., Babin, B., Carr, J. and Griffin, M., 2010. Business Research Methods. South-Western Cengage Learning. Zoller, E., 2011. Winning with ‘freemium’ content. Telecom Asia, [e-publication] 22 (3), 3. Available through: Business Source Premier database website [Accessed 20 November 2012]. Zott,C. and Amit, R., 2010. Business Model Design: An Activity System Perspective. Long Range Planning, [e-journal] 43 (2-3), 216-226. Available through: SciVerse Database: [Accessed 20 November 2012]. Zott,C. and Amit, R., 2008. The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal, [e-journal] 29 (1), 1-26. Available through: SciVerse Database: [Accessed 20 November 2012].