The Influence of Customer Engagement Experiences Between Satisfaction and Loyalty Relationships on Freemium Business Model

摘要

The objective of this study is to develop a research framework based on customer's engagement experiences framework including social facilitation, temporal experience, utilitarian value, and intrinsic enjoyment of the freemium business model. In recent years, several software application providers have developed their business models by increasing large users' databases, offering added value for users, and increasing the type of service. This business model is called freemium. Freemium allows its users to access its software applications for free and improve the features whenever they need. Although many users are satisfied, many companies fail to implement this model because many users do not want to pay more. In fact, user's satisfaction does not always influence a user's loyalty under certain circumstances. On the other hand, user's engagement can encourage long-term relationships between companies and users. The originality of this study is the moderating role of customer's engagement experiences in the satisfaction - loyalty relationship of the freemium software application. This research uses a quantitative approach. The questionnaire was successfully distributed to obtain 274 respondents. The data is analysed by SEM. The results of this study indicate that social facilitation is one of the dimensions of customer's engagement experiences, which has the most encouraging factor on users to continue their intention to use and purchase.