How Pricing and Ratings Affect Perceived Value of Digital Detox Apps

Abstract

As the number of mobile apps has exploded over the last decade, different pricing models have emerged (e.g., free, paid, freemium). However, it is not clear how these models affect users' perceptions of the value of apps that promote behavior change, such as digital detox apps, and what role social ratings play in this relationship. This paper investigates this issue using an experimental approach. The results of a controlled between-subjects experiment (N = 894) suggest that pricing models significantly influence the perceived value of digital detox apps. Digital detox apps using the paid model are perceived to be significantly less valuable than free and freemium apps. No significant difference has been found between free and freemium pricing models. Theoretical and practical implications are discussed.