Abstract
In this study, we investigate the user’s using and paying behavior in freemium SaaS. For SaaS companies, how to convert their free users into paid customers is very important. In freemium business model, users use the services/products for free in the beginning and then become premium user. In previous studies of traditional information technology acceptance, scholars only dedicated in user’s using behavior. However, the situation of IT acceptance in freemium SaaS have two stage, using and paying. In order to bring it in line with current situation in freemium SaaS, we base on UTAUT theory, propose a new technology acceptance model for freemium SaaS industry. The proposed model includes two parts, user’s using behavior and paying behavior. We analyze user’s attitude as input to figure out the key factors in each stage and also found out the characteristics between different groups of people that have different paying behavior. This research involved 573 valid respondents of online survey. The quantitative analysis of the online questionnaires is conducted through partial least squares and ANOVA test in order to indicate the relationship between user’s attitude and behavior. The results of this study show that in the beginning stage, companies should focus on the quality, usability and social influence of their products/services. But in the middle stage and the last stage, they should put more resources in security and transaction efficiency. Furthermore, in the last stage, the continuous innovation is needed to make their product/service unique and irreplaceable. These findings provide empirical support for a new conceptual model of freemium SaaS acceptance. Furthermore, these findings provide practical guidance to SaaS companies or startups that want to use freemium as their pricing strategy. The results of this research could help them better allocate resources.