Subscription business model in mobile software industry : Case: Company X.

Abstract

The purpose of this study was to determine the consumer motives to download and pay for mobile subscription-based applications. Firstly, the theoretical background is given to obtain a comprehensive understanding of the field of study. Afterwards, the empirical research investigates the case company’s practices as well as the potential customers’ motives. The work was commissioned by the fourth year bachelor student of International Business, Dmitrii Gladun, in cooperation with an international mobile software developing company. The information for this thesis was collected from various books, scientific papers, articles, the Internet and by carrying out qualitative interviews and a quantitative web-survey. The study adopted a Mixed-Methods approach. Six managers from the case company took part in the interviews and 204 respondents participated in the survey. As a result of this thesis, a marketing research into the consumer motives to purchase subscription-based mobile applications was done. The implications of the study include general advice on how to convert potential users into subscribers as well as recommendations for the case company. This research might prove useful in the similar settings.