A study of the factors influencing users’ decisions to pay for Web 2.0 subscription services

Abstract

A subscription-based business model provides a stable source of revenue for Web 2.0 services. In order to understand why website users are willing to pay for online contents, this study explored the factors that influence users’ decisions to pay for subscriptions online. Eleven important variables were identified, and a survey was conducted to group them into three factors representing the aspects of general service, Web 2.0, and Web 1.0, respectively. As a result, the willingness to pay for subscriptions was classified with a high degree of accuracy. In addition, a Web 2.0 site which charged its heavy users subscription fees provided samples for the second survey. The research construct was validated and the paying members were successfully distinguished from regular members. The results show that the aspects of general service, Web 2.0, and Web 1.0 are all important factors; of these the Web 2.0 aspect had the highest impact on the decision of whether or not to pay for subscriptions. Furthermore, implications for management in operating Web 2.0 websites are discussed and suggestions are provided.

Keywords:

• Web 2.0
• willingness to pay for subscriptions
• exploratory factor analysis
• confirmatory factor analysis
• logistic regression

Acknowledgements

The authors gratefully acknowledge the support of the National Science Council (Grant 99-2410-H-004-150) and Sayling Wen Culture & Education Foundation (Grant 98A009-7).