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International Potential for a Free Model in a B2B&C Market

Tagesen, Kristian
Master thesis
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URI
http://hdl.handle.net/11250/2412604
Date
2016
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  • Institutt for informasjonssikkerhet og kommunikasjonsteknologi [2798]
Abstract
Several establishments worldwide are growing in size and see frequent

internal changes in buildings, which presents a demand to manage and

accommodate these changes in order to maintain a satisfied customer base.

One way to offset the inconveniences that this may cause, is through an

indoor mapping service. Providing an up-to-date, interactive and digital

indoor mapping service may offer benefits to establishments and its clients

alike. MazeMap is a company specialising in providing indoor mapping

services to a wide selection of customers ranging from universities and

hospitals, to sporting arenas and cruise ships. With the software as a

service style of product delivery becoming a delivery method of choice

among a large portion of software development companies, new business

models has emerged as a result. One such model is the so-called freemium

model, thoroughly tested in the consumer market but not in the business

and enterprise market.

This thesis aims to propose a freemium-based business model for

companies such as MazeMap, who are willing to try new business models

in B2B and B2B&C markets. In order to propose such a business

model, an international survey has been conducted, and companies that

successfully employs the freemium business model in business-oriented

markets, has been investigated. The survey targeted higher education

institutions, receiving 39 responses from responders worldwide with 14

different countries being represented. In the results, 64.1% expressed an

initial interest in an indoor mapping service, which subsequently increased

to 84.6% after the potential benefits of such a service was been stated. In

the paradigm of freemium, the fact that the few pays for the many is a

central theme. In relation to this, the survey measured the respondents

willingness to pay for premium features, with the results being in line

with the expectation that few would indicate a strong willingness to pay

for these features.

Based upon the success factors of the companies that successfully

employs the freemium business model along with the survey results, a

business model was proposed. This model was built in the framework

that is the Business Model Canvas, and provides both a textual and

visual representation of the presented business model.
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NTNU

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