When will online free product trials contribute to product sales? The impacts of trial periods

Abstract

To enhance market penetration and expand their consumer base, many e-commerce retailers implement trial marketing strategies. Extant research has investigated the impact of product trials. However, one unique feature that has garnered little attention is that online free product trials are a process consisting of successive yet distinct trial periods. The effectiveness of trial marketing throughout this process remains an open question. Drawing on the hierarchy-of-effects theory, this study posits that consumers are sequentially exposed to the advertising effect and the word-of-mouth effect in the context of online free product trials, with the intensity of these effects varying as the trial progresses. Utilizing data from the free trial center of a leading e-commerce platform, this study demonstrates that the advertising effect of trial-product-related information on consumers decreases over different trial periods. In contrast, the word-of-mouth effect of trial-outcome-related information remains consistent across all trial periods. Additionally, heterogeneity has been found among different product types (e.g., search and experience products) and across different retailer groups (e.g., junior and senior retailers). This study modestly extends the literature on product sampling and marketing strategies and seeks to offer guidance on enhancing marketing efforts and improving resource allocation.