1 research outputs found
Introduction of Software Products and Services Through Public 'Beta' Launches
Public 'Beta' launches have become a preferred route of entry into the
markets for new software products and web site based services. While
beta testing of novel products is nothing new, typically such tests were
done by experts within firm boundaries. What makes public beta testing
so attractive to firms? By introducing semi-completed products in the
market, the firm can target the early adopter population, who can then
build the potential market through the word of mouth effect by the time
the actual version of the product is launched. In addition, the
information gathered through the usage of the public beta gives
significant insights into customer preferences and consequently helps in
building a better product. We build these marketing and product
development implications in an analytical model to compare the different
product introduction strategies like 'skimming' or 'penetration pricing'
with beta launches. This analysis is done for products of branded and
unbranded Web 2.0 companies like Google and Flickr etc. We also examine
the impact of different monetization models like direct pricing and
advertising on the beta launch strategy