Application of Digital Innovation with a Freemium Business Strategy to Increase Sales of Accounting Software in Indonesia

Abstract

This study aims to provide empirical evidence about the strategy of freemium software which is a new business model in the digital era by applying the Dual Mediation Hypothesis (DMH Model) to investigate the effects of the freemium strategy as a promotional tool to increase user interest in purchasing premium licensed accounting software at Indonesia. This study uses 206 samples of respondents from various backgrounds, such as consultants, business owners, managers, and employees who use accounting software in business activities in Indonesia. Based on the discussion, the results of the research show that freemium software can be a good marketing strategy for software developers. Through the free version of the software provided to users, it can change user behavior to switch to a complete premium version, so it can effectively increase sales of accounting software in the current digital era.