I think your logic is slightly flawed. There is a difference with $0.
When something is free, there is no barrier or risk at all in acquiring that product or service. If there is a cost for a product, then I have an incentive to perform a more careful comparison to get the best product/service for the money spent.
If I am evaluating two products, one costs $20, and one costs $25. If the high priced product has superior features and better fits the business need, it is likely that someone will purchase that product.
Now, if I am evaluating two products, one is free, and one costs $5. If the $5 has superior features, and better satisfies the business need - BUT - the free product can also do the same job - it may be a bit more clunky, etc. I think most people will opt for the free product.
It may be a psychological effect - but it is real - and vendors have to deal with this reality.
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logic slightly flawed
I think your logic is slightly flawed. There is a difference with $0.
When something is free, there is no barrier or risk at all in acquiring that product or service. If there is a cost for a product, then I have an incentive to perform a more careful comparison to get the best product/service for the money spent.
If I am evaluating two products, one costs $20, and one costs $25. If the high priced product has superior features and better fits the business need, it is likely that someone will purchase that product.
Now, if I am evaluating two products, one is free, and one costs $5. If the $5 has superior features, and better satisfies the business need - BUT - the free product can also do the same job - it may be a bit more clunky, etc. I think most people will opt for the free product.
It may be a psychological effect - but it is real - and vendors have to deal with this reality.