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19-Apr-2019 07:34

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Accordingly, a psychological phenomenon may occur when a customer renews a subscription, that may not occur during a one-time transaction: if the buyer is not satisfied with the service, he/she can simply leave the subscription to expire and find another seller.

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The model was pioneered by publishers of books and periodicals in the 17th century, Rather than selling products individually, a subscription offers periodic (monthly, yearly, or seasonal) use or access to a product or service, or, in the case of performance-oriented organizations such as opera companies, tickets to the entire run of some set number of (eg., five to fifteen) scheduled performances for an entire season.

This reduces customer acquisition costs, and allows personalized marketing or database marketing.

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