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Free for you and me? exploring the value users gain from their seemingly free apps
Linköping University, Department of Management and Engineering, Project Innovations and Entrepreneurship. Linköping University, Faculty of Science & Engineering. RISE Res Inst Sweden AB, Dept Ind Syst, Linköping, Sweden.ORCID iD: 0000-0001-6297-1919
Linköping University, Department of Electrical Engineering, Information Coding. Linköping University, Faculty of Science & Engineering. RISE Res Inst Sweden AB, Dept Ind Syst, Linköping, Sweden.ORCID iD: 0000-0002-8382-2725
2025 (English)In: DIGITAL POLICY REGULATION AND GOVERNANCE, ISSN 2398-5038, Vol. 27, no 2, p. 239-257Article in journal (Refereed) Published
Abstract [en]

PurposePersonal data is today recognized as an asset in the digital economy, generating billion-dollar annual revenues for many companies. But how much value do users derive from their seemingly free apps (zero-price services), and what user costs are associated with this value exchange? By adopting a human-centric lens, this article scrutinizes the complex trade-offs users face trying to capture the benefits and unperceived costs that such usage entails.Design/methodology/approachUsing a mixed-method research design, this study is anchored in empirical survey data from 196 participants in Link & ouml;ping, Sweden. The authors investigate users' willingness to pay for these services in relation to different types of costs.FindingsThe results indicate that users can derive significant value from the use of free services, which can be interpreted as a win-win situation between users and companies. Regarding costs, this research shows that the most significant costs for users are associated with procrastination, sleep deprivation and reduced focus, which can be challenging to identify and evaluate from the users' perspective.Research limitations/implicationsThis study shows that zero-price services provide significant benefits like enhancing social connectivity and offering a wide variety of content. Significant drawbacks, such as increased procrastination and sleep disturbances, highlight the psychological effects of these platforms. These impacts include behavioral changes, emphasizing the influence of online platforms on user engagement. Furthermore, a trend toward single-purchase preferences over free services suggests changing consumer attitudes toward digital payment models. This underscores the need for further research on non-monetary aspects in zero-price markets for better understanding and regulation of the digital economy.Practical implicationsThis study shows that users appreciate the accessibility and potential of zero-price services but are wary of privacy concerns. It underscores the need for companies to balance profit objectives with user experiences and privacy requirements. Offering a range of ad-free premium services to meet diverse customer needs can be effective. Users' high valuation of privacy and transparency suggests businesses should focus on human-centric, privacy-respecting strategies. Increased transparency in data usage and giving users greater data control could enhance the user experience and foster sustainable customer relationships.Social implicationsThe study calls for policymakers to focus on non-monetary risks of zero-price services, such as behavioral changes and digital well-being impacts. They should consider implementing regulations to protect users, especially children, from manipulative designs such as "dark patterns". Policymakers must balance user protection with innovation, leading to a sustainable zero-price economy. For zero-price service users, awareness of non-monetary costs, like procrastination and sleep deprivation, is vital. Understanding that "free" services have hidden costs is important, especially for younger generations. Managing privacy settings and selective service choices can protect privacy and well-being.Originality/valueThis research shifts the focus from simply valuing personal data based on market prices to assessing the worth of free services themselves. By listing various hidden costs, it underscores the need for increased user awareness and greater corporate transparency. Uniquely, it finds that users prefer making one-time purchases over using zero-price services, extending prior assumptions in the field. Additionally, it also characterizes the zero-price economy ecosystem, highlighting differences between market types and provides a deeper understanding of the zero-price market and its related concepts.

Place, publisher, year, edition, pages
EMERALD GROUP PUBLISHING LTD , 2025. Vol. 27, no 2, p. 239-257
Keywords [en]
Zero-price economy; Zero-price market; Human-centric; Zero-price service; Personal data; Attention; Privacy; Value; Hidden cost
National Category
Human Computer Interaction
Identifiers
URN: urn:nbn:se:liu:diva-207139DOI: 10.1108/DPRG-01-2024-0009ISI: 001296380200001Scopus ID: 2-s2.0-85201814557OAI: oai:DiVA.org:liu-207139DiVA, id: diva2:1894403
Note

Funding Agencies|Research Institutes of Sweden (RISE)

Available from: 2024-09-03 Created: 2024-09-03 Last updated: 2025-10-07Bibliographically approved
In thesis
1. Users Like You and Me: Understanding the User-Driven Data Economy from a Human-Centric Perspective
Open this publication in new window or tab >>Users Like You and Me: Understanding the User-Driven Data Economy from a Human-Centric Perspective
2025 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

With over 5 billion social media users ("users") worldwide, digital platforms such as YouTube and Facebook have become an integral part of people’s daily lives. Many of these platforms offer “free” services, such as entertainment and social interaction, but behind these services lies a complex economic, non-monetary exchange. A specific user group, referred to in this dissertation as zero-price users, trades personal resources such as time, attention, and data instead of money to use the "free" service. At the same time, another, more active user group plays a significant role: content creators. Content creators, and especially influencers, have assumed a central role in supplying platforms with original and engaging content. What unites these two types of users is that they both participate in a distributed value creation process based on the monetization of personal assets, which positions them as economic actors in an emerging user driven data economy.

Many of the resources that users provide or exchange with other users can be utilized by platforms as economic assets. However, these resources are not perceived in the same way as traditional economic transactions. This lack of insight can lead to a range of future consequences and costs that may negatively impact users and diminish their well-being. The aim of this dissertation is therefore to explore social media users as active economic actors in the user-driven data economy from a human-centric perspective.

The research is based on a combination of qualitative and quantitative methods. Surveys are used to study zero-price users and their engagement with “free” services. For content creators, in-depth interviews are conducted, as this group represents a significantly smaller population. The study stands out by adopting a human-centric perspective. In other words, it contributes knowledge focused on enhancing user well-being, rather than prioritizing growth and innovation as companies and organizations typically do.

The results show that platform strategies, such as infinite scrolling and targeted advertising, can subtly influence user behavior and lead to various non-monetary costs. These may manifest as procrastination, reduced self-control and stress. For content creators, the pressure from algorithms and sponsors often shifts their focus from intrinsic motivation to external performance goals, which can hinder their creativity and stability over time. Additionally, they frequently face financial uncertainty and the need to continuously push their boundaries to produce original content. This growing pressure may lead influencers to take significant risks or expose their private lives and families. The study’s observations highlight how the user-driven economy not only affects individuals but also reshape markets, culture, and behaviors.

This dissertation deepens the understanding of the user-driven data economy and its implications for users by linking them to autonomy, core human values, and well-being. It also emphasizes the importance of increased transparency and ethical accountability from companies, as well as the need for users to reflect on their values, digital behaviors, and the consequences of their actions. As role models and cultural influencers, influencers specifically play a key role in shaping future norms, values, and societal trends. While this research provides a foundation for understanding this phenomenon, further studies are needed to identify additional non-monetary costs for users and develop tools and strategies that can enhance their ability to make more informed decisions regarding their current and future challenges.

Abstract [sv]

Med över fem miljarder användare av sociala medier (användare) världen över så har digitala plattformar (plattformar) såsom YouTube och Facebook blivit en naturlig del av människors vardag. Många plattformar av detta slag erbjuder exempelvis ”gratis” tjänster, såsom underhållning och social interaktion, men bakom dessa tjänster döljer sig ett komplext ekonomiskt ickemonetärt utbyte. Till exempel byter en specifik användargrupp, som i denna avhandling benämns som nollprisanvändare, personliga resurser som tid, uppmärksamhet och data i stället för pengar mot användande av plattformar. Samtidigt spelar också en annan mer aktiv användargrupp en viktig roll, nämligen innehållsskapare. Innehållsskapare och främst så kallade influencers har fått en central roll i att förse plattformarna med originellt och engagerande innehåll. Det som förenar dessa två typer av användare är att de båda deltar i en distribuerad värdeskapandeprocess som baserar sig på monetariseringen av personliga tillgångar, vilket i sin tur positionerar dem som ekonomiska aktörer i en framväxande användardriven dataekonomi.

Många av de resurser som användarna tillhandahåller eller utbyter mellan andra användare kan nyttjas som ekonomiska tillgångar av plattformarna, vilket innebär att dessa resurser inte uppfattas på samma sätt som traditionella ekonomiska transaktioner. Denna bristande insyn kan leda till en rad framtida konsekvenser och kostnader som negativt påverkar användarna och deras övergripande välbefinnande. Syftet med denna avhandling är därmed att belysa och fördjupa sig i den användardrivna dataekonomin samt att mer specifikt undersöka konsekvenserna för de två centrala huvudanvändarna, nollprisanvändare och innehållsskapare.

Forskningen baserar sig på en kombination av kvalitativa och kvantitativa metoder, där enkäter används för att undersöka nollprisanvändare och deras användning av “gratis” tjänster. För innehållskapare så används istället djupintervjuer då dessa respondenter är färre till antalet. Studien utmärker sig genom att anta ett människocentriskt perspektiv. Med andra ord så bidrar studien med kunskap som kan leda till ökat välbefinnande för den enskilde snarare än företagsrelaterade aspekter som ökad tillväxt och innovation.

Resultaten visar att plattformsstrategier, såsom obegränsad scrollning och riktad reklam, subtilt kan påverka användares beteenden och leda till en rad icke-monetära kostnader, exempelvis prokrastinering, nedsatt självkontroll och stress. För innehållsskapare medför trycket från algoritmer och sponsorer att deras fokus ofta förflyttas från deras inre motivation till externa prestationsmål, vilket visar sig hämma kreativitet och stabilitet över tid. Dessutom står de ofta inför en ekonomisk osäkerhet och behovet av att ständigt tänja på sina gränser för att producera originellt innehåll. Denna ökade press kan leda till att influencers tar stora risker, eller exponerar sina privatliv och familjer. Studiens observationer belyser hur användardrivna ekonomier inte bara påverkar individer utan även effekten på marknader, kultur och beteende.

Denna avhandling fördjupar förståelsen för den användardrivna dataekonomin och dess konsekvenser för användare genom att koppla dem till autonomi, människors kärnvärden och välbefinnande. Den betonar också vikten av ökad transparens och etiskt ansvar från plattformsföretagens sida, samt vikten av att användare reflekterar över sina värderingar, digitala beteenden och konsekvenserna av sina handlingar. Som förebilder och kulturella påverkare spelar specifikt influencers en nyckelroll i att forma framtida normer, värderingar och samhällstrender. Även om denna forskning ger en grund för att förstå detta fenomen, så behövs vidare studier för att identifiera fler ickemonetära kostnader för användare samt nya verktyg och strategier som kan stärka förmågan att fatta mer informerade beslut kring nuvarande och framtida utmaningar.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2025. p. 110
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 2432
Keywords
User-driven Data Economy, Digital Economy, Human-Centric, Non-monetary cost, Well-being, Creator Economy, Content Creator, Social Media Influencer, Self-Determination Theory, Motivation, Zero-Price Economy, Zero-Price Market, Zero-Price User, Personal Data, Privacy, Web 2.0, Social Media, Social Media Platform, Human-Centered, Value Exchange, User-Generated Content, Content Provider, Decentralized Economy, Industry 5.0
National Category
Information Systems, Social aspects
Identifiers
urn:nbn:se:liu:diva-211946 (URN)10.3384/9789180759960 (DOI)9789180759953 (ISBN)9789180759960 (ISBN)
Public defence
2025-03-27, A2, A Building, Campus Valla, Linköping, 13:15
Opponent
Supervisors
Available from: 2025-02-28 Created: 2025-02-28 Last updated: 2025-02-28Bibliographically approved

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Mileros, Martin DanielForchheimer, Robert

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