Are Consumers Ready for Fee-Based Online Services?

Many online service businesses are beginning to charge fees for services that they used to provide for free. It is unclear whether consumers are ready to embrace this practice. This study explores the critical issue of consumer attitudes toward fee-based online services. The results of the study indicate that consumers’ willingness to pay for online services is likely to be influenced by their perceived value of convenience these services provide, as well as by the extent to which they utilize these services. While the study finds that consumers are more willing to pay for services that are qualitatively better than free services, there is also indication that the belief remains strong among many that online services that were free in the past should remain free. The findings of this study will contribute to the formulation and implementation of sustainable business models for e-businesses in the service sector.