I don't think that study and those results apply here verbatim because this is more the Groupon model than the "cheap service" model.
I am, for a VERY limited time, getting a product for free. The perception of value is much higher (because of the time limit) than if I were downloading an always-free product or a really cheap product.
I think the success of Groupon, effectively using the same pattern of attraction, would indicate that people DO perceive a huge value from an extreme sale/giveaway like this for such a short period of time.
I'd also argue that the sheer volume of downloads (100k vs 20 the day before) would also support that claim.
Neither point perfectly scientific and conclusive, but I felt collectively the supported my position.
Except that reality doesn't bear out your position. So far, I haven't seen you give any evidence, other than your feelings or what you think, that things are the way you say they are.
I have visited the FAD page right around midnight pacific (when the free app is revealed) every day since it was first introduced in March. A few apps start with no rating, but most have 4- to 5-stars. By the end of the FAD promotion (the free-day,) I've observed at least half of them go below 3-stars. The only ones that have gone up are the ones that had no rating to begin with. Many, but not most, do recover some of their rating. I've yet to see an app (that I recall) which regained its previous high.
My understanding, and I don't have any link to really support this, is that Groupon customers are some of the most demanding, selfish and entitled gits out there. If Groupon is so great and customers are so thrilled at getting a premium thing cheap, why do more than half of merchants say they wouldn't do the promotion again?
Your logic is really flawed when you say "I'd also argue that the sheer volume of downloads (100k vs 20 the day before) would also support that claim."
It supports the claim that people like free stuff. Once a year IHOP does a free pancake deal for charity. On those days they see roughly 50 times more customers than on a typical day. By your logic, people perceive pancakes as a huge value.
I don't think that study and those results apply here verbatim because this is more the Groupon model than the "cheap service" model.
I am, for a VERY limited time, getting a product for free. The perception of value is much higher (because of the time limit) than if I were downloading an always-free product or a really cheap product.
I think the success of Groupon, effectively using the same pattern of attraction, would indicate that people DO perceive a huge value from an extreme sale/giveaway like this for such a short period of time.
I'd also argue that the sheer volume of downloads (100k vs 20 the day before) would also support that claim.
Neither point perfectly scientific and conclusive, but I felt collectively the supported my position.