It's pathetic. The thought goes ... keep increasing rates until the inflection point between total revenue and customer retention is maximized. Econ 101 theory in action.
People do this short-term shit to chase quarterly shareholder needs. It's completely detrimental to the long-term gains but ... it's the easy appraoch for the here and now.
Software vendors need to go back and read Peter Drucker's stuff. Marketing and innvoation is how you create sustainable, long-lasting value.