When Are Apps Worth Paying For? How Marketers Can Analyze the Market Performance of Mobile Apps

Using established marketing laws, such as the brand usage and image relationship and the double jeopardy effect, the current research shows how to analyze the market performance of different types of mobile apps.
Stocchi, Guerini and Michaelidou

MANAGEMENT SLANT

  • Apps linked to existing brands attract more users and create a stronger brand image when offered for free.
  • Independent apps attract more users and build a stronger brand image when offered at a price.
  • In the first instance, managers should treat the app as a brand extension and an add-on to the promotional mix, as a way to appeal to the existing customers of the brand.
  • In the second instance, managers should, by default, make the app available to consumers at a price, as a way to convey a price–quality advantage and a sense...

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