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 of uniqueness.