When are apps worth paying for?: How marketers can analyze the market performance of mobile apps

Abstract

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. The authors found that apps linked to an offline or online brand attracted more users and obtained stronger brand image if made available to consumers at no cost. Apps branded independently attracted more users and obtained stronger brand image if offered at a price. These outcomes significantly add to existing knowledge about branded apps and demonstrate that longstanding marketing laws support the understanding and evaluation of market trends in the mobile-digital context. These findings translate into practical guidelines for managers of existing brands who wish to launch an app, as well as for managers wanting to market apps as stand-alone digital products.