The role of quality in mobile app markets

Gunwoong Lee, Raghu Santanam

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

Mobile application developers have capabilities to promote their products already released in the market by responding to dynamic consumer demands. This research investigates the role of quality updates in stimulating consumer demand in the competitive mobile App market. A panel vector autoregresive model (PVAR) is adopted to investigate the interdependencies among rankings, price discounts, and quality updates made from 1,259 Apps over 215 days in Apple App Store. The preliminary findings empirically substantiate predominant ranking effects in the market, and suggest developers make strategic update decisions based upon dynamic consumer needs. Specifically, a quality update has a positive impact on App sales when consumers want better quality Apps and a price promotion strategy is important when there is growing App demand along with increased device sales. We further find while a quality update has a delayed and long-term impact on sales, a price discount has an immediate and short-term impact.

Original languageEnglish (US)
Title of host publication2016 International Conference on Information Systems, ICIS 2016
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683135
StatePublished - 2016
Event2016 International Conference on Information Systems, ICIS 2016 - Dublin, Ireland
Duration: Dec 11 2016Dec 14 2016

Other

Other2016 International Conference on Information Systems, ICIS 2016
CountryIreland
CityDublin
Period12/11/1612/14/16

Keywords

  • Mobile applications
  • Panel vector autoregressive model
  • Quality update

ASJC Scopus subject areas

  • Information Systems

Fingerprint Dive into the research topics of 'The role of quality in mobile app markets'. Together they form a unique fingerprint.

  • Cite this

    Lee, G., & Santanam, R. (2016). The role of quality in mobile app markets. In 2016 International Conference on Information Systems, ICIS 2016 Association for Information Systems.