Brand relationships in wireless mobile environments: The mediating role of apps

Brands use branded mobile apps to interact with users and to develop brand relationships in wireless mobile environments. These apps collect data about users and app usage, which are potentially helpful for brand relationship research. We aim to contribute to understanding the user–brand relationship (UBR) measurement mediated by branded apps, an area with very limited research, with a focus on leveraging these apps as a gauging context to measure the UBR strength. We propose a data-driven model to measure the UBR strength that combines metrics computed by using branded app data with close interpersonal relationship indicators. We conducted a computer simulation to test the proposed model. Our findings show that app usage time is the metric that most affects UBR strength measurement. The results suggest that time is essential for developing brand relationships in wireless mobile environments, much like in interpersonal relationships. The proposed model can be supplemented with other metrics to study new attributes associated with the UBR that might emerge in these environments.     

Are men from Mars,women from Venus? Examining gender differences towards continuous use intention of branded apps

In this age of technology, consumers have become comfortable shopping with their mobile devices. In light of this growing trend, the branded app market has grown steadily, surpassing all other types of mobile commerce. Although many retail businesses go mobile, consumers’ continuous use of the branded app remains a key challenge in gaining a competitive advantage in the contemporary market. By integrating both the stimulus-organism-response (S–O-R) model and gender schema theory (GST), this study aims to investigate how gender differences affect the factors that drive branded app continuous use intention (CUI). Survey data collected from 715 millennial mobile shoppers were analyzed using the partial least squares-structural equation modeling (PLS-SEM) technique. The results demonstrate that telepresence and social presence have a significant effect on customer engagement (CE) and value co-creation (VCC), which consequently impact CUI. Furthermore, the moderation results indicate that both genders play rather different roles in the proposed relations. Therefore, our work contributes to the information system and consumer behavior literature, while providing practitioners with useful information about effective strategies to drive the continuous usage of a branded app.     

The abandonment behaviour of the branded app consumer: A study using interpretive structural modelling approach

Marketers are increasingly adopting branded app because of their ability to deliver a distinct and gratifying consumer experience. While the user acquisition and adoption of the branded app is growing exponentially, the rate of app abandonment remains an area of concern. As many as 71 % of users remain inactive within a rolling period of three months; however, limited scholarly research has occurred to understand the causal explanation of this phenomenon. This study attempts to shed light on the reasons for such a high abandonment rate, the factors triggering such behaviors, and their causal relationship through the interpretive structural modelling (ISM) approach. An extensive literature review on the branded app, studies on consumer retention, and responses from 31 domain experts led to the identification of 19 factors and the presentation of a seven-layered interpretive structure to define the underlying causal relationship between these factors. The academic contribution of this paper lies, first, in identifying four new factors (onboarding experience, acquisition offer, value for time, and gestation period) and assimilating them into the extant consumer retention research. Second, this study conceptualizes a new model by integrating two existing theories of the Investment and Relationship Stability Model and the Commitment–Trust Theory. It also aspires to improve understanding of the branded app abandonment among practitioners and accordingly helps in prioritizing their marketing interventions.     

Branded app atmospherics: Examining the effect of pleasure–arousal–dominance in brand relationship building

Given the incredible ability to interact with consumers, branded apps have become a new important brand relationship building platform for marketers. However, despite the remarkable growth of app users, many brands are still struggling to attract continuous usage among user. Past research emphasized on the functional perspective of branded apps usage, yet emotional factors have received less attention. Therefore, to address the research gap, present research draws from the conceptual lens of pleasure-arousal-dominance (PAD) model from environmental psychology to examine the emotional factors of branded apps. The objective of this research is to investigate the drivers of branded app atmospherics in brand relationships. We recruited 408 users by an online survey. Results identify atmospherics cues that influence the experiential emotions of pleasure, arousal and dominance, which generates usage intention. This research contributes knowledge by extending PAD model to branded app context and provide an important ground where practitioners can design atmospherics cues that create emotional experience in branded app to foster brand relationship.     

The rules of engagement: how to motivate consumers to engage with branded mobile apps

ABSTRACT

This research presents and validates a framework, which illustrates how to motivate consumers to engage with branded mobile applications, or apps. The framework shows that consumer involvement with branded apps underpins two sets of consumer perceptions of the benefits that the app offers, which reflect the different motives for engaging with the app, as consumers experience them. These perceptions include the utilitarian motives of security, usefulness and ease of use; and the hedonic motives of interpersonal utility, attachment (with the device) and entertainment. This range of motives leads to the willingness to pay for the app and the willingness to recommend it. This research contributes to marketing theory by clarifying specific details of the psychological process through which it is possible to motivate consumer engagement with branded apps - i.e. by means of binding involvement, perceptions of how apps’ benefits meet individual needs and two key outcomes. The findings also yield managerial relevance. Above all, the outcomes of this research suggest that, by involving and motivating consumers through the improvement of the benefits that a branded app offers, it is possible to increase the app’s revenues and to encourage word-of-mouth, creating value for app providers and consumers.     

Identification of two decision-making paths underpinning the continued use of branded apps

This study investigates two decision-making paths that underpin the continued use of branded apps. One path originates from past use of a category of apps and leads to continued use of a branded app from that category via recognition. The second path also starts with past use, but leads to continued use through the evaluation of the app's benefits. Two empirical studies test and subsequently validate the resulting conceptual model, confirming that both paths underpin continued use; however, the strength of the theoretical links varies, and the two paths warrant separate investigation. These outcomes support the generalizability of the proposed model, highlighting its potential as a tool to advance the understanding of consumer decision-making leading to the continued use of branded apps. The findings of this study also yield practical relevance, especially for the delineation of strategies to enhance the chances of market survival of branded apps.     

Beyond the Usefulness of Branded Applications: Insights from Consumer–Brand Engagement and Self‐construal Perspectives

Branded mobile applications (apps) present one of the most promising opportunities for marketers to reach current and potential customers, sell products or services, and facilitate customer engagement with brands. This study aims to explore how branded apps influence consumers’ brand repurchase intention and continuance usage intention. Integrating the utilitarian view from information systems research and the view of consumer–brand engagement from marketing research, a complementary engagement path alongside the utilitarian path was devised and tested in order to elucidate consumer perceptions toward branded apps. Independent self‐construal and interdependent self‐construal moderate relationships along the utilitarian path and engagement path, respectively. Data collected from 637 respondents support most of the proposed hypotheses. Results show that the engagement path has more influence on continuance intention and equal influence on repurchase intention when compared to the utilitarian path. Findings show that apps users have different thoughts along each of the two paths, depending on their self‐construal. The study's findings also provide app designers and marketers with new perspectives on how to better design branded apps.     

Understanding branded flash mobs: The nature of the concept,stakeholder motivations,and avenues for future research

In an effort to increase interaction and brand exposure, marketers have recently begun using flash mobs as a marketing device. This exploratory paper combines a conceptual discussion of flash mobs in a marketing context with a number of studies to understand how marketers are currently using flash mobs and, more importantly, if flash mobs are an effective tool of communication and persuasion? This paper categorizes flash mobs as a subsection of guerilla marketing, and provides a historical and cultural analysis of the phenomenon. The first study, a content analysis of branded flash mobs on YouTube, shows that branded flash mobs are primarily used to promote entertainment, retail and travel organizations, that the majority of branded flash mobs are dance performances, and that they normally take place in a plaza or inside a mall. Through several in-depth interviews (studies 2a, 2b, and 2c), the paper then presents an examination of the intervolved behavior and motivations of branded flash mobs stakeholders: the producers, the audience, and the participants. Implications for the marketing manager are noted and areas of future research are offered.     

The Effect of Product Innovation,Promotion, and Price on Consumer Switching to Private Labels

The channel conflict that exists between retailers and manufacturers of branded products has dynamically shifted as large retailers have expanded their offerings of private label products. This study investigates the ability of consumer packaged goods companies to exert influence in the channel by testing which marketing initiatives implemented by manufacturer brands are more efficient in preventing consumer switching to private labels. We use a hazard model to simultaneously measure the effects due to product innovation, promotion, and price on consumer switching and how strong those effects are. We find that as expected product innovation, promotion, and price exert a negative effect on the consumer likelihood of switching to private labels. However, we find the strongest effect on promotion suggesting the importance of understanding how consumers perceive value in the national brands offer.     

How many,how often,and how new? A multivariate profiling of mobile app users

Despite enormous demand for and explosive growth of mobile phone apps in recent years, few studies have been conducted to arrive at a multi-faceted valuation of app users. Our paper addresses this important gap in literature. Drawing on Household Production Theory and Hedonic and Utilitarian Consumption Theory, we investigate how mobile app users behave in the dimensions of possession quantity, usage Frequency, and acquisition Recency. We propose a multivariate model to examine these behaviors jointly and calibrate it using data from a survey of app users. We take a Bayesian MCMC computational approach for model calibration. The results are consistent with our theoretically derived expectations. The significance of the findings is discussed.     

Book essay on Flemming Hansen and Sverre Riis Christensen (2007), Emotions, advertising and consumer choice

Hansen and Christensen discuss a wide range of current issues regarding the role of emotions in consumer behavior as well as measures of advertising effectiveness. The central theme of the book is the elaboration and application of a new tool to measure the emotional constructions that consumers develop for branded fast moving consumer goods. The authors call this measure NERS, which stands for Net Emotional Response Strength. The book appeals to both intermediate and advanced academic readers due to the comprehensiveness of its literature review and the depth of its theoretical developments. The present essay critically comments the contents of the book and then, based on the context provided by the book, discusses in further detail some salient aspects of the role of emotions in consumer choice that deserve special attention. In particular, it is pointed out how some findings from behavioral decision research could improve the conceptualizations offered by Hansen and Christensen.     

Practitioners’ Perspectives on Branded Entertainment in The United States

As contemporary consumers become more skeptical of traditional media, marketers tend to rely on alternatives, such as product placement or branded entertainment. This study explores marketing practitioners’ perspectives on the latter: branded entertainment. It examines, specifically, their perspectives on its execution, measurement, and on brand characteristics. This study investigates how marketing practitioners (branded entertainment agents and advertisers) view branded entertainment differently from product placement. In addition, this exploration of practitioners’ perspectives on branded entertainment sheds some light on the future direction of such entertainment. Public policy implications on branded entertainment are also discussed.     

Do independent hotels benefit from the presence of branded ones?

This paper investigates the performance changes of independent hotels due to the presence of nearby branded hotels in Texas. The moderating effects of these performance spillovers are also examined. Evidence from empirical analysis shows the existence and moderate significance of spillover effects from branded to independent hotels. Further analyses indicate that younger and higher-class independent hotels benefit significantly from performance spillovers from branded hotels. Higher-class branded hotels generate the vast majority of spillovers for their independent peers in the vicinity. Moreover, between the two types of branded hotels, franchised hotels generate the vast majority of spillovers, whereas contributions from chain-operated hotels are negligible. Suggestions are provided to independent hotels on how to improve their performance through spillovers from branded hotels.     

Brand prominence and social status in luxury consumption: A comparison of emerging and mature markets

This research investigated how the use of a prominent versus subtle branding strategy and status consumption affect consumers’ intention to buy luxury products across emerging and mature markets. To this end, an experimental study with consumers in India (emerging market) and the United States (mature market) was conducted. The results suggest that Indian (but not U.S.) consumers with a higher status consumption tendency are more willing to purchase prominently branded luxury products than subtly branded ones. On the other hand, U.S. (but not Indian) consumers with a lower status consumption tendency are more willing to purchase subtly branded luxury products than prominently branded ones. The paper discusses these findings, highlights their contribution to luxury research, and illustrates their practical value for luxury companies interested in targeting mature and emerging markets.     

Branding in a global marketplace: The mediating effects of quality and self-identity brand signals

Research documents that consumers with a stronger belief in global citizenship through global brands (GCGB) view branded products as more important and prefer global to local brands. We test the mediating effects of consumer use of quality and self-identity brand signals on the relationships between GCGB and the importance attributed to branded products (Study 1: U.S. and Russia) as well as purchases of global brands (Study 2: U.S., U.K, and Russia). Our research establishes that consumer involvement with branded products and purchases of global brands revolves around consumers' use of brands as signals of quality and self-identity. In the developing country, results document mediation effects for the use of both quality and self-identity signals on the importance of branded products and global brand purchases. In developed countries, we find that the importance of branded products is explained by a greater use of brands as self-identity signals, whereas purchases of global brands are explained by a greater use of quality signals. Overall, consumers with a stronger belief in GCGB are more likely to use brands as symbolic signals and to express their identity through brands, and consumer use of global brands as quality signals provides a distinct competitive advantage to global brands in both developed and developing countries.     

Measuring consumer-based brand authenticity

Postmodern consumers use brands to create an authentic self and to reconnect to place, time, culture and others. Although previous research has identified that consumers draw on a range of cues in order to attribute authenticity to branded objects, no scales exist to measure the construct of brand authenticity. Building on the existing literature, this paper uses quantitative methods to develop a psychometrically robust measure of brand authenticity from a consumer's perspective. Findings demonstrate convergent, discriminant and predictive validity, whereby 14 items represent three interrelated first order factors labeled quality commitment, sincerity and heritage that correspond with a higher order brand authenticity construct. This study extends our understanding of the consumption of authenticity. Moreover, it provides a tool by which firms can evaluate the effectiveness of strategic decisions designed to deliver an authentic brand offering to consumers. Limitations and directions for future research are discussed.     

Standing up for or against: A text-mining study on the recommendation of mobile payment apps

Mobile payment systems offer enormous potential as alternative payment solutions. However, the diffusion of mobile payments over the years has been less than optimal despite the numerous studies that have explored the reasons for its adoption. Consequently, there is an increased interest in exploring alternative actions for promoting its diffusion, especially user recommendation of the technology. This is because positive recommendations can enormously influence the decisions of potential consumers to use the technology while negative recommendations can increase resistance to it. The few extant studies in this domain have followed the traditional survey approach with hypothetic-deductive reasoning, thus limiting an understanding of factors outside their conceptual models that could influence recommendations. To address this shortcoming, this study uses a qualitative text-mining approach that explores themes from user reviews of mobile payment applications (apps). Using 5955 reviews from 16 mobile payment apps hosted on the Google Play store, this study applied the latent Dirichlet allocation (LDA) text-mining method to extract themes from the reviews that help to explain why users provide positive or negative recommendations about mobile payment systems. A total of 13 themes (i.e. ease of use, usefulness, convenience, security, reliability, satisfaction, transaction speed, time-saving, customer support, output quality, perceived cost, usability and trust) were generated from the LDA model which provides both theoretical and practical insights for advancing mobile payments diffusion and research.     

Anti-Competitive Impact of Pseudo-Generics

In pharmaceuticals markets, sellers of branded drugs sometimes sell generic versions of their own branded products, either directly or through license agreements. Although claims that these pseudo-generics may have anti-competitive effects are not unusual, the theoretical literature on this issue is limited and not conclusive. This paper uses a model that combines horizontal and vertical product differentiation, to explain how those effects may occur. We show that the producer of the branded product will not sell the pseudo-generic unless faced with competition and that, if she does so, in some circumstances, all prices rise to the benefit of all sellers and the detriment of consumers.     

Investigating the Factors That Make a Fashion App Successful: The Moderating Role of Personalization

Online fashion retailers promote use of fashion apps among their consumers. However, dissatisfaction in using these apps is one of the reasons consumers uninstall them. This research studies the influence of information quality, service quality, and system quality on app satisfaction. Further, the influence of app satisfaction on purchase intentions is also studied. In addition, the moderating role of personalization among the three quality dimensions and app satisfaction is observed. Primary data were collected from 268 respondents. The results established system quality as the most significant factor influencing app satisfaction. Further, personalizing the app increased the influence of the three quality dimensions on app satisfaction.     

What's inside matters: The impact of ingredient branding on consumers' purchasing behaviours in services

Ingredient branding has been widely used as a marketing strategy to create added value and enhance market competitiveness in a variety of durable and non-durable product categories. Despite its prevalence in practice, current research into ingredient branding offers little guidance for the services sector and is, in any event, limited to studies that analyse intentions rather than actual behaviours. This paper contributes to the literature by using scenario-based and field experiments to examine the impact of ingredient branding on consumers' purchasing behaviours in a service context. The scenario-based experiments highlight the mediating role of quality perception on willingness to pay, which increases by up to 9 % for a food item that is ingredient branded. The results of the field experiment show that the actual sales of an item increase by 40 % when it is ingredient branded. Consequently, this paper provides both theoretical and managerial insights into the favourable impact of ingredient branding on consumers’ purchasing behaviour. This paper concludes by proposing an agenda for future research.