When are apps worth paying for? An analysis of the market performance of mobile apps

Through the use of established marketing laws such as the brand usage and image relationship and the Double Jeopardy effect, this research shows how to analyze the market performance of different types of mobile apps. The key empirical findings are as follows: apps linked to an offline/online brand attract more users and obtain stronger brand image if made available to consumers at no cost; apps branded independently attract more users and obtain 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 also translate into practical guidelines relevant to managers of existing brands wanting to launch an app, as well as managers wanting to market apps as stand-alone digital products.