Abstract
Keywords
Introduction
Literature review and hypothesis development
Methods
Results
Discussion
Conclusion
Appendix A. Supplementary material
Research Data
References
ABSTRACT
Mobile devices have become a dominant feature of modern life, and increasingly organizations are employing dedicated mobile phone applications to maintain communication with consumers. Despite the increasing adoption of these branded apps among firms, however, a comprehensive framework explaining how these branded apps create value for both consumers and firms has yet to emerge in the marketing literature. Drawing from motivational and service-dominant logic theories, this paper develops a model of the effects of motivational sources on value in use, which translates into higher brand equity. Analysis results from 323 branded app users show that five hypotheses capturing the main effects are supported. However, four hypotheses pertaining to moderation effects are not supported. Specifically, utilitarian motivation and hedonic motivation have an impact on value in use, which in turn leads to enhanced perceived quality, brand loyalty, and brand awareness and associations–the three components of brand equity.
Introduction
Building brand equity with consumers is vital for firm success but the path along which consumers direct their attention has changed rapidly in the past 15 years. When Steve Jobs introduced the first iPhone in 2007, he called it a “revolutionary” breakthrough (Emba, 2017). Indeed, a mere decade later, more than 77% of all Americans own smartphones—a number that jumps above 90% among those between the ages of 18 and 49 (Pew Research Center, 2018). The revolution was not in the product itself, however, but in how these smartphones have changed the habits and behaviors of their owners. The average smartphone user has more than 75 daily engagement sessions with his/her smartphone, devoting more than two hours of attention to the device every day (Winnick, 2016). Given the vast amount of attention consumers are directing toward their smartphones, it comes as little surprise that most major retailers now have dedicated mobile applications, and over two-thirds of consumers have downloaded at least one retailer application to their smartphones (Synchrony Digital Study, 2018)