The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study

This study aims to understand the impact of the “Free App of the Day” (FAD) promotion on app sales during the post-promotion period on Amazon Appstore. The FAD promotion spotlights a single paid app by presenting it on the frontpage of Appstore, offers the app free of charge for one day, and broadca...

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Autores principales: Hong Chen, Kevin Lachaud, Wenqi Zhou
Formato: article
Lenguaje:EN
Publicado: Elsevier 2022
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Acceso en línea:https://doaj.org/article/132c05e5ebe94f27be97a78b63c7bf8b
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spelling oai:doaj.org-article:132c05e5ebe94f27be97a78b63c7bf8b2021-12-04T04:36:28ZThe sales effect of “Free App of the Day” on Amazon Appstore: An empirical study2666-954410.1016/j.digbus.2021.100020https://doaj.org/article/132c05e5ebe94f27be97a78b63c7bf8b2022-01-01T00:00:00Zhttp://www.sciencedirect.com/science/article/pii/S2666954421000193https://doaj.org/toc/2666-9544This study aims to understand the impact of the “Free App of the Day” (FAD) promotion on app sales during the post-promotion period on Amazon Appstore. The FAD promotion spotlights a single paid app by presenting it on the frontpage of Appstore, offers the app free of charge for one day, and broadcasts the promotion through Amazon's social media channels. This digital marketing strategy differs from the commonly adopted digital free sampling and sponsorship practices. In this study, we empirically examine its potential negative effect by analyzing a panel data set of FAD app sales and reviews. We find evidence that, when the app promotion expires, the price rebounding to the pre-promotion level discourages online customers from purchasing the app. We also observe an elevated amount of promotion-induced reviews generated at a high velocity during early days of the post-promotion. We conclude that these promotion-induced reviews are less influential than organic reviews.Hong ChenKevin LachaudWenqi ZhouElsevierarticleFree app of the dayDigital free samplingeWOMPrice reboundPromotion-induced user reviewsBusinessHF5001-6182ENDigital Business, Vol 2, Iss 2, Pp 100020- (2022)
institution DOAJ
collection DOAJ
language EN
topic Free app of the day
Digital free sampling
eWOM
Price rebound
Promotion-induced user reviews
Business
HF5001-6182
spellingShingle Free app of the day
Digital free sampling
eWOM
Price rebound
Promotion-induced user reviews
Business
HF5001-6182
Hong Chen
Kevin Lachaud
Wenqi Zhou
The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
description This study aims to understand the impact of the “Free App of the Day” (FAD) promotion on app sales during the post-promotion period on Amazon Appstore. The FAD promotion spotlights a single paid app by presenting it on the frontpage of Appstore, offers the app free of charge for one day, and broadcasts the promotion through Amazon's social media channels. This digital marketing strategy differs from the commonly adopted digital free sampling and sponsorship practices. In this study, we empirically examine its potential negative effect by analyzing a panel data set of FAD app sales and reviews. We find evidence that, when the app promotion expires, the price rebounding to the pre-promotion level discourages online customers from purchasing the app. We also observe an elevated amount of promotion-induced reviews generated at a high velocity during early days of the post-promotion. We conclude that these promotion-induced reviews are less influential than organic reviews.
format article
author Hong Chen
Kevin Lachaud
Wenqi Zhou
author_facet Hong Chen
Kevin Lachaud
Wenqi Zhou
author_sort Hong Chen
title The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
title_short The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
title_full The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
title_fullStr The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
title_full_unstemmed The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study
title_sort sales effect of “free app of the day” on amazon appstore: an empirical study
publisher Elsevier
publishDate 2022
url https://doaj.org/article/132c05e5ebe94f27be97a78b63c7bf8b
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