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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2022
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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) |
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Free app of the day Digital free sampling eWOM Price rebound Promotion-induced user reviews Business HF5001-6182 |
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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 |
work_keys_str_mv |
AT hongchen thesaleseffectoffreeappofthedayonamazonappstoreanempiricalstudy AT kevinlachaud thesaleseffectoffreeappofthedayonamazonappstoreanempiricalstudy AT wenqizhou thesaleseffectoffreeappofthedayonamazonappstoreanempiricalstudy AT hongchen saleseffectoffreeappofthedayonamazonappstoreanempiricalstudy AT kevinlachaud saleseffectoffreeappofthedayonamazonappstoreanempiricalstudy AT wenqizhou saleseffectoffreeappofthedayonamazonappstoreanempiricalstudy |
_version_ |
1718372894692605952 |