earticle

영어

Mobile application developers have capabilities to promote their products already released in the market by responding to dynamic consumer demands. This research investigates the role of App updates in stimulating consumer demand in the presence of strong ranking effects and evaluate the value of quality in the competitive mobile App market. A panel vector autoregresive (PVAR) model is adopted to investigate the interdependencies among rankings, price discounts, and quality updates made from 1,019 game Apps over 135 days in U.S. Apple App Store. The findings empirically substantiate predominant ranking effects in the market, and suggest developers make strategic update decisions based upon dynamic consumer needs. Specifically, a quality update has a positive impact on App sales when consumers want better quality Apps and a price promotion strategy is important when there is growing App demand along with increased device sales. We further find while a quality update has a delayed and long-term impact on sales, a price discount has an immediate and short-term impact. This result posits a positive relationship between quality improvement and App success in the long run.