Marketing and Supply Chain Management

Guest speaker
Sungho Park, Arizona State University

Title
Playing to Learn and Learning to Play: Effects of Superstar App Adoption on Enhancements to Mobile App Proficiency.

Abstract:
Despite the massive influx of mobile apps into the market, mobile users substantially differ with respect to their mobile app proficiency, i.e., the advent of mobile digital inequality. Using a dataset on individual mobile app usage, we examine the potential of highly ranked “superstar apps” as stimulants of consumption in terms of volume and extent, especially among less mobile-proficient users. We employ the Gaussian copula-based difference-in-differences framework given that it allows us to construct a flexible joint model of continuous app usage duration and discrete number of apps used. Results indicate that superstar adoption boosts app use variety and volume within the same app category and across different categories. Such spillover effects are more pronounced among less technically knowledgeable groups (e.g., users in their 50s or older and late adopters) and managerially under-represented target segments (e.g., irregular, occasional, and light app users). Use frequency and duration among superstar app adopters increase for newly downloaded apps but decrease for existing apps. We provide valuable implications that marketers can capitalize on to target low-proficiency users. We also recommend that policy makers can use superstar apps as nonintrusive and cost-efficient vehicles for enhancing mobile app proficiency and bridging the mobile digital inequality.