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Updates management in mobile applications: iTunes versus Google Play

Author

Listed:
  • Stefano Comino
  • Fabio M. Manenti
  • Franco Mariuzzo

Abstract

This paper focuses on a specific strategy that developers of mobile applications may use to stimulate demand: The release of updates. We develop a theoretical analysis that shows that developers have incentives to release updates when experiencing a drop in performance. The predictions of the model are then tested using an unbalanced panel of top 1,000 apps in iTunes and Google Play for five European countries. We estimate that while in iTunes the release of an update stimulates a 26% increase in download growth, in Google Play updates play a less significant role. This difference is partly due to systematic differences in apps and in developers operating in the two stores (“selection effect”), and partly to a lack of quality control on apps and updates in Google Play (“quality check effect”). These findings highlight the crucial importance of an appropriate management of updates as well as the relevance of institutional characteristics of the app stores.

Suggested Citation

  • Stefano Comino & Fabio M. Manenti & Franco Mariuzzo, 2019. "Updates management in mobile applications: iTunes versus Google Play," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(3), pages 392-419, June.
    • Handle: RePEc:bla:jemstr:v:28:y:2019:i:3:p:392-419
    DOI: 10.1111/jems.12288
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    References listed on IDEAS

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    Cited by:

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    2. Enache, Andreea & Friberg, Richard & Wiklander, Magnus, 2023. "Demand for in-app purchases in mobile apps—A difference-in-difference approach," International Journal of Industrial Organization, Elsevier, vol. 88(C).
    3. Feiyan Lin & Jing Zhao & Maomao Chi, 2022. "A Study on Temporal Effects of Different Types of Mobile Application Updates," Sustainability, MDPI, vol. 14(3), pages 1-21, January.
    4. Dominik Gutt & Jürgen Neumann & Wael Jabr & Dennis Kundisch, 2020. "The Fate of the App: Economic Implications of Updating under Reputation Resetting," Working Papers Dissertations 76, Paderborn University, Faculty of Business Administration and Economics.
    5. Benedict Bender, 2020. "The Impact of Integration on Application Success and Customer Satisfaction in Mobile Device Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 515-533, December.
    6. Subrahmanyam Aditya Karanam & Ashish Agarwal & Anitesh Barua, 2023. "Design for Social Sharing: The Case of Mobile Apps," Information Systems Research, INFORMS, vol. 34(2), pages 721-743, June.
    7. Arabela Briciu & Victor-Alexandru Briciu & Androniki Kavoura, 2020. "Evaluating How ‘Smart’ Brașov, Romania Can Be Virtually via a Mobile Application for Cultural Tourism," Sustainability, MDPI, vol. 12(13), pages 1-17, July.
    8. Doan, Thanh & Manenti, Fabio M. & Mariuzzo, Franco, 2023. "Platform competition in the tablet PC market: The effect of application quality," International Journal of Industrial Organization, Elsevier, vol. 88(C).
    9. Numminen, Emil & Sällberg, Henrik & Wang, Shujun, 2022. "The impact of app revenue model choices for app revenues: A study of apps since their initial App Store launch," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 325-336.
    10. Kang, Hye Young, 2022. "Technological engagement of women entrepreneurs on online digital platforms: Evidence from the Apple iOS App Store," Technovation, Elsevier, vol. 114(C).
    11. Grazia Cecere & Vincent Lefrere & Fabrice Le Guel, 2022. "Third parties in the app market and economics of privacy," Economics Bulletin, AccessEcon, vol. 42(2), pages 1040-1049.

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