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Product survival analysis for the App Store

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  • Euy-Young Jung
  • Chulwoo Baek
  • Jeong-Dong Lee

Abstract

We empirically analyze both free and paid products on the top 100 Free and Grossing charts in the Korea App Store using Weibull parametric survival analysis on the product level. The findings are as follows: First, influences of ranking, customer ratings, and contents size on product survival are different for free and paid products. Customer ratings and contents size critically affect product survival when the price is zero. Second, the early entrant advantage exists in App Store, which results from a ranking system in the App Store and consumer learning. However, the effect of early entrant advantage differs between the Free and Grossing charts; the benefit of early entrant advantage is greater on the Free chart than that on the Grossing chart. Finally, we provide a competitive profit model that is related to free products. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Euy-Young Jung & Chulwoo Baek & Jeong-Dong Lee, 2012. "Product survival analysis for the App Store," Marketing Letters, Springer, vol. 23(4), pages 929-941, December.
    • Handle: RePEc:kap:mktlet:v:23:y:2012:i:4:p:929-941
    DOI: 10.1007/s11002-012-9207-0
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    Cited by:

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    2. Henrik Sällberg & Shujun Wang & Emil Numminen, 2023. "The combinatory role of online ratings and reviews in mobile app downloads: an empirical investigation of gaming and productivity apps from their initial app store launch," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 426-442, September.
    3. Saori Chiba & Chien-Yuan Sher & Min-Hsueh Tsai, 2021. "Can a lengthy application title make an application successful? A perspective of information theory," KIER Working Papers 1058, Kyoto University, Institute of Economic Research.
    4. Lara Stocchi & Naser Pourazad & Nina Michaelidou & Arry Tanusondjaja & Paul Harrigan, 2022. "Marketing research on Mobile apps: past, present and future," Journal of the Academy of Marketing Science, Springer, vol. 50(2), pages 195-225, March.
    5. Lee, Young-Jin & Ghasemkhani, Hossein & Xie, Karen & Tan, Yong, 2021. "Switching decision, timing, and app performance: An empirical analysis of mobile app developers’ switching behavior between monetization strategies," Journal of Business Research, Elsevier, vol. 127(C), pages 332-345.

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    More about this item

    Keywords

    App Store; Product survival; Free product; Early entrant advantage; Profit model; C41; D80; L10; M15;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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