“It could be a total game changer if a company provides an app that’s well functioning and offers some consumer benefit,” said lead author of the study Su Jung Kim from Iowa State University.
Kim and colleagues examined mobile apps specifically to determine whether these popular interactive features influenced consumer spending or not by working on the use of information lookups (checking point balances, reward items and transaction history) and identifying location at stores affiliated with the programme.
Despite the fact that the application did exclude a buying feature, it did drive deals. Mobile Apps lovers who downloaded the branded application and kept utilizing it, over the time of three months, has increased their spending by 19 to 48 percent. Youthful buyers are adapted to utilize the application than more elder ones. Kim said “in order to capitalize on the mobile apps market, companies must create an app that provides value to consumers”.
“We understand the urge of brands wanting to get an app out on the market, but they really need to take caution and test it. Customers are not going to give the app a second chance,” Kim added.
“We found that people who stop using the brand mobile app after they download it become disengaged. In terms of purchase behaviour, they purchase less frequently and spend less money,” she told.