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Temporally Pricing Low or Spotlighting Your App? : An Empirical Study of Amazon's Free App of the Day
Last modified: 2015-10-02
Abstract
This research examines the effect of visibility and pricing, and their interaction effect, on apps’ market performance. In particular, we empirically study Amazon’s Free App of the Day, which puts a single app daily in the spotlight at a zero price. Using data from Amazon, we differentiate between high visibility and temporally free pricing resulted from this promotion strategy. We test how they affect product popularity on Amazon, i.e. volume of online user-generated conversations and sales rank, which in turn affects apps’ sales and revenues on the Android app market.
Keywords
mobile, apps, technology