Branded mobile application adoption and customer engagement behavior

Abstract

In recent years, firms launch interactive technologies to engage and communicate with their customers. Branded mobile applications (apps) are one example. In light of this trend, understanding mobile adopters' cross-platform and engagement behavior is essential in managing customer relationships. This research proposes the context complementarity hypothesis and shows that a branded app is complementary to a firm's other engagement platforms such as PC and mobile websites. PC and app users are also more likely to respond to e-mail promotional offers and have higher spending than non-users. These influences differ by customer segment and brand relationship. Specifically, low-tier customers show a more significant increase in cross-platform engagement than customers who are already loyal. On the other hand, high-spending customers that are relatively new to the firm show a higher increase in spending and promotional responses than low-tier customers. In addition to substantive insights, we conclude with managerial implications and future directions regarding branded apps, mobile and digital platforms, and customer relationship management.