Abstract

Mobile devices have become a dominant feature of modern life, and increasingly organizations are employing dedicated mobile phone applications to maintain communication with consumers. Despite the increasing adoption of these branded apps among firms, however, a comprehensive framework explaining how these branded apps create value for both consumers and firms has yet to emerge in the marketing literature. Drawing from motivational and service-dominant logic theories, this paper develops a model of the effects of motivational sources on value in use, which translates into higher brand equity. Analysis results from 323 branded app users show that five hypotheses capturing the main effects are supported. However, four hypotheses pertaining to moderation effects are not supported. Specifically, utilitarian motivation and hedonic motivation have an impact on value in use, which in turn leads to enhanced perceived quality, brand loyalty, and brand awareness and associations–the three components of brand equity.

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