Evaluating app bundling strategy for selling mobile apps: an ambivalent perspective

Mobile appstores have fast sprung up during the last few years. The large number of apps in these appstores results in increased search effort for the customer as well as fierce competition leading to poorer revenues for both appstores as well as developers. Therefore, appstores allow developers to resort to bundling apps so as to increase the revenues and improve customer loyalty. Since an app-bundle is a mix of two or more apps, it may induce both positive and negative emotions simultaneously in the consumer. The purpose of this paper is to examine the effectiveness of app-bundling strategy from consumers’ perspective, and help developers design app-bundles.

Based on ambivalence theories, this research investigate different antecedents and influence of positive attitude and negative attitude on purchase behavior, and derives seven key app-bundles attributes through an exploratory study. The data were collected from 930 consumers of app-bundles in China and analyzed using SEM approach.

The findings indicate that positive attitude and negative attitude are two separate concepts and the identified seven app-bundling attributes have distinct effect on shaping consumers’ positive and negative attitude.

This study makes three key contributions to theory and practice. First, this study identifies the specific attributes of app-bundles using exploratory study. Second, this study addresses the challenges involved in examining bundles using ambivalence theory. In doing so, it characterizes attitude as positive and negative and treats them as separate constructs. Third, as called forth by previous studies, this study establishes the co-existence of positive attitude and negative attitude.