 What drives add-on sales in mobile games? The role of inter-price relationship and product popularitySeongsoo Jang and Jaihak Chung Journal of Business Research, 2021, vol. 124, issue C, 59-68 Abstract: Mobile app developers monetize in-app purchases or add-ons whose prices can be compared with the prices of the app and other add-ons. However, little attention is paid to pricing methods of the base and add-on products to maximize add-on sales. This study examines how absolute and relative prices of new add-ons—compared with those of the base and existing add-on products in the same product—influence their sales with a consideration of product popularity. Using a sample of 7,108 weekly observations derived from 74 mobile games and 514 add-ons, we find that the absolute (relative) price of a new add-on has a positive (negative) effect on the add-on sales. Moreover, we find that the negative relationship between relative price and sales is attenuated by base sales and review volume. This study provides app developers a substantial guideline for optimally pricing base and add-on products under different levels of product popularity. Keywords: Mobile application; Add-on pricing; Relative price; Product popularity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:124:y:2021:i:c:p:59-68 DOI: 10.1016/j.jbusres.2020.11.025 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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