Why Consumers Stay Connected with Branded Applications: The Embeddedness Perspective

Given the fierce competition in app market and the low retention rate, how to design branded apps to promote retention and reduce abandonment is a research question of practical relevance. Most of prior studies have adopted utilitarian and relationship perspectives. This research investigates this research question from a novel perspective- embeddedness. Drawing from embeddedness theory, a model of branded app embeddedness is developed by integrating literature on loyalty program benefits, organizational embeddedness, and branded apps. Three studies are conducted using Taiwanese and US samples. Partial least squares structural equation modeling is used for data analysis. The findings validate that branded app embeddedness is a second-order formative first-order reflective construct. Branded app embeddedness can facilitate app continuance intention, app WOM intention, and brand purchase, but the effects of branded app embeddedness on app deleting intention are partially supported. Based on the results, relevant theoretical and practical implications are discussed